Supporting customers

The Government restrictions on movement put in place in March 2020 as a result of the Covid-19 pandemic had an immediate and material effect on the businesses of many of our customers. Guided by its commitment to Doing the Right Thing, in April 2020 the Group decided to offer a rent reduction of 50% to all business centre customers, to apply from the start of lockdown on 24 March until 30 June 2020. The Board received detailed information from the Executive Committee supporting this decision, which made it clear that sharing the burden of a challenging and uncertain period would have a positive impact on fostering relationships with customers. The short-term negative impact on revenue, and therefore potentially to shareholder returns, as a result of the discount was also considered, but the Board balanced this against the longer-term customer retention and loyalty this decision was expected to generate.

Net zero carbon pathway

The Board recognises that the building industry significantly contributes to the global carbon footprint. Following a review of Workspace’s business and value chain emissions, the Board strongly endorsed our pathway document, outlining how we will become a Net Zero Carbon Business by 2030.

Approved green bond

The Board approved the issue of our first green bond, to raise £300m of debt to finance/refinance green refurbishment projects, such as Brickfields in Hoxton. The Board reviewed and discussed in detail information from executive management and external advisers. In considering the impact it would have on the Group’s stakeholders, the Board particularly noted the positive impact the green bond was expected to have on the Group’s commitment to the environment and local communities.