Homes

Communities

People

2024 ANNUAL REPORT

Contents

See our portfolio

pages 10 to 11

01–103 | STRATEGIC REPORT

01 | Who we are

02 | Highlights of the year

04 | Delivering our purpose through

brownfield regeneration

10 | Brownfield regeneration at scale

12 | Our business model

14 | Creating long-term

sustainablevalue

16 | Chairman’s statement

18 | Chief Executive’s review

26 | Market overview

29 | Trading and financial review

32 | Key Performance Indicators (KPIs)

34 | Responsible business at a glance

36 | Our Vision 2030 strategy overview

38 | Our Vision 2030 progress

58 | Our stakeholders

58 | Section 172(1) Statement

66 | ESG performance

68 | Climate-related disclosures

89 | Non-financial and sustainability

information statement

90 | How we manage risk

93 | Viability statement

94 | Risks

104–164 | CORPORATE GOVERNANCE

104 | Chairman’s introduction

106 | Board of Directors

110 | Board leadership and

company purpose

112 | Our cultural framework

114 | Stakeholder engagement

117 | Division of responsibilities

120 | Nomination Committee report

126 | Audit Committee report

130 | Directors’ remuneration report

157 | Directors’ report

165–232 | FINANCIAL STATEMENTS

165 | Independent Auditor’s Report

182 | Consolidated Income Statement

182 | Consolidated Statement

of Comprehensive Income

183 | Consolidated Statement

of Financial Position

184 | Consolidated Statement

of Changes in Equity

185 | Consolidated Cash Flow

Statement

186 | Notes to the Consolidated

Financial Statements

224 | Company Balance Sheet

225 | Company Statement of

Changes in Equity

226 | Notes to the Company

Financial Statements

231 | Five year summary

232 | Financial diary

232 | Registered office and advisors

Cover images: The Green Quarter, Ealing

Kidbrooke Village, Greenwich

Who we are

Berkeley builds homes and neighbourhoods

across London, Birmingham and the

South of England.

Our purpose

Our passion and purpose is to build quality

homes, strengthen communities and make

apositive difference to people’s lives.

We use our sustained commercial success

tomake valuable and enduring contributions

that benefit all of our stakeholders.

Homes

Communities

People

Fulfilling our

purpose through

brownfield

regeneration

We believe reviving

brownfield land is the

most sustainable way

tosolve the housing

crisis, strengthen left

behind places and

breathe newlife into

ourtowns and cities.

We are the only

majorUK homebuilder

focused on regenerating

brownfield land, as we

take forward 32 of the

UK’s most challenging

urban sites.

Oval Village

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 01

Highlights of the year

£557m

2023 | £604m

Profit before tax

16.2%

2023 | 18.7%

Pre-tax return on equity

£532m

2023 | £410m

Net cash

£33.63

2023 | £31.01

Net asset value per share

£1,701m

2023 | £2,136m

Cash due on forward sales

£6,929m

2023 | £7,629m

Future gross margin

in land holdings

See our trading and financial

review on pages 29 to 31

3,521

homes delivered (plus 406 in

jointventures), including some

10% of London’s new private

and affordable homes

Homes delivered

63%

homes had zero defects reported

by customers, compared to just

5% across the industry (HBF,

March 2024)

Quality

HomesFinancial highlights

87%

homes delivered during the

yearare on regenerated

brownfield land

Brownfield

Horlicks Quarter, Slough

1 Read more about our alternative

performance measures on pages 214

to216 (note 2.24)

02 | BERKELEY GROUP 2024 ANNUAL REPORT

long-term regeneration sites,

of which 27 are under

construction

Regeneration

+80.2

Net Promoter Score (NPS)

from our customers, compared

to an industry average of 44

(HBF, March 2024)

Customers

£370m

of subsidies provided to

deliver affordable housing and

committed to wider community

and infrastructure benefit

Community benefit

>580

acres of new or measurably

improved natural habitats across

56 biodiversity net gain sites

Regreening cities

Accreditations

See our ESG performance on

pages 66 to 67

Communities People

9.5%

of our employees are graduates,

apprentices or sponsored

students

Employees

26,000

UK jobs supported per annum

over the last five years, an

average of 6.6 jobs per

completed home

Workforce

CDP Climate Change

2023

A rated

ISS ESG Corporate Rating

2024

Prime status

MSCI ESG Rating

2023

AAA

S&P Global Corporate

Sustainability Assessment

2023

Sustainability Yearbook

Member and Industry Mover

Sustainalytics ESG Risk Rating

2024

Low risk rating

FTSE4Good

Listed since 2003

Prince of Wales Drive, Battersea

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 03

Creating quality

homes where

they are

needed most

Our urban regeneration

sites deliver thousands

of high quality private

and affordable homes

in and around our towns

and cities.

87%

homes delivered

on brownfield land

DELIVERING OUR PURPOSE THROUGH BROWNFIELD REGENERATION

3,927

homes delivered

(including joint ventures)

Clarendon, Haringey

04 | BERKELEY GROUP 2024 ANNUAL REPORT

Every neighbourhood we create is

individually designed and built with

great care and attention to detail.

This is the only way to create places

of lasting quality and benefit.

All of our homes, private and

affordable, are tenure blind by

design and delivered to the same

high quality and safety standards.

Our focus on quality drives all

of our teams on a daily basis

from the initial planning of

each development, through to

detailed design, construction

and completion. We are proud to

outperform industry both in terms

of the quality of the homes and the

service received, as rated by our

customers.

63%

homes had zero defects

reported by customers,

compared to 5% across

industry (HBF, March2024)

Poplar Gasworks

See more on Poplar Gasworks

on page 11

01–103 | STRATEGIC REPORT

104–164 | CORPORATE GOVERNANCE

165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 05

Creating

strong and

connected

communities

We focus on challenging

urban regeneration

sites, working closely

with local people and

councils to stitch left-

behind places back into

their local fabric. This

means we directly invest

into disadvantaged

communities and help

tackle the inequalities

and challenges facing

these places.

>580

acres of new or

improved natural

habitats being created

DELIVERING OUR PURPOSE THROUGH BROWNFIELD REGENERATION

Royal Arsenal Riverside, Woolwich

White City Living

06 | BERKELEY GROUP 2024 ANNUAL REPORT

We are long-term placemakers.

This means patiently transforming

underused land to create green and

welcoming neighbourhoods where

people of all backgrounds can enjoy

a great quality of life.

Community engagement is key to

our approach and we work hard to

understand and engage with the

communities around our sites. Then

we work in partnership to design

places which reflect local priorities

and character.

Our neighbourhoods are safe,

low carbon and rich in nature and

biodiverse. They provide private and

affordable homes, beautiful public

spaces and the amenities a healthy

community needs.

Bringing neighbours together

is a priority for us and we use

Community Plans to help people

mix, meet, have fun, support

each other and get involved in

community life. This helps to create

more friendly, happy and resilient

places.

£370m

of affordable housing

subsidies and community

infrastructure contributions

Community Plans being

delivered in partnership

with our residents and

neighbours

White City Living

Celebrating 15 years of partnership and

regeneration at Woodberry Down, Hackney

01–103 | STRATEGIC REPORT

104–164 | CORPORATE GOVERNANCE

165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 07

Making a

positive

difference to

people’s lives

Our regeneration projects

bring important benefits

to urban communities,

including affordable

and private homes,

public amenities such

asschoolsand parks,

andalasting supply

ofjobs and training.

DELIVERING OUR PURPOSE THROUGH BROWNFIELD REGENERATION

+80.2

Net Promoter Score from

our customers on a scale

of -100 to +100

Berkeley Group apprentices and

graduates at Royal Arsenal Riverside

08 | BERKELEY GROUP 2024 ANNUAL REPORT

Our regeneration sites demonstrate the wide-

ranging social benefits that come from transforming

underused urban land into green and welcoming

neighbourhoods. Many of these projects are helping

to catalyse a wider cycle of investment and renewal.

Social mobility is important to us and we work

hard to ensure people of all ages and backgrounds

can reach their potential and build a lasting career

onour sites. We provide a mix of high-quality

training pathways, including apprenticeship and

graduate schemes.

We work in partnership with councils, schools and

colleges to ensure training and career pathways

really work at a local level and reach people in

greatest need. This delivers valuable social and

economic legacies for communities around our sites.

Through the Berkeley Foundation we go even

further to achieve our purpose, funding long-term

social impact programmes that make a lasting

positive difference to thousands of disadvantaged

people within the communities in which we operate.

9.5%

of our employees are graduates,

apprentices or sponsored students

26,000

UK jobs supported on average

per annum

Mental Health Awareness Week atOval Village

HartlandVillage, Fleet

01–103 | STRATEGIC REPORT

104–164 | CORPORATE GOVERNANCE

165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 09

London

Watford

Fleet

Slough

Reading

Oxford

Guildford

Southampton

M25

M40

M23

Gatwick

Heathrow

London

Bridge

Euston

Waterloo

St.Pancras

Paddington

City

Airport

Heathrow

Victoria

Grand Union

Poplar Riverside

Brownfield regeneration at scale

In production

1 250 City Road, lslington

2 Beaufort Park, Hendon

3 Bermondsey Place,

Southwark

4 Bow Green

5 Camden Goods Yard

6 Chelsea Creek

7 Clarendon, Haringey

8 Grand Union, Brent

9 Green Park Village, Reading

10 Hartland Village, Fleet

11 Horlicks Quarter, Slough

12 Kidbrooke Village,

Greenwich

13 King’s Road Park, Fulham

14 Lombard Square, Plumstead

15 London Dock, Wapping

16 Oval Village

17 Poplar Riverside

18 Prince of Wales Drive,

Wandsworth

19 Royal Arsenal Riverside,

Woolwich

20 Silkstream, Barnet

21 South Quay Plaza, Docklands

22 The Eight Gardens, Watford

23 The Green Quarter, Ealing

24 TwelveTrees Park, Newham

25 West End Gate, Paddington

26 White City Living

27 Woodberry Down,

FinsburyPark

Future sites

1 Aylesham Centre, Peckham

2 Borough Triangle

3 Romford*

4 Sutton

5 Syon Lane, Brentford*

Berkeley is the only large UK homebuilder to align with Government on prioritising brownfield

land, as we progress 32 of the country’s most challenging projects, 27 of which are in delivery.

* Pipeline sites

10 | BERKELEY GROUP 2024 ANNUAL REPORT

Grand Union

Poplar Riverside

Unlocking this 22-acre industrial estate

in Brent required an upfront capital

investment of £170 million, complex enabling

infrastructure and close engagement with

the council and surrounding community to

shape a unique masterplan which meets

local needs.

Grand Union is now a popular canal-side

neighbourhood, which will deliver 3,350

private and affordable homes, 10 acres of

public space, up to 400 permanent jobs

and200 apprenticeships, community

amenities and an innovative multi-storey

industrial workspace.

Scan the code

for more information

Part of the Lower Lea Valley

Opportunity Area, this 20-acre former

gasworks is being transformed into a

welcoming riverside neighbourhood

with more than 2,500 private and

affordable homes.

The open landscape will include a

public square, 2.4 acres of parkland,

playspace and walking routes,

including a riverside walk, along

with a secondary school, crèche,

shops, cafés, restaurants and flexible

commercial space for employment,

enterprise and leisure.

Scan the code

for more information

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 00-00 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 11

Our business model

Long-term sustainable added-value model

Berkeley is a unique asset-focused development business

that seeks to manage risk and generate value through market

cycles, with its inherent latent value rooted in its unrivalled

landholdings.

We seek to find the optimum development solution for

each site in terms of both the social, natural and economic

value for all stakeholders, and the returns we deliver to

our shareholders. We firmly believe these two are mutually

compatible and reinforcing.

The pace at which homes are delivered from the land holdings

is determined by the prevailing operating environment and

Berkeley will always adopt a long-term approach, prioritising

financial strength above annual profit targets.

Capital allocation policy

First, ensure financial strength reflects the cyclical nature

andcomplexity of brownfield development and is appropriate

for the prevailing operating environment. Second, invest in

thebusiness (land and work-in-progress) atthe right time.

Third,make returns to shareholders through dividends and

share buy-backs.

Our brands

100% owned:

Our values

Joint venture:

Excellence through detail

Be passionate

Respect people

Think creatively

Have integrity

For more information

www.berkeleygroup.co.uk

Read more about our investment case

on page 19

12 | BERKELEY GROUP 2024 ANNUAL REPORT

Land acquisition

— Acquire land at the right time in the

cycle, targeting sites where we can add

value over the long-term through our

regeneration and place-making expertise

— Adopt an innovative approach to

partnering with land owners, such as with

joint venture partners and local authorities

— Focus on complex, large-scale brownfield

sites in undersupplied markets where we

can take a bespoke approach to each

development

Designing and planning new homes

— Reputation for successful regeneration

delivery underpins the planning process

— Embrace a highly collaborative approach

toplacemaking

— Design unique and beautiful places in

partnership with local authorities and

communities

— Continually evolve development plans

to generate the best outcome for

allstakeholders

Building new homes and places

— Consistent health and safety, building

safety and quality standards embedded

into operations

— Highly experienced and expert in-house

site management teams and direct

partnerships with building trades, rather

than main contractor-led sites

— Utilising modern methods of construction

and investing in digital technologies to

enhance and modernise our production

processes

Marketing and selling new homes

— Berkeley’s brand leadership and reputation

for lasting product quality provides a clear

competitive advantage in core markets

— Diversified sales channels across owner-

occupiers, private and institutional

investors, retirement living and affordable

housing providers

Sustainability and climate change

— Ambitious, sustainable and long-term

business strategy Our Vision 2030:

Transforming Tomorrow

— Strong focus on climate action, nature

recovery and strengthening communities

— Focus on urban brownfield regeneration,

which is inherently sustainable, socially

inclusive and supports a lower carbon

model for modern living

Placekeeping and stewardship

— Demonstrable long-term track record

of high levels ofcustomer service and

satisfaction

— Long-term strategies for effective

estate and community management,

working in partnership with residents

andmanagingagents

Read more about creating long-term

sustainable value on pages 14 to 15

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 00-00 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 13

Creating long-term sustainable value

Berkeley delivers long-term value on every new development

and ensures that we make lasting contributions that enable

communities and people to thrive.

These outcomes demonstrate the impact of our long-term

investment and placemaking strategies.

Creation of high

qualitynew homes

Leading the industry in producing

high quality, safe homes

19,608

Berkeley built 3,927

homes in 2023/24 and a

total of 19,608 over the last

five years (including joint

ventures).

10%

Berkeley has delivered

10% of the homes built

in London over the past

fiveyears.

Berkeley has had a

strategic partnership with

RoSPA for five years,

helping to create the Safer

by Design framework.

30developments have

now achieved Gold status.

93%

Berkeley has a long-

standing reputation for

quality homes. 93% of

homes built in the last five

years have had fewer than

five defects reported by

customers, with an average

of just two.

Place creation

and impact

on services

Collaborative

placemaking to revive

under-used spaces

Community

creation

Ensuring relationships

are underpinned by

trust and partnership

>17,000 515

Berkeley has built more

than 17,000 homes on

brownfield land over the

past five years. 87% of

completed homes have

been on brownfield land.

Berkeley is delivering

515public amenities

on our developments

currently under

construction, including

indoorcommunity spaces,

grocery and retail stores,

sports facilities and

children’s play spaces.

£2.0bn >40%

Berkeley made a

community contribution of

£0.4 million in 2023/24 and

around £2.0 billion over the

last five years; £1.4 billion in

affordable housing

subsidies and additional

payments of £0.6 billion to

help pay for a wide range

of facilities and services for

local communities.

The Berkeley Foundation

develops long-term,

transformational

partnerships to ensure a

sustained investment in

our local communities.

More than 40% of Berkeley

Foundation Partners have

been supported for more

than five years.

14 | BERKELEY GROUP 2024 ANNUAL REPORT

Promotinglocal

skills and

employment

Providing good, local

jobs and inspiring

people to join the built

environment sector

26,000

Berkeley has supported

on average, 26,000 jobs

per annum directly and

indirectly through its

supply chain over the

lastfive years.

2,500

Berkeley has supported

2,500 apprentices in the

past five years, including

700 directly and 1,800

gaining experience working

on our sites through our

contractor workforce.

Economic Contribution

On average, every new home built by Berkeley in

thelast five years has generated £290,000 of value

tothestate through taxation and contributions to

thecommunity.

£13.3bn

Berkeley’s contribution

to UK GDP was £2.5 billion

in 2023/24 and £13.3 billion

for the last five years.

£3.6bn

Berkeley’s total

UKtaxcontribution was

£0.8billion in 2023/24 and

£3.6 billion during the last

five years. This includes

taxes paid by its customers

and suppliers as a result of

Berkeley activities.

Development with

low environmental

impact

Creating sustainable

homes and places

Improving access

to nature

Connecting people with

nature and making

a measurable

contribution to the

natural environment

24613,600

Berkeley incorporates

sustainable transport

measures on all sites.

Infrastructure is being

installed for 13,600 electric

vehicle charging points

across our developments

under construction.

Berkeley has committed

or delivered 246 acres of

woodland over a seven

year period since we made

our commitment in 2017,

together with 160 acres of

nature-rich grassland and

56 acres of green roofs.

>580>15%

Berkeley has committed or

delivered more than 580

acres of new or measurably

improved natural habitats

across 56 biodiversity net

gain sites over a seven year

period since we made our

commitment in 2017.

Berkeley incorporates

water saving measures in

new homes. On average,

in the last five years

homes have been 15%

more water efficient than

the requirements of the

Building Regulations.

EY completes an Economic Impact

Assessment each year based on

Berkeley’s financial data as well as

publicly available statistics.

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 15

Chairman’s statement

In the financial year ended

30April 2024 Berkeley delivered

positive outcomes for all its

stakeholders.

Pre-tax profits of £557.3 million

were slightly in excess of the

guidance we had given at the

beginning of the year. With

interest rates remaining high,

demand has been subdued and

we have seen a significant decline

in sales volumes. We achieved

these results, therefore, due to

the resilience of our long term

business model with a high level

of forward sales, a continuous

commitment to quality and

stringent cost management.

We met our shareholder returns

target through dividends and

share buybacks totalling £170.4

million, and announced a 33

pence per share dividend to be

paid in July and a special dividend

of £184 million, or 174 pence per

share, to be paid in September

along with a share consolidation,

subject to shareholder approval.

Our vision is to transform

challenging sites into exceptional

places and to maximise the

positive impacts we can have on

society, the economy and the

natural world.

Last year we delivered £370

million of value by way of

affordable housing subsidies

and infrastructure contributions

to the communities in which we

work. Notably, 87% of the homes

we sold were on regenerated

brownfield land, underscoring

our commitment to this most

sustainable form of development.

Although the current environment

is challenging, going into

2024/25 we are well positioned

for continued success. We have

already secured 80% of our

projected sales for the year, we

have a strong cash position and

land holdings of £6.9 billion

represent a solid foundation for

future growth. We are ready and

willing to invest further, as soon

as we see the right opportunities

and conditions for growth.

Recognising the acute

shortage of high quality rental

accommodation in our core

markets, we believe there is

a compelling opportunity to

establish a build to rent platform

which will accelerate the delivery

on our existing assets, and ensure

optimal value creation from them

as we build a substantial portfolio

over coming years. This aligns

with our goals of addressing

housing needs and enhancing

long term shareholder value.

Berkeley’s performance over

the past year is testament to

the strength and resilience

of our business model. We

have successfully navigated a

challenging environment and

delivered on our financial targets.

We will continue to invest in

high quality developments,

maintain our focus on operational

excellence and drive innovation

across the business. Looking

ahead, we remain confident that

this strategy, a strong financial

position and an outstanding

management team will deliver

sustainable growth.

The results achieved over the

past year and our strong position

today are due to the commitment

of the entire Berkeley team to

putting customers first and doing

everything to the highest quality.

On behalf of the Board, I would

like to extend our sincere thanks

for their hard work.

Michael Dobson | Chairman

19 June 2024

Berkeley’s performance over the last

year is testament to the strength and

resilience of our business model.

Michael Dobson | Chairman

16 | BERKELEY GROUP 2024 ANNUAL REPORT

Unlocking brownfield sites

Berkeley is currently the only

UK homebuilder with the

skills and resources to deliver

urbanbrownfield regeneration

at scale.

What are the challenges?

— Building trust; with local

communities and councils

— Planning and regulatory

regimes; which are highly

complex and uncertain

— Capital; high up-front

investment

— Land assembly; with multiple

land ownerships

— Design challenges; to

address unique site-specific

constraints

— Infrastructure delivery; such

as new roads, bridges and

stations

— Operations; building in

complex urban environments

How do we solve them?

— Partnership working; based

on strong relationships with

local stakeholders

— Diverse inhouse expertise;

to work through complex

challenges

— Design-led solutions; to

unlock sites and create high

quality neighbourhoods

— Patient placemaking; to help

shape strong and engaged

communities

— Strong capital base; to

deliver multiple capital

intensive programmes

— Long term sustainable

operating model; to create

value through market cycles

Before regeneration: Battersea gasworks

After regeneration: Prince of Wales Drive

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 17

Chief Executive’s review

Recognising the strong

occupational and institutional

investment demand for high

quality, well-managed rental homes

in London and the South East,

Berkeley is establishing its own

Build to Rent (“BTR”) platform to

maximise returns in today’s market

conditions.

