We continued to advance our net zero ambition over the past year, maintaining net zero Scope 1 and 2 emissions across both Germany and the UK through high levels of renewable electricity sourcing and ongoing improvements in energy performance.  

In Germany, renewable electricity represented 99.82% of total electricity provision during the year. In the UK, 98% of electricity was sourced from renewable and green tariffs.

Much of our work this year focused on strengthening our understanding of Scope 3 emissions, which represent more than 99% of our total footprint and are driven almost entirely by tenant energy consumption. As part of the ongoing pathway analysis, we refined our CRREM 2.5 modelling, integrating new operational data from energy efficiency projects and our expanding PV programme. Initial outputs have enabled us to reaffirm the ambition to reduce Group Scope 3 emissions intensity per sqm by 45% by 2030. The modelling remains iterative, and further refinement of our underlying assumptions, boundaries and data will continue throughout FY2026/27 as more information becomes available.

Enhancing energy efficiency

Across the portfolio, in the past year we delivered targeted efficiency upgrades designed to reduce energy demand. In Germany, 52 ESG projects were completed or approved, including LED upgrades, heating optimisation, the installation of smart thermostats as well as selective expansion of EV charging infrastructure. These measures help reduce electricity and heat consumption across multiple sites and form an important part of our short- and medium-term decarbonisation pathway.

LED upgrades accounted for 31 projects in the past year, converting approximately 28,000m² of floor area to LED lighting and generating an estimated annual energy saving of approximately 997,000 kWh. These sit within a larger portfolio of 160 completed or approved German ESG initiatives delivered since 2023, spanning PV systems, LEDs, EV charging, metering, and heating optimisation. 

Completed and approved projects in the past financial year alone are estimated to generate or save approximately 2.6 million kWh of energy annually, reflecting sustained progress in operational decarbonisation and energy efficiency improvement.

In the UK, efficiency upgrades remain integrated within the broader EPC improvement programme, supporting the transition to higher-performing buildings as regulatory expectations evolve. We progressed our EPC roadmap across the UK portfolio, delivering 65.2% EPCs at C or above as of 31 March 2026, in line with our target. We also continued to assess the capex requirements associated with a pathway to EPC B by 2030, while we await greater regulatory clarity from the UK Government.

Scaling our onsite renewable energy generation

During the past year, we expanded our onsite PV programme across both markets, guided by a disciplined approach to building suitability and commercial returns. In Germany, 12 new PV systems were installed, bringing the total portfolio to 23 systems and increasing our installed capacity to around 4.4MWp. The installations delivered in the last financial year represent 1.5MWp of additional capacity across more than 12,850m² of roof area, with an expected annual generation of approximately 1.6 million kWh once fully operational.

Portfolio analysis indicates that around 14-15% of total roof area is technically suitable for PV, with the potential to generate up to 15 million kWh annually, of which an estimated 14 million kWh could be consumed onsite. This provides meaningful potential to offset 10-14% of total portfolio electricity demand and continues to shape future rollout opportunities.

In the UK, PV rollout remains selective due to the nature of our portfolio, reflecting the different scale and character of our UK buildings compared to our larger Germany sites. Progress in the past year was nonetheless notable. BizSpace completed 16 new installations, acquired four additional systems through site purchases, and began feasibility work on additional locations, including exploring battery storage solutions that could further increase onsite consumption. This brings total UK capacity to 2.4MWp across 33 systems at the year end.

Looking ahead, the pace of future rollout will remain commercially grounded. Delivery will continue to depend on building suitability, grid access, and local regulation, particularly in Germany, where evolving energy market rules and grid connection processes may influence future feasibility.

Building the foundation for long-term decarbonisation

Together, these measures support a more energy efficient, lower carbon portfolio. While addressing Scope 3 emissions will continue to require a sustained, long-term effort, particularly given the significant representation of tenant energy use, our progress in the past year provides a stronger platform for a credible, practical, and commercially grounded transition toward net zero.

Continued advancement will depend on improving data quality, refining our modelling, and deepening operational insight across the portfolio as we build a more complete and robust foundation for long-term decarbonisation.

We will also commence development of a formal internal transition plan during FY2026/27, integrating our decarbonisation pathway with physical risk considerations and financial planning implications.