British Land Uk Real Estate Company - CR-Online-Report-2010

INTRODUCTION 01
INTRODUCTION
FOR US, CORPORATE RESPONSIBILITY IS ABOUT REDUCING OUR USE OF RESOURCES, MEETING OUR CUSTOMERS' NEEDS, SUPPORTING OUR COMMUNITIES AND GETTING THE BEST OUT OF OUR STAFF AND SUPPLIERS.
Chief Executives statement Introductory statement Who we are Our approach to CR Medium-term targets Awards weve won British Land awards
AWARD EIGHT 17
Property Company of the Year.
new long-term targets to drive performance.
British Land Award Winners.
British Land has long held a deep commitment to advancing the sustainability agenda in both property development and management. We all need to transform how we use energy and how we source it. This is something that we have taken seriously for a long time, as we seek to manage the issues that face our business, and indeed our society. Dr Chris Gibson-Smith Chairman, British Land
We aim to be the partner of choice and to lead the property sector. Corporate responsibility plays an important role in our efforts to achieve this doing business the right way.
Chris Grigg Chief Executive, British Land Find out more
britishland.com/crReport2010
INTRODUCTION 02
INTRODUCTION
FOR US, CORPORATE RESPONSIBILITY IS ABOUT REDUCING OUR USE OF RESOURCES, MEETING OUR CUSTOMERS' NEEDS, SUPPORTING OUR COMMUNITIES, AND GETTING THE BEST OUT OF OUR STAFF AND SUPPLIERS.
Chief Executive's statement

We aim to be the partner of choice and to lead the property sector. Corporate responsibility plays an important role in our efforts to achieve this doing business the right way.
Chris Grigg Chief Executive, British Land Our business success depends on our ability to develop and manage buildings that offer enduring appeal, at the same time as operating efficiently and effectively for the hundreds of businesses which occupy the buildings we own and manage. Treating local people properly, particularly where we are building on their doorsteps, and being fair in our dealings with our staff and suppliers, are not just box-ticking exercises, they are part of our core ethos as a company. In recent times, we have heard about sustainability more and more often. The problem with words like this is that they may mean different things to different people. Where possible, we prefer to be more specific and more measurable. We aim to be energy and water efficient, to send as little waste as possible to landfill, to keep our customers happy, to build good relationships with local communities, and to attract and retain appropriately skilled and experienced staff. Our efforts continue to be underpinned by our strong customer focus. We were pleased to be recognised as the real estate sector leader in Oekoms Corporate Responsibility Review 2010, as well as one of Corporate Knights Global 100 Most Sustainable Corporations 2009. However, if we developed a green building that nobody wanted to occupy, we would not be meeting the needs of our customers or our investors. If we turned off lights inappropriately at our retail parks, we may save energy but we could cost our retailers footfall and shopper spend. Many of the issues concerned with sustainability are complex and inter-related, so we have to take a common sense approach to fit each business circumstance. For instance, our premium office estate, Regents Place, where we recently completed the latest phase of our plans for the area, adjoins one of the most deprived neighbourhoods in London. Here, community engagement and regeneration are critical to our ability to develop and manage our investment. Elsewhere, whilst these activities are still important, other aspects may rise up the agenda; for instance, managing flood risks in the River Don District or conserving water in areas prone to drought. At our Head Office, we have worked closely with our building management team and occupiers to improve energy efficiency, supported by a new energy management system. The result was a 32% reduction in British Land controlled energy use, saving nearly 1 million kWh and 50,000 on energy bills. We are now working with occupiers and managing agents across our portfolio to implement similar schemes elsewhere. Given that we managed 128 million kWh of energy on behalf of occupiers across our multi-let portfolio this year, with an estimated energy bill of 10 million, the opportunity for savings is significant. Corporate responsibility is, without doubt, a critical part of our approach to property development and management. This is why we are able to build developments that are 27% more energy efficient than the norm, and how we reduced energy use by 12% across our like-for-like portfolio. Im pleased with the progress we have made this year, but I also recognise that we still have further to go to ensure that every member of our Head Office team and supply chain understands our partnership approach to corporate responsibility, and recognises that it is a central part of how we do business the right way.
INTRODUCTION 03
INTRODUCTION
Introductory statement
I am delighted to be taking on the brief for developing and implementing our partnership approach to corporate responsibility strategy, having been actively involved at a senior level for a number of years.
Adrian Penfold Head of Planning and Environment As a business we have a responsibility to all those people whose lives we affect, to businesses which occupy our properties, to people who work or shop at our properties, or who live nearby, to our own staff and those of our suppliers, to our shareholders who have invested their funds in our business and to future generations who will be affected by the way in which we treat our planet and its finite resources. We are already working with our partners to generate significant savings in energy and water use, at the same time as meeting and anticipating our customers needs. However, the extent to which we rely on others also presents challenges, as partnerships can sometimes lead to inaction and we can only achieve results by managing our relationships with suppliers and occupiers effectively. We will continue to drive all aspects of our performance and respond to the needs of our partners. We are getting significant buy-in from our occupiers on our efficiency initiatives, which are delivering cost reductions, for instance through less energy and water use, and focused security and cleaning contracts. We have also helped occupiers to build strong relationships with local people at properties such as Regents Place in London and Glasgow Fort Shopping Park. We continue to anticipate occupiers future demands, for instance developing 60,000 sq ft of green roof space in central London to encourage biodiversity and provide our occupiers with a pleasant environment to work in or look out upon. The response from occupiers is very encouraging and we firmly believe that by addressing customers existing and future requirements in this way we will achieve a business advantage. In terms of developments, over the last couple of years we have benefited from the chance to review our approach to sustainable developments during a quieter period, for instance, reviewing embodied carbon and exploring environmental and social impacts. As we move back towards more development activity, this provides a firm base for our approach to sustainability. Next year, we will be updating our Sustainability Brief for Developments to reflect feedback from our project teams, as well as best practice and regulatory requirements. Going forward, we will maintain our partnership approach, embedding corporate responsibility amongst our staff and suppliers, at the same time as working closely with our customers and local people. We will be carrying out independent surveys over the next year or two, to identify further opportunities to raise performance and increase the satisfaction levels of our staff, customers and local communities, as well as to improve customer satisfaction with our suppliers. We already work intensively with investors and will look at ways to communicate with them more closely on corporate responsibility, exploring what issues matter to them most, as well as doing more work to understand the links between corporate responsibility and business success. When we started targeting BREEAM Excellent ratings for all of our office developments several years ago, we correctly anticipated future occupier demand for more sustainable commercial buildings. We are now seeing financial and business service companies competing with each other on the sustainability credentials of their offices. Similarly, our commitment to carbon neutrality has prepared us to deal with the financial and administrative implications of the Governments CRC Energy Efficiency Scheme which came into effect this year. Thanks to our rigorous approach to managing and monitoring issues such as energy efficiency, water use, recycling and customer satisfaction, we are well placed to meet more demanding regulatory requirements, financial pressures and stakeholder expectations. Ultimately the test of whether our corporate responsibility strategy is working is our ability to offer enduring occupier appeal. We recognise that the calibre of organisations which select us as their partner of choice will reflect our success in providing a sustainable environment in which modern business can thrive.
INTRODUCTION 04
INTRODUCTION
Who we are
British Land manages, owns finances and develops prime commercial property to achieve superior long-term growth in shareholder value. We aim to be the partner of choice.
Our portfolio focuses primarily on out-of-town retail properties and central London offices, which offer attractive risk-adjusted growth prospects. We have also gained valuable expertise in the residential and leisure sectors with the increase in mixed use developments. Our portfolio includes directly held properties as well as properties held through investment funds and joint ventures. British Land became a Real Estate Investment Trust (REIT) in 2007.
INTRODUCTION 05
INTRODUCTION
Our approach to corporate responsibility

