SEGRO PLC

Segro has a robust low-carbon transition plan that includes short- and long-term planning. Moreover, it has established a Green Finance Committee, and every application for capital expenditure of USD 13.8 million or more requires approval from Segro’s executive directors. For approval, the projects must be consistent with Segro’s commitments and targets for building certification, energy efficiency and renewable energy use and generation. The company’s transition plan has also been informed by climate change scenario analysis and the company uses a carbon price of USD 137 in decision making.

Segro aims to support its customers in the procurement of renewable energy. It has introduced green leases for its customers. Because of these leases, all Segro-controlled electricity is now certified renewable energy. The introduction of green leases has led to a 10% reduction in the company’s operational emissions during 2021, equating to 31,500 tonnes of carbon emissions saved. Furthermore, Segro collects performance data from the 54% of its customers whose energy procurement it does not control. The operational data will be used by the company to better understand in-use emissions and improve energy efficiency.

Segro has ambitions to reach net zero by 2030. As part of these ambitions, the company has set targets that it considers a required minimum. The company aims to reduce scope 1, 2 and scope 3 downstream leased assets emissions by 42% by 2030 compared to 2020. The company is currently on track to meet this target. In addition, Segro has set a target to reduce the embodied carbon intensity of its new developments by 20% by 2030 compared to 2020. The company has not set any interim targets.

Segro reduced its scope 1, 2 and scope 3 downstream leased assets emissions intensity by 26% between 2020 and 2021. However, in 2021, the company changed its methodology for calculating downstream leased assets emissions to one validated by the Science Based Targets initiative (SBTi). While the emissions for 2020 were recalculated, this was not done for previous years. Therefore, it is not possible to meaningfully assess the past trend in the company’s emissions intensity.

Segro has set interim targets to reduce scope 1, 2 and scope 3 downstream leased assets emissions by 42% by 2030 compared to 2020. It has also set a target to reduce the embodied carbon intensity of its new developments by 20% by 2030 compared to 2020. These targets are considered the minimum required and it aims to reach net zero by 2030.

Segro has established a Green Finance Committee and every application for capital expenditure of USD 13.8 million or more requires approval from Segro’s executive directors. For approval, the projects must be consistent with Segro’s commitments and targets for building certification, energy efficiency and renewable energy use and generation.

Segro has installed on-site solar power facilities with a generation capacity of 35.4 megawatts (MW). It has also introduced green leases for its customers, which led to a 10% reduction in the company’s operational emissions during 2021. Furthermore, it monitors buildings’ energy use through energy performance certificates (EPCs) and collects emissions data on the 54% of its clients whose energy procurement it does not control.

Segro reduced its scope 1, 2 and scope 3 downstream leased assets emissions intensity by 26% between 2020 and 2021. Between 2020 and 2021, the company reduced its embodied emissions intensity from 400 to 391 kilograms of carbon dioxide equivalent (CO2e) per square metre through supplier engagement.

SEGRO has a robust low-carbon transition plan and there is evidence of the company putting this into practice through supplier and client engagement. In 2021, the company changed its methodology for calculating scope 3 emissions to align with the Science Based Targets initiative. However, it has not adjusted its emissions data for the years prior to 2019. Therefore, a trend analysis for the company’s past emissions intensity was not possible.

No evidence was found of Segro’s commitment to social dialogue or of the categories of stakeholders the company engages with on a just transition. Furthermore, no evidence was found to demonstrate the company’s ongoing social dialogue and meaningful engagement with affected stakeholders.

No evidence was found of the company undertaking just transition planning to mitigate the social impacts of the low-carbon transition on workers, affected stakeholders and its business relationships. Additionally, no evidence was found to demonstrate the company’s engagement in social dialogue and with stakeholders in its just transition planning.

No public commitment by Segro was found stating its intention to create and support access to green and decent jobs as part of the low-carbon transition. Moreover, no evidence was found of the company’s actions to promote these jobs in a way that ensures gender balance and inclusion of vulnerable groups. Additionally, no relevant disclosure was found of the company’s assessment of employment dislocation risks.

The company discloses the actions it takes to provide training opportunities for workers and affected stakeholders. For instance, the company provides educational resources on digital topics and data analysis and visualisation tools to its staff. However, no relevant disclosure was found of the company embedding equality of opportunity for women and vulnerable groups in these actions. Furthermore, no evidence was found of the company having a process for identifying skills gaps for workers and affected stakeholders or a public commitment to help workers displaced by the transition to re- or up-skill.

No relevant disclosure was found to show if Segro identifies impacts of the low-carbon transition on social protection for workers and affected stakeholders, nor how it contributes to social protection. Additionally, no evidence was found that the company expects its business relationships to contribute to the social protection of their workers and affected stakeholders.

No relevant disclosure was found to show how the company identifies any misalignment of its lobbying activities with policies and regulations that support the just transition, nor of the measures it takes to address misalignment. Furthermore, no evidence was found that the company lobbies for policies and regulations for green and decent job creation; retention, education and reskilling; and social protection for workers.

While Segro commits to respecting human rights, there is no evidence that it commits to respecting the ILO fundamental rights at work, nor that it expects its business relationships to respect these rights. No evidence was found of the company’s process to identify, assess and mitigate salient human rights risks in its own operations and in its supply chain. Moreover, no evidence was found of the company disclosing the stakeholders whose human rights have been affected by its activities. The company does, however, have a grievance mechanism available to workers and external stakeholders to report human rights concerns.

Segro commits to respecting worker health and safety and expects the same commitment of its business relationships. However, no evidence was found that the company discloses quantitative information on health and safety for its workers. Further, no evidence was found of the company having a time-bound target for paying all its workers a living wage. The company discloses some indicators of workforce diversity, including the age of its workforce by employee category. However, no relevant disclosure was found of additional indicators of workforce diversity. The company does not commit to promoting gender equality and women’s empowerment.

Segro commits to protecting personal data and discloses a privacy statement regarding use of personal data. Additionally, the company discloses its global tax strategy and board accountability for the strategy. The company does have a policy prohibiting bribery and corruption, but it is unclear whether it includes corresponding clauses in its business relationship contracts. The company specifies that it does not make political contributions. However, no relevant disclosure was found of the company’s lobbying and political engagement policy and its expenditure on lobbying activities.