Our Transition Plan for Climate Change mitigation follows the 3 main objectives:  

• REDUCE, by cutting its carbon emissions at the level expected by science;  
• AVOID, by helping our value chain reduce their own carbon emissions; and  
• REMOVE, by neutralising any residual emissions left from our own operations after the reduction of carbon emissions.  

VGP came up with its first climate mitigation approach and net zero target in 2021, which included quantitative targets for the reduction of carbon emissions and energy consumption. Between 2020 and 2024, VGP achieved a cumulative reduction of 29% of energy intensity and 38% of carbon intensity.  

The scope 3 emissions are based on three main categories:  

• The emissions in the downstream leased asset portfolio have an asset specific and portfolio approach towards carbon neutrality, based on CRREM pathways.  
• The emissions related to the Group’s own operations are following an intensity reduction pathway until 2030 aligned with Scope 1 and 2  
• The emissions related to Category 1 New Developments will benefit from improvements in the value chain. The Group is exploring ways to do more to support decarbonisation across its value chain, specifically through quantifying and increasing “avoided emissions” for its partners, including carbon removals as close as possible to the Group’s business. 

Implemented adaptation measures to address these risks include the incorporation of green spaces, rainwater harvesting and sustainable drainage systems to reduce the risk of flooding, access to natural light in the buildings, and the provision of infrastructure for active mobility and public transport. Additionally, measures to improve the energy efficiency of buildings and the use of renewable energy sources can also help to reduce the risk of heat stress – in Spain and Italy all new buildings are therefore fitted with photovoltaic installations and heat pumps which help to provide additional cooling in summer. The buildings are designed to provide a comfortable and healthy indoor environment, taking into account factors such as ventilation, thermal comfort, and indoor air quality. VGP monitors the performance of the building, gathering feedback from tenants and evaluating the effectiveness of the adaptation measures, and making adjustments as necessary. 

Climate change will materially affect global economies and VGP. The risks and opportunities emerging today will evolve and increase over the mid to long term. These transition risks include the impacts of changes in climate policy, technology, and market sentiment, and their impact on the market value of financial assets, as well as impacts resulting from climate change litigation. 

For a detailed review of anticipated financial effects from material physical and transitional risks and potential climate – related opportunities refer to annual report.