The key material issues managed and monitored through our partnership approach to corporate responsibility are:
NATURAL RESOURCES
We aim to improve energy efficiency, reduce water use and cut waste to landfill. This reduces our costs and those of our occupiers, as well as conserving precious natural resources.
CUSTOMERS
We aim to build closer relationships with our customers to help them to achieve their goals, and to help us to achieve ours.
COMMUNITIES
We aim to foster economic regeneration and to demonstrate the highest standards of ethical behaviour in our dealings with communities and the built environment.
STAFF AND SUPPLIERS

We aim to treat our suppliers and staff as members of a single team who work together to ensure the success of our business and delivery of excellent service to our customers.
INTRODUCTION 06
INTRODUCTION
Medium-term targets
We launched our partnership approach to corporate responsibility in 2007. This year, we added even more challenging targets for the next few years.
This data is independently assured, so you can be confident that we are reporting accurately on those issues most material to our business. All data in the Report covers the period from 1 April 2009 until 31 March 2010, unless otherwise stated.
NATURAL RESOURCES To reduce managed energy use by 20% per m 2 for each property type by 2012, compared to 2009.
We used 15% less energy per m in our offices this year, 17% less in our shopping centres and 12% less in our retail parks. We used 12% more in our Continental European properties and will work with our agents to address this.
To send zero managed waste to landfill from all our properties and developments by 2012.
We diverted 83% of managed waste from landfill this year, and 86% of development waste.
To reduce managed water use by 20% per m for each property type by 2015, compared to 2009.
We used 38% less water per m in our retail parks this year and 19% less in our Continental European properties. There was no change in our offices and an increase to 0.9 cubic metres per m in our shopping centres from 0.5, largely due to the inclusion of new properties.
To achieve planning consent for a zero carbon commercial building by 2015.

Our developments are designed to have 27% lower carbon emissions on average than current standards.
CUSTOMERS To achieve 80% customer satisfaction with us and our managing agents by 2013.
82% of our UK customers rated us as good or excellent in 2009, up from 73% in 2007. 43% rated our managing agents as good or excellent, up from 40% in 2007.
COMMUNITIES To set a 2015 target for local satisfaction with British Land as a developer.
Next year, we will establish a methodology to measure local satisfaction with British Land as a developer.
STAFF To set a 2015 target for staff satisfaction with British Land as an employer.
Next year, we will carry out a survey to measure staff satisfaction.
INTRODUCTION 07
INTRODUCTION
Chief Executives statement Introductory statement Who we are Our Approach to CR Medium-term targets Awards weve won British Land awards
Awards we've won

We thank our staff and suppliers for delivering value and making a difference to our customers and communities, as well as saving precious natural resources.
Oekom Corporate Responsibility Review 2010

Real Estate Sector Leader - British Land
NATURAL RESOURCES Global 100 Most Sustainable Corporations 2009

British Land, for the second year
Green 500 and the Better Buildings Partnership Awards 2009

Gold Portfolio Award - British Land Owner Occupier Partnership Award - 201 Bishopsgate and The Broadgate Tower Platinum Award - 350 Euston Road
UK GBC Sustainable Development Awards 2009

Highly Commended for Sustainable Project of the Year - Ropemaker
The Sunday Times 60 Best Green Companies Index 2010

British Land, for the second year running
CUSTOMERS Estates Gazette Awards 2009

National Property Company of the Year - British Land
Property Managers Association Awards 2009