Berkeley has identified some 4,000

homes across 17 of its sustainable

and well-connected brownfield

regeneration sites as an initial

portfolio for this platform.

Developed over the next ten years,

and broadly representing a 10%

increase in delivery, the portfolio

will be financed by a combination

of internally generated funds

(over and above annual scheduled

shareholder returns), debt secured

against rental properties once

income generating, and the

introduction of third-party capital at

the appropriate time, thereby fully

supporting Berkeley’s long-term

corporate 15% pre-tax ROE target.

Berkeley’s passion and purpose is

to build quality homes, strengthen

communities and make a positive

difference to people’s lives. We

stand out as the only large-scale

UK homebuilder focussed on

brownfield regeneration, which

is a vital driver for growth and a

powerful force for good in our

towns and cities.

Berkeley has delivered pre-tax

profits of £557 million in line with

the guidance provided at the start

of the year and increased its net

cash position to over £500 million.

This is a strong performance in a

challenging and volatile operating

environment, demonstrating the

resilience of Berkeley’s business

model with its focus on the

country’s most undersupplied

markets.

We continue to see good levels

of enquiry for well-located homes

built to a high standard of design

and quality but recognise that

the current lack of urgency in the

market is likely to remain until

the long-anticipated reduction in

interest rates commences. Berkeley

continues to benefit from a strong

order book and has already secured

80% of its sales for next year,

underpinning today’s 5% increase in

guidance for FY25’s pre-tax profit

to £525 million, with guidance for

FY26 re-affirmed at £450 million.

In the year, we have delivered 3,500

new private and affordable homes,

of which 87% are on regenerated

brownfield land, and provided

over £370 million in subsidies to

deliver affordable housing and

commitments to wider community

and infrastructure benefits.

— Strong performance in

continued challenging

operating conditions and

ready to increase investment

once the conditions for

growth are re-established

— £283 million annual

shareholder return to be

completed by 33 pence per

share ordinary dividend

in July and 174 pence per

share special dividend to

be paid in September and

accompanied by a share

consolidation

— FY25 guidance increased

by5% to £525 million

— 87% of homes delivered by

Berkeley in FY24 were on

brownfield land with some

£370 million investment in

socio-economic benefits

— Berkeley is establishing

its own Build to Rent

platform, alongside its core

trading business, adopting

a strategic approach to

maximising returns from its

long-term regeneration sites

We are the only large-scale UK

homebuilder focused on brownfield

regeneration, which is a vital driver

of growth and a powerful force for

good in our towns and cities.

Rob Perrins | Chief Executive

18 | BERKELEY GROUP 2024 ANNUAL REPORT

We are heartened by the strong

political consensus behind

increasing the delivery of new

homes across the country and

the recognition that regenerating

brownfield land is the most

sustainable and popular way to

deliver this vital goal. The next step

is to ensure that brownfield sites

can come forward at real scale

andpace.

For this to happen, planning

policy and public funding needs to

prioritise the provision of affordable

homes over the other significant

financial demands placed upon the

development industry through the

planning, taxation and regulatory

regimes. The industry has absorbed

many regulatory changes over

recent years and, while all well-

intended, when taken together they

have stifled investment, housing

delivery and growth. In terms of

corporation tax alone, the industry’s

rate has increased by 10% (from

19% to 29%) over the last two years,

including the 4% RPDT.

We are supportive of the initiatives

being discussed to provide

customers with greater access to

higher loan to value mortgages and

to reduce stamp duty. We believe

that all surcharges on stamp duty

should be removed as, ultimately,

these constrain supply.

I would like to thank all of Berkeley’s

people for their hard work,

resilience and steadfast focus on

our customers and communities

to achieve the best possible

outcomes for all stakeholders in

this exceptionally challenging

environment.

Investment Case

Berkeley has a strong

track record of delivery,

profitability and cash

generation through

market cycles, reflecting

its uniquely long-term

business model, which

is underpinned by five

key features:

Sustained Shareholder

Returns

526% TSR

(Total Shareholder Return)

since 1 January 2007

Only large UK homebuilder

focused on brownfield

regeneration at scale

— Delivering sustainable homes and

neighbourhoods on brownfield

land with significant socio-

economic benefits

— Aligned with Government’s

brownfield first agenda

— Each project individually designed

in partnership with local authorities

and communities

Core London and South East

markets are systematically under

supplied

— London has global appeal,

withdeep and proven demand

— Berkeley delivers over 10%

of London’s new private and

affordable homes each year

Significant financial strength

giving the business strategic

optionality

— Net cash of £532 million, with

£1,200 million of available debt

facilities

— Cash due on private forward sales

under exchanged contracts of

£1.7billion

— Land holdings estimated future

gross margin of £6.9 billion across

54,000 homes

Unrivalled land holdings

sustaining delivery profile

for the next 10 years

— Not under pressure to buy land

— Over 70% of homes are in London

— 90% of homes have outline or full

planning consent

Added value developer focused

on maximising returns on

everysite

— Bottom-up approach which

identifies the best development

solution and maximises absolute

returns from each site

— Sales volumes important on a site-

by-site basis, but are not the sole

determinant for creating value

— Long-term value is created through

the land and planning strategy at

any point in the cycle

— Risk managed through land

approach and forward selling

— Agile and responsive to the

prevailing operating environment

Grand Union, Brent

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 19

Chief Executive’s review continued

We continue to take action on

our ambitious long-term strategy,

Our Vision2030, helping to drive

our performance, spur innovation

and maximise our positive

impacts on society, the economy

and the natural world.

Rob Perrins | Chief Executive

Planning and Regulatory

Environment

The operating environment has

become increasingly uncertain

over recent years as a high number

of well-intended regulatory and

policy changes came into effect.

This contributed to a marked

decrease in private and affordable

homebuilding activity, with

SME developers and housing

associations particularly impacted.

This significant decline in housing

delivery has been acknowledged

by policymakers at all levels and

triggered a renewed focus on

addressing barriers within the

regulatory and planning system.

This positive response has

carried through to the General

Election campaign and we are

greatly encouraged by the tone

and substance of manifesto

commitments in support

of homebuilding and urban

regeneration.

Berkeley continues to work

alongside industry partners,

including other leading urban

regeneration specialists and

housing associations, to make

the case for a stable and efficient

regulatory environment which

enables all parts of the market to

invest with confidence.

Our core asks for the next

Government include:

— refraining from a further round

of major reforms in favour of

a focussed effort to resolve

a number of relatively small

operational challenges within the

planning and regulatory system

to make it faster and more

predictable;

— greater resources for severely

overstretched local authorities

and statutory bodies so they

can operate the system more

effectively;

— stronger policy support for

well-designed, high density

neighbourhoods on sustainable

brownfield sites close to

transport and employment hubs;

— replacing fixed CIL tariffs (which

fund off-site infrastructure)

with locally negotiated S106

agreements which prioritise

on-site affordable housing and

public amenities;

— refinancing under pressure

housing associations so they can

get back into the market and

perform their key role in driving

housing delivery; and

— simplify the complex Government

grant funding regimes so they

can become faster and more

flexible.

For more detail

see pages 36 to 57

20 | BERKELEY GROUP 2024 ANNUAL REPORT

Strategy Positioning and

Establishment of Rental Fund

Core Business Strategy

In December, Berkeley set out a

medium-term plan to respond to

the extended period of volatility

in the housing market, that began

with the sharp increase in interest

rates in September 2022, which

also reflects the wider challenges

presented by the planning and

regulatory environment. Despite this

challenging backdrop, Berkeley’s

long-term business model continues

to be resilient with good forward

visibility:

Near-term (FY25 and FY26)

— Having met its guidance for

FY24, Berkeley is targeting at

least £975 million of pre-tax

profit across the next two years

with the guidance for FY25

increased by 5% to £525 million.

— Operating margins are expected

to be within the long-term

historical range (17.5% to 19%)

following a 7.7% reduction in

operating costs in FY24 and

targeting no increase in FY25.

Huntley Wharf, Reading

— While the sales market remains

subdued, cash due on private

forward sales remains strong

at £1.7 billion but will continue

to moderate until transaction

volumes recover. Consequently,

Berkeley will carry higher

completed stock levels than in

recent years over this period.

— Berkeley will continue to review

the development solution on all

its sites to achieve the optimum

outcome for all stakeholders,

including accommodating our

best current assessment of the

impact of evolving regulations,

such as the requirements

surrounding second staircases in

buildings over 18 metres.

— In the absence of material

new land investment, the land

holdings future gross margin will

be targeted at around £6 billion

at the end of this period.

— Pre-tax ROE will be above 15%

for the period as a whole but is

likely to fall slightly below this for

FY26.

Medium-term (FY27, FY28 and

FY29)

— Until the planning and regulatory

environments unlock, alongside

an inflection in the sales market,

pre-tax profitability is anticipated

to remain around the level to be

delivered in FY26.

— The focus will be on maintaining

operating margin through our

added-value approach to each

site’s development solution and

ensuring our operating costs

are aligned to the size of the

business.

Capital allocation flexibility

— We are on track to continue with

the current shareholder returns

programme into the future but

remain agile and are ready to

switch our capital allocation

emphasis to invest in value

accretive opportunities should

these present themselves.

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 21

PRINTER TO SUPPLY

ADJUSTMENT MEASUREMENTS

MOVED OUT 2MM

EITHER SIDE HERE

Chief Executive’s review continued

— Berkeley’s position has always

been that, if it cannot deploy

capital to deliver appropriate

risk-adjusted returns, it will return

surplus capital to shareholders.

With the creation of the BTR

platform, the surplus capital that

we indicated in December would

be available to make additional

returns from 2027, should no

new investment opportunities

arise, will now be allocated to

the development of the rental

portfolio.

— Berkeley sees this as an attractive

opportunity to accelerate

delivery of its existing assets by

building a best-in-class London

and South-East focused BTR

residential portfolio and platform

that will enable us to maximise

value on our brownfield

regeneration sites from this

growing market segment to

the benefit of both society and

shareholders.

Establishment of Berkeley Build

to Rent (“BTR”) Platform

Recognising the severe shortage of

high-quality rental accommodation,

Berkeley is today announcing a

natural extension of its strategy

that will see the establishment of

its own BTR platform, which will

be developed over the next ten

years, comprising some 4,000 new

homes across 17 of the Group’s well-

connected, nature-rich, low-carbon

brownfield urban regeneration

developments.

This will represent additional

delivery of around 10% of much

needed new homes, when

compared to the plan set out in

December with the Company’s

interim results, along with the

acceleration of place-making and

affordable homes on these sites.

There is strong, unsatisfied

demand for quality residential

rental property built at scale in

and around London, the country’s

most under-supplied market,

from institutional capital which is

attracted to its inflation-correlated

attributes. Having sold over 1,000

homes across five sites in the last

three years to institutional investors

on a forward commitment basis, we

now believe that adopting a more

strategic route to this market will

drive best value for these assets

by creating a portfolio of scale,

professionally managed, with

proven income levels stabilised prior

to disposal.

With strong demand and a systemic

under-supply of high-quality homes

to rent in and around London,

upward pressure on rents is forecast

to remain. We will be locking in

build costs early in the investment

cycle and with yields linked to long-

term interest rates, there is strong

potential to drive value accretion

over the next ten years, as well

as incremental income while the

properties in the portfolio remain

owned by Berkeley.

Drawing on our experience in

2011–2014 when we developed

and managed a portfolio of 900

homes, and utilising our ongoing

site presence, we will create our

own operating and management

platform to provide tenants with

the high levels of customer service

experienced by our purchasers.

The establishment of the portfolio

will be financed by a combination

of internally generated funds

(over and above annual scheduled

shareholder returns), debt

secured against rental properties

once income generating, and

the introduction of third-party

capital at the appropriate time,

thereby enhancing the efficiency

of Berkeley’s balance sheet and

fully supporting the long-term

15% pre-tax ROE target. It will not

inhibit new land investment in the

core business when appropriate

opportunities arise.

The platform being established

is flexible, ensuring Berkeley is

able to dispose of the properties

individually or in stand-alone blocks

at any time should this become the

more compelling exit route for any

reason over the course of the next

ten years.

Oval Village

22 | BERKELEY GROUP 2024 ANNUAL REPORT

Housing Market

andOperations

Sales

Throughout the year, the value of

underlying private reservations

has been consistently around a

third lower than FY23, reflecting

the ongoing macroeconomic and

geopolitical uncertainty and, in

particular, the prolonged period of

elevated interest rates. Sales prices

have been largely stable across

our sites and above business plan

levels, with cancellation levels in the

normal range.

Our core markets are underpinned

by the systemic under-supply of

new homes, the related strong

rental growth of recent years and

a supportive mortgage market.

Enquiry levels remain robust, with

the slow-moving nature of the

second-hand market impacting

transaction timescales for sale-

dependent owner-occupiers.

We anticipate sales reservations

will remain around current levels

until we see the first reduction in

interest rates and customers have

confidence in the trajectory for

rates and the wider economy.

We continue to benefit from a

strong order book. Cash due on

exchanged private forward sales

stands at £1.70 billion, down from

£2.14 billion at the start of the year,

with 80% of private sales for FY25

already secured. This level will

moderate over the course of the

coming year while the prevailing

sales rates continue. Equally,

and as anticipated, Berkeley’s

completed stock has increased in

this environment, providing readily

available homes for those currently

in the zone to move and for when

the market conditions normalise.

Positively, inflation is now abating,

and the market expectation is for

measured interest rate reductions

over the near term against a

backdrop of full employment levels

and resilient wage growth which

has improved affordability in real

terms. Nonetheless, Berkeley is

mindful of the ongoing uncertainty

on a number of macro fronts which

weighs on market sentiment.

Shareholder Returns

The current shareholder returns framework is based upon an annual

return of £283 million through to September 2025 (as the shareholder

returns year runs from 1 October to 30 September each year), which

can be made through either dividends or share buy-backs, subject to a

dividend underpin of 66 pence per share (approximately £70 million).

Shareholder returns during the financial year totalled £170.4 million:

Shareholder Returns for the year ending 30 April:

2024

£m

2023

£m

Dividends paid 98.1 98.5

Share buy-backs undertaken 72.3 155.4

Shareholder return in the financial year 170.4 253.9

Dividends paid during the financial year of £98.1 million comprised:

— A £63.1 million dividend in September 2023 (59.30 pence per share)

which completed the return of £283 million for the year ended 30

September 2023; and

— A £35.0 million dividend in March 2024 (33.00 pence per share)

representing half of the dividend underpin in respect of the

scheduled return of £283 million for the year ending 30 September

2024.

The total amount returned via share buy-backs in the financial year was

£72.3 million across 1.8 million shares at an average price of £39.62 per

share.

This includes £29.2 million in respect of the year annual return to

30September 2024. When combined with the £35.0 million dividend

paid in March, there is currently £218.9 million still due for return by

30September 2024. This will be completed by:

— A further £34.9 million (33.00 pence per share) interim dividend to

be paid on 26 July 2024 to shareholders on the Company’s register

of members at close of business on 28 June 2024. The ex-dividend

date is 27 June 2024; and

— A special dividend of £184.0 million (174 pence per share) to be paid

in September 2024 accompanied by a share consolidation, subject

to approval by shareholders at the September AGM.

Any further share buy-backs undertaken in the intervening period

will therefore count towards the £283 million return for the year to

30 September 2025, which currently equates to £2.67 per share and

compares to the initial £2.00 per share initiated in 2016.

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 23

Chief Executive’s review continued

Berkeley is therefore positioned

for sales rates to remain subdued

for the near-term but is alert to

the prospect of these responding

decisively to evolving market

conditions.

More fundamentally, Berkeley’s

core markets in London and the

South East are under-supplied.

Focussing on the capital, the latest

DLUHC data is new-build starts for

the 12 months to December 2023

of just under 17,000 (including

private, PRS and affordable homes)

below both the current London

Plan target of 52,000 per annum

and Government’s identified local

housing need of 94,000 per annum.

Land and planning

Following extended planning

processes and timescales, Berkeley

has secured five new consents

during the year:

— 199 homes in Spring Hill,

Maidenhead;

— 470 homes in Guildford, Surrey

(St Edward);

— 550 homes adjacent to West End

Gate, Marylebone;

— 970 homes in Chalk Gardens,

Sutton; and

— 2,150 homes at Syon Lane,

Brentford (St Edward).

The sites in Maidenhead and

Guildford have been added to the

land holdings during the year, with

the former a strategic land site

and the latter transferred from the

pipeline. While consent was secured

in December 2023 for the large-

scale regeneration development

in Brentford, the site will remain

in the pipeline while Berkeley re-

plans the development to reflect

building regulation changes,

notably to accommodate second

staircases, that have arisen since

the application was called-in by

central Government in late 2021.

In addition, Berkeley has obtained

some 30 amendments to planning

consents on existing sites.

At 30 April 2024, Berkeley’s land

holdings comprise 54,081 plots

across 70 developments (30 April

2023: 58,045 plots across 73

developments), including those in

the St Edward joint venture.

The plots in the land holdings have

an estimated future gross profit of

£6.93 billion (30 April 2023: £7.63

billion), which includes the Group’s

50% share of the anticipated

profit on St Edward’s joint venture

developments. The net reduction

in future gross profit of £0.70

billion principally arises through

the gross profit taken through the

Income Statement, with the two

new sites added partly mitigating

the impact of market movements

and regulatory changes on the

anticipated future gross profit in

the land holdings. Consequently,

the estimated future gross margin is

25.1% (30 April 2023: 26.2%).

The estimated future gross

margin represents Management’s

risk-adjusted assessment of the

potential gross profit for each site,

taking account of a wide range

of factors, including current sales

and input prices; the political and

economic backdrop; the planning

regime; and other market forces; all

of which could have a significant

effect on the eventual outcome.

The pipeline comprises

approximately 13,500 plots across

13 sites at 30 April 2024 (30April

2023: 14,000 plots on 14 sites)

following the transfer of the

Guildford site to the land holdings.

Construction

For Berkeley, build cost inflation in

today’s market is at negligible levels

apart from some isolated trades

where demand is high, reflecting

a combination of reduced energy

prices, the reversal of the very

high materials inflation of recent

years and reduction in new homes

starts and construction output

more broadly. For the early trades

and those most impacted by the

decline in orders we are already

seeing some reductions in current

tender pricing. We expect these

market-led dynamics to continue

placing downward pressure on build

costs, but this will continue to be

balanced by the costs associated

with ongoing regulatory change.

These include the impacts of

evolving building regulations, the

introduction of the new building

safety regime and the requirements

for second staircases in buildings

above 18 metres.

We continue to work with

and support our established

supply chain partners to ensure

sustainability of the supply chain

and delivery on our development

sites as the market continues to

adjust to these changing dynamics.

Land holdings as at 30 April 24 Change 30 April 23

Owned 53,600 -4,445 58,045

Contracted 481 +481 –

Plots 54,081 -3,964 58,045

Sales value £27.6bn -£1.6bn £29.2bn

Average selling price (ASP)* £516k +£8k £508k

Average plot cost* £49k -£1k £50k

Land cost (%) 9.4% -0.4% 9.8%

Gross margin £6,929m -£700m £7,629m

GM% 25.1% -1.1% 26.2%

* Reflects joint venture sites at 100%

24 | BERKELEY GROUP 2024 ANNUAL REPORT

CMA investigation

Berkeley notes the outcome of the

Competition and Markets Authority

(“CMA”) market study into house-

building, which concluded on

26February 2024 with the CMA’s

decision not to launch a market

investigation at this time. As one

of the eight large housebuilders

covered by the CMA’s subsequent

investigation into possible anti-

competitive sharing of information

in the housebuilding industry, we

continue to cooperate with the

CMA and their enquiries.

Self-Remediation

TermsandContract

On 13 March 2023 Berkeley

entered into the Self-Remediation

Terms and Contract with DLUHC,

under which developers have

responsibility for any life critical

fire safety defects in buildings they

have developed in the 30 year

period to April 2022.

For the 820 relevant buildings

Berkeley has developed over

this period, we have third party

assessments on over 95%. All of

the remaining buildings are where

Berkeley is not the freeholder and

has not yet been provided access.

There are 40 buildings where

works are still to be completed,

12 of which are buildings where

Berkeley is reimbursing Government

for the works under the Developer

Remediation contract. Where works

are required and yet to commence,

Berkeley intends to begin works as

soon as reasonably possible, subject

to access being provided by the

freeholder.

It is Berkeley’s preference to take

full responsibility for all its relevant

buildings and to complete any

required works itself as this will

speed up the overall process

of remediation. We are seeking

recoveries from the supply chain

and insurers where appropriate.

Looking forward, Berkeley is

ensuring its procedures are

compliant with new legislation and

is working closely with the new

Building Safety Regulator which,

together with the actions taken

to date, should restore trust and

confidence to the housing market,

enabling it to operate efficiently,

effectively and fairly for all.

Outlook

The last 12 months has seen a continuation of the volatile and uncertain

operating environment for Berkeley. However, while interest rates have

stayed at elevated levels for longer than the market had anticipated,

there are signs that the outlook is improving with inflation greatly

reduced, the first interest rate cut expected later this year and a return

to growth.

Housing is a central issue in the upcoming General Election and we

are optimistic that the next Government will prioritise increasing

housing supply of all tenures to deliver the homes the country badly

needs where they are needed most. This is not straight-forward due

to the multiple demands on development and the impact of policy

and regulatory changes of recent years. However, we look forward

to working with all levels of Government to unlock development on

brownfield sites which have a vital role to play in tackling the housing

crisis and re-energising our towns and cities to meet the challenges

oftomorrow.

