The environmental challenge
Our business is reliant on the limited supplies of natural capital as we require mainly fossil-fuel based energy, water and non-renewable raw materials in order to build and operate shopping centres, which in turn generate GHG emissions, waste and wastewater.
Over the long term we expect significant upward pressure on global fossil fuel reserves to increase the cost of energy and contribute to growing volatility in global oil and gas markets. In addition, the GHG emissions generated by the burning of fossil fuels represent a significant environmental impact, and they are coming under greater scrutiny as governments across the globe respond to pressure to reduce the potential impacts of global climate change.
This growing pressure on natural resources, combined with the increasingly likeliness that their use will be subject to more stringent regulation, poses immediate and long-term risks to our business. On the other hand, having alternative, efficient and clean natural resource strategies in place will help us contain our operational costs and support our assets in maintaining their long-term value.
Furthermore, adopting a more sustainable approach to business may yield commercial benefits. Our tenants are concerned with shopping centres’ energy efficiency in the way that it impacts on their bottom line through service charge costs, and the findings of our own consumer behaviour survey have found that 75% of consumers feel more satisfied when they visit a ‘sustainable shopping centre’.
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