Reducing our environmental impact
Setting our Pathway to Net Zero
We have set two ambitious targets: to be net zero carbon in our operations by 2040 and to deliver net zero carbon homes in use by 2030. This will be achieved through a scale of emissions reductions consistent with pathways that limit warming to 1.5°C.
These commitments are supported by science based carbon reduction targets to reduce operational Scope 1 and 2 absolute emissions by 46.2% and Scope 3 emissions by 22% per m2 by 2030.
Reaching net zero carbon emissions for a company is achieved by reducing value chain greenhouse gas emissions, in line with 1.5°C pathways, and by balancing the impact of any remaining greenhouse gas emissions with an appropriate amount of carbon removals.
Energy Efficient Homes
The average Standard Assessment Procedure (SAP) rating of our new homes during 2020 was 86, which is more energy efficient than the existing housing stock which has an average SAP rating of c.60.
Our homes also contain a range of energy efficient features to promote sustainable living for our customers. These include LED lighting, double glazed A rated windows, many A rated or A+ rated appliances and combination boilers.
In 2020, all ovens, integrated laundry, integrated refrigerators, integrated dishwashers and wine coolers purchased via our group deals had a minimum Energy Efficiency rating of A.
Zero Carbon Demonstration Project
We appointed consultants at The School of Built Environment, University of Salford, to monitor the true in-use carbon savings of our low carbon demonstration project in Germany Beck in York.
The aim of this project is to understand how we can build low carbon solutions cost effectively at scale looking at impacts to the homeowner as well as potential additional processes and costs to the build process.
The demonstration home has been designed using materials and systems that provide the best carbon saving for every £1 of construction costs. The home will be occupied by live-in tenants to monitor liveability of the home. We’re also including electric vehicle charging points in the home to understand further impacts on efficiency and energy demand.
The project is currently in build phase with estimated completion in late Summer 2021.
Reducing our Operational Impact
We continue to focus on reducing operational emissions across the Group. During the year, the greenhouse gas emissions per home sold was 2.16 tonnes (2019: 2.14).
60% of our operational greenhouse gas emissions are from red diesel used on our developments. A number of the Group’s owned JCB machines are fitted with a diagnostic reporting tool, which monitors the efficiency of each machine. These reports are reviewed on a routine basis as part of the Group’s regular monitoring of on-site costs and there has been some improvement in fuel consumption as a result.
Greenhouse gas emissions Unit 2020 2019 Scope 1 tCO2e 25,886 30,797 Scope 2
Energy consumption kWh 110,034,884 116,392,708 Carbon intensity (per home sold)
Site Manager Training
We have included energy efficiency courses as part of our wider Site Manager Essentials training which included strategies to reduce fuel consumption at site for example by keeping machine idling time to a minimum, working at less than full throttle, avoiding excess revving, using appropriate travel speeds when moving around the development and reducing generator power to a minimum. The training also covers heating and lighting management on site.
Regional site environmental champions are now in place to manage environmental related issues and processes whilst championing key sustainability initiatives. Each Environmental Champion has received IEMA Environmental Management in Construction training, which covers subjects such as environmental risk assessment, environmental regulation, and waste and resource efficiency.
During 2020, 855 of our homes sold were also fitted with photovoltaics (PV) panels. The energy generated by PV panels reduces the amount of electricity drawn from the grid and in turn reduces the homeowner’s energy bills and greenhouse gas emissions.
Supply Chain Engagement
The Group works with over 5,158 suppliers supporting c.49,000 jobs in its supply chain. Our regional offices engage with a large number of local subcontractors in the construction of our homes, supporting over 37,000 jobs on its sites*. We became partners to the Supply Chain Sustainability School as part of our drive to engage our supply chain on sustainable sourcing. The School provides a learning and engagement platform to upskill people working within the built environment sector. Free online learning materials, seminars, workshops and other services are available to help assess and improve environmental, social and economic sustainability awareness on issues including waste reduction, resource use and human rights.
The Group continued to support its suppliers with, for example, securing forward orders and prepaying for material deliveries strengthening our supply chain’s cash flows. The Group is also a signatory to the Prompt Payment Code.
*Estimated using an economic toolkit which has been updated to reflect latest Government guidance.37,000
Jobs supported on our sites5,158
Responsible Sourcing of Timber
We are committed to responsible sourcing and look to use supply chain systems, which minimise the environmental impact associated with the production of key commodities such as timber.
All buyers, surveyors, suppliers and subcontractors to Persimmon via group deals are required to purchase Forest Stewardship Council (FSC) or Programme for the Endorsement of Forest Certification (PEFC) certified timber and timber derived materials for use in all of our operations.