Berkeley enters the coming year in a robust position with over

£0.5billion of net cash, £1.7 billion of cash due on exchanged private

sales and £6.9 billion of future gross margin in our land holdings.

We have in place a clear strategy for capital allocation, maintaining

our previously announced scheduled annual shareholder returns

programme and investing surplus capital to increase delivery by

around 10% to develop our own BTR platform to deliver much needed

quality homes for the rental market on our well-connected, nature-rich

regeneration sites.

Our focus for the next twelve months is to find the best development

solution for each of our sites, adding value to maintain operating

margins in the long-term historic range of 17.5% to 19.5%. The challenge

in the near-term is maintaining pre-tax return on equity above our 15%

hurdle rate given the subdued sales market and the time required to

achieve satisfactory planning consents in the current planning and

regulatory environment.

We are delighted that over the last year our advocacy has helped

the development of brownfield land to be recognised as the most

sustainable way of solving the UK’s housing crisis, and we will continue

to fulfil our purpose and transform the most challenging sites into

exceptional places with a real sense of community, yielding a long-term

positive impact for society, the UK economy and natural world.

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 25

Figure 1 – Construction starts activity

Figure 2 – Regional housing supply

Figure 3 – Transaction volumes

-68%

Pandemic

& recovery

-50%

125,000

100,000

25,000

50,000

75,000

150,000

175,000

200,000

275,000

300,000

225,000

250,000

5,000

40,000

10,000

15,000

20,000

35,000

30,000

25,000

45,000

50,000

55,000

60,000

London Starts (rolling 12 months)

England Starts

London TargetEngland Target

England Starts (rolling 12 months)

2023

2021

2019

2017

2015

2013

2011

2009

2007

London Starts (rolling 12 months)

3% SDLT

levy imposed

Pandemic

& recovery

Mini

budget

200,000

100,000

50,000

150,000

1,250,000 250,000

LondonEngland (excl. London)

England Starts (rolling 12 months)

250,000

1,000,000

500,000

750,000

2022

Q4 Q4

2018

2016

2014

2012

2010

2008

2006

East of

England

East

Midlands

London North

East

North

West

South

East

South

West

Midlands

Yorkshire

and the

Humber

100,000

90,000

80,000

70,000

60,000

50,000

40,000

30,000

20,000

10,000

2021/22

2022/23

2023/24 (EPC data)

Housing target

Berkeley’s core markets

–

London Starts

2020

Market overview

The housing market is

sensitive to underlying

sentiment and the

prevailing macro-economic

environment. It is therefore

cyclical in nature, and

Berkeley is experienced

at operating in this

environment, with a unique

long-term business model

that enables us to deliver

homes and outcomes for

all stakeholders through

market cycles.

Over the last year, the housing

market has continued to face

multiple challenges. In addition

to the backdrop of sustained

international economic and political

instability, short-term domestic

uncertainty exists, characterised

by the upcoming General Election,

muted economic growth and

a planning and regulatory

environment that continues

toconstrain supply.

Inflation, having been in double

digit territory a little over a year

ago, reduced to 2.3% in April 2024,

nearing the Bank of England’s

2% target. Build cost inflation has

stabilised with a more competitive

supply chain, although the financial

strength of a number of smaller

subcontractors has come under

pressure.

Inflation and higher mortgage

rates have impacted upon market

sentiment. However, this could start

to ease with inflation expected to

reduce further and the Bank of

England expected to commence

base rate reductions cautiously later

in the year.

26 | BERKELEY GROUP 2024 ANNUAL REPORT

The layering of planning and

regulatory changes in recent

years have introduced a variety

of challenges and increased

uncertainty for the sector, including

the removal of housing targets

for local authorities, changes

to energy efficiency standards

and environmental measures, as

well as the continued changes to

building regulations which, for a

prolonged period, did not provide

clear and definitive specification or

transitional arrangements.

Whilst Berkeley supports positive

changes, the increasingly

challenging operating environment

has resulted in subdued

construction activity nationally,

which is impeding much needed

supply.

However, importantly, the

fundamentals of the housing sector

and Berkeley’s core markets in

London and the South East remain

strong:

— London’s position as a global city

remains compelling;

— systemic and compounding

under supply in London and the

South East of England continues;

— unemployment remains at

low levels, despite economic

uncertainty, with strong wage

growth countering inflation;

— interest rates appear to have

peaked and the anticipated

future trajectory is supportive

of restoring sentiment and

affordability;

— a competitive lender market

supports good mortgage

availability; and

— strong growth in the rental

market means both home

ownership is a viable preference

despite higher interest rates, and

investors can achieve appropriate

yields, supporting the much

needed rental market.



London and the South East is

systemically under-supplied

The Government’s long-term

annual delivery target of 300,000

homes per year has only ever been

achieved six times, all during the

1960s, when Government directly

delivered around 40% of all new

build homes.

How this target is

to be achieved in the future is a

key point of focus of the General

Election in July.

During 2023/24, the number of new

homes completed across England

was around 232,000,

comparable

to the levels achieved in each of

the preceding two years,

but still

some 23% below the Government’s

ambition and compounding the

national under supply issue further.

Future completions look set to

remain materially below targets,

based upon current permissions

granted and starts activity.

There were 149,000 starts reported

in England in 2023, the lowest level

since 2016, excluding the short-term

pandemic impacted period (see

Figure 1).

This is less than half of

the Government’s national target.

The number of homes that gained

planning permission in 2023 was

the lowest since 2014. Whilst all

regions had a general downward

trajectory, the declines were among

the greatest in London (34%, lowest

since 2011) and the South East (13%,

lowest since 2015).

Based upon the Government’s most

recent assessment of housing need,

this under supply will therefore

continue to be concentrated in

these two regions more than any

others (see Figure 2).

London’s housing need was last

estimated at 94,000 homes per

year.

However, the current London

Plan has an annual housing delivery

target of 52,000 homes. Even if

this target were reached, this would

still represent a shortfall of 42,000

homes or around 45% relative to

London’s assessed housing need

every year.

In 2022/23, there were 35,000

homes delivered in London, of

which nearly 31,000 were new

build.

The delivery in 2023/24 is

expected to be broadly similar,

63% shortfall compared to need.

This supply constraint in London

looks set to continue in the medium

to long-term, with new build starts

currently just under 17,000 per

annum (see Figure 1),

having been

below 20,000 for much of the

last decade. The decline appears

particularly acute within affordable

housing delivery, with claimed starts

in the year to March 2024 down

over 90% on the prior year.

The situation is similar in the South

East, which has a housing need

assessment of 50,000 homes

per year,

compared to average

completions of just over 40,000

per year over the last five years,

anannual shortfall of 10,000 homes

(20%).

Transaction volumes

Transaction activity had recovered

well post-pandemic. However, the

full impact of recent economic

events upon consumer confidence

is now much clearer. Current

transaction levels have reduced

by around 35% in the period since

September 2022 and are now close

to the volumes back in 2009 at the

height of the financial crisis (see

Figure 3).

The reaction to temporary SDLT

cuts in recent periods demonstrated

the positive impact a more

permanent rationalisation of the

SDLT regime could have on housing

market activity. Conversely, the

introduction of the 3% SDLT levy

on additional properties in 2016

showed the adverse impact of

increased transactional taxation,

which initiated a contraction of

activity, exacerbated in London (see

Figure 3). Current volumes are now

45% and 52% lower nationally and

in London respectively than prior to

this change.

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 27

Such investment (including some

overseas purchasers, who have also

been impacted by the introduction

of a further 2% SDLT surcharge) is

a crucial element of new housing

supply. They typically invest early

in the development cycle, which

allows developers and their funders

to bring forward larger and more

capital intensive developments, thus

creating significant additionality

beyond their direct purchases.

Setting the conditions

forgrowth

Increasing housing delivery in a

sustainable manner should be an

increasingly important priority

for the UK Government. Rents

are currently rising at historically

significant rates, and the falling

number of housing starts is now

so significant it is likely acting

as a drag on overall economic

performance.

Berkeley strongly supports the

ambition to reform the planning

system to make it faster and more

predictable, with the clear objective

of delivering more homes in the

places where they are most needed.

In particular, the increased focus

on the importance of brownfield

housing delivery as a core part of

this overall ambition is encouraging.

When individual homebuyers,

investors, and developers like

Berkeley have the confidence and

ability to invest for the long-term,

this supports significant economic

activity, improves social mobility,

and permanently increases the

country’s asset base. Berkeley

believes that the following further

actions could help support

sustainable economic growth:

— Create a separate planning

category for brownfield

development, with differing

levies and planning tariffs which

appropriately reflect the more

complex nature and higher

capital investment required for

such development.

— Refocus attention on increasing

the supply of homes on

brownfield land by recognising

the positive nature of investment

in the built environment and

offer incentives for investment in

brownfield urban regeneration.

This will deliver more homes and

raise more tax revenue in the

medium to long-term.

— Increase the amount of direct

Government investment in

affordable housing, assisting

with the private sector’s

efforts to replicate historical

record delivery levels achieved

in tandem with significant

Government involvement.

— Strengthen housing delivery

targets and ensure changes to

the National Planning Policy

Framework appropriately

address the shortcomings of

the existing system, which will

result in the building of more

high quality, well designed and

beautiful homes in the most

undersupplied markets.

— Provide more resources to the

planning system and ensure that

a robust plan-led system is able

to deliver the number of homes

targeted by the Government.

— Increase market liquidity through

reduced transaction taxes,

particularly for first time buyers

in the absence of continued

support and downsizers.

Market overview continued

Sources: (1) DLUHC Live Table 244;

(2) DLUHC EPC data; (3) DLUHC Live Table 118;

(4) DLUHC Live Table 213; (5) HBF; (6) DLUHC

Indicative Local Housing Need (December 2020);

(7) DLUHC Live Table 253a; (8) GLA;

(9) Land Registry

Woodberry Down, Hackney

28 | BERKELEY GROUP 2024 ANNUAL REPORT

Trading and financial review

Revenue of £2,464.3 million in

the year (2023: £2,550.2 million)

arose primarily from the sale of

new homes in London and the

South East. This included £2,395.7

million of residential revenue (2023:

£2,508.3 million), £21.4 million of

land sales (2023: £nil) and £47.2

million of commercial revenue

(2023: £41.9 million).

3,521 new homes (2023: 4,043)

were sold across London and

the South East at an average

selling price of £664,000 (2023:

£608,000) reflecting the mix of

properties sold in the year.

The gross margin percentage is

26.2% (2023: 27.3%), reflecting the

mix of developments on which

homes were completed in the year.

Overheads of £164.8 million (2023:

£178.5 million) have decreased by

£13.7 million (7.7%). The operating

margin is 19.5% (2023: 20.3%).

Berkeley’s share of the results of

joint ventures is a profit of £65.6

million (2023: £96.3 million),

with St Edward’s profits arising

predominately from completions at

Royal Warwick Square and Millbank.

Taxation

The Group has an overall tax

charge of £159.7 million for the

year (2023: £138.3 million) and

an effective tax rate of 28.7%

(2023: 22.9%). The Group

manages its tax affairs in an

open and transparent manner

with the tax authorities and

observes all applicable rules

and regulations in the countries

in which it operates. Factors

that may affect the Group’s

tax charge include changes in

tax legislation and the closure

of open tax matters in the

ordinary course of events.

Total tax paid

(year ended 30 April 2024)

£285.4m

Corporate Tax £170.5m

SDLT £1.8m

PAYE £70.3m

Employees’ NI £15.0m

Employer’s NI £27.8m

For the year ended 30 April 2024,

the total tax contribution to the UK

Treasury was £285.4 million; split

between taxes borne by Berkeley

of £200.1 million (corporation tax,

employer’s NIC and SDLT) and taxes

borne by our employees of £85.3

million (PAYE and employees’ NIC).

This total tax contribution does not

include the indirect tax contribution

paid by Berkeley’s suppliers and

customers. The wider indirect tax

impact is set out on page 15.

The cost of borrowings,

amortisation of associated fees and

imputed non-cash interest on land

creditors is outweighed by interest

earned from gross cash holdings,

resulting in net finance income of

£12.0 million for the year (2023: net

finance cost of £10.6 million).

The taxation charge for the year is

£159.7 million (2023: £138.3 million)

at an effective tax rate of 28.7%

(2023: 22.9%), which incorporates

the additional 4% RPDT and

Corporation Tax of 25%, following

the increase from 19% from April

2023.

Pre-tax return on equity for the year

is 16.2% (2023: 18.7%).

Basic earnings per share has

decreased by 12.4% from 426.8

pence to 373.9 pence, which takes

account of the buy-back of 1.8

million shares at a cost of £72.3

million under the Shareholder

Returns Programme.

Trading performance

Year ended 30 April

2024

£m

2023

£m

Change

£m %

Revenue 2,464.3 2,550.2 -85.9 -3.4%

Gross profit 644.5 696.8 -52.3 -7.5%

Operating expenses (164.8) (178.5) +13.7 -7.7%

Operating profit 479.7 518.3 -38.6 -7.4%

Net finance costs 12.0 (10.6) +22.6

Share of joint ventures 65.6 96.3 -30.7

Profit before tax 557. 3 604.0 -46.7 -7.7%

Pre-tax return on equity 16.2% 18.7% -2.5%

Earnings per share – basic 373.9p 426.8p -52.9p -12.4%

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 29

Financial Position

The Group’s net assets increased

by £228.2 million during

the year to £3,560.5 million

(2023:£3,332.3million).

Inventory

Inventories of £5,283.9 million

include £725.8 million of

land not under development

(2023:£927.1million),

£4,347.7million of work in

progress (2023:£4,249.2 million)

and £210.4million of completed

stock(2023: £125.8million).

During the year, three sites moved

from land not under development

into work in progress: Broadway

East in Bethnal Green, Bow Green

and Winterbrook Meadows in

Wallingford.

Creditors

Total creditors of £2,775.8 million

include £907.7 million of on-

account receipts from customers

(2023: £921.3 million) and land

creditors of £881.7 million (2023:

£900.7 million). Of the total £881.7

million land creditor balance, £198.1

million is short-term, with a further

£227.9 million due to settlement

in the financial year ending 30

April 2026 and the residual £455.7

million is spread over the following

sevenyears.

Creditors include provisions of

£209.8 million (30 April 2023:

£193.6 million) which represents

post-completion development

obligations, including those related

to building fire-safety matters, and

other provisions.

Summarised Balance Sheet as at 30 April

2024

£m

2023

£m

Change

£m

Non-current assets 393.4 394.9 -1.5

Inventories 5,283.9 5,302.1 -18.2

Debtors 127.0 92.3 +34.7

Creditors (2,775.8) (2,8 67.4) +91.6

Capital employed 3,028.5 2,921.9 +106.6

Net cash 532.0 410.4 +121.6

Net assets 3,560.5 3,332.3 +228.2

Shares, net of treasury and EBT 105.9m 107. 5m -1.6m

Net asset value per share 3,363p 3,101p +262p

Abridged Cash Flow for year ended 30 April

2024

£m

2023

£m

Profit before taxation 557.3 604.0

Taxation paid (170.5) (133.7)

Net investment in working capital (105.9) (50.1)

Net investment in joint ventures (3.7) (33.0)

Other movements 14.8 8.2

Shareholder returns (170.4) (253.9)

Increase/(decrease) in net cash 121.6 141.5

Opening net cash 410.4 268.9

Closing net cash 532.0 410.4

Trading and financial review continued

The Green Quarter, Ealing

30 | BERKELEY GROUP 2024 ANNUAL REPORT

Net cash

The Group ended the year with net

cash of £532.0 million (30 April

2023: £410.4 million), an increase of

£121.6 million.

The net cash of £532.0 million

comprises gross cash holdings

of £1,192.0 million and long-term

borrowings of £660.0 million.

Net assets and NAVPS

Net assets increased over the

year by £228.2 million, or 6.8% to

£3,560.5 million (2023: £3,332.3

million) primarily due to the profit

after tax for the year of £397.6

million outweighing the shareholder

returns of £170.4 million and

other movements in reserves of

£1.0million.

The shares in issue, net of treasury

and EBT shares, closed at 105.9

million compared to 107.5 million

at the start of the year. The net

reduction of 1.6 million shares

comprises two movements:

— The 1.8 million share buy-backs

undertaken during the year for

£72.3 million (£39.62 per share);

— The issue of 0.2 million shares

under the 2011 LTIP.

Consequently, the net assetvalue

per share is 3,363 pence at

30April2024, up 8.4% from the

3,101 pence a year ago.

Funding

The Group’s borrowing capacity

of £1,200 million was unchanged

during the year and comprises:

— £400 million unsecured 10-year

Green Bonds which mature in

August 2031 at a fixed coupon of

2.5% per annum; and

— £800 million bank facility,

including a £260 million Green

Term loan and a £540 million

undrawn revolving credit facility

(“RCF”).

In February 2024, Berkeley

exercised the second of two one-

year extensions on its £800 million

bank facility, which extended the

term to February 2029.

Berkeley has allocated the proceeds

of the Green Bonds and Green Term

Loan to its ongoing development

activities in accordance with its

Green Financing Framework

(available on its website).

With borrowings of £660 million,

the Group’s gross cash holdings of

over £1 billion throughout the year

have been placed on deposit with

its six relationship banks.

In February 2024, Berkeley

entered a borrowing facility with

Homes England whereby it may

apply amounts borrowed towards

financing or re-financing certain

infrastructure type costs incurred

on three of its developments.

The facility totals £125.6 million,

is unsecured, has floating interest

rates linked to UK base rate and

requires 33.33% of any outstanding

loans to be repaid by 31 December

2031, 50% by 31 December 2032

and 100% by 31 December 2033.

There are no loans outstanding as

at 30 April 2024.

Joint ventures

Included within non-current

assets are investments in joint

ventures accounted for using

the equity method which are at

£227.0million at 30 April 2023

(2023:£223.4million).

The net £3.6 million increase in the

year arises from Berkeley’s 50%

share of three movements:

— Profits earned in joint ventures of

£65.6 million;

— Dividend distribution from

StEdward of £74.9 million; and

— Cash contributions (loans) to

site specific joint ventures of

£12.9million.

In St Edward, 406 homes were

completed in the year at an average

selling price of £788,000 (2023:

594 homes at £885,000). The

completions occurred at Royal

Warwick Square and Millbank in

London, Hartland Village in Fleet,

Green Park Village in Reading and

Highcroft in Wallingford.

In total, 2,502 plots (30 April 2023:

2,435 plots) in Berkeley’s land

holdings relate to five St Edward

developments, one in London

(Westminster) and four outside the

capital (Reading, Fleet, Wallingford

and Guildford).

The Strategic Report on pages 01 to

103 was approved by the Board

and signed on its behalf by:

Rob Perrins

Chief Executive

19 June 2024

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 31

Our KPIs are aligned to the business strategy

and are used to actively monitor business performance.

Key Performance Indicators (KPIs)

Financial KPIs

Profit before tax

(£m)

604.0

551.5

518.1

503.7

2020

2021

2022

2023

2024

This is our core measure of profitability,

our absolute return from the sale and

delivery of new homes in the year.

Definition: Profit earned by the Group

during the year, including any finance

income and costs and share of results of

joint ventures, but before any tax expense.

Link to strategy:

Pre-tax return on equity

(%)

000.0

17.5

16.5

16.6

2020

2021

2022

2023

2024

This is the efficiency of the returns

generated from shareholder equity

in the business.

Read more on remuneration page 131

Definition: This is measured by calculating

profit before tax as a percentage of the

average of opening and closing

shareholders’ funds. See page 216.

Link to strategy:

Net cash

(£m)

268.9

1,128.2

1,138.9

2020

2021

2022

2023

2024

This provides a measure of the financial

strength of the Group.

The £0.5 billion of net cash at 30 April

2024 combined with £1.2 billion of

borrowing capacity provides the Group

with total liquidity of £1.7 billion.

Definition: Cash and cash equivalents,

less total borrowings. See page 211.

Link to strategy:

Net asset value per share

(£)

31.01

28.18

26.12

24.72

2020

2021

2022

2023

2024

This Balance Sheet measure reflects the

value of shareholders’ interests in the

net assets of the business.

Definition: Net assets attributable to

shareholders divided by the number

of shares in issue, excluding shares

held in treasury and shares held by the

Employee Benefit Trust. See page 215.

Link to strategy:

Cash due on forward sales

(£m)

1,701

2,136

2,171

1,712

1,858

2020

2021

2022

2023

2024

This measures cash due from customers

under unconditional contracts and

reflects the strength and financial

stability of the business from secured

future sales.

Definition: This measures cash still due

from customers at the relevant Balance

Sheet date during the next three years

under unconditional contracts for sale.

It excludes forward sales of affordable

housing, commercial properties and

institutional sales, and forward sales

within the Group’s joint ventures. See

page 216.

Link to strategy:

Future gross margin

in land holdings

(£m)

8,258

6,884

6,417

2020

2021

2022

2023

2024

This provides a measure of expected

value in the Group’s land holdings,

including its share of joint ventures, in

the event that it successfully sells and

delivers the developments planned for.

Definition: This represents management’s

risk-adjusted assessment of the potential

gross profit for each of the Group’s sites,

including the proportionate share of its

joint ventures, taking account of a wide

range of factors, including: current sales

and input prices; the economic and

political backdrop; the planning regime;

and other market factors; all of which

could have a significant effect on the

eventual outcome.

