Derwent London

Derwent London, a London-based property investment and development business, manages a £5 billion portfolio across central London. It is committed to climate leadership, the company has set science-based targets, including an ambitious Net Zero goal by 2030, prioritizing deep cuts in operational and embodied carbon.

As John Davies, Head of Sustainability, explains “we can’t get to zero… just by simply turning off the lights.” Even with aggressive reductions, some emissions remain unavoidable. To address these responsibly, Derwent London uses high-quality carbon credits as a complement, not a substitute, for internal action. With near- and long-term targets validated by the Science Based Targets initiative (SBTi), the company is setting a leadership example for climate action in the UK property sector.

The Ambition

Derwent London has set ambitious climate goals focused on achieving net-zero carbon emissions and significant reductions in its overall carbon footprint. The company aims to align its efforts with the 1.5°C global warming scenario set by the Paris Agreement.

Key Climate Goals:

• Derwent London is committed to reaching net-zero carbon emissions by 2030 for its portfolio, which includes both operational and embodied carbon from its properties.​
• It commits to reduce scope 1 and scope 2 GHG emissions 42% by 2030 from a 2022 base year, and to measure and reduce its scope 3 emissions.

• It commits to reduce scope 1, 2 and 3 emissions 90% by 2040 from a 2022 base year.

The Action

Derwent London  prioritizes reducing energy demand, installing all-electric heating and cooling systems in new developments, and sourcing renewable energy. 99% of its energy in 2024 came from renewables. The company also works closely with external stakeholders, such as building occupiers to reduce tenant-related emissions.

​Since 2020, Derwent London has been working with Climate Impact Partners to build a diversified carbon portfolio to meet their climate commitments, including:

• Internal Education: Over several years, the sustainability team ran “Mechanics 101” sessions for senior leadership and Board members, explaining the pathway to net zero – what can be reduced, what cannot, and where removals fit. These sessions, held well before financial decisions, embedded a core principle: reduce first, then address residuals with verified carbon removal credits.  

• Carbon credits selection: the company applies a rigorous set of criteria to assess the quality and credibility of carbon credits, focusing on sustainability, permanence, additionality, transparency, and long-term viability. Working closely with Climate Impact Partners, the company evaluates each project against a series of fundamental questions: Does the carbon truly get removed? Will the project endure for decades? Does it meet best-practice expectations for assurance, risk management, and transparency? How does it complement our reduction-first approach?

• Sourcing high-quality carbon credits: Derwent London is committed to supporting high-quality emission reduction projects through its carbon portfolio. These initiatives span nature-based and engineered solutions, from reforestation programs to innovative carbon removal technologies, such as the Mississippi Valley Reforestation project and the Community Woodland Restoration Project in Ethiopia.

In addition, the company is supporting biochar projects across the United States, helping to scale engineered carbon removal technologies that will be essential for achieving long-term global climate goals. Through this diversified approach to carbon credit purchasing, the company ensures its portfolio delivers meaningful and durable climate impact.

How Derwent London is Making the Business Case for Climate Action

John Davies guided the organization through this process, which was marked by three key steps:

1. Start Early and Build Internal Understanding: John began conversations about the path to net zero and the role of carbon credits five to six years before decisions were needed. With Climate Impact Partners’ support, he educated leadership on the evolving climate landscape, making net zero a well-grounded concept rather than a contentious debate.
2. Address Skepticism Through Transparency and Education: Initial skepticism driven by negative media narratives on carbon credits were addressed through open dialogue and expert input. This clarified how quality, integrity and standards define today’s leading projects, shifting leadership from hesitation to informed confidence.
3. Frame Climate Action as Value Creation: John positioned climate action as a driver of commercial value, demonstrating how credible climate leadership strengthens product quality, supports customers’ net zero ambitions, and enhances long-term competitiveness. Climate investment isn’t peripheral to the business; it’s central to the company’s value proposition and market differentiation.

This combination of early engagement, expert partnership, and strategic framing enabled Derwent London to build a resilient, commercially grounded case for climate action.

The Impact

Derwent London’s climate strategy delivers tangible business benefits, strengthening brand reputation and supporting customers’ sustainability ambitions. Through its carbon portfolio, the company supports projects with strong governance, robust assurance, and long-term viability, creating impact beyond carbon by restoring ecosystems, supporting livelihoods, and building resilience in climate-vulnerable regions. This reflects a bold, responsible business approach that drives positive change while contributing to global climate goals.

The company chose to support Ethiopia’s Community Woodland Restoration initiative, delivering lasting improvements for local communities in Eastern Africa, including:

• 2 new health centers improving healthcare access for local communities, aligning with SDGs 3 ‘Good Health and Wellbeing’.
• 2 new schools with 9 classrooms to expand access to education, aligning with SDGs 4 ‘Quality Education’.
• 1 deep well providing safe, reliable drinking water, aligning with SDGs 6 ‘Clean Water and Sanitation’.
• 950 solar panels installed to deliver clean, renewable energy for families who don’t have access, aligning with SDGs 7 ‘Affordable and Clean Energy’.
• 34 km of new roads enhancing connectivity for trade and essential services, aligning with SDGs 9 ‘Industry, Innovation and Infrastructure’.

What Derwent London London Says

“Our goal is to show, first and foremost, how emissions reductions happen and then how residual carbon financing comes into play only after those internal emission reductions are made. Every business needs to make a global impact, and climate finance helps bridge that gap."

Why It Matters

As carbon markets evolve, Derwent London sets the benchmark for credible climate action, prioritizing deep emissions cuts, a science-aligned pathway, and the responsible use of high-quality carbon credits for residual emissions.

Partnering with Climate Impact Partners gives the company the expertise and insight to navigate a fast-changing carbon market, delivering measurable climate impact today while creating lasting value for business and communities.