At Redical, we acknowledge the real estate sector's impact on the environment and its contribution to climate change. We also recognise our responsibility to contribute positively to society. We understand that effective management is key to our sustained success and want to ensure that Redical’s growth positively impacts the communities our assets are part of.
This is why we strive to create innovative solutions and achieve outstanding environmental, social, and governance (ESG) performance. This dedication permeates every facet of our operations, from project design and construction to company management, stakeholder collaboration, and progress reporting.
This policy outlines our commitment to ESG. It is based on a materiality analysis, carried out in 2024, where we identified our impact on various issues across the environment, people, human rights, and corporate governance.
Environmental
We aim to operate highly energy-efficient assets while building energy resilience to support the transition to a Net-zero future. We will integrate climate mitigation and adaptation, waste management and water efficiency across our assets, providing long-term asset value appreciation.
Our objectives to achieve this are to develop an appropriate Net Zero goal guided by asset-level pathways, to explore targeted energy efficiency initiatives alongside on-site renewable energy generation, to consider integrating climate risk analysis into both entity and asset-level resilience planning, and to set minimum standards for recycling and water consumption at each asset.
Social
We aim to manage Health and Safety proactively; engage with the surrounding community and to prioritise DE&I, providing space for diversity to flourish.
To accomplish this, we propose to develop an asset-level community engagement action plan aligned with local authority priorities and social needs analysis; and to provide DE&I training whilst encouraging key staff members to be involved with DE&I initiatives within the industry.
Governance
We aim to comply with all legal and regulatory requirements and to embed ESG within our business through robust governance. Our goal is to ensure that each employee is proud to be part of the business and is offered tangible growth opportunities due to the equitable and positive company culture.
To realise this, we are creating and will maintain a strong ESG governance structure within our business. We also strive to utilise appropriate sustainability certifications to demonstrate the portfolio's credentials and commitment to sustainability leadership. All employees should have access to appropriate training plans and be able to feedback on our company’s culture.
We will periodically review and, as necessary, update this policy to ensure its alignment with evolving industry standards and best practices.
Redical ESG 2024 highlights:
Environment
- Achieved 12% of the portfolio currently covered by a green lease, with 47% of the portfolio now having an EPC rating of B or above.
- Met our target of 100% electricity data coverage through improved tenant engagement by utilising ElectraLink to collect data directly from tenants. We also completed the alignment of the Deepki platform, an energy management software, which contributed to the increase in EPC coverage, supported by enhanced EPC management across the portfolio.
- LED lighting and LUX sensors have been installed across the portfolio to reduce landlord electricity consumption. Solar installation has commenced at Victoria Gate, Leeds, and BMS investigations have been conducted at The Liberty.
- To integrate climate risk analysis, we reviewed existing climate risk assessments in 2024 in relation to capital expenditure improvement plans across the portfolio.
Social
- Across all our sites, we have made significant progress in engaging with local communities across a wide range of impact areas. This includes creating local employment opportunities and providing ongoing support for small and medium-sized enterprises (SMEs) in the local community.
- These efforts resulted in over £40,000 raised through on-site charity fundraising events, more than £16,000 worth of space provided free of charge to support community initiatives, and engagement with over 30 community projects.
Governance
- In 2024, we launched our first ESG policy. All sites now operate within an environmental management system and are included in an ISO 14001-certified framework. This has been supported by improved communication with tenants on ESG topics, including the launch of a tenant ESG guide and an updated, site-specific fit-out guide.
- We submitted to GRESB, a real estate-specific sustainability benchmark, for the first time and have begun reviewing the most appropriate building certifications for the portfolio.
- We also implemented our first annual employee and tenant satisfaction surveys and delivered the first ESG training workshop to key employees.
You can downlaod a full report here