Link to strategy:

557. 3 16.2 532.0

410.4 18.7

33.63

7,629

6,929

32 | BERKELEY GROUP 2024 ANNUAL REPORT

Non-Financial KPIs

Net Promoter Score (NPS)

(Rate)

78.8

2020

2021

2022

2023

2024

Our six month rolling NPS is an indicator

of the success of our efforts to provide

world-class customer service. Our NPS

significantly exceeds the sector average

of 44 (HBF, March 2024) and compares

favourably with top-performing

consumer brands.

Definition: Customers register a score

between 0 – 10 of how likely they are to

recommend us to a friend; 9 – 10 being

classified as promoters, 7 – 8 being

passive, and 0 – 6 being detractors.

The NPS is the percentage of promoters

less the percentage of detractors, on a

scale of -100 to +100.

Link to strategy:

Annual Injury Incidence

Rate (AIIR)

(Rate per 100,000 people)

2020

2021

2022

2023

2024

This measure shows the number of

reportable injuries during the year,

in relation to the number of Berkeley

employees and on-site contractors.

Our AIIR significantly outperforms the

construction industry average of 296

(HSE, October 2023).

Definition: This rate is calculated by

taking the number of reportable injuries

across our operations throughout the

year, multiplied by 100,000, divided by

the average number of people working

across our activities in the year.

Link to strategy:

Direct apprentices and training

(%)

7.2

9.3

2020

2021

2022

2023

2024

This measure shows the proportion of

our employees who are an apprentice,

graduate or sponsored student.

On average, we had 150 apprentices

and approximately 50 graduates and 55

sponsored students during the course

of the year.

Definition: Calculated as the average

monthly percentage of our direct

workforce who are apprentices,

graduates or sponsored students, in line

with the definition provided by The 5%

Club.

Link to strategy:

Greenhouse gas (GHG)

emissions intensity

(tCO

e/100 sq m)

0.30

0.27

0.61

0.95

1.24

2020

2021

2022

2023

2024

This measure relates to our annual

scopes 1 and 2 (market-based) GHG

emissions resulting from our direct

activities to the floor area legally

completed in the year. The figure is

disclosed on an operational reporting

boundary, as further explained in the

Directors’ report on page 160.

Definition: This is calculated by

dividing our absolute market-based

GHG emissions by the floor area legally

completed in the year, including joint

venture activities.

Link to strategy:

Affordable housing subsidies

and wider contributions

(£m)

370

560

556

204

270

2020

2021

2022

2023

2024

This measures our contribution to

affordable housing subsidies and wider

community and infrastructure benefits

delivered or committed to during

the year. The value in any one year is

influenced by the number and mix of

homes delivered.

Definition: This is the total financial

value of community and infrastructure

benefits committed to under Section

106 agreements during the year,

together with the affordable housing

subsidy on affordable homes delivered

in the year with reference to open

market value.

Link to strategy:

Brownfield regeneration

(%)

2020

2021

2022

2023

2024

This measure shows the proportion of

our homes delivered during the year

(including joint ventures) on brownfield

regeneration land.

Definition: This is measured by

calculating the number of homes

delivered during the year on brownfield

regeneration land as a percentage of

total homes delivered during the year.

Link to strategy:

Key | Strategy

Customers

Quality

Communities

Climate action

Nature

Employee experience

Modernised production

Future skills

Supply chain

Shared value

80.2

79.2

77. 2

77. 9

124

117

9.5

10.0

8.9

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 33

Responsible business at a glance

Berkeley has an established approach to responsible

business. We define this as the holistic way we

manage the business that takes into account

economic, social and environmental value.

Our Vision 2030 is our ambitious strategy for the business. It centres

on 10 strategic priorities that we will focus on over a decade, helping to

drive our continued success, whilst setting us apart and maximising the

positive impact we make.

Tackling material issues

A materiality assessment was

undertaken when developing our

strategy in 2020, based on

international best practice from the

Global Reporting Initiative (GRI) to

help identify the priorities. It included

extensive research, together with

input from more than 40 internal

and external stakeholders.

Scan the code

for more information on

our materiality study

Ambitious goals

Through Our Vision 2030 we strive

to go above and beyond typical

requirements, where appropriate.

Each priority includes a long-term

goal and is supported by an

underlying action plan with targets

and a set of core KPIs which we use to

measure outcomes and impacts.

We are now in the medium-term

implementation phase of our strategy.

A sustainable business

We take action to reduce the long-

term impacts of both our operations

and the places we build. In addition

to Communities, Climate Action and

Nature contained within Our Vision

2030, our Sustainability Standards

and management system cover

resource use and environmental

management.

We are committed to playing

our partinachieving the United

Nations’ Sustainable Development

Goals (SDGs).We have identified

six goals that we have the greatest

opportunity to contribute tothe

achievement ofthrough the

implementation of OurVision 2030.

Scan the code

to find out more about our

approach to sustainability

Our vision is to be a world-class

business, trusted to transform

the most challenging sites

into exceptional places and to

maximise our positive impact

on society, the economy and

the natural world.

An integrated strategy for ESG

Our Vision 2030 provides a framework for how we address Environmental,

Social and Governance (ESG) issues. It includes topics such as sustainability,

health and safety and build quality, and encompasses our approach with a

number of stakeholders such as customers, employees and the supply chain.

Read more about the Berkeley

Foundation on pages 56 to 57

Performance

and disclosures

ESG performance

pages 66 to 67

Climate-related disclosures

pages 68 to 88

Link to ESG disclosures

www.berkeleygroup.co.uk/esg

Non-financial and sustainability

information statement

page 89

Building Awards 2023

Housebuilder of the Year

RESI Awards 2024

Large Developer of the Year

National Sustainability Awards 2023

Conservation Award

In-house Research

Outstanding Achievement Award

for ten years running

Better Society Awards 2024

Environment Award

Policies

We have policies in place to govern

our day-to-day activities and

the behaviour of our employees,

partners and supply chain across

key topics such as business ethics,

human rights, sustainability, quality,

health, safety and wellbeing.

Construction activity at Bow Green

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 35

Our Vision 2030 strategy overview

Places that stand the test of time

What we create

Customers Quality Communities Climate action Nature

Put our customers

at the heart of our

decisions and provide

an industry-leading

home buying

experience.

Lead the industry

in producing high

quality, safe homes

for all.

Transform underused

land into unique,

well connected and

welcoming places

where people

and communities

can thrive for the

long-term.

Play an active role

in tackling the global

climate emergency by

creating low carbon,

resilient homes.

Create a biodiversity

net gain (BNG) and

make a measurable

contribution to the

natural environment

on every

development.

Maintaining the trust,

loyalty and advocacy

of our customers

is fundamental to

our business model

and sets Berkeley

apart from other

homebuilding brands.

Creating unique

homes and places

of lasting quality

is fundamental

to our brand,

purpose, values

and working culture.

Long-term

regeneration and

placemaking

can strengthen

communities and

make a lasting

positive difference

to people’s lives.

We believe every

business has a duty

to tackle the global

climate emergency

and we want to

continue leading our

industry in taking

decisive action.

We want to play a

lead role in nature’s

recovery and to

create more beautiful,

wild and open

spaces in the heart

of cities, towns and

communities.

Long-term goalWhy is this a priority?Link to stakeholdersLink to risks

Our business strategy sets out our vision to maximise

our positive impact on society, the economy and

the natural world through 10 strategic priorities. It is

an integrated and holistic strategy, so each priority

supports the others and makes a valuable contribution

to achieving our vision.

Scan the code

to read more about

Our Vision 2030

1 4 5

9 13

3 6 7

13 14

4 5

11 13

10 11 13 10 11 13

— Environment

— Customers

— Communities and

local government

— Environment

— Customers

— Government,

regulators

and industry

— Customers

— Communities and

local government

— Customers

— Government,

regulators

and industry

— Customers

36 | BERKELEY GROUP 2024 ANNUAL REPORT

Exceptional people and resources

How we work

Employee

experience

Modernised

production

Future

skills

Supply

chain

Shared

value

Create a positive

working environment

for our people; one

that fosters respect,

support, wellbeing,

safety and inclusivity.

Innovate and harness

modern methods of

construction and

digital technology

to achieve

higher standards

of quality, safety

and sustainability.

Equip our people with

the skills they need

both now and for the

future, enhancing

social mobility and

inspiring new talent

to join the industry.

Build a responsible

and constructive

supply chain; one

that is productive,

practical and

profitable,

sustainable, ethical

and dependable.

Allocate capital to

deliver sustainable

returns to our

shareholders whilst

creating value for our

other stakeholders

including through

the work of the

Berkeley Foundation.

Our highly skilled

people are the drivers

of our success and

we want to build

an increasingly

diverse, talented and

productive workforce.

We want to address

the housing need,

whilst delivering

higher standards for

our customers and

creating a sustainable

and increased skills

base for the future.

We want our people

to have the skills to

embrace innovative

technologies and

working practices,

while attracting a

new generation to

drive our growth.

We want to maintain

strong partnerships

with our supply chain,

sharing goals and

collaborating to

ensure we are the

client of first choice.

We want to make

a lasting positive

impact, using our

unique operating

model and resources

to fulfil our purpose

and deliver value

for all.

Long-term goalWhy is this a priority?Link to stakeholdersLink to risks

6 12 11 12

13 14

6 14 1 2 10

1 2

3 8

Key | Risks

Economic outlook

Political outlook

Regulation

Land availability

Planning process

Retaining people

Securing sales

Liquidity

Mortgages

Climate change

Sustainability

Health and safety

Product quality and customers

Build cost and programme

Cyber and data risk

— Customers

— Communities and

local government

— Employees

— Government,

regulators and

industry

— Environment

— Supply chain

— Investors

— Supply chain

— Environment

— Employees

— Supply chain

— Customers

— Supply chain

— Government,

regulators

and industry

— Employees

— Supply chain

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 37

Our Vision 2030 progress

Places that stand the test of time

What we create

Customers Quality Communities Climate action Nature

— A personalised

experience for

our customers,

resulting in an

industry-leading

Net Promoter

Score (NPS)

of80.2.

— 10 years of

outstanding

customer

experience,

demonstrated

through the In-

house Research

Gold Award and

Outstanding

Achievement

Award.

— Updated our

arrangements for

Building Safety

and Quality

Assurance (BSQA)

in line with the

Building Safety

Act.

— Upskilled our

teams through

detailed training

and a new guide to

the Building Safety

Act.

— 63% of our homes

had zero defects

compared to just

5% across industry.

— Progressed with

the development

of our long-term

regeneration sites.

— Delivered 3,927

private and

affordable homes.

— Made community

contributions of

£370m.

— Extending

Community

Plans across all

developments.

— Delivering 515

public amenities

such as shops and

play areas.

— Achieved a

place on CDP’s

prestigious

Climate A List for

transparency and

performance.

— Completed 48

embodied carbon

studies to date.

— Engaged with

aluminium

manufacturers

on lower carbon

products.

— Progressed with

developing our

Net Zero Transition

Plan.

— Led the industry

on BNG for seven

years, developing

strategies for

more than 56

sites ahead of

it becoming

mandatory.

— Partnered with

Natural England

in delivering a

series of sessions

to upskill Local

Authorities and

SMEs on BNG.

— Progressed with

our approach to

environmental

netgain.

Achieve a Net

Promoter Score

of 70 or above

annually.

Achieve a

Recommend to

a Friend Score

of at least 95%

annually.

Encourage 90%

customers sign up

to MyHome Plus,

our customer

information

portal.

Transform our

digital offering to

enable customers

to interact with us

24/7 by 2026.

Adjust and embed

processes in

response to the

Building Safety

Act requirements.

Ensure

appropriate

competence

of our people

and supply chain

for building safety.

Further enhance

our internal

training

programme for

building safety,

year by year.

Deliver all homes

to RoSPA’s Safer

by Design Gold

standard.

Target 90% of our

homes to be built

on brownfield

land.

Embed a

Community

Plan on all

developments by

2026.

Maximise the

value to society

that each

development

brings.

Work with

external experts

to assess

people’s quality

of life on new

developments.

Undertake

embodied carbon

assessments and

target reductions

for each

development.

Engage with

manufacturers

of the top five

impact materials

by 2026.

Re-baseline and

achieve validation

on our science-

based targets and

Net Zero target.

Achieve a

15% reduction

in energy

consumption from

2023 to 2030.

Develop an overall

approach for

environmental

net gain and trial

it by 2025.

Assess the impact

of nature within

our supply chain

in line with the

Taskforce on

Nature-related

Financial

Disclosures

(TNFD).

Reduce

construction

waste intensity

by 50% by 2026

compared to

2023.

2024 Performance highlights 2023–2029 key medium-term targets

38 | BERKELEY GROUP 2024 ANNUAL REPORT

Exceptional people and resources

How we work

Employee

experience

Modernised

production

Future

skills

Supply

chain

Shared

value

2024 performance highlights 2023–2029 key medium-term targets

— Hosted a series of

events in support

of our approach

to equity, diversity

and inclusion

(EDI).

— Created action

plans to improve

employee

engagement.

— Maintained

industry-leading

health & safety

standards and

introduced a new

app to encourage

any issues to be

raised.

— Continued to

implement our

bespoke system

for capturing

digital information

about each

home from pre-

construction to

post-completion.

— The vast majority

of our projects use

pre-manufactured

assemblies and

components.

— Investigated

innovative

techniques and

products.

— Retained Gold

membership of

The 5% Club,

with 9.5% of our

employees in

‘earn and learn’

positions.

— Expanded our

apprenticeship

programmes to

support social

mobility and

diversity and

provide a range of

entry routes.

— Ran almost 200

skills events with

schools and

communities.

— Held a Group-

wide supply chain

conference with

more than 170

trade contractors,

manufacturers and

consultants.

— Supported our

supply chain with

understanding

and responding

to the evolving

requirements of

the Building Safety

Act and product

provenance.

— Ran training

on combatting

Modern Slavery.

— Achieved a pre-tax

return on equity of

16.2%.

— Contributed

£2.5bn to UK GDP

in FY24, including

an average of

£290k per home of

value to the state

through taxation

and contributions

to the community.

— Continued

to support

the Berkeley

Foundation,

with employees

raising £940k and

volunteering 1,990

hours of time.

Achieved

Increase staff

engagement year-

on-year.

Embed our

approach to

Equity, Diversity

and Inclusion

(EDI), focusing

on leadership,

awareness and

training.

Achieve an AIIR

of 250 or below

per 100,000,

targeting zero

harm.

Raise the

proportion

of women in

management

positions to 33%

by 2026.

Further embed

our new digital

platform to

capture the

‘golden thread’

of information for

every home.

Apartment

schemes over 18m

to utilise Building

Information

Modelling (BIM).

Measure and

increase the

proportion of

Pre Manufactured

Value (PMV)

within our

developments.

Ensure the

Berkeley

Competency

Framework is

being effectively

implemented.

Maintain

membership of

The 5% Club.

Host a range

of careers

events focused

on increasing

the diversity

of individuals

attracted to work

in the industry.

Gift

Apprenticeship

Levy to support

SMEs.

Achieve the

requirements of

the Chartered

Institute of

Procurement and

Supply (CIPS)

Excellence Award

by 2027.

Work with Code

for Construction

Product

Information

(CCPI) to ensure

information

standards are

improved across

the supply chain

by 2026.

Assess all

contractors for

modern slavery

risk.

Achieve a 15%

pre-tax return

on equity across

the cycle.

Increase

employee

engagement with

the Foundation

year-on-year.

Leverage skills

and expertise

across the Group

to support the

Foundation’s

charity partners.

Demonstrate

the impact of

the Berkeley

Foundation’s work

supported by the

Group.

On track

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 39

A personal

touch for our

customers

Buying a new home is a significant

milestone and we strive to make

this an enjoyable and exciting

experience, setting standards for

the wider industry to match. From

exceptional customer service to

the quality of our homes, we aim

to delight our customers in

every detail.

Our highly trained in-house

sales and customer teams are

equipped with the skills and values

to connect with our customers.

From the moment a customer first

contacts us, we provide a personal

touch, getting to know them and

supporting them throughout their

journey to buying and settling into

their new home. We complement

face-to-face communications with

virtual tours and video updates

and use MyHome Plus, a custom-

built interactive portal for sharing

information about our homes,

the buying process and

customer choices.

+80.2

Net Promoter Score

compared to an industry

average of 44 (HBF,

March 2024)

98%

customers would

recommend us to

a friend, compared

to an industry

average of 90 (HBF,

March 2024)

Our Vision 2030 progress continued

10 years of

outstanding

customer

experience

We use an independent market

research agency to measure

customer satisfaction using two

nationally recognised metrics. We

consistently score above industry

averages. This year we celebrated

our 10th consecutive year rated

as outstanding by In-house

Research and were also delighted

to have collected a ‘Gold Award’

in recognition of our outstanding

customer service and high

quality homes.

We fully support the revised

Consumer Code for Home Builders

launched this year which aims to

ensure home buyers are treated

fairly, know what service levels

to expect, are given reliable

information and can access dispute

resolution arrangements. We have

refreshed training and processes

for our customer-facing teams to

ensure that we remain compliant.

Our Vision 2030 is helping

to drive our performance,

spur innovation and

reinforce Berkeley’s position

as a responsible and

sustainable developer.

This section highlights key

initiatives and progress

across our 10 priorities.

The Berkeley Group’s unwavering commitment

to excellence and dedication to ensuring

customer satisfaction is deserving of this

remarkable achievement, winning both the

prestigious 2024 Outstanding Achievement

Award for Customer Satisfaction in the

housebuilding industry alongside the 2024

Gold Award. The outstanding performance

is a testament to Berkeley’s hard work and

the commitment to ensuring customers

are satisfied throughout their purchase.

Tom Weston | Chief Executive Officer, In-house Research

Key | Strategy

Customers

Quality

Communities

Climate action

Nature

Employee experience

Modernised production

Future skills

Supply chain

Shared value

40 | BERKELEY GROUP 2024 ANNUAL REPORT

91%

of our homes had zero

defectsor fewer than

fivedefects, as reported

byourcustomers

Strategy in action

Delivering high

quality homes

We pride ourselves on our

reputation for quality. This drives

all of our teams on a daily basis

from the initial planning of each

development, through to

detailed design, construction

and completion.

We instil a culture in our teams to

focus on all aspects of a home’s

delivery, from intrinsic building

safety and design to the final

finishes visible to the customer. We

maintain stringent Building Safety

and Quality Assurance (BSQA)

arrangements that ensure work

is inspected and approved at all

stages – and, in particular at new

key regulatory gateways – before

handover to the customer.

Excellence

through detail

A personalised

customer journey

Follow up post enquiry

Visit to development sales

and marketing suite

Follow up post visit

Meet and greet post

reservation

Ad hoc video updates

of site progression

Customer moving in

guide provided

Meet the team

community evening

Customer open day

to measure up

Handover to the customer

Continued support

A focus

on quality

Quality training for all

construction staff

Detailed training on high

risk areas

Robust internal standards

and processes

First line of defence

Site controls and checks

Second line of defence

Local quality team checks

Third line of defence

Group quality team checks

Regulatory compliance

Regulatory requirements

and submissions

Customer

service

teams and

opportunity to

provide

feedback

Two year

warranty

covered by

Berkeley

10 year

build warranty

through a

third-party

provider

Work in

partnership

to ensure the

stewardship

of communal

spaces and

facilities

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 41

Our Vision 2030 progress continued

Using

Community

Plans to

bring

neighbours

together

Each regeneration site with

residents in place has a Community

Plan and we are now creating them

for all developments, from early

community engagement to long-

term governance and stewardship.

Every plan is bespoke, built on

community engagement and

underpinned by research into

community priorities and needs.

The plans identify actions and

opportunities for activities, projects

and strong local partnerships, which

help to support the development of

a thriving neighbourhood.

Our specialism is the regeneration

of well-connected brownfield sites

in the heart of our towns and cities.

Reviving neglected sites is often the

most sustainable place to build new

homes, breathing life into existing

communities and delivering new

homes, amenities, jobs and growth

where they are needed most.

We continue to progress with 32

long-term regeneration sites.

For example, the community-

led regeneration of Woodberry

Down will deliver 5,500 mixed-

tenure homes in total. Over the

last 15 years, this partnership has

delivered more than 2,300 mixed-

tenure homes, the first 7.5 acres

of parkland, a new home for the

Redmond Community Centre,

boardwalk access to Woodberry

Wetlands, and many shops and

eateries for local people to enjoy.

More than £25 million has been

invested in community infrastructure

through section 106 contributions.

Community

engagement

Community

needs analysis

Vision for the

community

At Oval Village there

was a need for more

commercial space

within the local area.

In response, we are

building a BREEAM

‘Excellent’ and WELL

certified office space for

more than 750 people.

Your Story, a local

charity, needed a space

to hold family forums

and we now provide

them with a monthly

meeting space, as well

as supporting them on

various other community

projects.

Meaningful community

engagement is the

vital first step on every

project to understand

local communities

and key stakeholders

and involve them in

shaping our proposed

developments from the

outset. This year we

have updated guidance

for our teams and are

supporting the Quality

of Life Foundation by

testing their community

engagement charter.

At Bromley-by-Bow,

plans to redevelop

the Grade II Listed

gasholders have been

shaped not only through

public exhibitions and

consultations, but

through more than 270

people attending art and

heritage site tours and

engaging with more than

300 local young people

through a mix of careers

events and workshops.

