Greengage helped Picton establish its carbon baseline, set Science Based Targets initiative (SBTi) aligned targets and develop a practical net zero strategy to drive emissions reductions across its portfolio and value chain.
Picton is an award-winning listed Real Estate Investment Trust (REIT) focused on delivering long term income and capital growth through active asset management. The company has a diversified commercial property portfolio biased towards industrial assets. It is a signatory to the Better Buildings Partnership (BBP) Climate Change Commitment and has committed to achieving net zero by 2045 for operational building emissions and across its value chain.
Credit: Picton
Having previously published its net zero strategy in 2022, Picton commissioned Greengage to establish a comprehensive understanding of its carbon footprint, reset its net zero targets in line with the SBTi Buildings Criteria and develop the next stage of its net zero strategy.
The challenge
Picton had demonstrated early climate leadership as a signatory of BBP’s Climate Change Commitment. With growing scrutiny on the credibility of corporate climate commitments, and occupiers actively seeking landlords whose sustainability ambitions match their own, Picton recognised that a more robust foundation was needed. Their next step was to align their net zero targets to a credible framework, SBTi was chosen for this purpose.
The goal was to set SBTi-validated targets under the Buildings Criteria, the most ambitious and credible standard available for real estate companies, and ensure those targets were deliverable.
The task was to turn Picton’s sustainability ambitions into an evidence-based and actionable net zero strategy, which would stand up to investor scrutiny and meet the expectations of their occupiers.
Establishing a carbon baseline
Greengage supported Picton to calculate its carbon baseline. As part of this process, we carried out a review of their existing carbon footprint data and calculated the carbon baseline for setting net zero targets. The revised baseline included Picton’s annual greenhouse gas (GHG) inventory across Scope 1, 2 and 3 emissions aligned with SBTi requirements, ensuring readiness for validation at a later date without making changes to the baseline.
All calculations were carried out in line with the GHG Protocol standards and guidelines for carbon reporting. A comprehensive report detailing the carbon footprint findings, methodology, approach and key recommendations was provided.
SBTi target setting
Greengage developed SBTi-aligned science-based targets across the value chain using the Buildings Criteria and Corporate Net Zero Standard. This included:
- In-use operational emissions targets
- Upfront embodied carbon targets
- Key Scope 3 categories relevant to real estate operations
Multiple target-year scenarios were presented to the board, taking into account the implications of different transition pathways. This accounted for projected portfolio growth and current emissions reductions. This enabled Picton to select targets aligned with the 1.5°C pathway while remaining achievable.
Developing the net zero strategy
Greengage developed Picton’s net zero strategy to translate SBTi-aligned targets into a clear, actionable implementation plan for achieving net zero carbon emissions and improving environmental sustainability across the portfolio.
The strategy focuses on material emission sources and is structured in line with the net zero hierarchy, prioritising energy demand reduction, increased renewable energy supply, and offsetting of residual emissions only.
To support this, Greengage undertook a materiality-led assessment of emissions sources and reduction opportunities, including a gap analysis benchmarking current building performance against industry standards, net zero targets, and a CRREM transition risk assessment to identify properties at risk of stranding. This ensured interventions are prioritised where they would have the greatest portfolio impact.
Through structured interviews and workshops with Picton’s internal teams, Greengage conducted an organisational review to identify the key strategies and actions needed for the transition. Recommendations spanned heat decarbonisation, retrofit specifications, acquisitions and disposal policy, data management, and occupier engagement, each assessed against Picton’s current level of preparedness and existing best practice.
The strategy developed sets out a prioritised action plan to address emissions, with recommendations ranked by materiality and implementation priority. Recommendations were supported by relevant industry guidance, assessment of Picton’s current approach, and defined next steps to support delivery. They were then incorporated into asset level business plans.
Outcomes
Greengage’s work provided Picton with a:
- Robust SBTi-aligned carbon baseline.
- Credible, science-based net zero pathway, with organisational SBTi-aligned targets.
- Detailed net zero strategy and action plan with recommendations for decarbonisation.
Testimonial
“Working with Greengage has helped us develop both a commercially practical and ambitious net zero strategy. Their expertise has been instrumental in guiding us to set robust emissions reduction targets and create a clear roadmap for the decarbonisation of our property portfolio. This will help us focus and accelerate progress towards our long-term sustainability objectives.”
Michael Morris – Chief Executive and Chair of the Climate Action Working Group