Voted Landlord of the Year by UK retailers Voted Best Service Charge Provider by UK retailers, for the second year
Ethical Corporation Awards 2010

Highly Commended for Authentic Communications - Occupiers Survey 2009
COMMUNITIES Business in the Community Big Tick Awards 2010

Active Communities Award - The Source at Meadowhall, for the second year running Education Award - The Schools Programme at The Source for the second year running
BCSC Purple Apple Awards 2009

Merit Award - Eastgate Shopping Centre for community relations
ICSC Foundation Awards 2009

Community Award - The Source at Meadowhall
Lord Mayors Dragon Awards 2009

Lord Mayors Award for our long-term commitment to West Euston Social Inclusion Award - Broadgate Estates and Knightsbridge Guarding
Regeneration and Renewal Awards 2009

Mixed-use Project of the Year Award - St Stephens Shopping Centre
INVESTORS Property Week Awards 2009

City Deal of the Year Award - Bank of Tokyo Mitsubishi pre-let at Ropemaker
IR Magazine UK and Continental Europe Awards 2009

Real Estate Award - British Land
INTRODUCTION 08
INTRODUCTION
Chief Executives statement Introductory statement Who we are Our Approach to CR Medium-term targets Awards weve won British Land awards
British Land awards

Each year we recognise our employees and suppliers for delivering value, and making a difference to our customers and communities.
NATURAL RESOURCES Energy Reduction

Fort Kinnaird Shopping Park in Edinburgh reduced energy use by 28%, saving our occupiers 13,000 and cutting carbon emissions by 80 tonnes.
Energy Reduction
York House in London W1 reduced total energy use by 1.1 million kWh, saving us and our occupiers 63,000 and cutting carbon emissions by 400 tonnes.
Water Reduction
Parkgate Shopping in Rotherham reduced water use by 42%, saving 2.1 million litres of water and cutting costs for occupiers by 2,640.
Waste Management
Eastgate Shopping Centre in Basildon sent zero waste to landfill, recycling 79% and incinerating the remainder, saving 32,000 in landfill taxes.
Waste Management
8Build at 1 Pilgrim Street in London recovered 97% of development waste, saving 19,500 in landfill taxes.
Resource Management in Continental Europe

Nassica Retail and Leisure Park in Madrid reduced energy use by 1%, saving 41,500 kWh of energy, 6,000 on energy bills and 277 tonnes of carbon.
CUSTOMERS Sustainability Collaboration

Western Asset Management, one of our occupiers at 10 Exchange Square, actively engaged in our Environmental Working Group, introducing a range of initiatives to cut energy and water use.
Cost Reduction
Smith Young, managing agent at Meadowhall Shopping Centre in Sheffield, cut forecast service charge costs by 18%, saving retailers 2.3 million.
Customer Service
Colliers CRE, managing agent for five of our shopping parks, was rated as excellent for service, communication and responsiveness by more than half of our staff surveyed.
Customer Service
Michael Urban (Ultimate Security Services), security guard at 350 Euston Road in Regents Place, received outstanding feedback for his attitude and efforts.
COMMUNITIES Fundraising
Eastgate Shopping Centre raised 130,000 for good causes, including local hospices and the Poppy Appeal. 15 members of the team even cycled from London to Paris for charity.
Community Contribution
Christine Tona (Broadgate Estates) works with East London Business Alliance to help jobseekers to find employment at Broadgate, helping them to turn their lives around.
Community Collaboration
Jean Hurman (West Euston Partnership) is a tireless campaigner for the residents of West Euston, where Regents Place is located.
STAFF AND SUPPLIERS Staff Volunteering

Miles Price (Planning Executive) has been championing Capital Kids Cricket for several years, as well as volunteering in local schools, generously giving his own time.
Staff Environmental Engagement

Scott Jackson (Business Analyst) cut his home energy use by 33% after installing an energy monitor, and is now encouraging our staff to take this step, with British Land funding the monitors.
Finance Team
Colliers CRE Finance Team was rated as excellent for responsiveness, accuracy, problem solving, communication and understanding of our needs by more than half of our staff surveyed.
Supplier of the Year

Mace was a skilled and efficient project manager at Ropemaker Place, delivering this premium 600,000 sq ft office development on time and under budget.
NATURAL RESOURCES 01
NATURAL RESOURCES
WE AIM TO IMPROVE ENERGY EFFICIENCY, REDUCE WATER USE AND CUT WASTE TO LANDFILL. THIS REDUCES OUR COSTS AND THOSE OF OUR OCCUPIERS, AS WELL AS CONSERVING PRECIOUS NATURAL RESOURCES.
Energy Waste and materials Water Carbon and CRC Travel Biodiversity
12%
11,000 TONNES
less like-for-like energy use than last year, saving 11.1 million kWh and 700,000. of waste recovered, equivalent to 445,000 in landfill taxes. less like-for-like water use than last year, saving 54.7 million litres of water and 70,000. net carbon contributed into the atmosphere from energy use across the common parts of our entire managed portfolio. better energy efficiency than current standards across our developments. of green space created on our London developments.
13% ZERO 27%