Community engagement

and local research

enables us to understand

the interests, aspirations

and needs of local

stakeholders. We seek

to address both physical

and social needs; for

example, actions to

combat people feeling

unsafe could include

improving lighting

and enhancing design,

setting up safety

partnership groups or

hosting Ward Panel

meetings.

We use the information

gathered to set an

initial vision for the

development, taking

into account the specific

site attributes, needs

of the area and desired

outcomes. This is

updated as we continue

to engage and develop

the proposals.

At Poplar Riverside,

the vision for the

development is to

be East London’s

most progressive

riverside community,

motivating people to

be more sustainable

and inspiring them to

appreciate and nurture

the natural landscape

they live in. Inaddition

to the riverside park,

we will provide a new

community green at the

heart of the development

for all touse.

A focus on

brownfield sites

where we can

make valuable

and enduring

contributions

Community Plans

42 | BERKELEY GROUP 2024 ANNUAL REPORT

Partnerships

Schedule of

engagement

Quality of life

Long-term governance

and stewardship

Partnerships allow for

the development of long-

lasting projects where

resources are shared,

participation levels increase,

and communications

are broadened. The

considerations for

redevelopment within a

local area can be complex

and require the application

of many minds to address

them; partnerships are often

the most effective form of

decision making.

St George partners with

the East End Community

Foundation to deliver the

London Dock Community

Fund, which has provided

funding for more than 90

projects in line with local

need. Also at London Dock,

we have an established

partnership with Bow Arts

Trust, who manage the

meanwhile use of affordable

arts studios. Almost 40 local

artists are in residence at the

site and they have a schools

programme in place to

encourage greater access to,

and interaction with, the arts.

With our partners and

stakeholders, we create a

programme of community

events and engagement

activities based on

identified needs to support

residents and the wider

local community. Through

programmes of community-

oriented events, we help

to create environments

where locals can meet with

their neighbours, interact

with different generations

and give back through

volunteering within

the community.

At Hartland Village we run

and support a range of

community events from

World Mental Health Day

to summer barbeques,

photography competitions

and cultural celebrations. We

have also connected local

businesses, organisations

and residents which has

led to a number of positive

initiatives such as the

Men’s Sheds Association,

encouraging people to come

together to support projects

in their local communities.

We recognise that the

ultimate test of each

place is through the

lived experiences of our

customers and residents.

Surveys can help to evaluate

the successes, and feed any

learnings into future phases

and developments.

This year at Highwood

Village we have been

working with State of Life to

survey residents using the

Wellby approach, which aims

to assess the experience of

our customers and residents

living at the development,

helping us to learn further

about what our customers

and communities want.

We look to establish the

most appropriate form of

long term governance for

each site, which gives local

residents clear ownership

and agency over the way

their neighbourhood is

managed and looked after

long into the future. We

actively encourage residents

to join and form social clubs

and decision-making bodies

which shape and influence

the local area in the long-

term.

At Woodhurst Park, we

provided a community fund

of up to £5,000 per year for

the first five years to provide

a catalyst for the community

to evolve. The Community

Plan and all communications

are now managed by the

Woodhurst Park Residents’

Events Committee. They

are self-facilitated and

coordinated and assume

responsibility for a

programme of annual events

and established clubs such

as gardening and tennis.

years of partnership

at Woodberry Down

Woodberry Down, Hackney

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 43

Our Vision 2030 progress continued

92%

developments under

construction incorporate

community facilities

515

public amenities overall,

including:

schools providing 5,900

places, together with 14

children’s nurseries

indoor community spaces

sports facilities

Delivering amenities and

connecting new developments

We provide the physical

infrastructure to keep our

neighbourhoods connected,

including delivering or contributing to

new roads, bridges and train stations

where needed. Reading Green Park

Station opened this year, providing a

sustainable travel option for residents

and businesses in the Green Park

Village area, the first station to open

in Reading for more than 100 years.

We prioritise the early delivery of

public amenities and natural spaces

to ensure local communities feel the

benefits of regeneration as soon

as possible. This year we opened

a range of new facilities including

Parkside Yards at The Green

Quarter, with an outdoor piazza

and opportunities to eat, meet,

drink, work, play, and shop in green

surroundings. We also became the

first major developer to deliver padel

courts on a residential scheme in the

UK. At Horlicks, the memorial square,

residents’ facilities, a new cafe and a

central piazza have opened and plans

are underway for a day nursery.

Our homes and communities are also

digitally-connected from move-in day

to serve our customers’ needs.

The Green Quarter, Ealing

44 | BERKELEY GROUP 2024 ANNUAL REPORT

Lowering carbon from

construction activities

Playing our part

in climate action

In 2020 we set independently

validated science-based targets

(SBTs) to reduce our carbon

emissions and we were pleased

to have met our scopes 1 and 2

target for 2030 several years early

in 2023. As a result of our progress

against our targets, together with

our planned journey to net zero

and extensive investigation and

collaboration on embodied carbon,

we are delighted to be recognised

by CDP as a climate leader

and awarded their highest

available rating.

This year we have been compiling

our Net Zero Transition Plan,

recalculating our near-term SBTs

and setting a long-term target

for net zero using the latest best

practice guidance. Further detail

is provided in the climate-related

disclosures section on pages 74

to 77.

We set high energy efficiency

standards for our sites and are

increasingly replacing traditional

fossil diesel with low carbon

biodiesel in construction, together

with adopting renewable

technology and hybrid or

electric machinery.

As part of our proactive approach

to eliminate fossil diesel from

our sites, 96% of our directly

purchased diesel was biodiesel

HVO (Hydrotreated Vegetable Oil),

saving more than 850 tonnes of

direct emissions. We are working

with our contractors to include

biodiesel HVO as a requirement

within packages, where we cannot

eliminate fossil diesel-powered

plant completely. At London Dock,

diesel-powered wacker plates have

been replaced with fully-electric

alternatives. This year 17 of our sites

operated fossil diesel free.

Several sites incorporate renewable

technologies into their construction

set up, such as photovoltaic (PV)

panels to power the site cabins, or

‘Solar Loos’.

This year some of our sites have

adopted energy monitoring systems

and consumption alarms, helping

us to understand consumption

patterns in more detail, particularly

out of hours usage.

Audits of our sites and offices

were completed by the Carbon

Trust as part of the Energy Savings

Opportunity Scheme (ESOS). We

will use the recommendations to

strengthen our energy reduction

standards for sites, offices and

sales suites.

Earning a place on the A

List is about more than the

score. It’s an indication of

high quality, complete data

that equips companies

with a holistic view of their

environmental impact, serves

as a baseline for transition

plans and – crucially – enables

them to follow through on

their ambitions.

Sherry Madera | CEO, CDP

Construction activity at Woodberry Down,

Finsbury Park

96%

directly purchased diesel was

biodiesel HVO, with 17 sites

operating fossil diesel free

77%

reduction in scopes 1 and 2

emissions since 2019

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 45

Our Vision 2030 progress continued

Reducing

embodied

carbon

Since 2021 we have completed 48

embodied carbon assessments

across a range of developments and

building types. Our knowledge of

the impact of design, specification

and sourcing of materials continues

to grow and our teams are

identifying ways to drive down

embodied carbon. Since we set our

SBTs and stringent internal targets

for embodied carbon, there have

been changes to the regulatory and

policy landscape. New Approved

Documents to meet the building

regulations often require additional

secondary staircases, lifts and

mechanical and ventilation systems,

whilst planning policy in some areas

has altered core design and led to

more heavily articulated façades, all

factors which increase embodied

carbon and build costs. We are

currently reviewing the impact

of these changes and updating

internal guidance for our teams.

Through wind tunnel testing at

Paddington Green, we have been

able to reduce concrete volume in a

building by a third. We also intend

to reuse existing materials on site to

reduce the volume of new concrete

required and to incorporate the use

of high recycled content aluminium

within the façade. At Wandsworth

Mills, a significant volume of

embodied carbon has been saved

through the reuse of historical

buildings, combined with plans

for the new buildings that reduce

concrete volumes and the density

of rebar and alter the glazing

specification and aluminium frames.

Driving climate

action within

our supply

chain and

industry

Whilst our teams can take action

through design and specification

and sourcing choices, the embodied

carbon of materials is outside of

our direct control and it is essential

that we – and others – engage

with product manufacturers

and send strong signals of our

decarbonisation aims. We have

been engaging with our supply

chain over several years and are

delighted to have been listed as a

CDP Supplier Engagement Leader

in 2023.

This year we have implemented a

supply chain engagement strategy

for high carbon impact material

groups, beginning with a detailed

review of aluminium manufacturers.

They were found to already be

reducing their operational carbon

and the carbon intensity of their

products, but we will now be

working together to maximise the

available benefits at a project level.

Detailed information and guidance

has been shared with our project

teams to ensure the identified

carbon savings are made.

We play an active role in several

industry working groups and use

our knowledge and lessons learnt

to contribute fully to the debate

around a just transition to Net Zero,

including through the Future Homes

Hub and the UK Green Building

Council (UKGBC).

embodied carbon

studies completed

93%

completed homes achieved

an EPC rating of B or above

Designing lower

carbon, resilient

homes for

ourcustomers

Carbon emissions from homes are

heavily regulated and there has

been significant focus on this for a

number of years across the industry.

The first step is to design and

specify a high performing building

fabric, followed by the most

appropriate renewable and low

carbon technologies for each site.

This year, Government consulted

on the Future Homes and

Buildings Standards. In advance

of this, we have been preparing

our developments for the move

away from gas boilers towards

heat pumps and are supportive

of incorporating additional

technologies such as solar PV

panels on houses to reduce energy

bills for our customers. On our

long-term regeneration sites, the

energy transition can be more

complex, with phased delivery of

new homes and energy strategies

often approved many years ago in

line with local or regional planning

policy and infrastructure in place at

the time.

We continue to take a holistic

view to climate, using our focus on

creating nature-rich landscapes to

ensure developments are adapted

to future climate change impacts,

using nature-based solutions and

with each of our sites incorporating

sustainable drainage systems

(SuDS).

46 | BERKELEY GROUP 2024 ANNUAL REPORT

Leading the

industry on

biodiversity

netgain

Having championed and pioneered

the successful implementation of

biodiversity net gain (BNG) on

new developments since 2017, we

welcomed the national milestone

of mandatory BNG for new

developments in February 2024.

We were delighted to have been

cited as a best practice case study

for the launch of mandatory BNG

by Government and public bodies.

Our Head of Sustainability chaired

the Construction Leadership

Council’s Biodiversity and

Environmental Net Gain Group

which published a Biodiversity

Roadmap for the industry in

February 2024.

developments committed

to BNG since May 2017

>580

acres of newly created

or enhanced habitat

Scan the code

to watch a video about some

of Berkeley’s BNG sites and the

many benefits they offer local

communities and wildlife.

Strategy in action

Partnering with Natural

England to upskill local

authorities on BNG

Berkeley brought real insight

to the sessions, providing

inspiring examples of how

they have successfully

delivered BNG on their

schemes with tips and ideas

that could be transferable

to and implemented by

SME developers

Nick White | Principal Advisor,

Natural England

Building on our collaboration

with Natural England and the

Local Government Association

to run the Biodiversity

Conference for the industry

in February 2023, this year

we partnered with Natural

England to run a number of

smaller sessions aimed at

upskilling local authorities, SME

housebuilders and local habitat

bank biodiversity unit providers.

One of the sessions was

held at Sunningdale Park, a

development that will achieve

a 280% biodiversity net gain,

reconnecting the previously

inaccessible 47 acres of Grade

II Listed historic parkland to the

community for the first time

in centuries.

Sunningdale Park, Berkshire

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 47

Our Vision 2030 progress continued

Delivering

bespoke

solutions

on every

site to connect

people

with nature

Our landscape-led developments

enhance the environment and

provide beautiful, friendly and

sustainable places where people

can interact with nature. We obtain

specialist, external support from

a qualified ecologist using local

knowledge and emerging nature

recovery strategies to understand

the priorities specific to each

site. We then incorporate the

recommendations in a bespoke and

locally appropriate way.

We typically work with local Wildlife

Trusts to engage communities in

landscape design, nature recovery

and the long-term stewardship of

the biodiverse places we create.

We are delighted to be working

with the London Wildlife Trust

on a broader project to upskill

our project teams, landscape

contractors and managing agents

to ensure the habitats we create

and enhance are appropriately

maintained and managed.

The benefit of greening new

developments and our towns

and cities is vast, not only for the

natural environment and resilience

to climate change, but also for

customers and communities. This

year we sponsored Create Streets

to produce its Greening Up report

for local authorities, focusing on

how trees and other habitats can be

incorporated within existing streets.

Expanding BNG to

environmental net gain

We are expanding our established

approach to enhancing biodiversity

to deliver an even more valuable

and holistic contribution to the

environment on every site. An initial

step was to trial water neutrality

in a first pilot of this scale at Royal

Exchange in Kingston, an award-

winning project with Thames Water.

This year we have used specialist

support to identify metrics which

we will now trial to demonstrate

net gain across other topics within

our framework, including climate,

pollution and water.

Alongside our own work, we have

reviewed the recommendations of

the Taskforce for Nature-related

Financial Disclosures (TNFD) to

ensure we are prepared for future

reporting requirements in this area.

A focus this year has been the

launch of our new Waste Strategy

to target zero avoidable waste

on every site by 2030. Our teams

have been running ‘designing out

waste’ workshops to highlight areas

where waste can be minimised.

For example, at Bow Green, cobble

stones that were found on site have

been cleaned and reused to pave

the sales suite entrance.

Whilst making progress in

these areas, we continue to

operate strong environmental

management practices and our

network of dedicated sustainability

practitioners undertake regular

audits of our construction activities.

Each year we also complete an

audit of procurement practices to

ensure timber and wood-based

products are certified.

Climate

Carbon sequestration

Cooling and shading

Pollution

Air quality

Noise reduction

Light reduction

Water

Water supply

Water quality

Flooding

Ecological

Access to nature

Soil health

Pollination

Habitats

Species

48 | BERKELEY GROUP 2024 ANNUAL REPORT

Strategy in action

The Green

Quarter – a

place for people,

communities

and nature

The 88-acre former Southall Gasworks is being

transformed into a nature-rich neighbourhood

of 3,750 homes, characterised by 13 acres of

beautiful parks, meadows and wetlands, designed

in partnership with the London Wildlife Trust.

Close to half of the site will be public space,

including a mix of natural habitats, fitness

trails, public squares, outdoor event space and

children’s play and recreation areas. The new

neighbourhood also brings a wide range of public

amenities to Southall, including a health centre,

primary school, community centre and a mix of

shops, cafés and office space.

Scan the code

to read the 2024 Community Social

ImpactreportforTheGreenQuarter

This year we have been delighted to have worked

in partnership to deliver the following at The Green

Quarter:

— More than 65 community activities and events,

engaging more than 8,000 local people and

bringing together the local community.

— Supported more than 35 apprentices, hosted 12

work experience placements and 28 site tours.

There have also been nearly 30 engagement

sessions with local schools to showcase the range

of careers available within the built environment

sector.

— A new electric bike hire scheme has been launched,

helping residents and the local community travel

sustainably between the station and all areas of

the development.

— A new tree nursery, consisting of 600 air-potted

trees of six different species grown in the UK. These

will remain on site for at least 15 years before being

planted for permanent use across future St George

developments.

— A 14-week youth leadership programme with

Groundwork London, one of the Berkeley

Foundation’s Strategic Partners, alongside Southall

Community College.

— A ‘Go Green’ event in October 2023 which

brought the community together in celebration

of sustainability and the great outdoors, including

workshops led by the London Wildlife Trust.

— A Meanwhile use community hub, Parkside Yards,

with retail opportunities and creative activities

forall.

Tree nursery at The Green Quarter

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 49

Our Vision 2030 progress continued

Taking action on Equity,

Diversity and Inclusion

Our goal is to foster an environment

where all differences are valued,

practices are equitable and

everyone experiences a sense

of belonging.

In summer 2023 we launched our

approach to EDI focused across five

areas:

— Setting the tone by leading from

the top.

— Partnering with external

organisations that can support us

on our journey.

— Awareness, allyship and

celebration.

— Attracting and recruiting the best

talent.

— Using analytics and feedback to

drive change.

We have signed up to the

Fairness, Inclusion and Respect

(FIR) programme, an industry-

wide initiative that aims to make

workplaces better for everyone.

We are currently growing our

network of FIR ambassadors in

a variety of job roles and levels

of the business.

Each of our operating companies

is taking action to enhance EDI

locally. EDI training is delivered for

new starters all the way through to

senior leadership teams. We have

also increased our mechanisms for

supporting and listening to staff

by creating networks, including for

Women, LGBTQ+, Ethnic Minorities

and Parents and Carers and their

allies.

We have also brought colleagues

together from across the Group

for events such as the London

Pride Parade and International

Women’s Day, with an emphasis

on celebration, networking and

allyship. In July we held our first

event for women in the construction

department, a historically

underrepresented area. We

learned from their experiences and

offered 10 individuals a place on

the Mentoring Circle Programme,

supporting them to grow in their

own roles and become the senior

leaders of the future.

32%

line managers are female

Engaging with

our employees

Our 2023 employee survey

provided useful insight into how our

colleagues feel about working life

at Berkeley, guiding us in creating

action plans for improvement within

each of our operating businesses

and through our cross-divisional

People Committee.

Since the last survey we were able

to demonstrate a number of positive

changes including: an increased

focus on health and wellbeing; the

introduction of core working hours

to allow for more agile working; the

launch of our approach to Equity,

Diversity and Inclusion (EDI); and

investment in a number of our office

facilities.

Our employees are clear on business

goals and objectives, helping them

feel confident in what is expected

of them. In addition, many feel

challenged each day and remark

that Berkeley has given them

opportunities that they do not

believe they would have elsewhere.

We will now focus on our current

areas for improvement to enhance

the experience of all employees at

Berkeley, including further focus

on women within the business and

progression pathways.

50 | BERKELEY GROUP 2024 ANNUAL REPORT

dedicated safety visits by

directors at each site per year

Annual Injury Incidence Rate

per 100,000 people

We continue to target zero harm on

every site, as we champion health

and safety for every employee and

contractor working with us. We

have an established and robust

approach, helping us to consistently

outperform the industry; our Annual

Injury Incidence Rate for the year is

52 per 100,000 people, compared

to an industry average of 296 (HSE,

October 2023).

Our teams operate to stringent

health and safety standards set out

at a Group level. They are regularly

assessed by a Group audit team,

which completed more than 320

audits this year. We have updated

our strategy, maintaining our

three established programmes:

Good Order targeting the physical

working environment; Good Work

focusing on risk management and

encouraging positive behaviour

and attitudes; and Good Health

targeting improvements in health

and wellbeing. The nature of

regeneration and developing

apartments results in higher risk

activities which must be managed.

Our Working at Height campaign

remains in place to instil a focus

on this key topic and we apply the

same high standards to all of

our sites.

Within each of our operating

companies there are local

arrangements, including detailed

procedures and processes.

Directors undertake dedicated

safety visits twice a month on every

site to maintain strong leadership,

totalling more than 1,700 during the

year. We have a large team of more

than 50 divisional health and safety

managers who provide expert

advice and guidance to the teams

on a daily basis extending across

safety, occupational health and

wellbeing, and welfare standards.

Strategy in action

This year we have launched

a new intervention app to

provide an easy way for our

teams to report any potential

issues. Colleagues can

anonymously log an issue using

a phone or tablet by scanning

a QR code on posters around

the site. In addition to health

and safety we have included

sustainability topics such

as pollution prevention and the

protection of nature.

Encouraging our site

teams to raise issues

We are proud to have once again

been recognised by the Royal

Society for the Prevention of

Accidents (RoSPA) in 2024, with

Berkeley Capital winning the

Construction Housebuilding &

Property Development Industry

Sector award.

We continue to work with RoSPA

in our long-term partnership to

extend our influence out of the

homebuilding sector, with current

sponsorship supporting a falls

prevention programme focused

on vulnerable people living in social

housing and social care.

Maintaining industry-leading

standards of health and safety

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 51

Our Vision 2030 progress continued

Improving

mental health

and wellbeing

Each of our operating businesses

offers a range of initiatives with the

aim of having a positive impact on

the health of our employees. We

now have more than 260 mental

health first aiders.

We also scheduled a range of

interactive sessions with Mental

Health professionals that were

available for all staff to attend.

These covered topics such as

Financial Wellbeing, Building

Resiliance and Supporting

Working Parents.

We recognise the potential to

influence more than 8,500 people

on a daily basis through our

contractor workforce. Within our

Berkeley Capital business, a Mental

Health Awareness Roadshow was

held which included a partnership

with The Lions Barber Collective,

an international collection of top

barbers that have come together

to help raise awareness for the

prevention of suicide. We are also

working with The Lighthouse

Construction Industry Charity to

raise awareness of mental health

on our sites.

Investing in the

talent of the future

We retain our Gold membership

of The 5% Club, with 9.5% of our

employees in ‘earn and learn’

positions. On average, this includes

more than 150 apprentices, 50

graduates and 55 sponsored

students studying towards an

accredited external qualification.

Our graduate programme is listed

10th on the Job Crowd’s Top 50

Graduate Schemes and won the

best scheme in the Property &

Housebuilding industry.

This year we extended our

apprenticeship programme

to provide a broader range of

opportunities and programmes

into the business to support

diversity and social mobility.

