Legal & General commits to net zero carbon across its housing portfolio
Legal & General is to make all of its new housing stock operational net zero carbon enabled by 2030. This will be implemented in a phased approach across all homes invested in or built by Legal & General Group including: Build to Rent, Build to Sell, later living and affordable housing.
Housing is a major contributor to carbon emissions so requires some of the most radical and immediate overhauls of any industry. Legal & General is one of the UK’s largest house-builders by volume, and its housing platform continues to grow.
Guild Living and Inspired Villages, Legal & General’s later living businesses, consists of over 1,000 homes in six villages with a pipeline of 18 further sites in development.
Legal & General’s growing Build to Rent portfolio currently has 5,000 homes across 13 schemes in the UK.
CALA Group completed over 2,400 new-build homes in 2019.
Legal & General Affordable Homes has a pipeline of over 3,500 homes.
Legal & General Modular Homes has ambitions to build its annual housing delivery to 3,000 homes a year in 2024, with work on its eight acre site to in Selby, North Yorkshire, underway.
The commitment to deliver operational net zero carbon on all new homes is testament to Legal & General’s long-term vision for housing in the UK. Net zero carbon will be achieved on all new Legal & General homes through a combination of improved thermal building fabric and the use of environmental control systems, including low and zero-carbon technologies.
As a Group, Legal & General has been piloting energy-saving initiatives through the design and operation of its house-building businesses. Legal & General Modular Homes’ product portfolio – which will form all future developments and consists of two and three bedroom family homes along with one and two bedroom apartments - meets the government’s EPC ‘A’ rating as standard (only around 1 per cent of new and existing dwellings in England & Wales currently meet this rating). Inspired Villages, Legal & General’s later living business, have successfully reduced utility consumption by 30 per cent across its properties, with 10 per cent of parking spaces reserved for electric vehicle charging.
Nigel Wilson, Chief Executive of Legal & General, says: “We have to Build Back Better after Covid-19.Construction is rocket fuel for UK economic growth: every pound invested delivers a threefold economic multiplier and the housebuilding sector provides jobs and vital economic resilience. But as we accelerate building, we have to avoid stoking up a climate crisis that would be at least as serious as the COVID emergency. Across our own housing platform, we continue to invest and progress planning for future developments, providing much needed economic stimulus and accelerating the delivery of homes across the UK. We are doing this with climate firmly in mind. By enabling all new Legal & General homes to be operationally net carbon neutral within a decade, the emission of many tonnes of greenhouse gasses will be avoided, whilst saving customers money and meeting the needs of investors who increasingly focus on sustainable solutions.”
As part of its commitment to deliver a low-cost, low-carbon economy, Legal & General invests its capital in clean energy assets, businesses and technologies to help accelerate progress including: offshore wind, solar and fusion energy. Recently, Legal & General has increased its stake in Pod Point, one of the UK’s largest electric vehicle charging companies, to c22 per cent alongside EDF, and invested in Kensa Group, one of the UK’s largest players in the ground source heat pump technology sector, taking a 36 per cent stake.