Crown Estate commits to net zero by 2030

The Crown Estate, which manages large areas of prime real estate in Central London, has committed to become a net zero business by 2030 and to be climate positive thereafter.  

The decision will have significant impact: the Estate manages all of Regent Street and much of St. James' in London, as well as one of the country's largest rural landholdings, much of the seabed and much of the coastline. It manages these holdings on behalf of the Queen, and pays all its profits to the Treasury. 

The Crown Estate says it will rapidly decarbonise its real estate portfolio by

• reducing carbon embodied in development, 
• improving the energy performance of existing assets;
• procuring of 100% renewable energy across its portfolio;

It says it will address the crises in the climate and ecological environment in a joined-up way, including by identifying opportunities for carbon sequestration and developing new ways to restore nature by encouraging biodiversity in marine, rural and urban environments.

Pandemic flagged the need to address systemic challenges

Chief Executive Dan Labbad says the coronavirus pandemic highlights the need for organisations to address systemic challenges.

Labbad said: “The impacts of Covid-19 and the wider volatility we face today only underline the importance of businesses like ours stepping up with purpose, pace and ambition to address systemic challenges facing our society and environment.”

Labbad acknowledged that its new target poses significant challenges. He said: “This cannot wait and we make our commitment to net zero today, knowing that we don’t have all the answers. 

A commitment to rapid innovation and collaboration

“We understand there will be big challenges to solve along the way and to succeed we will need to rapidly innovate in areas like technology and digital, to think differently about how we optimise the green potential of the seabed, as well as find new solutions by collaborating with our many customers and partners who share our ambitions.”

The commitment creates opportunities for nonprofit organisations to collaborate and get funding for work related to nature restoration and sustainable development

The Crown Estate has at the forefront of the offshore wind sector since 2000, delivering significant financial value for the UK. It has also signed up to the World Green Building Council’s Net Zero Carbon Building Commitment and the Better Building Partnership Climate Change Commitment.

Working on urban greening

 Since 2013, is has been expanding green space in its London estate, through green roofs, green walls, planters and pocket habitats. The Crown Estate is a key partner in the the Wild West End initiative – a partnership between central London’s largest property owners, also including the Church Commissioners for England, Great Portland Estates and Grosvenor, with Arup. The London Wildlife Trust is a key partner. 

The project aims to support green spaces and biodiversity on both new developments and existing sites and have helped to improve biodiversity by creating habitats and wildlife corridors in Central London. The Estate has also undertaken regular habitat mapping and bird and bat baseline surveys since 2013.

A key aim of the project is to raise awareness and promote the benefits of green infrastructure, inspire others to participate and create similar initiatives, and be a global demonstrator project for urban greening.

Income for the Treasury

In the last financial year, the Estate had a turnover of more than £13bn, and in the last ten years,  it has generated £2.9bn of income for Treasury.

The Estate holdings date back to the Norman conquest, and its income has been going to the Treasury for nearly 300 years. In 1760 King George III reached an agreement with the Government under which Crown Lands would be managed on behalf of the Government, and the surplus revenue would go to the nation’s coffers.

The Estate was established as an independent commercial business in1961. It manages 10 million square feet of office, retail and residential space in London’s West End, as well as Windsor Great Park and a wide variety of rural holdings. It also manages  the seabed, and half the foreshore around England, Wales and Northern Ireland and has growing offshore energy investments. The Estate has pledged to support the UK Government in meeting its net-zero goals by facilitating the expansion of offshore wind harvesting from the seabed it manages.