60,000 SQ FT
British Lands approach to encouraging biodiversity through green roofs is absolutely exemplary. It is great to hear that a rare black redstart is already using the green roof in Broadgate for foraging. Hats off to British Land.
Dusty Gedge President of the European Federation of Green Roof Associations and Director of livingroofs.org Find out more
NATURAL RESOURCES
Energy
We aim to reduce energy use by 20% per m 2 for each property type by 2012, compared to 2009.
In the UK, we used 15% less energy per m in our offices, 17% less in our shopping centres and 12% less in our retail parks. We launched our Sustainability Brief for Management which sets energy efficiency standards and identifies good practice. At our larger properties, we continued to implement Environmental Action Plans. We also piloted an energy management system at our Head Office, which led to significant savings, and are now introducing similar systems at more properties. In Continental Europe, we used more energy per m than last year. We are working closely with our Continental European team to improve performance. On our developments, we achieved 27% better energy efficiency on average than current standards. However, standards will become increasingly stringent and so we need to innovate even more. Our Sustainability Brief for Developments has been driving energy efficient design on all our major projects since 2004. Our energy use chart 50,000 savings at our Head Office
28% less energy use at Fort Kinnaird Shopping Park
Energy Management Energy Data 2010
NATURAL RESOURCES
Waste and materials

We aim to send zero managed waste to landfill by 2012. This year, we diverted 83% of waste from landfill at our properties and 86% on our developments.
Our new Sustainability Brief for Management requires our managing agents to develop Waste Management Plans for all our larger properties and estates. They focused on increasing recycling rates by improving waste segregation facilities on site and by working more closely with local waste contractors. They also worked with occupiers, encouraging their staff to use the segregation facilities. Our Sustainable Developments Executive, Sarah Cary, worked closely with building contractors and sub-contractors on our development sites to monitor waste management. In October, members of the British Land developments team visited a materials recovery facility used to process waste from a number of our developments. Sarah commented: It was a very informative trip which, going forward, will help us enormously to manage our approach to construction waste better. Managed waste at our properties
Zero waste to landfill at Eastgate Shopping Centre
97% of fit-out waste recovered at 11 Pilgrim Street Waste Management Waste Data 2010
TONNES
developments. of construction waste recovered.
86% 43% 23% 445,000 97%
of waste recycled at our properties, up from 40% last year. of materials in our new developments comprised recycled content by value. landfill tax savings by recycling or re-using waste at our properties and developments.
of fit-out waste recovered.
NATURAL RESOURCES
Water
We aim to reduce water use by 20% per m 2 for each property type by 2015, compared to 2009.
We used 38% less water per m in our retail parks this year and 19% less in our Continental European properties. However, there was no change in our offices and an increase in our shopping centres, due to the inclusion of new properties that do not benefit from the rainwater harvesting and borehole water systems present at some of our existing properties. We will focus on reducing water use at these new properties. We are also installing extra meters to monitor water use across our office portfolio, and in properties where we have non-mains sources. We will be increasing our efforts to reduce water use. Although payback periods tend to be longer than for energy initiatives as water costs are lower, significant savings can be achieved, for instance through more effective maintenance regimes for water infrastructure. We will also continue to undertake annual flood risk assessments where there is perceived exposure, implementing initiatives as appropriate. On our developments, our project teams continue to apply our Sustainability Brief, specifying water efficient technologies, introducing rainwater harvesting schemes and installing water meters to help us to reduce water in the long-term. Our water use chart 42% reduction in water use at Parkgate Shopping
14 million litres less water at Fort Kinnaird Shopping Park Water Management Water Data 2010
13% 54.7m 70,000 12%
less water use than last year, across our like-for-like managed portfolio. litres less water use across our like-for-like managed portfolio. savings for us and our occupiers on water bills across our like-for-like managed portfolio. of our properties have rainwater harvesting systems that re-use rainwater, or borehole water sources.
NATURAL RESOURCES
Carbon and CRC

