Climate change

Bellway recognises the significant effect carbon emissions have on the climate and as a responsible organisation we seek to actively manage this risk on an ongoing basis.

We measure our carbon footprint based on the UK Government’s Environmental Reporting Guidelines (2013) and the latest emission factors from the Government’s GHG Conversion Factors for Company Reporting. We have our footprint independently verified to a ‘reasonable assurance level’ and all emissions are included apart from:

  • Gas and electricity from part-exchange properties due to immateriality and difficulty in accurately reporting and recording this data.
  • Emissions from site-based combined heat and power units for which the Group does not have operational control.

We continue to communicate our carbon performance to our stakeholders, both within our annual report and accounts and through our participation in the Carbon Disclosure Project (CDP).

Summary of performance
20,989 tonnes of carbon emissions were produced (2019 – 25,715)*
2.8 tonnes of carbon emissions per home construction were produced (2019 – 2.4)
6.7 tonnes of carbon emissions per Bellway employee were produced (2019 – 8.6)
100% of compounds were fitted with energy saving devices (2019 – 100%)
2,141 homes (28%) incorporated renewable and energy saving technology (2019 – 3,926; 36%)
Our homes constructed achieved an average dwelling emission rate (DER) of 4.7% better than building regulations (2019 – 4.5% better)
We already power many of our construction compounds on purchased renewable electricity and this year we extended that to include our divisions offices (where we have control over utilities). Overall purchase of renewable electricity has saved 1,753 tonnes of carbon saved from entering the atmosphere this year

* Our scope 2 emissions are now reported using the market-based method to account for electricity supplies purchased under REGO contracts.

Greenhouse gas emissions (GHG)  (tonnes C02e)1  2019 2020
Scope 1 - Combustion of fuel & operation of facilities (including diesel and petrol used on-site and in company cars on Group business) 20,560 16,892
Scope 2 – Electricity purchased for our own use (market-based)2 5,155 4,097
Total scope 1 and 2 GHG Emissions (market-based)2 25,715 20,989
Energy consumption used to calculate above emissions (kWh) 107,006,160 88,061,917
GHG intensity (market-based) per Bellway home sold 2.4 2.8
GHG intensity (market-based) per Bellway employee3 8.6 8.6
Scope 1 - Combustion of fuel & operation of facilities (including diesel and petrol used on-site and in company cars on Group business) 20,560 16,892
Scope 2 – Electricity purchased for our own use (location-based)4 5,518 4,877
Total scope 1 and 2 GHG Emissions (location-based)2 26,078 21,769
Energy consumption used to calculate above emissions (kWh) 109,622,315 92,663,081
GHG intensity (market-based) per Bellway home sold 2.4 2.9
GHG intensity (market-based) per Bellway employee3 8.8 7.0
Scope 3 – Disposal of waste 2,642 1,932
Scope 3 – Emissions from employee business travel in non-company vehicles 2,354 1,799

Carbon dioxide equivalent

Our scope 2 emissions are now reported using the market-based method to account for electricity supplies purchased under REGO contracts.

Based on the average number of employees during the year

Scope 2 emissions reported using the location-based method for total electricity used which does not account for the zero carbon nature of electricity purchased under REGO contracts

An element of carbon estimation is undertaken in the following areas:

  • Diesel fuel usage on a small number of sites where fuel is provided by our groundwork contractors. Bellway’s share of the usage is estimated based on forklift usage.
  • Divisional offices where gas and electricity usage are included within landlord charges. Bellway’s usage is estimated using a kwh per square meter of occupied floor space figure derived from other divisional offices with utility billing in place.

COVID-19 has had an impact on emissions as construction sites and divisional offices shut from late March through to early May. Scope 1 emissions fell by 17.8% with reduced site activity the key driver. Scope 2 emissions (market-based) fell by 20.5% through a combination of reasons – COVID-19 shutdown, the ongoing decarbonisation of the UK electricity mix and our increasing use of REGO (Renewable Energy Guarantee of Origin) electricity supplies. Our use of ‘green electricity’ has saved 1,753 tonnes of carbon from entering the atmosphere in the past year and discounting the benefit of our REGO supplies, location-based Scope 2 emissions fell by 11.6%.

Overall, total Scope 1 and 2 emissions (market-based) fell by 18.4% although with the 30.9% fall in completions (due to COVID-19 shutdown), our carbon per home sold metric rose by 16.7% to 2.8 tonnes (2019 – 2.4). However, with employee numbers largely static, our market-based emissions per employee have fallen by 22.1% to 6.7 tonnes (2019 - 8.6), broadly in line with the reduction in absolute emissions.

For the first time (under SECR - Streamlined Energy and Carbon Reporting) we have reported on certain Scope 3 emissions (waste and business mileage) and our total underlying energy use. Waste emissions fell by 26.9% due to the temporary shutdown of sites, while business mileage emissions fell by 23.6% as staff were at first furloughed then adopted remote meeting technology to adhere to social distancing. Underlying energy use (market-based) fell by 17.7%, while using the location-based method to remove the impact of ‘green electricity’, the fall was 15.5%.

During the year we have continued installing energy-saving technology in new compounds and maintained the use of more efficient engines in our telehandler fleet. LED lighting continues to be installed in showhomes and new guidance has been issued on the use of heating in showhomes and in homes under construction to minimise unnecessary energy usage.

Both the 2018/19 and 2019/20 emissions have been externally verified by Zeco Energy to a ‘reasonable assurance level’ using the ISO-14064-3 verification standard.

GHG verification statement