Exploring retail's greenest assets
How green is retail property? What types of stores have the best green credentials? And which operators and geographies are leading the green charge?
1 minute to read
In ESG & Retail: exploring retail’s greenest assets, we consider the sustainable credentials of the UK’s retail sector. Using the globally acknowledgedBREEAM green rating, the data reveals that less than 1% of retail properties currently hold or are pursuing a sustainability rating. The sustainability standards of the small number of retail spaces that do conform, however, were found to be outstanding, serving as an exemplar to all sectors across the market.
The UK’s ageing retail stock plays a significant role in these findings: 97% of stores with sustainability credentials were new-builds. Retro-fitting ESG credentials into old buildings is far more challenging and costly than introducing them during design and construction. This explains why modern shopping centres, retail parks and supermarkets dominate the findings. Less than 1% of green credentials were achieved by refurbishment or occupier fit-out yet this will be an essential part of reinvigorating the retail landscape.
Geographically, the largest concentration of green stores, 34%, are in London, but around the UK stand-out successes include MK1 Shopping and Leisure Park in Milton Keynes which achieved an “Excellent” BREEAM rating. Retailers leading the way include The John Lewis Partnership who head the table for the highest number of green stores – 7.3% – followed by the ‘Big Four’ grocers, Tesco, Asda, Sainsburys and Morrisons. Aldi, Lidl and IKEA also featured with all these companies demonstrating a synergy between their ethical brand values and their focus on sustainable buildings.
Our research makes thoughtful reading for investors focused on high-quality, future-proofed assets while for occupiers, the green credentials of their building will help them attain their own sustainable targets. To avoid claims of green-washing, retailers who espouse green marketing strategies and branding must look evermore
critically at the space they occupy.
Download the ESG Report 2022