We were carbon neutral across the common parts of our entire managed portfolio, for the second year running.
Through our carbon strategy we focus on measuring our carbon footprint, improving energy efficiency, developing sustainable buildings and using low-carbon energy sources, finally purchasing carbon credits to offset our remaining emissions. The Governments CRC Energy Efficiency Scheme, which launched in April 2010, requires us to buy carbon credits for all energy we purchase. At our retail properties, we generally purchase energy consumed in the common parts, with retailers purchasing energy consumed in their own demises. Across our office portfolio, we purchase almost all of the energy consumed, both in the common parts and in occupiers' own demises. We will be guided by any future industry-wide consensus on how landlords and occupiers should share carbon credit liabilities. Our current intention is to allocate liability to whoever has the greatest influence on energy consumption. We would therefore be responsible for the common parts and occupiers would bear liability for their own demises, with responsibility for central heating and cooling plant across our office portfolio shared equally. A provision would be introduced to future office leases to reflect this shared liability. Our gross carbon footprint Our carbon offsets chart 33% better carbon efficiency at Ropemaker Place
Carbon Data 2010
Glossary: CRC Energy Efficiency Scheme
11% 11.7m 101,664
less carbon emissions from like-for-like energy use across the common parts of our managed portfolio. is the undiscounted five-year value at stake of the CRC Energy Efficiency Scheme from 2010 to 2015. carbon credits purchased to offset 20,769 tonnes of emissions.
NATURAL RESOURCES
Energy Waste and Materials Water Carbon and CRC Travel Biodiversity
Travel
Over 80% of people based in our central London offices travel to work by public transport, with around 10% walking or cycling.
Of the 30,000 people based at Broadgate (EC2), 97% travel to work by public transport, walking or cycling. We worked with the City of London to install another 36 cycle spaces at Broadgate, bringing the grand total to 1,329. Of the 7,000 people working at Regents Place (NW1), 96% commute by public transport, walking or cycling. We significantly improved pedestrian routes this year as part of our masterplan for the estate. Of the 365 staff at York House (W1), 81% commute by public transport, walking or cycling. We are working with Transport for London to improve pedestrian crossing facilities, with around 17% of staff identifying these as a barrier to walking. Our travel chart Two new pedestrian routes at Regent's Place
80% of business journeys by public transport, walking or cycling
1,500 CYCLE SPACES 1,500 TRAVEL SURVEYS
Over 1,500 cycle spaces for occupiers at Broadgate, Regents Place and York House. Over 1,500 travel questionnaires completed by people based at Broadgate, Regents Place and York House.
NATURAL RESOURCES
Energy Waste and Materials Water Carbon and CRC Travel Biodiversity
Biodiversity
A new study shows that, over the last few years, our developments in central London have positively contributed to local biodiversity.
More than 30 native plant species were present at 201 Bishopsgate and The Broadgate Tower (EC2) during the summer, with a rare black redstart already foraging. At Regents Place (NW1), we planted over 60 native species on the 27,000 sq ft green roofs. Once mature, these are expected to provide foraging and shelter for bats, bees, black redstarts, house sparrows and house martins. Biodiversity on the 20,000 sq ft of green roofs at Ropemaker Place (EC2) is currently limited by the number of non-native plants. We plan to plug plant more local species, and will learn from this lesson on our other developments. At our Head Office (W1), we seeded 30 plant species on 1,300 sq ft of retrofitted green roofs. This was informed by our award-winning green roof trial with Arup in 2007. Common birds are already using the roof, with more species likely to benefit. 182 mature trees planted at Regents Place
9,000 sq ft of green space created at Broadgate
Download biodiversity leaflet
CUSTOMERS 01
CUSTOMERS
WE AIM TO TREAT OUR CUSTOMERS AS PARTNERS, TO HELP THEM TO ACHIEVE THEIR GOALS, AND TO HELP US TO ACHIEVE OURS.
Customer satisfaction Cutting occupancy costs Resource reduction partnerships
AWARD 3.5m
BEST SERVICE CHARGE
Voted Landlord of the Year 2009 by UK retailers. savings for occupiers on service charges, with average savings of 7% per m2 Voted Best Service Charge Provider by UK retailers, for the second year running. of occupiers in our multi-let offices signed carbon reduction agreements. Estates Gazettes National Property Company of the Year 2009.
30% AWARD
Thank you for your proactive response in seeking to minimise retailers occupational costs. Its encouraging to know that we are on the same side, working to the same goal to make us mutually more competitive.
Clive Bentley Property Director, Costa Coffee Find out more
CUSTOMERS 02
CUSTOMERS
Customer satisfaction
In the UK, we are now a genuinely customer-focused business, with 82% of our customers rating us as good or excellent, exceeding our 2013 target.
This is an impressive turnaround from just 40% in 2005, and a further improvement on 73% in 2007. Along with our managing agents, we will build on this, addressing the issues identified by our occupiers. Delivering value for money remains a key priority. We recently expanded our inhouse property management team so that we can engage with occupiers more actively and directly, at the same time as managing and supporting our agents more effectively. We also continue to engage actively with the Property Managers Association for UK retailers, to keep up to date with emerging trends. Feedback from our first independent customer survey in Continental Europe identified opportunities to improve satisfaction. We will be focusing on building relationships, delivering value, improving responsiveness and consistency, and encouraging sustainability. Happy customers are more likely to stay in our buildings, helping us to maintain our high occupancy rates and charge optimum rents. In turn, this helps us to give good returns to our shareholders and to protect capital value across our portfolio. Customer satisfaction chart Michael Urban and Bernard Davy won our Customer Service Awards
Our Approach to Customers Customer Data 2010
CUSTOMER SERVICE
Top quartile for customer service in the RealService Best Practice Index. of our UK occupiers rate their relationship with us as good or excellent.
83%
LANDLORD OF THE YEAR
as voted by UK retailers in 2009.
CUSTOMERS 03
CUSTOMERS 04
CUSTOMERS
Cutting occupancy costs

We aimed to cut service charge costs by 5%. The average forecast saving across our portfolio is 7%.
We recognise that value for money is a high priority for our occupiers, but also that they have high service expectations and rightly so. We work closely with our managing agents and occupiers to identify opportunities to cut costs, without compromising service. We generated significant savings by retendering contracts for services such as cleaning, security and landscaping, as well as by reviewing working hours. We also standardised legal fees for Licences for Alterations to improve consistency and deliver better value. We used the scale of our portfolio to negotiate competitive insurance coverage, reducing premiums for our occupiers by 5% on average. Broadgate Estates also negotiated lower electricity rates for our office occupiers, saving them 680,000 on their energy bills. We continue to fund the cost of new Regional Centre Managers at our shopping parks, to help retailers to increase footfall and sales. Our management fees are fixed until 2010, with management fees on our retail parks capped at 50,000. 2.3 million savings for retailers at Meadowhall Shopping Centre
7% savings on energy use at Glasgow Fort Shopping Park
Our Approach to Customers Customer Data 2010
BEST 3.5m 700,000 230,000 70,000
Service Charge Provider 2009 as voted by UK retailers, for the second year running. savings on service charges, with 10% savings per sq ft across our retail portfolio and 3% across our offices. energy cost savings, thanks to 12% less energy use across our like-for-like portfolio. landfill taxes avoided for occupiers at our properties, thanks to 5,800 tonnes of waste being re-used or recycled. water cost savings, thanks to 13% less water use across our like-for-like portfolio.
CUSTOMERS 05
CUSTOMERS 06
CUSTOMERS
Resource reduction partnerships

