Environment
Building for tomorrow
Progressing towards net zero carbon emissions
Reducing carbon emissions to help limit global warming is a key business priority. We have developed a decarbonisation pathway to deliver carbon reductions over the near and long term, aligned to ensure that global warming remains below 1.5°C.
Our carbon reduction targets:
Near-term targets (2030); approved by the SBTi
- To reduce carbon emissions from our operations by 46.2% by 2030 (2019 baseline).
- To reduce carbon emissions from our indirect operations (i.e. those from our homes in use and our supply chain, known as Scope 3) by at least 22% per m2 completed floor area by 2030 (2019 baseline).
Long-term targets (2045); commitment made to the SBTi
- To become a net zero carbon business across all our operations and value chain by 2045. This will require a reduction in emissions of at least c.90% with the remaining 10% offset or neutralised through a suitable mechanism.
These are challenging targets requiring product innovation, supply chain engagement and changes to current operational processes.
Our decarbonisation pathway
We have developed our decarbonisation pathway with the support of the Carbon Trust to help us achieve net zero carbon across our value chain by 2045.
We have identified key decarbonisation levers which provide the most material reductions with current known technologies and that are in line with other key sector decarbonisation pathways.
The main areas of reduction opportunity are:
- Reducing our Scope 1 and 2 emissions – These account for a small percentage of our total emissions, but they are under our direct control, so this is a key area of focus.
- Reducing in-use emissions from completed homes – We are committed to producing zero carbon-ready homes by 2030. The decarbonisation of the grid by 2035 is a key enabler to reducing carbon emissions.
- Reducing the embodied carbon of materials – this is a complex area across multiple supply chains, and we are engaging with our suppliers to reduce the carbon emissions of the materials and services we procure. Our vertical integration strategy with the use of our timber frames, concrete bricks and tiles is a key contributor to reducing our carbon emissions.
Developing zero carbon ready homes
Considering the needs and experience of our customers has been key to our careful integration of low-carbon design and heating solutions into our homes. These solutions improve energy efficiency and reduce emissions.
Our homes, which are being built to Part L 2021 standards, are more energy efficient and are reducing carbon emissions by 31%. This is achieved by taking a ‘fabric first’ design route and using solutions such as increased insulation, smart heating technology, wastewater heat recovery and solar PV. As a result, our homes now use less energy compared to traditional older properties.
Each of our developments has a bespoke energy transition plan, which ensures that we are prepared for the forthcoming Future Homes Standard (‘FHS’) and implementing the New Build Heat Standard in Scotland. These plans support the phase-out of gas boiler installations, balancing regulatory timelines with commercial considerations. Ahead of the regulatory requirements, we have already started installing low-carbon design and heating solutions, such as air source heat pumps. Homes with these low-carbon heating solutions installed are zero carbon ready in use and emissions will reduce further once the UK grid electricity supply decarbonises.
Innovative products and new solutions are emerging onto the market, and our technical teams are constantly analysing options and creating optimised solutions.
We have a significant advantage through our Space4 timber frame products to provide an effective ‘fabric first’ approach and deliver increased insulation and thermal efficiency, which will be a key contributor to achieving the energy efficiency requirements.
Optimising energy performance in the home and customer experience is a key enabler to reducing carbon emissions and energy bills. We are evaluating the opportunities for smart technology solutions in our homes and currently have trials underway.
Reducing our operational carbon emissions
Reducing operational fuel and energy efficiency is a key driver for our decarbonisation pathway. Throughout 2025, we have continued to make progress in implementing fuel and energy consumption reduction measures.
Diesel use is the main contributor to our operational carbon emissions. We have continued to build upon several diesel reduction initiatives that were introduced last year.
Following a successful trial, throughout 2025 a rollout of hybrid generators has been ongoing across new and existing sites. This has led to decreased diesel consumption, carbon emissions, and cost savings. With the battery storage unit, the diesel generator runs for less time, greatly reducing the associated CO2e emissions.
The Group has continued its programme of energy awareness training modules to improve on-site energy efficiency, and a new online training module was set up for all plant operators to help reduce idling times.
We can see the impact of our consumption reduction measures on our GHG emissions. In 2025, market-based absolute carbon emissions have reduced to 16,938 tonnes, which is an 17% reduction compared to the prior year. The carbon emissions/home have also reduced to 1.42 tonnes CO2e/home (2024: 1.90 tonnes CO2e/home). We remain on track to meet our near-term Scope 1 and 2 science-based reduction targets.
Creating a responsible supply chain
Our business operations critically rely on our supply chain to deliver quality homes for our customers. Our suppliers and contractors are appointed through a combination of Group framework agreements and local operating company relationships. Mandating ethical procurement practices, our suppliers have to comply with our Supplier Principles and Group policies.
When developing framework agreements and making significant sourcing decisions, all requests for information (‘RFIs’) and quotations (‘RFQs’) include environmental and sustainability criteria with appropriate weightings. Our Group Procurement team discusses sustainability requirements quarterly in supplier reviews with key suppliers.
We are partners with the Supply Chain Sustainability School to assist in the delivery of a consistent approach to sustainability and responsible sourcing. The School provides a learning and engagement platform to upskill people working within the built environment sector. Our partnership support enables free online learning materials, seminars, workshops and other services for our supply chain to help it improve environmental, social and economic sustainability awareness on issues including carbon reduction, waste reduction, resource use and human rights.