News

Pioneering accountability with a science-based approach

Our client, Retirement Villages Group (RVG), has just become the first retirement community Operator and Developer to have carbon reduction targets approved by the Science Based Targets initiative (SBTi).

The later living sector—encompassing companies that own, operate, and develop retirement villages—faces unique challenges in reporting and reducing carbon emissions. With growing stakeholder expectations, regulatory pressures, and the urgent need to address climate change, many companies are now setting measurable targets, such as achieving net-zero emissions by 2040, committing to the Science-Based Targets initiative (SBTi), or reducing embodied carbon in construction. However, the sector’s complex emissions profile and operational realities present significant hurdles to achieving meaningful progress.

Identifying your carbon emissions

For the later living sector, carbon emissions typically fall into three key categories:

Scope 1:
Direct emissions from on-site energy use, such as heating and maintenance activities.

Scope 2:
Indirect emissions from purchased electricity used across retirement villages and office spaces.

Scope 3:
The most challenging category, encompassing upstream and downstream activities, including construction materials, supply chains, and resident behaviour.

In response to these challenges we worked with RVG, providing sustainability services to identify, baseline and report emissions, support their application to SBTi, and develop decarbonisation roadmaps.

Balancing Development with Sustainability

As demand for retirement communities grows, companies face the dual challenge of meeting housing needs while reducing emissions. Construction—a major source of embodied carbon—must evolve through innovations like sustainable building materials, modular construction, and energy-efficient design. However, integrating these approaches often requires significant upfront investment and alignment across supply chains. RVG has committed to all its new developments to be net zero and is supporting its supply chain to be net zero by 2034.

Operational Complexity

Retirement villages must cater to older residents’ comfort and safety, which often involves high energy usage for heating, cooling, and amenities. Transitioning to renewable energy or retrofitting existing properties can be costly and logistically disruptive, especially for large portfolios. RVG has committed to net zero carbon operations by 2030 and will spend £1.2 million this year on eight retrofitting projects and installing solar panels.

Data Collection and Transparency

Accurate reporting requires granular data from diverse sources, including energy providers, contractors, and facility managers. For many companies, gathering, verifying, and managing this data remains a daunting task, particularly for Scope 3 emissions. RVG has committed to improving their Scope 3 reporting by commissioning Whole Life Carbon Assessments for all their new developments.

Going beyond pledges into action

The later living sector is at a pivotal moment in its sustainability journey. Companies are increasingly embedding environmental considerations into their operations, with many adopting renewable energy, electrifying heating systems, and sustainable construction practices. Technology will play a crucial role, from advanced carbon accounting software to smart energy systems that optimise building performance. Looking ahead, regulatory requirements and stakeholder demands will only intensify, pushing the sector to innovate further. Those companies that embrace sustainability as a core value rather than an obligation will not only reduce their carbon footprint but also gain a competitive edge in an evolving market. By addressing emissions holistically, the later living sector can position itself as a leader in sustainable development while supporting the well-being of future generations.