In addition, we work with our supply

chain to grow their own talent and

help to tackle some of the industry’s

skills shortages; this year more than

325 additional apprentices gained

experience working on our sites.

We also gifted £100,000 of our

unallocated Apprenticeship Levy

through Workwhile, with a particular

focus on built environment roles

within London’s SMEs.

9.5%

employees in ‘earn

and learn’ roles

Berkeley graduates and apprentices

52 | BERKELEY GROUP 2024 ANNUAL REPORT

Inspiring

people to join

the industry

We believe that every business

within the built environment sector

has a role to play in attracting

people to join the industry. We

undertake a range of engagement

activities with people who may

not typically be aware of the range

of fulfilling careers available and

are growing our network of STEM

(Science, Technology, Engineering

and Maths) ambassadors who

can raise awareness of careers in

Berkeley and the wider sector.

This year we ran almost 200 careers

events with schools, colleges and

universities, together with more

than 55 work placements to give

people an opportunity to experience

working life in the sector. These

included placements for several

students studying towards the

new T Level programme in Design,

Surveying and Planning.

In June we ran a T Level insights

day for trainers and colleges to

hear from industry about topics

such as sustainability and Building

Information Modelling (BIM).

Enhancing social mobility

and diversity through

our programmes

We recognise the opportunity to

enhance social mobility through

providing a range of good jobs

local to the communities in which

we work.

We have signed up to the Social

Mobility Foundation’s pledge as a

framework to help us strengthen

our approach. We want to provide

a range of routes into the company,

to attract a broad range of people

from different backgrounds,

including those who may not have

previously considered the sector.

We have introduced Group-wide

apprenticeship programmes at

level 3, using updated recruitment

practices. We are now using video

content on social media platforms,

understanding the change in

mindset around how young people

learn about job opportunities.

In addition, we removed CVs

and designed an anonymised

assessment, which was blind

of background, education and

experience and based solely on an

applicant’s ability to complete job-

relevant tasks.

Upskilling our employees

We run training for employees

across a range of topics, from

health and safety, to building quality

and sustainability. The Berkeley

Academy is an Approved Training

Organisation (ATO) with the CITB

(Construction Industry Training

Board) and delivers training for

our employees across two training

centres. In addition, our divisions

run training locally covering

topics such as leadership and

management skills, and EDI.

Colleagues are also given the

opportunity to upskill using external

qualifications or apprenticeships,

with more than 20% of our

apprentices being existing

employees choosing to continue

their learning and development.

We also offer opportunities to work

towards professional accreditations,

particularly for those who join

us through an emerging talent

programme.

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 53

Our Vision 2030 progress continued

Ensuring competence in

our teams and supply chain

With the emergence of the Building

Safety Act regime, a key focus has

been ensuring both individuals

and organisations are capable and

competent to undertake work.

We have developed a Berkeley

competence framework which sets

out core competencies to align

with our values, together with role

competencies for each department

and leadership and management

competencies for people managers.

We have also created a guide

for our teams to understand and

implement the legislation and every

employee in a production role is

trained on building safety. Within

the year we developed detailed

training on the new Principal

Contractor dutyholder role; this

course has now been published as

a training standard by the CITB,

helping to guide the industry in

this area. More than 1,000 of our

employees completed detailed

building safety and quality training

this year.

We focus on strong leadership and

competence at senior management

level, supported by three lines of

defence: competent project teams

delivering the new developments;

local, dedicated building safety

and quality managers to work

with project teams and undertake

checks on procedures; and, finally,

a Group Building Safety and

Quality Assurance team which

undertakes regular audits. The

nature of our developments,

including taller buildings, results in

additional challenges beyond those

encountered within more traditional

housebuilding sites; we apply the

same high standards and lessons

learnt from the most complex

of projects to each and every

development.

A strong supply chain is critical and

we must ensure competence of

both the companies we partner with

and their operatives working on

our sites. We have used our leading

role in industry as an opportunity to

support our supply chain to develop

their understanding of competence,

building safety and quality.

Playing a

pivotal role

inleading the

industry on

building safety

We have played a pivotal role in

building safety across the industry,

being an active participant in

working groups and discussions

with Government to ensure the

emerging regulatory regime is

fit for purpose. A member of

our Executive Committee, Karl

Whiteman, has been involved every

step of the way with industry and

Government and was selected

to lead the industry as the

Construction Leadership Council’s

Building Safety Sponsor. One of our

Managing Directors was selected

to speak at the Building Safety

Regulator (BSR) Conference 2024

and our Group Head of Building

Safety and Quality Assurance

also represents us on industry

groups. The Building Safety regime

is continuing to evolve and we

intend to remain at the forefront

of knowledge, understanding and

influence in this area.

54 | BERKELEY GROUP 2024 ANNUAL REPORT

Supporting

our valued

supply chain

Our supply chain is critical to

maintaining production and our

teams liaise and collaborate with

our contractors and suppliers on

a daily basis. This year we have

focused on providing visibility of

future work pipelines and sharing

our growing knowledge around

topics such as building safety and

competence.

We ran a 360 degree feedback

process with more than 50

contractors and have begun to

take action in areas that our supply

chain highlighted for improvement.

This includes streamlining our

assessment process and reviewing

our procedures, also informed by

the best practice guidance we have

obtained from working with the

Chartered Institute of Procurement

and Supply (CIPS).

Whilst continuing to develop

bespoke designs on every site,

we are embedding our common

materials strategy. We have

worked with manufacturers of

various product groups, forming

agreements with those that can

meet our stringent requirements

across a range of topics from

health and safety to quality and

sustainability.

Our recent commercial activity

has been particularly focused on

building safety and competence,

with a product provenance and

traceability trial completed with

Kingspan and Travis Perkins during

the year. Reducing embodied

carbon is also a strategic priority

and we are engaging with

manufacturers of high impact

materials. See page 46 for more

information.

Strategy in action

Aligning our supply

chain to our strategic

priorities

We held our first Group-wide supply chain conference in November,

bringing together more than 170 trade contractors, manufacturers

and consultants to ensure we work collaboratively and strengthen

relationships. This was an opportunity to reinforce our priorities on

topics such as quality, climate action and combatting modern slavery,

together with raising awareness of the industry’s Fairness, Inclusion

andRespect (FIR) programme and communicating the aims of our

newstrategy to target zero avoidable waste.

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 55

Our Vision 2030 progress continued

Supporting the work of

the Berkeley Foundation

61%

Berkeley employees involved

with Berkeley Foundation

activities in the year

1,990

hours volunteered by

Berkeley employees

Combatting

modern slavery

All Berkeley employees complete

training on modern slavery and we

have embedded due diligence and

risk management processes within

our commercial and construction

activities.

This year we organised bespoke

in-person training for all Site Modern

Slavery Leads; these are the most

senior person on each construction

site. This was delivered by Unseen,

the UK charity that provides

safehouses and support for survivors

of modern slavery and runs the UK

Modern Slavery Exploitation Helpline.

One of the outputs from the training

was an increased understanding of

the scale of labour exploitation in

the UK. This led us to create new

posters promoting the hand signal

victims can subtly use to draw

attention to their situation and

highlighting worker rights in the UK.

We continue to collaborate with

industry and are part of the Supply

Chain Sustainability School’s

Modern Slavery Group, the largest

anti-slavery collaboration in the

UK built environment. In addition

to this we share our support and

improve our understanding through

attending industry events such as

CCLA Investment Management’s

roundtable discussion on modern

slavery and labour exploitation in

construction with the Cabinet Office

which took place in April 2024.

Scan the code

toreadourModernSlavery Statement

The Berkeley Foundation continues

to be deeply embedded at Berkeley

and our employees give their time,

expertise and donations to support

its strategic and community

partners. More than 60% of our

colleagues chose to get involved in

the Foundation’s work over the last

12 months.

We have offered work placements

and job opportunities, held careers

days to help young people about to

start their journey into employment,

and shared our expertise.

56 | BERKELEY GROUP 2024 ANNUAL REPORT

Last year was another

successful year for the

Berkeley Foundation, working

with its charity partners

and Berkeley employees to

deliver programmes in the

communities where Berkeley

operates.

The Foundation renewed

two of its key Strategic

Partnerships during the

year. Its flagship partnership

with Crisis, which is taking

a place-based approach

to tackling homelessness

in Brent, was extended

for a further three years.

The Foundation also

continues to work with

the Lord’s Taverners to

provide year-round cricket

coaching and competition

for disabled young people.

Berkeley staff will be

supporting this partnership

through volunteering and

employability support for the

young participants over the

coming years.

These long-term,

transformational partnerships

represent a sustained

investment in our local

communities. Over the last

year, the Foundation has

increased the average length

of its charitable partnerships,

working with charities over an

extended period to deepen

the impact of its work.

The Foundation has also

focused on building the

resilience of a voluntary sector

under real pressure. This year

saw the second year of the

Resilience Fund get underway,

with a cohort of 10 charities

working to support the mental

health of young people from

global majority communities

embarking on projects to

increase their organisational

resilience. Alongside this, the

Foundation met the immediate

needs of its charity partners

through the cost of living crisis

with a programme of targeted

grants totalling £262,000 over

two years.

In October, the Foundation

launched its Equity, Diversity

and Inclusion (EDI) plan,

setting out priorities both

within the organisation, and

through its grant-making

activities. This has included

reviewing application forms

and funding criteria to

ensure that grant-making

processes are equitable,

as well as involving young

people directlyin the

Foundation’swork.

The Berkeley Foundation

A force for change

Scan the code

to find out more about

the Berkeley Foundation

£940k

raised by Berkeley employees

forthe Foundation and its charity

partners through fundraising and

GiveasYouEarn (GAYE)

£3.6m

given to the BerkeleyFoundation’s

charity partners through grants,

stafffundraising and GAYE

>6,000

people reached through

the Foundation’s charity

partnerships

We’re a children’s charity based in London that

seeks to empower young people who face

challenges and who might be at risk of under-

achieving to fulfil their social, personal and

academic potential. The grant from the Berkeley

Foundation is enabling us to add to our core team,

so that we can develop our strategy to reach even

more children and help them rise up above their

negative behaviour patterns and environments.

Success Club | Resilience Fund Partner

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 57

Our stakeholders

Members of the Board as a whole

and individually are bound by their

duties under section 172(1) (a) to

(f) of the Companies Act 2006 (the

Act). In this statement, we describe

how our Directors have considered

the matters set out in section

172(1) of the Act (section 172) when

performing their duty to promote

the success of the Company.

This engagement, both directly

and through regular reports from

individual business areas and various

functions, ensures the Board is made

aware of key issues to enable the

Directors to comply with their legal

duty under section 172.

This statement summarises how the

Company promotes its success for

the benefit of its key stakeholder

groups by having regard to:

— the likely consequences of any

decisions in the long-term;

— the need to foster the Company’s

business relationships with

suppliers, customers and others;

— the desirability of the Company

maintaining a reputation of high

standards of business conduct;

— the interests of the Company’s

employees;

— the impact of the Company’s

operations on the community and

environment; and

— the need to act fairly between

members of the Company.

We believe that to progress our

strategy and to deliver substantial

sustainable long-term growth

opportunities, the Board should

consider all stakeholders relevant to a

decision and satisfy themselves that

any decision upholds our values and

aligns with Our Vision 2030.

The Board recognises that stakeholder

engagement is essential to understand

what matters most to our stakeholders

and the likely impact of our key

decisions.

The following sections demonstrate

how the Directors fulfil their duties

in respect of these obligations by

addressing in turn some of the key

areas of focus for the Board.

Further detail of Board activity

in the year is described in the

Corporate Governance section

pages 110 to 119

Culture

andvalues

The culture and values of the business are continuously

considered by the Directors when discharging their

duties to ensure they are embedded into the business.

Read more on pages 112 to 113.

Business model

and strategy

The Directors have collective responsibility for promoting

the long-term success of the Company in a safe and

sustainable manner in order to create and enhance

shareholder value. Read more on pages 12 to 15.

Risk

management

The Directors are responsible for setting and monitoring

the risk appetite for the business. For more detail of risk

management see ‘How we manage risks’ on pages 90 to

103.

Stakeholder

engagement

The Board reviews and confirms its key stakeholder

groups for the purposes of section 172 annually. In 2024,

they were confirmed as customers, communities and

local government, employees, supply chain, government,

regulators and industry, investors and the environment.

The following pages set out how the interests of each of

these key stakeholders is embedded into the long-term

strategy of the business.

For more

information

Customers

see pages 40 to 41 and 59.

Communities

and local government

see pages 42 to 44 and 60.

Employees

see pages 50 to 51 and 61.

Supply chain

see pages 45 to 46, 54 to 55 and 62.

Government, regulators

and industry

see page 63.

Environment

see pages 45 to 49 and 64.

Investors

see page 65.

Section 172(1) Statement

58 | BERKELEY GROUP 2024 ANNUAL REPORT

Customers

Placing the customer at the heart of every decision,

all the way through the development process

Actions and outcomes

— Prompt resolution of issues.

— Continued innovation to

ensure we are providing

aspirational homes with leading

specifications.

— Senior level review of each

customer survey, with targeted

actions.

— Sales & Marketing and Customer

Service Committees review any

trends in customer feedback and

identify areas for improvement.

— Consistent achievement of

world-class levels of customer

satisfaction as recorded through

the NPS and ‘recommend to a

friend’ figures.

— Maintaining a Gold standard from

an independent customer service

body.

— Considering energy efficiency

and the right energy strategy for

the home, whilst accommodating

existing regulations and

investigating emerging

technology.

What matters to them?

— A bespoke, tailored service that

responds to their needs.

— Clear and timely communication

throughout their customer

journey.

— Regular updates on the progress

of their home.

— Providing their new home on

time and making them feel

special and valued.

— High quality specification and

construction.

— Quick rectification of any

problems that arise.

— Energy prices.

How we engage

— Each customer has a dedicated

point of contact and is

encouraged to provide feedback

at any stage.

— Six weeks after a customer has

completed on their new home

they are given the opportunity to

complete a detailed, independent

survey covering all aspects of

their experience, from the home

and the development to the

levels of service they received.

— Direct engagement between

senior management teams and

the Main Board and customers if

any key issues arise.

— Through our online portal,

MyHome Plus, via which they

have access to information,

videos and progress updates.

Key engagement

activities this year

We continued to offer

each and every customer

the opportunity to provide

feedback throughout the

buying process and to

complete a survey six weeks

after move in through an

objective third party.

Link to strategy

see pages 40 to 41

forfurtherdetail

Link to KPIs

Net Promoter Score

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 59

Our stakeholders continued

Communities and local government

Making a positive contribution to the communities in which

we work through engagement and partnership working

What matters to them?

— Delivering high quality homes

and places that improve people’s

quality of life.

— Meaningful engagement on

development plans.

— Influencing development to

deliver local priorities and

positive outcomes, such as public

amenities and services.

— Securing inward investment,

growth and job and training

opportunities.

— Minimising negative impacts,

such as traffic and noise.

— Respect for local priorities,

heritage and culture.

How we engage

— Site-specific consultation

and engagement strategies

seek out contributions from

a representative mix of local

people and stakeholders.

— From an early stage, pre-

planning, with the aim of

nurturing lasting, collaborative

relationships throughout

project delivery.

— In a variety of ways, including

open days, community design

workshops, presentations

to local groups, one-to-one

meetings, door knocking, walking

tours, pre-application planning

meetings, exhibitions, Design

Review Panels, newsletters,

notices, advertising, surveys,

site-specific websites and a

mix of digital consultation and

engagement tools.

— Some developments have

dedicated community

engagement specialists who

expand our local networks and

ensure we address local needs.

Actions and outcomes

— The creation of enduring local

partnerships based on shared

objectives for the community’s

future.

— Bespoke masterplans and

placemaking strategies which

reflect local views, aspirations

and concerns.

— Site-specific Community Plans to

create social links and integration

with the wider community.

— Prioritising local people for

training and job opportunities

on our sites.

— Partnerships with local charities

and good causes which improve

community life.

— Responsible and respectful

construction activities through

registration of every site with

the Considerate Constructors

Scheme (CCS), which

independently assesses

our conduct.

Key engagement

activities this year

We undertook several

site-specific community

engagement activities across

our developments.

We ran a series of events

in partnership with Natural

England to upskill local

authorities on biodiversity

net gain (BNG).

Link to strategy

see pages 42 to 44

forfurtherdetail

Link to KPIs

Affordable housing subsidies

and wider contributions

Direct apprentices and training

Brownfield regeneration

Trent Park, Enfield

60 | BERKELEY GROUP 2024 ANNUAL REPORT

Employees

Creating a positive working environment

andpromotinghealth,wellbeingandinclusion

What matters to them?

— Delivering positive outcomes

for local communities.

— Pride in creating great places

and high quality homes.

— Career progression.

— Competitive pay and benefits.

— Equity, Diversity and Inclusion

(EDI).

— Health, safety and wellbeing.

— The increasing cost of living

and travel costs.

How we engage

— Group-wide employee surveys.

— A range of engagement initiatives

through our operating businesses

including staff conferences, staff

surveys and ‘sessions with the

management’.

— Via our Group People Committee.

— Induction process for new

graduates and apprentices who

get to meet senior management

and have a Q&A session with

the CEO.

— Our employee intranet, which

provides updates and key

information.

Actions and outcomes

— Enhancing health and wellbeing

strategies, such as wellbeing

webinars and menopause plans.

— Implementing our approach to

Equity, Diversity and Inclusion,

with actions taken and events run

to raise awareness and foster a

culture of inclusion.

— Providing a range of learning

and development opportunities,

hosted by our in-house training

venue, the Berkeley Academy.

International Women’s Day

Key engagement

activities this year

We completed a Group-wide

employee survey in autumn

2023; the feedback has been

used to create local and

Group-wide action plans.

We also engaged and

requested feedback at

events, such as one held for

International Women’s Day.

Link to strategy

see pages 50 to 53

forfurtherdetail

Link to KPIs

Annual Injury Incidence Rate

Direct apprentices and training

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 61

Our stakeholders continued

What matters to them?

— Understanding the pipeline of

future opportunities.

— Early engagement and the

ability to feed into the project

programme and logistics.

— High standards of health, safety

and welfare.

— Receiving feedback on their

tenders.

— Payment in a timely manner.

— Being treated as an extended

part of the project team.

— Building long-term relationships

with us.

How we engage

— Events such as supplier days

and conferences.

— Through our Supply Chain

Portal which includes our health

and safety, build quality and

sustainability standards.

— Throughout the tender process

with frequent communication from

our commercial team, together

with formal tender meetings.

— Pre-start meetings before site

works commence.

— Regular site meetings, signage

and ‘toolbox talks’.

— Dedicated Director-level Trade

Sponsors provide a platform

for engagement.

— Through corporate memberships

and industry groups, such

as the Chartered Institute

of Procurement and Supply

(CIPS) Construction Senior

Leadership Group, the Supply

Chain Sustainability School and

Construction Leadership Council

Material Supply Chain Group.

Actions and outcomes

— Long-term, collaborative supply

chain partnerships which ensure

that we can make full use of the

expertise and specialist skills of

our suppliers.

— Procurement on overall value

rather than cost alone.

— Compliance and buy-in around

our site safety, quality, ethics,

human rights and environmental

standards and behaviours.

— Prompt payment of suppliers,

as a signatory to the Prompt

Payment Code.

— Issuing trade-specific

opportunity schedules every six

months to provide the supply

chain with visibility of future

work.

— Working with our supply chain

to help mitigate the risks around

financial stability.

Supply chain

Ensuring responsible procurement and collaborative delivery

throughengagementand effective communication at all levels

withoursupplychain

Key engagement

activities this year

We carried out 360 degree

feedback with contractors.

We held a supply chain

conference with more

than 170 of our contractors,

manufacturers and

consultants.

Link to strategy

see pages 54 to 55

forfurtherdetail

Link to KPIs

Annual Injury Incidence Rate

62 | BERKELEY GROUP 2024 ANNUAL REPORT

Government, regulators and industry

Working in partnership to shape a delivery environment

which creates the conditions for growth and supports

high quality homebuilding and placemaking

What matters to them?

— The delivery of private and

affordable homes.

— Regenerating brownfield land.

— High standards of design and

build quality.

— Heritage conservation.

— High standards of operational

and building safety.

— Delivering economic growth

and job opportunities.

— Tackling climate change,

biodiversity loss and other

environmental challenges.

How we engage

— Responding to policy and

regulatory consultations.

— Maintaining constructive dialogue

at a senior level with Government

departments, agencies and

regulatory bodies.

— Engaging with well-regarded

think tanks, academic institutions

and the wider policy community.

— Active membership of

collaborative initiatives and

membership bodies, including

the Construction Leadership

Council, UK Green Building

Council (UKGBC), Supply Chain

Sustainability School, Natural

England’s Developer Forum,

Considerate Constructors

Scheme, Construction

Industry Advisory Committee,

New London Architecture,

Opportunity London and

Business London.

— Senior management engaging

in public debate via conferences

and roundtables.

Actions and outcomes

— Alignment of our business

strategy with long-term national

and local policy objectives such

as brownfield regeneration, high

quality new homes, affordable

housing, climate action, safety

and social value.

— Research, trials and

implementation of solutions

to these key public policy

challenges.

— Publication of information so

others can learn from our work,

for example, our established

approach to biodiversity

net gain.

— Active contribution to public

debate around housing delivery

and meeting with regulators and

policy makers to share insights

into key business and market-

related matters.