We are working with 30% of occupiers in our multi-let office buildings to reduce resource use.
Through our resource reduction partnerships, we have implemented initiatives that are expected to reduce annual energy usage by 380,000 kWh in the common parts of participating buildings at Broadgate and Regents Place. By working with occupiers we maximise energy saving opportunities, given that they are the major energy users in our offices. We also collaborate closely with building management teams, as it is critical that they show leadership. We invest management time in driving the process, as well as partfunding a sustainability consultant in each building to identify initiatives, manage the scheme and record the results. 90% of our office occupiers surveyed stated that our sustainability initiatives added value to their business. Occupier initiatives include introducing lights-off policies, installing solar and motion sensors, reducing run times for air conditioning systems, applying solar gain film to windows and adjusting timings on sensors so that lights are on for less time after motion detection. Download customer data 2% energy saving forecast for Western Asset Management
Green500 Platinum Award at 350 Euston Road
1.1 million kWh energy savings at York House
30,000
13 OCCUPIER PARTNERS
potential energy savings identified in the common parts of participating buildings at Broadgate and Regents Place. at Broadgate: Alpari, Ashurst, Calyon, Close Asset Management, F&C Asset Management, Henderson Global Investors, Herbert Smith, Landesbank Baden-Wrttemberg, Legg Mason International Equities, Mayer Brown International, Reed Smith, Socit Gnrale and Western Asset Management. potential water savings identified at Broadgate and Regents Place. at Regents Place: ATOS Origin, Balfour Beatty Capital, Capital One, ELEXON, General Medical Council and JPMorgan Chase. at York House: Bunzl, Government of Singapore Investment Corporation Pte Ltd, hurleypalmerflatt and Moor Park Capital Partners.
2m litres
6 OCCUPIER PARTNERS 4 OCCUPIER PARTNERS
At 10 Exchange Square
Western Asset Management is set to cut energy use by 2%. Western Asset has been actively engaged in our Environmental Working Group at 10 Exchange Square in Broadgate. Over the last year, they have made considerable progress, introducing a number of initiatives that
19,000 kWh
CUSTOMERS 07
COMMUNITIES 01
COMMUNITIES
WE AIM TO FOSTER ECONOMIC REGENERATION AND TO DEMONSTRATE THE HIGHEST STANDARDS OF ETHICAL BEHAVIOUR IN OUR DEALINGS WITH COMMUNITIES AND THE BUILT ENVIRONMENT.
Community investment At our properties At our developments
717,000 BIG TICK

LORD MAYOR'S
investment in charities and local communities.
Awards for education and active communities, at the Source at Meadowhall. Dragon Awards for British Land and Broadgate Estates. of our Head Office team volunteered, up from 24% last year. fundraising across our portfolio for good causes.
27% 490,000 11.2m
investment in local infrastructure and initiatives, through the planning process.
I think this is a tremendous achievement by Capital Kids Cricket and British Land. I know when I was at school how difficult it was to be able to become involved in cricket, but this league offers the opportunity for everyone to enjoy the excitement and thrill of the game.
Ebony-Jewel Rainford-Brent England Womens Cricket Team Player Find out more
COMMUNITIES 02
COMMUNITIES
Community investment
27% of our Head Office staff volunteered during work time, exceeding our target of 25%.
We made financial contributions to a range of good causes, investing in the future through education and young people, as well employment, training and regeneration. British Lands Kids Cricket League, now in its fourth year, is the largest childrens cricket league in the UK. 1,600 children from 160 schools participated. The final, won by Myatt Garden Primary School in Lewisham, was played at Lord's, the home of cricket. We continued to fund creative projects for vulnerable young carers; these were delivered by Create in partnership with Crossroads Care Camden, Hackney Young Carers Service and Westminster Young Carers Service. We also supported our third creative project with Camden's Out of School Learning Service. We have recently started working with Fairbridge, a charity which helps disadvantaged young people to gain the motivation, self-confidence and skills they need to change their lives. Our community investment chart 128 young carers participated in creative projects
1,600 children played in the British Land Kids Cricket League.
Our Approach to Communities Community Data 2010
717,000 365,000 70,000 60
invested in good causes through cash contributions, in-kind donations and time spent supporting community projects. invested in sports sponsorship, including supporting SnowsportGB and Rotherham United FC. young people participated in projects we supported, including chess tournaments, creative projects and a cricket league. children worked with an artist to design and create a temporary artwork inspired by the built environment and public artworks at Regent's Place.
COMMUNITIES 03
COMMUNITIES 04
COMMUNITIES
At our properties
We implemented recruitment and training initiatives at 71% of our major properties.
Christmas job fairs made it easier for local people to find employment at our retail properties and helped retailers to satisfy their seasonal recruitment needs. We worked with local agencies and training providers to offer extra support to job seekers at our fairs, particularly those who did not find employment. In London, we also continued to work in partnership with the East London Business Alliance to help long-term unemployed people to find employment. Our properties hosted numerous fundraising events that were also great fun. For instance, the beach came to Broadgate during the summer when Action for Kids ran a charity volleyball tournament. Our managing agents organised events to make our properties more vibrant places and encourage footfall. At Meadowhall Shopping Centre, popular performances ranged from a U2 tribute band to the Teletubbies, with the Ultimate Elvis Tour also making an appearance. Photo gallery 130,000 raised for charity at Eastgate Shopping Centre 1,500 runners at Puerto Venecia Retail Park
5,000 490,000 20m 617,000 50,000 2,000
local people registered for jobs at our properties, with nearly 1,000 finding employment. fundraising at our properties, thanks to the efforts and generosity of our staff, occupiers and shoppers. visitors to our properties each week, making them ideal venues for good causes to host events to raise awareness and funds. funding sourced for local training at The Source at Meadowhall. people participated in events at our properties.
local people benefited from retail training at The Source at Meadowhall.
COMMUNITIES 05
COMMUNITIES 06
COMMUNITIES
At our developments
Through the planning process, we contributed 11.2 million to local initiatives.
This investment is a key part of our planning agreements with local authorities, helping to ensure that our developments meet the needs of local residents. The New Diorama Theatre opened at Regents Place, with a diverse artistic programme, from straight theatre to comedy and opera. Exciting new public artworks include The Pavilion by Carmody Groarke, Ruth Walking in Jeans by Julian Opie and A Couple of Ripe, Ornamental Pineapples by Sin Parkinson. At Canada Water in Londons Docklands, works are due to begin in October 2010 on the new public square to complete in time for the opening of the new library in March 2011. This square occupies a key location between the tube and bus stations, the library which is under construction, and development sites A and B. It is named Deal Porter Square in memory of the thousands of local people employed as porters to unload deal wood in the old docks. Our community investment through planning chart New 80-seat community theatre at Regent's Place
Bovis lends a hand at Regent's Place
12,000 jobs 180m 182 trees
created when our masterplans for Canada Water, Regents Place and River Don are completed. regional economic benefit each year forecast from our River Don District masterplan when completed. planted to improve public spaces at Regents Place, as part of extensive re-landscaping.
COMMUNITIES 07
STAFF AND SUPPLIERS 01
STAFF AND SUPPLIERS

