Unibail-Rodamco-Westfield SE

URW aims to decrease its value chain emissions by 50% between 2015 and 2030. Next to this, 100% of the company’s suppliers are engaged in climate change data reporting, and a small proportion of suppliers are being offered financial incentives by the company for the reduction of their operational and upstream emissions. The company also asks suppliers and subcontractors to communicate and suggest new low-carbon solutions for construction. Moreover, URW tracks the emissions of its projects and measures supplier compliance, but it has no process in place to respond to non-compliance.

URW has set a goal of reducing emissions from operations by 80% between 2015 and 2030. It also aims to use 100% renewable energy for its common areas. The company’s customer engagement programme aims to accelerate decarbonisation by encouraging tenants to use renewable energy sources, install LED lighting and adopt other sustainable practices. The company also organises sustainability committees at the property level and adds specific green terms to lease agreements. These efforts have resulted in a 55% penetration rate of green leases signed in 2021, with higher rates in continental Europe compared to the UK and US.

URW has set a target to reduce absolute scope 1, 2 and 3 emissions by 50% by 2030 compared to 2015. The company is also aiming to reduce scope 1, 2 and 3 emissions intensity from operational energy use by 80% and scope 3 emissions associated with the transportation of visitors to the shopping centres by 40% per visitors over the same target timeframe. The targets are aligned with a 1.5°C scenario and validated by the Science Based Targets initiative (SBTi). However, the company lacks long-term targets and intermediate targets at regular gaps of no more than five years that can drive near-term action towards its longer-term goals.

URW has a structured approach to addressing climate change with board oversight and a dedicated team led by an expert in environmental management. The company has set ambitious emissions reduction goals and has commitments for the construction, development and operation of its owned and managed buildings. Furthermore, URW incentivises employees based on emissions reduction and performance against a climate-related sustainability index. However, it has not disclosed the financial content of its decarbonisation plan, short-term transition actions or a process for reporting progress on the plan. Nor has the company used a carbon price in its climate scenario analysis.

URW does not disclose sufficient data to assess its past emissions intensity trend. The company only reports the in-use emissions of the buildings it manages for 2020 and 2021. To align with its 1.5°C pathway, the company is required to reduce its emissions intensity by approximately 10% per year between 2021 and 2026. Additionally, the company does not quantify any plans to renovate its portfolio. As a result, it is not possible to reliably forecast the company’s emissions intensity between 2021 and 2026. Based on the current portfolio, the company is expected to exceed its 1.5°C carbon budget over the next 25 years by at least 60%.

URW has implemented several business strategies to ensure profitability in a low-carbon economy. These include installing solar panels and wind turbines across its portfolio to generate on-site electricity, developing sustainable mobility programmes and improving energy efficiency of its new and existing assets. Additionally, the company has adopted a ‘lean building’ approach, using fewer and alternative low-carbon materials. URW also partners with construction firms and manufacturers of building materials to implement innovative solutions. However, it provides limited data with respect to the profitability and growth potential of these business models.

URW has set several emissions reduction targets covering its scope 1, 2 and 3 emissions. It commits to reducing scope 1, 2 and 3 absolute emissions by 50% and scope 1, 2 and 3 emissions intensity from operational energy use by 80% between 2015 and 2030 These targets have been validated by the SBTi.

The company has developed a transition plan called Better places 2030, which is informed by climate change scenario testing and a risk assessment covering different time horizons and using multiple scenarios. The company has also developed strategies to engage its value chain and suppliers to reduce emissions.

The company installs solar panels and wind turbines across its portfolio to generate on-site electricity, develops sustainable mobility programmes, uses more low-carbon materials and focuses on energy efficiency improvements for its new and existing assets.

100% of URW’s buildings in Europe have been running on renewable electricity since 2018. The company has also developed an extensive solar power programme in the US. Further, URW has reduced the emissions intensity of its retail and office properties between 2018 and 2020; however, emissions intensity for these has increased once more in 2021.

URW’s low-carbon transition plan and targets do not extend beyond 2030. The company has not made a net-zero commitment and has not set intermediate short-term targets. The transition plan also lacks financial commitments towards decarbonisation. Concerns around the company’s reputation increased after a significant negative reaction to the Triangle Tower project in France for allegedly being contradictory to the Paris Climate Plan.

No evidence was found of URW’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 URW 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 action 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.

No public commitment by the company was found stating its intention to re- and up-skill workers displaced by the low-carbon transition. Additionally, no evidence was found that the company re- and up-skills workers in a way that ensures gender balance and inclusion of vulnerable groups.

No relevant disclosure was found to show if URW 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.

URW has a grievance mechanism available to workers and external stakeholders to report human rights concerns. However, no other company policies or commitments related to respect for human rights were found in the public domain. This includes the necessary policies and systems by which the company can ensure respect for basic human rights in its operations and supply chain.

No evidence was found that URW commits to respecting worker health and safety and expects the same commitment of its business relationships. Moreover, no evidence was found of the company having a time-bound target for paying all its workers a living wage. The company does, however, disclose data on some indicators of workforce diversity, including the age and gender of its workforce by employee category. There is no evidence that the company commits to promoting gender equality and women’s empowerment.

URW commits to protecting personal data. However, no evidence was found of the company having a privacy statement regarding the collection, sharing and access to personal data. There was no evidence that the company discloses its global tax strategy and the corporate income tax it pays in individual jurisdictions. The company does have a policy prohibiting bribery and corruption, and it includes corresponding clauses in its contracts with business relationships. However, no relevant disclosure was found of the company’s lobbying and political engagement policy as well as its lobbying expenditure.