- Decarbonisation strategy: Specific CO2 reduction target for 2024 as part of the path to climate neutrality by 2045
- Transparent targets for customer satisfaction, employee satisfaction and governance
- Framework established for ESG financing
- Calls for cross-sector emission trading system, energy subsidy for people with low incomes and pragmatic solutions in the debate about a CO2 levy
In May 2021, LEG presented the first aspects of its Sustainability Agenda 2024, which serves as a starting point for ongoing development in terms of environmental, social and governance (ESG) issues. The company today provided further details on its ambitions, targets as well as milestones and published a framework for ESG financing. At the end of 2020, the company had already incorporated specific short-term and long-term ESG targets. All targets can be measured and verified and are integrated into the remuneration system for the Management Board and the second management level.
‘We want our buildings to be climate neutral by 2045, while also continuing to strengthen our social responsibility for affordable housing. We have deliberately made our sustainability targets transparent, so that our performance is measured against our ambitions. Satisfied customers, employees and investors who all support this path are essential to successful sustainable development in the sector as a whole. Policy frameworks should minimise social hardship for individuals and bolster efficiency and technological advances. Market-based instruments, such as the cross-sector expansion of European emission trading, do more to combat climate change in the building sector than any new building regulation,’ said Lars von Lackum, CEO of LEG Immobilien SE.
Three-point plan for climate neutrality by 2045
In terms of the environment, LEG is focusing mainly on improving the company’s climate footprint, making use of energetic refurbishment, energy transition and changes in tenant behaviour to achieve climate neutrality by 2045. LEG is planning to invest up to EUR 500 million in related measures by 2024 and about EUR 1.5 billion by 2030.
- Energetic refurbishment
One key milestone to achieving climate neutrality is the 10% reduction in CO2 by 2024 from
36.7 kg CO2e/m² to 33 kg CO2e/m². LEG is the only company in the sector with a binding long-term climate policy and compulsory medium-term reduction targets. The starting point for the reduction is based on actual data as opposed to extrapolations from energy performance certificates, which is the more commonly used approach in the sector.
LEG has a good track record of energy efficiency improvements. Since 2017, the company modernised at least 3% of the portfolio every year as part of the LEG modernisation programme, boosting efficiency by an average over 30%.
In addition to the return on investment and affordability for customers, LEG will be going forward and make significant CO2 reductions a further key aspect of planning and selecting modernisation projects. The company will make use of the new BEG subsidies (Federal funding for efficient buildings) and regional grants to ensure affordability of the apartments after modernization.
- Energy transition
Germany’s transition to green heating energy is a vital component in achieving climate neutrality for the real estate sector and for LEG; particularly the contributions of green district heating and…