ESG risk management
Regulation, legislation and policy all play an important role in driving change in environmental behaviour.
We monitor the regulatory and legislative landscape and are able to respond to changing requirements quickly and efficiently.
We have a four-step process for managing ESG risk
Key ESG risks are identified and analysed by the business. They are reported to the Risk and Controls Committee that has oversight of the Corporate Risk Framework. The management of our risks is monitored by the Group Executive Committee.
Developed by the ESG team working with the relevant business and asset teams, our responses focus on two areas. Projects are agreed at an asset level through the business planning process.
- Mitigation of the risk e.g. through reducing exposure to energy pricing
- Managing the risk e.g. through upgrading physical resilience of an asset to climate change.
Our ESG governance structure facilitates consistent monitoring of delivery against our strategy and targets, and allows us to identify and manage ESG risks to the business and impacts of the business.
Our exposure to and management of climate-related risks are communicated to the Group Executive Committee and Board as outlined in our ESG Report.

Legislative Risk
Minimum Energy Efficiency Standards (MEES)
MEES sets a minimum requirement of an EPC rating of E for a new letting of any units in England and Wales over 50m2 and with heating and/or cooling of the internal space. This will extend to existing lettings from 1 April 2023.
With almost 2000 units covered by these regulations we have a comprehensive system for monitoring, managing and replacing EPCs. We keep this as efficient as possible by forward planning updates to EPCs to coincide with lease events wherever possible. In this way we have significantly managed down MEES risk across the portfolio and are on track to have all F&G EPCs removed ahead of the 2023.
The expected increased in standards are anticipated in our fit out requirements.
We work closely with our occupiers to ensure these standards are achieved through the fit out process, providing information and support from early in the process through to hand over.
We are currently reviewing asset exposure to a potential raising of the standard to EPC B in 2030.
Environmental and Energy Management System
To ensure we comply consistently with operational environmental regulations and legislation our UK and Ireland centres operate under an ISO14001 and 50001 certified Environmental and Energy Management System.