— The CEO has actively

participated in the housing

debate speaking at various

housing conferences including,

Restitch, Centre for London,

UK REiiF, and London Resi

Conference.

Key engagement

activities this year

Executive Committee

member Karl Whiteman is

the industry lead on building

safety through his role as

the Construction Leadership

Council’s Building Safety

sponsor, including

direct engagement with

Government as key changes

are introduced.

Link to strategy

see pages 40 to 57

forfurtherdetail

Link to KPIs

Brownfield regeneration

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 63

Environment

Reducing negative impacts and working towards

environmental net gain

What matters?

— Reduction of environmental

impact from both construction

activities and longer-term

through the developments

we create.

— Global impacts via the

supply chain.

— Movement towards having a

positive environmental impact.

How we engage

— Directly with local planning

authorities, who then consult

relevant regulators such as the

Environment Agency, Natural

England and water authorities

on development proposals.

— With the public via our

partnership with the Considerate

Constructors Scheme.

— With industry organisations and

initiatives, including the UKGBC,

the Supply Chain Sustainability

School, the Construction

Leadership Council’s Green

Construction Board and the

Wildfowl and Wetlands Trust

Blue Recovery Leaders Group.

— By responding to consultations,

research and innovation,

for example Government

consultations on changes to the

Building Regulations.

— Through our supply chain to

understand the environmental

credentials of materials.

Actions and outcomes

— Incorporation of key

environmental targets and

actions into our business

strategy, Our Vision 2030.

— Inclusion of Our Vision 2030 and

Sustainability within Main Board

reporting and monthly Board-

level meetings on the topic.

— Clear standards for our project

teams covering all aspects of

our operations and the homes

and developments we create,

with additional focus areas on

environmental management and

resource use.

— A dedicated team of

sustainability practitioners taking

action at a local level on a daily

basis.

— The reporting of our impact

publicly across a range of

indicators.

Key engagement

activities this year

We responded to

Government’s consultation

and attended a roundtable

on the Future Homes and

Buildings Standards relating

to energy usage in new

homes. We were also actively

involved with Government

and industry in the move for

BNG becoming mandatory

for new development from

February 2024.

Link to strategy

see pages 45 to 49

forfurtherdetail

Link to KPIs

Greenhouse gas (GHG)

emissions intensity

Brownfield regeneration

Our stakeholders continued

64 | BERKELEY GROUP 2024 ANNUAL REPORT

Investors

Delivering long-term sustainable shareholder returns

What matters to them?

— Secure financial investment

that provides sustainable risk-

adjusted returns over the

long-term.

— High standards of Environmental,

Social and Governance (ESG)

matters.

How we engage

— Twice yearly equity investor road

shows in the UK and USA led by

the CEO and CFO.

— One-to-one meetings, often

combined with site visits,

enabling investors to view

the business operations.

— Group meetings held at periodic

investor conferences.

— Structured shareholder

consultations on key governance

matters, such as capital returns,

remuneration policy and Board

composition.

— Equity analyst briefings.

Actions and outcomes

— An added-value model that

recognises the risks of a cyclical

housing market and operational

complexities of the sites Berkeley

develops.

— A focus on financial strength,

resilience and liquidity.

— Investing in land holdings to

ensure sufficient pipeline and

value-added development

opportunities.

— Securing forward sales which

underpins the upfront investment

in our regeneration sites.

— Disclosure of both financial

and non-financial information

covering a range of ESG topics.

Key engagement

activities this year

We have continued to run

road shows led by the CEO

and CFO, held one-to-one

meetings with investors and

attended investor conferences.

We also conducted an

institutional shareholder

perceptions review.

Link to strategy

Link to KPIs

Profit before tax

Pre-tax return on equity

Net cash

Net asset value per share

Cash due on forward sales

Future gross margin in

landholdings

Chelsea Creek

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 65

ESG performance

We monitor a range of Environmental, Social and Governance

(ESG) indicators across our business activities.

Indicator Metric Unit 2024 2023 2022

Link to

strategy

New homes Completed homes, including joint ventures # 3,927 4,637 4,632

Benchmarks

and indices

CDP Climate Change questionnaire rating Rating A A- A-

FTSE4Good Index Series listed company Y/N Y Y Y

MSCI ESG rating Rating AAA AAA AAA

Environmental

Indicator Metric Unit 2024 2023 2022

Link to

strategy

Environmentally

responsible

operations

Number of environmental prosecutions # 0 0 0

Monetary cost of environmental fines and penalties £ 0 0 0

Scopes 1 and 2 (location-based) emissions tCO

e 5,245 5,223 7,832

Scopes 1 and 2 (market-based) emissions tCO

e 917 963 2,211

Water consumption m

182,285 201,979 236,234

Total waste generated (including construction,

demolition and excavation wastes)

tonnes 388,765 596,921 734,320

Total waste reused or recycled % 95 97 90

Total waste classified as hazardous tonnes 4,082 4,799 5,669

Construction waste generated tonnes 111,957 106,466 126,765

Construction waste reused or recycled % 94 95 95

Construction waste classified as hazardous tonnes 224 225 606

Sustainable

homes

Completed homes with an EPC rating of at least a B % 93 93 89

Average EPC score # 84 84 83

Completed homes with an Environmental Impact

Rating (EIR) of at least a B

% 96 98 –

Average internal water efficiency of completed

homes

lpppd 101.2 102.6 104.2

Completed homes constructed on brownfield land % 87 86 86

Completed homes with internal recycling facilities % 100 100 100

Sustainable

places

Developments newly committed to deliver

biodiversity net gain

# 2 8 6

Developments newly committed to deliver

biodiversity net gain on site

% 100 100 100

Developments newly committed to deliver

biodiversity net gain greater than 10%

% 100 100 100

Live development sites regenerating brownfield

land

% 75 76 80

Live development sites with SuDS % 100 100 92

Live development sites with cycle storage being

provided

% 100 100 100

Live development sites with electric car charging

infrastructure being provided

% 98 98 93

Key to strategy

Customers Quality Communities Climate action Nature

Employee

experience

Modernised

production

Future skills Supply chain Shared value

Scan the code

for data notes and

more metrics

66 | BERKELEY GROUP 2024 ANNUAL REPORT

Social

Indicator Metric Unit 2024 2023 2022

Link to

strategy

Charitable

giving and

the Berkeley

Foundation

Employees involved with GAYE % 29 30 29

Employees involved with the Berkeley Foundation % 61 59 55

Considerate

construction

Average Considerate Constructors Scheme (CCS)

score

#/50 44.2 44.1 43.4

Customer

experience

Six month rolling average NPS (to March 2023) # 80.2 79.2 77.2

Customers who would recommend us to a friend

(to March 2023)

% 97.7 97.5 98.0

Health and

safety

AIIR per 100,000 people – direct employees and

on-site contractors

# 52 79 72

AIIR per 100,000 people – direct employees only # 36 0 33

AIIR per 100,000 people – on-site contractors only # 57 106 85

Work-related fatalities – direct employees and on-

site contractors

# 0 0 0

Accident Frequency Rate (AFR) per 100,000 hours

– direct employees and on-site contractors

# 0.02 0.04 0.03

Skills and

training

Average monthly percentage of direct workforce

who are graduates, direct apprentices or sponsored

students undertaking formal training

% 9.5 10.0 8.9

Graduates joining the business via Berkeley’s

Graduate Scheme programme

# 21 43 38

Average monthly number of directly employed

apprentices

# 151 162 121

Society and

community

contributions

Contribution to UK GDP, including through direct

activities by Berkeley, indirectly through supply chain

spend and the induced effect of household spend

£bn 2.5 2.6 3.2

Contribution to UK tax, including taxes paid directly

by Berkeley and the taxes paid by customers and

suppliers as a result of Berkeley activities

£m 800 837 774

Contribution to facilities and services for local

communities, including affordable housing subsidies

£m 370 560 556

UK jobs supported annually directly and indirectly

through the supply chain

#,000 24 29 29

Supply chain Average number of days taken to pay suppliers # 29 30 30

Average monthly number of on-site contractors # 8,825 9,473 9,415

Quality Homes with fewer than five defects reported by

customers on completion

% 91 91 94

Governance

Indicator Metric Unit 2024 2023 2022

Link to

strategy

Board of

Directors

Executive Directors # 2 5 5

Independent Non-Executive Directors # 7 10 11

Board of Directors – Male % 56 67 69

Board of Directors – Female % 44 33 31

Average tenure of Board of Directors yrs 6 7 6

Employees

(as of 30 April)

Total employees # 2,610 2,802 3,030

Total employees – Male % 62 63 63

Total employees – Female % 38 37 37

Non-Board senior management – Male % 50 29 40

Non-Board senior management – Female % 50 71 60

Reporting to Board or senior management – Male % 68 69 71

Reporting to Board or senior management – Female % 32 31 29

Note: Metrics include joint venture activities.

01–103 | STRATEGIC REPORT 104–164 | CORPORATE GOVERNANCE 165–232 | FINANCIAL STATEMENTS

BERKELEY GROUP 2024 ANNUAL REPORT | 67

Climate-related disclosures

Berkeley aims to play an active role in tackling

the global climate emergency.

Our climate actions are holistic,

involving transformational changes

to our business operations and to

the ways in which we design and

create new homes and places in

partnership with our supply chain.

Our actions and transparency

have been externally recognised,

having achieved ‘A List’ status

for our response to CDP’s 2023

Climate Change Questionnaire

and been listed as a CDP Supplier

Engagement Leader.

Ensuring that we take action in

relation to climate change is not

new to Berkeley; we set our first

carbon reduction targets for our

day-to-day operations through

the original Our Vision business

strategy launched in 2010. Having

identified flooding, overheating and

water shortage as key issues in our

2014 risk identification exercise, we

placed a focus on climate change

adaptation, creating new homes

and places that are more resilient to

the challenges of a warmer climate,

which embrace the great potential

of nature-based solutions.

Climate action continues to be a key

strategic priority for the business

and is embedded within Our Vision

2030. We are proud to have met our

validated near-term scopes 1 and 2

greenhouse gas (GHG) emissions

science-based target (SBT) last

year and have updated this to

push ourselves further. Electricity

consumed in the UK is backed by

Renewable Energy Guarantees of

Origin (REGOs) and our construction

sites are reducing their use of fossil

diesel; this year, 96% of directly

procured diesel was biodiesel HVO

(Hydrotreated Vegetable Oil) as a

low carbon alternative.

Berkeley recognises that our

greatest impact occurs through

our scope 3 emissions, in particular

those associated with the materials

used to build new homes. We are

undertaking embodied carbon

assessments during planning and

design stages, to enable our teams

to make more informed decisions in

relation to design, specification and

sourcing. We are also engaging with

our supply chain to understand the

decarbonisation pathways of high

impact material groups.

Our climate action strategy seeks

to mitigate both transitional and

physical risks identified by climate

scenario analysis, and evolves to

ensure that it remains relevant. This

year we have been engaging key

internal stakeholders to compile

a Net Zero Transition Plan in line

with the recommendations of the

Transition Plan Taskforce (TPT)

published in October 2023.

In developing its climate-related

disclosures, Berkeley has reviewed

the Task Force on Climate-related

Financial Disclosures (TCFD) report

‘Recommendations of the Task

Force on Climate-related Financial

Disclosures’, including the 2021

Annex detailing Guidance for All

Sectors and Supplemental Guidance

for Non-Financial Groups in relation

to Materials and Buildings. We

are pleased to confirm that our

disclosures are consistent with

these guidelines and align with the

UK Listing Rules (as referred to in

Listing Rule 9.8.6R (8)), save for

certain items which we summarise

in the table on page 69. Work is

ongoing as our understanding of

these areas has developed over the

years and we have identified areas

where more work is required.

This year, we have reviewed and

updated our reporting in line with

the International Sustainability

Standards Board (ISSB) IFRS S2

Climate-related Disclosures; a

Sustainability Disclosure Standard

published in June 2023. The

Standard integrates and builds

on the TCFD recommendations

and incorporates industry-based

disclosure requirements derived

from SASB Standards. We believe

our disclosures cover the majority

of the requirements within IFRS

S2 and will look to further align in

future reporting years.

Hareshill, Fleet

68 | BERKELEY GROUP 2024 ANNUAL REPORT

Theme

Disclosures and

disclosure level Summary and next steps

Page

reference

Governance

a) Board’s

oversight

– The Board is provided with updates on Berkeley’s climate actions

and progress against goals as part of each meeting through Our

Vision 2030 reporting.

– CEO and CFO attend monthly Our Vision 2030 and Sustainability

Board meetings at which key climate actions, including targets

and progress on our transition to net zero are reviewed.

– Climate-related matters are assessed at development level which

informs strategic business planning activity.

70 to 71

Management’s

role

– CEO is lead sponsor for climate action.

– Executive Committee receives updates on climate action from the

Responsible Business Executive at each meeting.

– CEO and CFO attend divisional board meetings to review

financial and operational performance.

– Responsible Business Executive and Group Head of Sustainability

meet with Group operational committees, divisional management

teams and operational sustainability teams to review progress and

plan next steps.

Strategy

a) Climate-

risks and

opportunities

– Climate change is a key risk monitored as part of the Group’s risk

management process.

– Climate scenario analysis identified key transitional risks in the

short-term (0–2 years) to medium-term (to 2030) and physical

risks in the long-term (to 2050), based on financial scenarios and

probabilistic loss modelling where possible.

71 to 77

b) Impact

of risks and

opportunities

on strategy

and financial

planning

– Our strategy in relation to climate-related issues is defined across

four areas of focus and involves engagement with stakeholders

across our industry, supply chain and government bodies.

– Work is ongoing in relation to the impact of climate-related issues

and a just transition on areas such as our supply chain.

– Consideration of climate change in preparing our Financial

Statements is detailed in note 1.3 on page 187.

c) Resilience of

strategy

– Climate scenario models have been used to assess our resilience

including transition to a low carbon economy consistent with a

1.5C scenario and the increased physical risks associated with a

4C scenario.

Risk

management

a) Risk

identification

and assessment

processes

– Main Board, Responsible Business Executive, Group sustainability

team and operational teams all form part of the process to

identify risks and assess their relative importance.

– Climate scenario analysis completed in 2022; results are still

considered to be relevant.

78 to 83

and

100 to 101

b) Risk

management

processes

– Responsible Business Executive and Group sustainability team

manage strategic compliance with evolving requirements.

– Divisional management teams embed risk management in our

day-to-day operations, integrating mitigation measures for each

development as required.

c) Integration

with overall risk

management

– Climate change identified as a standalone principal risk

to the business since 2018.

– Climate-related risk incorporated within the Group’s risk

management framework, combining a top-down and

bottom-up approach.

Metrics and

targets

a) Metrics to

assess risks and

opportunities

– Relevant key metrics identified and disclosed, including industry-

based metrics in line with SASB.

– The seven cross-industry metric categories recommended in

TCFD guidance continue to be reviewed for implementation.

84 to 88

b) Scopes 1,

2 and 3 GHG

emissions and

risks

– Emissions under scopes 1, 2 and 3 (material categories 1 and 11)

monitored and reported.

– GHG emissions calculated in line with the GHG protocol

methodology.

c) Targets

to manage

risks and

opportunities

– Science-based targets in place for scopes 1, 2 and 3 GHG

emissions with performance against these disclosed.

– Targets in line with the seven cross-industry metric categories

recommended in TCFD guidance to be reviewed for

implementation.

Omitted Partial Full

Disclosure level

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Climate-related disclosures continued

Key roles with responsibility for climate action:

Chief Executive Officer

Chief Financial Officer

Executive Committee member with responsibility for sustainability

Responsible Business Executive

Group Head of Sustainability

Governance

Berkeley’s governance structure for monitoring climate-related risks and opportunities, implementing strategic

actions to address these and monitoring performance is summarised below.

Main Board Level

Board of Directors Audit Committee

— Overall responsibility for oversight of our strategy and

management of climate-related risks and opportunities.

— Monitor progress towards strategic climate targets, with the

Board report for each meeting including action taken in the year

to date and planned next steps.

— Review Group Risk Management Report presented at each Board

meeting. Climate change considered as a principal operating risk.

— Restricted Share Plan awards include an ESG underpin whereby

up to 20% will be forfeited in the event of unsatisfactory progress

against strategic and ESG priorities.

— Oversight of Company-wide risk management process, including

climate action alongside other principal risks.

— Undertake annual assessment of principal and emerging risks,

along with the adequacy and effectiveness of internal control

systems.

— Consider climate change impacts on the financial reporting

judgements and estimates in the Financial Statements

(seepage127).

Management Level

Chief Executive Officer Executive Committee Our Vision 2030 and

Sustainability Board

— Designated as accountable lead sponsor

for the Climate Action strategic priority

under Our Vision 2030.

— Review climate-related commitments and

actions to ensure that they are ambitious

and appropriate for the business.

— Review and sign off detailed plans and

specifications of each development,

from land purchase through all stages of

development.

— Assess and manage strategic and

operational risks.

— Discuss progress under the Climate

Action priority area and measures

to be implemented to further drive

improvement.

— Consists of CEO, CFO, Executive

Committee member with responsibility

for sustainability, Responsible

Business Executive and Group Head of

Sustainability.

— Meet monthly with climate action a key

topic on each agenda.

— Discuss progress against goals and

targets to agree planned next steps.

Group Level

Group Risk Function Group Responsible Business

and Sustainability Teams

Group Committees

andWorkingGroups

— CEO ensures the appropriateness of the

Group’s risk management strategy.

— CFO leads on strategic risk management,

including oversight of climate scenario

analysis.

— Risk Executive manages Group risk

process and register, including climate

change as a principal operating risk.

— Identify strategic climate change risks

and opportunities facing the Group and

communicate these to the Group’s Risk

Executive.

— Develop targets and strategic climate

action, including our transition to

netzero.

— Integrate actions into day-to-day

activities.

— Actively collaborate with external experts

and industry working groups.

— Operational committees (e.g. Technical

Committee and Sustainability

Committee) consisting of senior

representatives from each of our

businesses meet regularly, with climate

action raised at each meeting by

the attending Responsible Business

Executive and/or Group Head of

Sustainability.

— Cross-disciplinary working groups

take action in specific areas, such as

embodied carbon and implementation

of the Future Homes and Buildings

Standards, guided by the Group Head

of Sustainability.

Operational Level

Divisional Management Teams Operational Sustainability Teams Development Project Teams

— Responsible for climate action in relation

to the specific developments of their

business.

— Nominate a management sponsor for the

Climate Action strategic priority for their

business.

— Maintain a risk register for their business,

which includes sustainability and climate

change risks.

— Communicate business performance

to CEO and CFO at divisional board

meetings.

— Meet with Responsible Business Executive

and Group Head of Sustainability to

identify improvement areas.

— Dedicated sustainability practitioners

within each business.

— Support local management and

development teams to implement Group

Sustainability Standards and to help

drive continual improvement.

— Monitor climate action performance

and present this to the divisional

management and project teams.

— Ensure Environmental Risk Register

in place throughout the lifespan of a

project, to identify and control risks

from land purchase through to design

and construction.

— Manage day-to-day energy efficiency,

implementation of new measures and

achievement of targets.

1 2 3 4 5

3 4 5 4 5

1 2 3 4

1 2 4 5 4 5

1 2

70 | BERKELEY GROUP 2024 ANNUAL REPORT

Key to the success of our

governance structure is the

involvement of our CEO and other

key senior management with

responsibility for climate action

across all levels and aspects of the

business. The tone and culture set

by their involvement encompasses

all of the autonomous businesses

and teams across the Group.

To provide a governance framework

for our approach, Berkeley has

an overarching Climate Change

Policy detailing guiding principles

of action, delivered through our

Climate Action priority area of Our

Vision 2030 business strategy and

supporting Sustainability Standards.

Our standards set out minimum

requirements for our developments,

as well as our construction site and

supply chain activities, for topics

such as energy efficiency, risk

mitigation measures and reporting.

They ensure that we are aligned

to deliver the objectives, priorities

and milestones outlined within our

climate strategy.

Management tools are in place to

monitor action and performance.

For example, each development

uses a Project Sustainability

Strategy to track compliance with

Sustainability Standards from land

purchase through to completion,

whilst our online data management

system allows for live reporting

of GHG emissions from our site,

office and sales activities to assess

progress against our scopes 1 and

2 SBT. Our management tools

enable the regular communication

of performance across the business,

enabling insights and areas for

further action to be identified and

discussed.

Strategy

Taking action on climate has been

a priority for Berkeley since the

launch of Our Vision in 2010. To help

ensure the ongoing resilience of our

strategy, the actions undertaken

under our key areas of focus (see

pages 72 to 73) are continually

reviewed against evolving risks and

opportunities by the Responsible

Business Executive and Group

Head of Sustainability, along with

Group operational committees and

working groups.

Where necessary, key processes and

controls such as our Sustainability

Standards are updated.

Overview of climate risks

and opportunities

Transitional climate change risks

and opportunities are assessed in

the short-term (0–2 years) and the

medium-term (to 2030) to align

with the time horizons of Berkeley’s

overarching business strategy,

Our Vision 2030. Recognising that

physical risks manifest themselves

over a longer period, these are

considered in the long-term (to

2050).

Climate scenario analysis

undertaken in 2022 indicates that

Berkeley has relatively low residual

exposure to transition risk in the

short-term, although pricing of GHG

emissions and increased cost of raw

materials present moderate risk.