WE AIM TO TREAT OUR SUPPLIERS AND STAFF AS MEMBERS OF A SINGLE TEAM WHO WORK TOGETHER TO ENSURE THE SUCCESS OF OUR BUSINESS AND DELIVERY OF SERVICE TO OUR CUSTOMERS.
Head Office staff Broadgate Estates staff Managing agents Development teams
100%
2,944 HOURS
of Head Office staff participated in our new 360 feedback process, requesting anonymous feedback from a range of people. of training for Broadgate Estates staff, equivalent to 18 hours per person. our managing agents achieved all Gold Service Charge Awards or better. in-depth review of supply chain risks at Regents Place.
GOLD REVIEW
British Land continues to lead the way and inspire others with its sustainability objectives. Mace is proud to have worked with such a strong client in helping them to achieve ISO:14001 accreditation and their first pre-certified LEED Platinum office development.
Jonathan Foster Director, Mace Find out more
STAFF AND SUPPLIERS

Head Office staff

All of our personnel have their training needs reviewed through our appraisal process, with further support available.
Our appraisal process, which includes our new 360 feedback process, helps our staff and managers to focus on specific training needs. This year, we recorded 672 hours of training and development, including training in IT packages, financial modelling and presentation skills. We are improving how we gather and record training data. To deliver our strategy we need to attract and retain appropriately skilled and experienced professionals. Next year, we will carry out a survey to measure staff satisfaction. Staff from different areas of the business formed a new group to make our Head Office greener. This group helped us to reduce electricity use in our own offices per person by 11% and to recycle 70% of waste. They sent a survey to all staff to identify priorities, before raising environmental awareness by communicating with staff through emails, posters and campaigns. One of the members of the group, Scott Jackson, cut his own home energy use by 33% after installing an energy monitor, and is now encouraging others to take this step, with British Land funding the monitors. At Netley Primary School our volunteers transformed an outdoor area At Waterlow Park our volunteers donned pond waders to clear weeds
Our Approach Staff and Suppliers Staff Data 2010
158 STAFF
at our Head Office, managing over 2,500 suppliers for us and our occupiers. We recognised our staff and other stakeholders for their efforts and achievements at our annual awards ceremony. of staff work flexibly, up from 9% last year.
AWARDS 15% 9% PROMPT
staff turnover, reduced from 18% last year. We signed up to the Governments new Prompt Payment Code.
STAFF AND SUPPLIERS

Broadgate Estates staff

Broadgate Estates Limited is a property management company that is wholly-owned by British Land.
Broadgate Estates manages some of the UK's most prestigious developments, for British Land and our peers. These include Chiswick Park, More London, Paternoster, 1 Poultry, Regent's Place and of course Broadgate, London - where it all began. 89% of our office occupiers independently surveyed in 2009 rated our responsiveness as good or excellent, an increase from 57% in 2007. This was largely thanks to the efforts of the Broadgate Estates teams at Broadgate, Regents Place and York House. All new Broadgate Estates employees undertake a 12 hour induction programme, with further training available. Six people took advantage of the five days available to all employees for study leave. A further six people joined the Broadgate Estates Future Skills talent development programme in September 2009. Through this threeyear programme, they are benefiting from in-house training courses, as well as externally accredited courses. They will also receive mentoring support and go on secondments with British Land and selected service partners. Delivering value at Regent's Place
Employment projects for local people at Broadgate
Staff Data 2010
160 PEOPLE 2,944 HOURS
employed by Broadgate Estates.
of training, equivalent to 18 hours per person.
10% 72%
of staff worked flexibly, up from 3% last year.
average customer satisfaction with Broadgate Estates. We are working with Broadgate Estates to improve this further.
STAFF AND SUPPLIERS