If FSC or PEFC certified timber and timber derived materials cannot be purchased, evidence must be provided that alternative materials are sourced from reputable and sustainable sources.
As a minimum, all buyers, surveyors, suppliers and subcontractors must ensure compliance to any applicable laws and regulation in relation to the sourcing of timber and timber derived materials.
In 2020, 90% of timber and timber based products via Group deals were from FSC or PEFC certified sources.
Modern Methods of Construction
Persimmon’s off-site manufacturing facilities:
We believe we are one of the leading UK housebuilders using Modern Methods of Construction (MMC). In 2020, 75% of the homes we built used a form of MMC. This included 36% of the homes we built using timber frames.
timber frames and roof systems supplied in 2020
concrete bricks supplied in 2020
Our off-site manufacturing facilities consist of Space4, a timber manufacturing facility, Brickworks and Tileworks. We believe that this vertical integration is a key differentiator for the Group and we are committed to continuing to invest in these facilities.
Our Space4 facility uses off-site manufacturing techniques to manufacture timber frames using PEFC certified timber, highly insulated wall panels and roof cassettes based on our standard core house types. In 2020, 31% of homes sold were built using Space4 timber frames.
Typically, 28% less carbon is produced in the manufacture of concrete bricks in comparison to clay, with a total lifetime carbon saving of 2.4 tonnes of CO2 per house built**. In 2020, 41% of homes sold used concrete bricks from our Brickworks manufacturing site. The Group’s roof tile manufacturing plant commenced deliveries to site in early 2020, and has supplied approximately 2.5m tiles to 115 sites across the Group.
**Provided by Edenhall and Marshalls – based on calculations made from publicly available EPD and housebuilding data.
We will achieve net zero carbon homes in use and in our operations, aligned to climate science.
We have a key role to play in minimising our environmental impact through our operations, our supply chain and the homes and communities we build, ultimately helping our customers to live more sustainably. Reducing our impact makes sense not only from an environmental perspective, but it also ensures greater efficiencies throughout our supply chain and operations.
UN SDG alignment
|Material issue||Target||How we will achieve it|
|Climate change action and resilience||Homes to be net zero carbon in use by 2030
|Through a combination of fabric energy efficiency, electrification and sourcing of renewable energy.|
|Net zero carbon in our operations by 2040 (2019 baseline).||Investment in low carbon solutions and technology, energy efficiency measures and initiatives and sourcing of renewable energy|
|Reduce Scope 1 and 2 emissions by 46.2% by 2030 (2019 baseline).|
|Reduce Scope 3 emissions by 22% per m² completed floor area by 2030 (2019 baseline).||Continued efficiency of Persimmon homes and supply chain engagement to reduce embodied carbon within products and services.|
|50% of homes sold will use timber frames from Persimmon’s Space4 manufacturing site by 2025||Continued investment to increase capacity in Space4 to deliver on modern methods of construction.|
|In 2021, aim to purchase 100% renewable electricity for Persimmon’s offices and manufacturing facilities.
In 2021, aim to purchase REGO certificates for plots, show homes and temporary building supplies electricity consumption.
|• Purchase energy from providers sourcing 100% renewable energy as part of tender process.
• Work with energy providers to purchase REGO certificates for consumption.
|In 2021, Persimmon will aim to offer electric cars and petrol-electric hybrids as primary fuel options to colleagues on the company car scheme where practical with the elimination of petrol and diesel from new company car orders and replacements by 2027.||Update company car policy and procedures during 2021 alongside decision tree to ensure colleagues are provided with a suitable car for their needs.|
|Update company car policy and procedures during 2021 alongside decision tree to ensure colleagues are provided with a suitable car for their needs.||Engagement with suppliers and the Supply Chain Sustainability School to monitor success.|
|Maintain timber and timber derived products from responsible and sustainable sources via Group deals.||Ensure adherence to timber sourcing policy through engagement with supply chain|
|Helping our customers to live sustainably||From 2021, increase sustainability messaging within Persimmon’s customer marketing materials and website.||Marketing teams to ensure sustainability messaging is incorporated into materials, with a focus on practical tips and information on carbon reduction.|
|Homes to be net zero carbon in use by 2030 (2019 baseline).||Through a combination of fabric energy efficiency, electrification and sourcing of renewable energy.|
|Reduce Scope 3 emissions by 22% per m² completed floor area by 2030 (2019 baseline).||Continued efficiency of Persimmon homes and supply chain engagement to reduce embodied carbon within products and services|