In the medium-term, Berkeley is

more moderately exposed, partly

due to risks associated with moving

to lower emission technologies,

such as the use of less established

suppliers and obsolete technology.

Higher raw material costs could also

be incurred by 2030 as a result of

the increasing intensity of carbon

pricing policy. Whilst not financially

quantified, skills shortages are

expected to be moderate by 2030.

Changing customer demands is

considered to present a minor

opportunity in the medium-term.

The analysis showed that by 2050

under a 4C ‘Hot House World’

scenario, areas in which Berkeley’s

developments are located will see

an increase in heatwave days and

a corresponding increase in the

occurrence of prolonged drought

stress. Increases in precipitation

with drier summers and wetter

winters could also increase

the prevalence of subsidence

conditions. Exposure to flood risk

may also increase with particular

sites flooding more often.

2010

Carbon reduction targets set

for our operations since the

launch of Our Vision in 2010.

2014

Climate change adaptation risk

exercise identified flooding,

overheating and water shortage

as the key risks for the homes

and places we develop.

2016

All new homes designed to

incorporate climate change

adaptation measures and

a bespoke overheating risk

assessment launched.

2018

First public reporting in line

with TCFD recommendations.

Procurement of 100%

renewable electricity for UK

operations.

2019

Undertook research and

implemented the outcomes on

designing low carbon homes.

2020

SBTs validated by the Science

Based Targets initiative (SBTi)

and new strategy for climate

action launched.

2022

Completed climate scenario

analysis to assess risks and

opportunities.

2023

Achieved original SBT for

scopes 1 and 2 (market-based)

emissions seven years early.

Launched embodied carbon

reduction targets at a project

level.

Embedded findings of climate

scenario analysis into risk

management processes.

2024

Achieved ‘A List’ status from

CDP for climate change action

and transparency.

Implemented a detailed supply

chain engagement strategy for

high impact material groups

and recognised as a CDP

Supplier Engagement Leader.

Completed energy audits

complying with the Energy

Savings Opportunity Scheme

(ESOS).

Climate progress

and roadmap

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Climate strategy

To respond to the key areas of risk and opportunities for the business, our climate strategy focuses on

reducing embodied carbon, operating low carbon construction sites, delivering low carbon homes and

integrating climate change resilience measures. Details on key climate actions taken in the year can be

foundon pages 45 to 46.

Embodied carbon

Why this is a focus area

The majority of our scope 3 emissions relate to embodied

carbon arising from the activities of our supply chain,

from the energy used to extract raw materials, processing

these into construction products and transporting to site.

Reductions are targeted as part of our scope 3 SBT in

relation to category 1: purchased goods and services.

Link to business model

– Designing and

planning new homes

– Building new homes

and places

Link to climate risks

– Raw material cost

Key strategic actions

In 2021 we undertook embodied carbon assessments on an initial 15 projects to determine the impact of the

materials used to construct the homes we build. Using this information, our consultants set out a clear approach

for us to calculate our upfront embodied carbon on our future developments and in July 2022 we launched

quantitative targets for reducing emissions in line with our SBT. Embodied carbon assessments are now a

requirement of Berkeley’s Sustainability Standards. The assessments are undertaken during planning and design

stages, enabling our project teams to make more informed design, specification and sourcing decisions and to

take tangible action to reduce the carbon impact of each development and meet targets.

Recognising that embodied carbon is largely out of our direct control, we engage with suppliers and have

implemented a detailed supply chain engagement strategy for high impact material groups. We also play an

active role within several industry groups to share knowledge and lessons learnt. This includes the UKGBC’s

Advancing Net Zero programme and working groups through the Future Homes Hub and the Chartered

Institution of Building Services Engineers (CIBSE). We have also formed a peer-to-peer partnership with several

contractors to collaborate on a number of topics, including carbon.

Low carbon operations

Why this is a focus area

Emissions related to the energy used during our

construction, sales and office activities are under the

direct control of Berkeley and we have the greatest

ability to reduce these.

Reductions are targeted as part of our scopes 1

and 2 SBT.

Link to business model

– Building new homes

and places

Link to climate risks

– Pricing of GHG

emissions

Key strategic actions

Berkeley’s Sustainability Standards include minimum energy efficiency requirements for our construction sites,

offices and sales suites. Since 2018, 100% of UK electricity has been backed by Renewable Energy Guarantees

of Origin (REGOs).

To drive performance improvements, Berkeley’s operating divisions are set individual annual carbon budgets that

are actively monitored through live reporting in our online data management system. We also have an internal

carbon fee levied on each division, incentivising low carbon alternatives which may have a greater capital cost

but that deliver reduced operational costs. Best practice initiatives and lessons learnt are shared through

engagement events and via our intranet.

Climate-related disclosures continued

72 | BERKELEY GROUP 2024 ANNUAL REPORT

Low carbon homes

Why this is a focus area

A significant proportion of our scope 3 emissions relate

to the regulated energy use (such as heating, hot water

and lighting) of the homes that we are creating for our

customers.

Reductions are targeted as part of our scope 3 SBT in

relation to category 11: use of sold products.

Link to business model

– Designing and

planning new homes

– Building new homes

and places

– Marketing and selling

new homes

Link to climate risks

and opportunities

– Demand supply

imbalance

– Planning and design

requirements

– Technology evolution

– Skills shortages

Key strategic actions

Berkeley applies a fabric-first design approach, in combination with the most appropriate technology and

infrastructure solution for each individual development. We engage with our designers and collaborate with

wider industry through the UKGBC, Future Homes Hub and CIBSE to understand how to reduce the impact

of our buildings.

Berkeley’s Sustainability Standards include minimum energy efficiency requirements, including the provision

of 100% LED lighting. We communicate sustainable features to customers through the sales process, providing

accessible and home-specific information.

We measure the impact of our homes as part of our scope 3 SBT using the dwelling emission rate (DER);

calculated for new build homes to comply with building regulations. Performance also forms part of our Green

Finance Framework issued in 2022, with the eligibility criteria for this linked to homes achieving an Energy

Performance Certificate (EPC) rating of at least a B on brownfield land. In 2023 we set a requirement for all new

homes (excluding refurbishments) to meet a minimum energy efficiency rating of B. In addition to EPC ratings, we

monitor the Environmental Impact Rating (EIR) of new homes as a measure of carbon impact.

Climate change resilience

Why this is a focus area

Berkeley recognises that climatic changes will occur and

may affect the homes and places we develop. We need

to prepare our business for anticipated changes to the

climate and take action to mitigate risks.

Link to business model

– Land acquisition

– Designing and

planning new homes

– Building new homes

and places

– Placekeeping and

stewardship

Link to climate risks

and opportunities

– Heat stress

– Drought stress

– Subsidence

– Windstorm

– Flood

– Demand supply

imbalance

Key strategic actions

Key risks, such as subsidence and flood risk, are identified and assessed prior to land acquisition, with mitigation

measures identified and implemented as necessary.

Berkeley’s Sustainability Standards set minimum requirements, including the provision of rainwater harvesting

and sustainable drainage systems (SuDS). We target internal water efficiency levels beyond building regulation

requirements, delivered through the integration of water efficient fixtures and fittings.

Recognising the intrinsic link between nature and climate, Berkeley has pioneered biodiversity net gain (BNG) in

our industry since 2017. Having worked in partnership with the Wildfowl and Wetlands Trust (WWT) to develop

a Code of Practice for blue and green infrastructure, an integrated water management approach is now followed

whereby rainwater is stored and released into natural features to help manage surface water, also reducing the

urban heat island effect.

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Supply chain

– Our Common Materials Strategy for 10 key material

groups includes embodied carbon and other

sustainability requirements alongside technical

compliance and quality.

– New detailed supply chain engagement for high

impact materials (concrete, steel, aluminium, glass

and bricks) to assess the maturity of key suppliers

in their decarbonisation journey.

– Sustainability Standard for on-site contractors

includes requirements in relation to energy and

carbon reporting, as well as minimum energy

efficiency measures.

– Climate action raised in Group-wide Supply Chain

Conference in November 2023.

– Partner of the Supply Chain Sustainability School.

Industry

– Members of the UKGBC Advancing Net Zero

programme and active participants in working

groups, including developing guidance on

embodied carbon reporting.

– Active participants of the Future Homes Hub,

helping industry to understand and shape the

future for new and decarbonised homes.

– Contribute to CIBSE’s Homes for the Future

working group.

– Formed a peer-to-peer group to collaborate and

share learnings with several contractors, including

Skanska, Morgan Sindall and Laing O’Rourke.

Government

and

regulators

– Actively respond to Government consultations to

share our insights and experience, including both

the Future Homes and Buildings Standards and

scope 3 emissions reporting consultations in 2024.

– Met with Government representatives as part of

the Future Homes Hub to discuss our response

to the Future Homes and Buildings Standards

consultation.

– Host visits to our development sites to directly

engage and demonstrate challenges and progress.

Customers

– Development-specific information provided,

including climate change mitigation and

adaptation measures.

– Home demonstration at handover to ensure

customers aware of technologies integrated into

their home and efficiency measures.

– Sales employees receive sustainability training.

Employees

– Sustainability training provided to all employees,

with subject specific training (e.g. embodied

carbon, Future Homes and Buildings Standards

requirements) provided to relevant departments.

– Awareness campaigns including ‘lunch and

learn’ sessions and internal intranet to share best

practice.

Transition planning

Berkeley acknowledges the SBTi

definition of net zero, namely that

scopes 1, 2 and 3 emissions should

be reduced in the long-term (by

2050) by at least 90%, with residual

emissions neutralised.

This year we have been engaging

key internal stakeholders to compile

a Net Zero Transition Plan in line with

the October 2023 recommendations

of the Transition Plan Taskforce

(TPT). Our aim is to publish our plan

in 2025.

An overview of key elements within

our focus areas that we seek to

action on our route to net zero can

be found on pages 76 to 77.

Our transition plan is based on

decarbonisation routes and actions

that we currently understand to be

the direction our industry is moving

in, but plans and capabilities in this

area are constantly evolving, with

new pathways identified once

certain levers are triggered. We

have identified some of our key

dependencies and challenges on

page 75.

Given the significant dependencies

and challenges we face, and

uncertainty of the decarbonisation

pathways that will be available to

us in the medium to long-term, we

have selected a net zero date of

2045. Across scopes 1 and 2 we

are confident that we can achieve

net zero much earlier, however

we need to work further with our

supply chain to understand the

decarbonisation pathways of key

manufacturers and suppliers before

committing to a more stringent

timeline across all scopes. Our aim

is to update projections within

future iterations of our plan.

Engagement

Collaboration is key to delivering climate action with key activities

as follows:

Climate-related disclosures continued

74 | BERKELEY GROUP 2024 ANNUAL REPORT

Our workforce

The transition to a low GHG economy will impact

our workers due to the rapid change in required

skills. We will invest in the training and competency

of our employees and supply chain workforce to

manage our transition and ensure that no one is

left behind as we meet our future goals.

Our customers and communities

Solutions to address climate change should not

come at an unaffordable price to our customers

or negatively impact the communities we help

to create. Customer insight is essential to gather

feedback about the technology installed in

new homes.

Our industry

We acknowledge the need for a coordinated

industry approach, as current inconsistencies are

leading to a lack of trust and investment across

the supply chain and delaying progress. Berkeley

will continue to work with others in the sector

and share feedback on new practices and

technologies to push forward the most effective

low carbon solutions.

Our environment

Recognising that nature helps to both mitigate

and adapt to future climate change pressures,

we will continue to prioritise the incorporation

of nature within our developments and work with

managing agents to ensure that these habitats

will be maintained for years to come.

A just transition: recognising stakeholder impacts

Berkeley aims to ensure that our decarbonisation efforts include a fair and equitable ‘just transition’ that identifies

potential effects on our stakeholders, including our employees and communities.

Our transition is dependent on:

— The willingness, ability and speed of our direct supply chain to

decarbonise and reduce the embodied carbon of materials.

— The rate at which connected industries (e.g. utilities, transport,

education and skills) set out detailed transition plans.

— Customer acceptance of low carbon alternatives for heating

andpowering homes.

— An industry-wide shift to low carbon alternatives and new

technologies.

— Workforce behaviour change to reduce avoidable emissions.

Our transition is challenged by:

— A low number of suppliers and contractors that measure their

emissions or have SBTs.

— The changing policy and regulatory landscape for housing.

— Customer concern over increased costs for electric homes, and

behavioural change required to operate non-traditional heating

solutions.

— A potential lack of capacity in the electricity grid to connect

newhomes.

— The pace at which the electric machinery market develops.

— The cost uplift and sustainability credentials of biodiesel HVO.

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2024 2025 2026 2027 2028 2029 2030

Climate-related disclosures continued

Key to milestones:

Low carbon operations

Low carbon homes

From 2028 start

to undertake post

completion embodied

carbon assessments

All completed homes

to have undertaken

an upfront embodied

carbon assessment

by2028

First ‘zero carbon

ready’ homes that

are fossil fuel free

by 2026

Ensure all landlord

supplies with

managing agents

are on renewable

tariffs by 2029

All new UK

homes designed

to be ‘zero

carbon ready’

in2025

Emissions (tCO

Any replaced

vehicles to

be electric

from2026

Near-term SBTs

Taking action in the near-term to meet our SBTs

• Engage with

manufacturers of high

impact materials

• Design to lower

embodied carbon

• Identify key

manufacturers

to support innovation

• Increase use of heat

pumps and renewables

• Transition district

heating to be net

zero ready

• Continue to research

new technologies

• Continue to purchase

100% renewable

electricity in the UK

• Transition away from

natural gas use in our

offices and sales suites

• Focus on energy

efficiency, particularly

out of hours usage

Our transition plan

600,000

500,000

400,000

300,000

200,000

100,000

76 | BERKELEY GROUP 2024 ANNUAL REPORT

2030 2035 2040 2045

Embodied carbon

External milestones

From 2030 all

completed homes

havea post completion

embodied carbon

assessment

All completed homes

‘zero carbon ready’

(excluding existing

district heating

systems) by 2030

All new homes to

be on a renewable

tariff on move in

dayby2030

UK electricity grid

100% decarbonised

in 2035

UK ban on sale

ofpetrol and diesel

cars in 2035

Near-term SBTs Net Zero

Reduce emissions

to <10% of our

baseline. Residual

emissions to be

offset using carbon

removal credits

Our long-term aims to reach net zero

• Encourage and support

suppliers in setting SBTs

• Work in partnership

with our supply chain to

reduce emissions

• Ensure that all suppliers

provide product specific

EPDs

• Focus on as-built

performance, rather

thanas-designed

• Improve energy demand

management in homes

• Focus on renewable

generation on our

developments

• Operate net zero

construction sites

• Install and use renewable

technology onour larger

construction sites

• Increase the use

ofelectric plant

• Explore nature-based solutions for carbon capture and storage

Hartland Village, Fleet

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Risk management

Berkeley has recognised climate

change as one of its principal

operating risks since 2018. Our

regular process to identify and

assess climate-related risk is

incorporated within the Group’s risk

management framework, combining

a top-down strategic review and a

bottom-up review (see page 91).

The Responsible Business

Executive and Group Head of

Sustainability identify and monitor

strategic climate-related risks and

opportunities facing Berkeley

through the evaluation of evolving

legislation, customer feedback,

and industry and global trends.

Risks and opportunities are

identified for the short-term (e.g.

increased energy costs), through

to the medium-term (e.g. changes

to building regulations) and long-

term (e.g. transition to net zero

carbon homes).

The risks and opportunities cover

our upstream value chain (such

as material costs), our direct

operations, and the impact on our

customers of a changing climate.

Identified risks and opportunities

are shared with the Group’s Risk

Executive and reported on at each

Board meeting, with feedback

provided back down the business to

operating companies.

A fundamental principle of the

operating structure of Berkeley

is that the prime responsibility

for assessing, managing and

monitoring the majority of

operational risks rests with

divisional management teams,

ensuring that risk management

is embedded in our day-to-day

operations. At a development

level, the site-specific Project

Sustainability Strategy tracker and

Environmental Risk Register identify

risks and monitor action taken to

mitigate these from land purchase

through to completion.

Climate scenario analysis

Supplementing our regular

approach to risk management,

in 2022 Berkeley undertook

climate scenario analysis with

the support of WTW (formerly

Willis Towers Watson) to assess

risks and opportunities relating to

the transition to a lower carbon

economy and the physical impacts

of climate change. The climate

scenario analysis was overseen by

the CFO, the Executive Committee

member with responsibility for

sustainability, the Responsible

Business Executive and the Group

Head of Sustainability.

Selected climate scenarios draw

from widely used publicly available

and peer reviewed sources. These

include the Intergovernmental Panel

on Climate Change (IPCC) sixth

assessment report (AR6) and other

representative sources including

the International Energy Agency

(IEA). The scenarios selected are

not intended to be forecasts for the

future, but provide mechanisms to

assess plausible outcomes against

which Berkeley can assess its risks.

Transitional risk description Risk exposure and potential impact Mitigation strategy

Pricing of GHG emissions could

be introduced as part of aggressive

climate mitigation and carbon

tax regimes.

Emissions offsets may see

an increase in demand and

therefore cost.

Demand for REGOs which Berkeley procures for its UK electricity consumption

is expected to rise. In the short-term the additional cost of REGOs is likely to

be less than £1 million per annum. By 2030, the supply of REGOs is expected

to stabilise as electricity use is anticipated to continue to shift away from fossil

fuel sources.

The introduction of direct carbon taxes through UK regulation in relation to

scopes 1 and 2 emissions, if implemented by 2030, would result in a new annual

cost which is likely to be less than £1 million.

Under Berkeley’s long-term plans to become a net zero business, depending

on supply chain actions and technology advances in the meantime, residual

scope 3 emissions may need to be offset at a point beyond 2030. The cost of

this could be significant given the relative size of scope 3 emissions compared

to scopes 1 and 2 (see metrics and targets on pages 84 to 86), over £10 million

per annum, although this amount and timing thereof is uncertain.

Our teams continue to focus on energy and carbon efficiency to reduce our electricity consumption and emissions.

We have seen a 77% reduction in scopes 1 and 2 (market-based) emissions since 2019, reducing the potential impact of

future carbon pricing regimes.

This year we completed energy audits across our divisional offices, sales suites and construction sites in line with the

requirements of the Energy Savings Opportunity Scheme (ESOS) with the recommendations being incorporated into

our energy reduction action plans and transition to net zero.

Berkeley monitors the implementation of potential carbon tax regimes, including the proposed UK Carbon Border

Adjustment Mechanism (CBAM) (see the raw material costs transitional risk).

Our approach to offsetting is being reviewed as part of the further development of our net zero transition plan.

Planning and design requirements

become increasingly stringent as

part of the UK’s efforts to meet its

2050 Net Zero target.

As part of its effort to meet its 2050 Net Zero target, it is possible that the

UK will need to increase the stringency of building planning and design

requirements. Berkeley would be required to respond to changing building

regulations which may have a cost impact.

In the short-term, homes on future phases of developments that are under

construction may require a different heating solution from current planned

solutions, for example switching to the installation of air source heat pumps.

These changes have been anticipated so there is little additional cost impact

expected.

In the longer term, planning regulation is not anticipated to lead to significant

costs as emerging requirements form part of development appraisals at the

land purchase stage or subsequently.

Operational committees of relevant functions (Land and Planning, Technical and Sustainability) monitor and discuss the

evolving regulatory landscape and impacts on the business, taking action as required.

Berkeley actively participates in Government consultations to help shape the direction of future regulation. In March

2024, we submitted a response to the consultation on the Future Homes and Buildings Standards. An inter-disciplinary

working group was set up to develop our response and a webinar was held to brief the business on the requirements of

the Standards.

We also participate in industry initiatives such as the Future Homes Hub, established to facilitate the collaboration

needed within and beyond the new homes sector to help meet the climate and environmental challenges ahead.

To negate potential additional cost impacts, emerging requirements form part of development appraisals at the land

purchase stage.

Climate-related disclosures continued

Transitional risks

78 | BERKELEY GROUP 2024 ANNUAL REPORT

The results of the climate scenario

analysis (see tables on pages 78

to 83) are still considered to be

relevant and we continue to use

them within our strategic planning

processes. It is our intention to

periodically update the analysis,

as new information and modelling

becomes available or as significant

changes are made to our business.

Read more on our methodology

www.berkeleygroup.co.uk/

sustainabilitydisclosures

Transition risks

andopportunities

Representative scenarios assessed

included a below 2°C (using IEA

Sustainable Development Scenario

(SDS)) and limiting global warming

to 1.5°C (IEA Net Zero Emissions

by 2050). Where possible to

differentiate across the two scenarios

the assessment focused on the Net

Zero by 2050 scenario, in line with

the Paris Agreement targets.

Transition risks and opportunities

were assessed in relation to

aggressive climate mitigation

measures in both the short-term (0–2

years) and medium-term (to 2030).

The transition risks and opportunities

detailed in the table on pages 78 to

81 have been identified as having

potentially greater exposure or

impact on Berkeley, albeit none of

these are considered individually

material in the context of the Group’s

current year financial statements.

In addition, Berkeley has been

assessed as having a very

low exposure to the following

transitional drivers, with more detail

available in the climate scenario

analysis methodology document

on our website:

— Risks: Enhanced emissions

reporting obligations

requirements; climate change

litigation.

— Opportunities: Electric vehicle

use; cost and availability of

capital; reputational risk and

perceptions of investors,

employees and other