Managing agents
43% of our customers surveyed in 2009 rated satisfaction with our agents as good or excellent, an improvement on 40% in 2007.
Our Asset Managers continued to work with our agents to improve performance further. We use agents to manage our properties on a day-to-day basis so that we can adjust the level of management to meet occupiers changing needs and respond quickly to the purchase or sale of properties. Our agents work with us and our occupiers to maintain our properties to the high standards we set. Largely thanks to their efforts, footfall at our retail properties consistently exceeds the UK average. We proactively monitor our agents performance on customer-focused standards for processing Licences for Alterations and managing service charges, as well as for preventing risks and incidents. We now also monitor how quickly lawyers process these requests, as well as the fees they charge, as we identified these as areas for improvement. Supplier Data 2010 Colliers CRE won our Managing Agent of the Year Award
Our Approach Staff and Suppliers
ALL GOLD AWARDS
or better for service charge management at our properties audited by the Property Managers Association.
us to manage our 26 million sq ft SEVEN AGENTS work withconsolidated from 19 agents a few UK portfolio, years ago.
ALL SERVICE CHARGE PLATINUM
information issued on time across our office portfolio, with 97% on time across our retail portfolio. Service Charge Award at Broughton Shopping Park, the first in the UK. of properties achieved our high health and safety standards. actioned within five days across our retail portfolio and 92% across our office portfolio.
98%
ALL LICENCE REQUESTS
Managing Agent of the Year

We are working with our seven managing agents to deliver excellent customer service. Colliers CRE manages five of our retail and shopping parks in Northern England, Ireland and Scotland. This year, they won our Customer Service Award and Finance Team Award. Over 50% of British Land employees surveyed rated Colliers CRE as excellent for service, communication, responsiveness and understanding of our needs. They also rated their finance team as excellent for accuracy and problem solving. We will be carrying out an independent customer survey in 2011.
ALL information on time service charge ALL licence requests on time
STAFF AND SUPPLIERS

Development teams
We develop buildings in partnership with a team of specialists that includes architects, engineers, building contractors and numerous sub-contractors.
We work with our development teams to monitor and manage our impacts through an ISO:14001 certified Environmental Management System. We diverted 86% of development waste from landfill, making strong progress towards our target to send zero waste to landfill by 2012. Our developments are also 27% more energy efficient than current standards on average, as we work towards achieving planning consent for a zero carbon commercial building by 2015. In partnership with our contractor at Regents Place, Bovis Lend Lease, we carried out an in-depth study of sustainability within our supply chain. This revealed that our independent audits of construction suppliers are working well, and that concrete and steel typically have the greatest environmental impacts of all our construction materials. It also identified opportunities to improve the sustainability of construction materials used by our suppliers and of our on-site working practices. Next year, we will update our Sustainability Brief which has been driving performance on all our major projects since 2004. Supplier of the Year Award for Mace at Ropemaker Place Carbon footprint review at Ropemaker Place Our Approach Staff and Suppliers
developments over the last few years.
EXCELLENT
97% 60,000sq ft 0.26

ECOHOMES EXCELLENT
of fit-out waste recovered as well as 86% of construction waste, diverting 5,364 tonnes of waste from landfill. of green space created on our developments in central London, improving biodiversity. reportable accidents per 100,000 hours worked on our developments, compared to 0.30 last year. and Very Good ratings at Regents Place.
23%
recycled content in our new developments.

British Land Uk Real Estate Company - CR-Online-Report-2010

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British Land Uk Real Estate Company - CR-Online-Report-2010

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INTRODUCTION 01

Property Company of the Year.

new long-term targets to drive performance.

British Land Award Winners.

Chief Executive's statement

Our approach to corporate responsibility

STAFF AND SUPPLIERS

To achieve planning consent for a zero carbon commercial building by 2015.

Awards we've won

Oekom Corporate Responsibility Review 2010

NATURAL RESOURCES Global 100 Most Sustainable Corporations 2009

Green 500 and the Better Buildings Partnership Awards 2009

UK GBC Sustainable Development Awards 2009

The Sunday Times 60 Best Green Companies Index 2010

CUSTOMERS Estates Gazette Awards 2009

Property Managers Association Awards 2009

Ethical Corporation Awards 2010

COMMUNITIES Business in the Community Big Tick Awards 2010

BCSC Purple Apple Awards 2009

ICSC Foundation Awards 2009

Lord Mayors Dragon Awards 2009

Regeneration and Renewal Awards 2009

INVESTORS Property Week Awards 2009

IR Magazine UK and Continental Europe Awards 2009

British Land awards

NATURAL RESOURCES Energy Reduction

Resource Management in Continental Europe

CUSTOMERS Sustainability Collaboration

STAFF AND SUPPLIERS Staff Volunteering

Staff Environmental Engagement

Supplier of the Year

13% ZERO 27%

28% less energy use at Fort Kinnaird Shopping Park

Energy Management Energy Data 2010

Waste and materials

Zero waste to landfill at Eastgate Shopping Centre

developments. of construction waste recovered.

86% 43% 23% 445,000 97%

of fit-out waste recovered.

13% 54.7m 70,000 12%

Carbon and CRC

Carbon Data 2010

Glossary: CRC Energy Efficiency Scheme

11% 11.7m 101,664

80% of business journeys by public transport, walking or cycling

1,500 CYCLE SPACES 1,500 TRAVEL SURVEYS

9,000 sq ft of green space created at Broadgate

Download biodiversity leaflet

Our Approach to Customers Customer Data 2010

as voted by UK retailers in 2009.

Cutting occupancy costs

7% savings on energy use at Glasgow Fort Shopping Park

Our Approach to Customers Customer Data 2010

BEST 3.5m 700,000 230,000 70,000

Resource reduction partnerships

Green500 Platinum Award at 350 Euston Road

1.1 million kWh energy savings at York House

717,000 BIG TICK

investment in charities and local communities.

27% 490,000 11.2m

investment in local infrastructure and initiatives, through the planning process.

1,600 children played in the British Land Kids Cricket League.