The smart building aspects of PropTech have great potential to vastly improve the performance of buildings. Sensors and data, driven from smart buildings will provide the granularity of insight to support new and innovative approaches how buildings operate.
Carbon Credentials believes that one of the big opportunities that come from smart building PropTech improvements, is in how comfort and wellbeing is monitored and optimised. [Read more…]
Bloomberg recently reported that in 2017, across all industries, twice as many funds with an Environmental, Social and Governance (ESG) investment strategy were created compared to 2014. The flow of capital to environmentally and socially conscious companies is ramping up. On top of that we are also seeing investors divest support for companies that are not disclosing climate change risk. Aviva Investors have recently called for the recommendations of the FSB’s Task Force on Climate-related Disclosures (TCFD) to be made law by the end of 2018, signalling the desire from investors to see greater transparency and leadership from the companies they invest in.
We believe there has never been a better time to demonstrate leadership in ESG management and reporting in order to attract funding from this growing sector of the investment community.
What is the process for developing leadership?
The GRESB benchmark report is an excellent place to start annual reflection of performance relative to peers and industry best practice for those in the real estate sector.
Demonstrating leadership is about two things; having your standard ESG management practices in place and performing well, in addition to pushing the industry forward in a chosen area(s). The GRESB Benchmark allows you to focus on the core aspects of your strategy that you need to get right and the report is a great starting point.
Starting with the ESG breakdown, you can quickly assess which part of your ESG strategy needs most focus.
Another key output of the scorecard is the Aspect assessment. We use this visualization with our clients, to start to hone in on the areas where they can make most impact and identify where they aren’t demonstrating a high level of leadership at present against their peer group.
There are many frameworks and approaches to achieving leadership but we find that the GRESB benchmark report provides the greatest clarity for our clients when deciding where to spend time, effort and money. No company has unlimited resources to throw at ESG management, so it is important to focus your efforts on areas you can excel but also ensure you are maintaining ESG ‘hygiene’. A key point to recognise here is, you need both to be considered a true leader.
GRESB supports two further aspects of achieving ESG leadership.
The comparison to peers is a vital component in sense checking your performance outside of your own company. As we already described, leadership is about pushing the industry forward and this can only be achieved if you are performing at a level above your peers in one or more aspects of ESG management.
GRESB helps identify areas where you may be a laggard but also areas that you are excelling in that you can seek to further develop and drive.
Finally, the additional GRESB modules, notably Health & Wellbeing and Resilience, help you keep on top of changing trends within the industry.
ESG is a fast paced industry and leadership can sometimes falter in the face of multiple interests and competing ‘next big trends’. GRESB responds to changes in the market in a considered fashion, allowing you to take a measured approach and maintain focus on the key areas for your strategy.
Carbon Credentials works with many clients responding to GRESB and undertakes a benchmark review to help our clients understand where they can focus to demonstrate leadership in ESG. Find out how we can help you.
“The next step in active property management: digging into the BMS and engaging with occupiers and technical teams to fine tune property management”
Purpose of the project
2 Cavendish Square compared poorly to other Hermes assets in the Better Building Partnership’s Real Estate Environmental Benchmark (REEB) despite numerous active management initiative and refurbishments over the last 5 years. In order to significantly reduce energy consumption on site, analysis at the component level was required.
Working with managing agents JLL, Carbon Credentials implemented our “Collaborative Asset Performance Programme” (CAPP) to improve the management of site plant and equipment with the goal of making energy and carbon savings. PP has a three stage process with Diagnostic, Implementation and Monitoring and Control phases.
In the Diagnostic phase, a data capture device is installed and there is engagement with Facilities Management (FM) teams, Mechanical and Electrical (M&E) and BMS Engineers as well as building managers, owners and tenants. Most will have a role in improving the performance of the building in the Implementation phase. In the Monitoring and Control Phase, Carbon Credentials is ensuring that the savings are maintained and the site is monitored for fault detection, comfort management and wellbeing improvement. This monitoring has resulted faults being quickly detected and remedied in a fraction of the time.
- VERIFIED ENERGY SAVINGS: Programme drives 18% reduction in Natural Gas usage, verified through integrated M&V process.
- ENGAGED STAKEHOLDERS: Technical stakeholders and site occupiers are engaged as part of the solution.
- COMFORT AND WELLBEING: Data can be used to improve comfort and increase productivity of occupants on site.
“There is always more we can do to improve a building energy performance, it is about the commitment of the managers, engagement with tenants, and seeking every little improvement.”
Purpose of the project
Royal Victoria Place is a key retail asset in the BTPS fund and was a gas guzzler on its acquisition in 2012. We set up to implement a stellar energy efficiency improvement programme.
RVP participated in Earth Hour and implemented the concept of the Christmas Shut down, or how little energy did the building really need?. From this, a question was raised: ‘why don’t we do this on a permanent basis?’ After 6 weeks in planning, reviewing night time procedures, engaging with tenants and staff, a programme was set in place.
Since 2012 a number of efficiency measures were applied at the centre. From Christmas shutdown, LED deployment and active management, The latest in 2016, the shopping centre undertook a rewarding initiative involving the on-site staff to put the building to sleep every evening. To achieve this, it took both automation and engagement from all staff.
The energy efficiency initiatives at the centre lead to a reduction since 2012 of 64% in absolute energy consumption. The advantages of this initiative benefits not only the environment but also all parties involved; the cleaning team no longer work throughout the night but instead in a concentrated time frame immediately after trade while not being out of pocket, the security team have additional tools to ensure the safety of the building, the maintenance teams have less call outs for plant that has not started outside of normal working hours, and the tenants see a saving on service charge while not seeing a drop in service.
Magnitude of benefits
“The Corn Exchange was selected for this project due to its significant level of electricity consumption, amongst the highest in the AIPT portfolio. Through granular data capture, detailed analysis and collaboration we are delighted to have identified a number of opportunities to reduce consumption and produce a very significant annual saving of 10.2%.” – Chris Church (Property Manager)
Purpose of the project
The Corn Exchange is a premium casual dining venue in the heart of Manchester. It opened in May 2015 following the redevelopment of the former Triangle Shopping Centre. The property comprises a total lettable floor area of 13,684 m2 and a Tenant lineup including Gino’s’, Vapiano and Cosy Club. Phase 2 of the redevelopment, the construction of a hotel on upper floors is expected to complete in December 2017. Following the opening of The Corn Exchange it was noted that electricity expenditure was significantly higher than anticipated with a significant baseload. The electricity spend in 2016 was £872,000 (8,912,021 kWh). CAPP was undertaken to identify opportunities to reduce electricity consumption and to implement them. [Read more…]