Material issues
These are the areas of change that we believe have the most important influence on our ability to continue and enjoy future success. Profound external changes drive a need for cultural and governance adaptation within our business in order for us to remain relevant and successful.
In identifying our material issues we consider a broad range of factors affecting The Crown Estate, our customers and consumer behaviour, whether at a global, national, or local level, or internal to our business. The resulting material issues are those which we consider as having the potential to materially affect our viability or our purpose.
Our Annual Report 2019/20
These issues are also an important part of how we understand our risks and opportunities and how we develop our strategy. Through a combination of internal and external consultation we develop a picture of the issues that drive both our current environment and those that will change it in the future. We are continually reviewing and adapting our understanding of these issues and their relative importance, recognising that the world is not static and The Crown Estate needs to continually evolve.
Systemic shifts
Some changes can be sudden and bring profound and wide-ranging effects, causing transformational change across our business. These shifts can arise through natural phenomena, such as pandemics, but also through social or political events such as the UK’s exit from the European Union.
Technology
New technologies and new attitudes to the use of technology are driving or facilitating changes in the way individuals and businesses operate.
The property market
All of the major elements of the property market are subject to considerable uncertainty. Issues with supply, for example in relation to quality housing, exist alongside issues with demand in other sectors, for example in high street retail. Fundamental changes in the market will have significant consequences for our portfolio and its evolution.
The political, legal and constitutional framework of the UK
Changes to regulation, Government policy and to the constitution, influence our portfolios and the markets within which we operate.
The role of business in society
There is growing scrutiny of the role of business in acting responsibly in society in terms of social, environmental and good governance standards. It is expected that the values of businesses will reflect these enhanced expectations.
London and the UK
The UK’s exit from the European Union, and other factors are affecting the place of London and the UK in the world. The potential change in influence and attractiveness to foreign investment and tourism affects our business directly, and also indirectly through our customers.
Climate change
Climate change will bring profound effects in both the medium and longer term. These effects will bring evolving stakeholder expectations and will require responses to environmental changes and new obligations. They may also bring new opportunities to create customer value.
Energy systems
Changes in energy markets and public attitudes toward different energy types are driving shifts in energy systems at global and national levels.
Work and lifestyle
Structural changes are underway in the expectations and behaviours that determine where and how people live, work and shop.
Environment
In addition to climate change, our ability to deliver on our purpose is impacted by our planet’s finite resources, growing population and the consequent pressure on the natural and built environments
