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Keepmoat Annual Report 2020

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  • Lease
  • Keepmoat
  • Strategic
  • Annual
  • Income
  • Assets
  • Limited
  • Homes
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  • October
Keepmoat has released its Group financial results for the year ending 31 October 2020.

SUSTAINABILITY

SUSTAINABILITY Environmental performance Waste and recycling During the last year our focus has been on the prevention and avoidance of unnecessary waste through 2 key projects: 1. Strategic waste partnerships with key national suppliers. • Reducing costs per tonne by 3% • Maintaining landfill diversion rates at over 96% • Optimised skip utilisation through better segregation, increased inspections and reduced contamination 2. Optimising the implementation and use of Materials Management Plans Soils and demolition materials account for a large proportion of wastes on Keepmoat sites. To help prevent these materials becoming waste we have: • Provided training to all operational teams to ensure consistent implementation. • Participated in the CIRIA Construction Soil Management Project with the aim of developing industry guidance and good practice Environmental impact statement The Group is continually striving to minimise its contribution to climate change in line with the UK Government’s commitment to achieve net zero carbon emissions by 2050. In order to monitor our emissions, we capture data and report our carbon footprint, a measure of our emissions of greenhouse gases. The Group is constantly analysing this data and we are committed to adapting the business, the homes we build and the communities we work in to reduce our carbon emissions. Progress During the last financial year, the Group has embarked on various projects to reduce our energy consumption and carbon footprint. The Group has delivered training to construction staff to improve energy efficiency and minimise vehicle idling and wherever feasible, propane and butane heater use on site has been replaced with electric infrared heaters. This not only improves safety but, as they consume renewable electricity, has reduced associated carbon emissions by 43% (88 tonnes). In addition, from January 2020 the electricity used in our offices, compounds and plots has been sourced from a renewable electricity provider (REGO backed supply), reducing our carbon emissions by 216 tonnes. This has led to a reduction in our Scope 1 and 2 (direct and indirect emissions) by 1,459 tonnes, a reduction of 29%. Despite this reduction, our emissions intensity ratio has increased to 9.5 from 8.2. This is due to a reduction in activity associated with COVID-19 and the fact that much of our scope 1 and 2 emissions are not directly associated with construction activity. The COVID-19 pandemic has contributed to the reduction in our scope 3 (value chain) carbon emissions. Following the introduction of agile working being taken on by 70% of the Keepmoat Group’s staff, this has generated a saving in commuter miles of 28,000 each day. The Group has also introduced low carbon concrete bricks to the construction of our homes, which produce 50% less carbon emissions. 46 KEEPMOAT.COM

STRATEGIC REPORT Calculating emissions Greenhouse gas emissions are calculated in alignment with records used for the production of the consolidated Financial Statements for the relevant accounting period and are produced in accordance with The Greenhouse Gas Protocol methodology. We have used emission factors from BEIS’s “Greenhouse gas reporting: conversion factors 2018, 2019 and 2020” to calculate our Scope 1 gas emissions. We have determined the Scope 2 emissions for electricity using a combination of BEIS publication (for nonrenewable energy) and the Renewable Energy Guarantee of Origin (REGO) certificates provided by the suppliers for all renewable electricity. We have also used the GHG Protocol Value Chain (Scope 3) Standard, but we are not as yet able to report on all categories that may be relevant. All emissions required under the Companies Act 2006 are included. Future plans The pandemic has made it difficult to directly attribute the carbon reduction achieved this year to specific energy efficiency activity and has led to delays in some initiatives until 2021. Going forward we are aiming to maximise the availability of electric vehicles, trial alternatives for energy sources used on site and continue to integrate low carbon and climate resilient features to homes and developments. Throughout the coming financial year, the Group intends to finalise our scope 3 emission baseline and set our science-based target aligned to the Paris Climate Change Agreement. Units Year ended 31 October 2020 Year ended 31 October 2019 Scope 1 – Gas consumption tCO2e 312 573 Scope 1 – Owned transport tCO2e 621 802 Scope 1 – Site equipment tCO2e 2,347 3,148 Total Scope 1 emissions tCO2e 3,280 4,523 Scope 2 – Electricity consumption tCO2e 290 506 Scope 3 – Business travel tCO2e 276 322 Total emissions tCO2e 3,846 5,351 Revenue £m 406.0 649 Intensity ratio (total emissions/revenue) tCO2e/£m 9.5 8.2 Total energy consumption kWh 14,432,251 19,887,711 ANNUAL REPORT & FINANCIAL STATEMENTS 2020 47