The Future of Sustainability In The Commercial Real Estate Sector

The Future of Sustainability In The Commercial Real Estate Sector: A Summary of the 7th Annual 40 Percent Symposium


Read this post if:

  • you had wanted to attend the Symposium but were not able to make it
  • you’d like a quick overview of the key points of discussion throughout the day
  • you heard something about the link between frothy beer and the value of data (?!)
  • you’re interested in the feedback of this year’s attendees
  • you’d like to express your interest in attending the next Symposium in April 2018

Introduction

On Thursday 3rd November, approximately 60 senior commercial real estate and sustainability professionals gathered at the Regent Hotel in Berlin for the 7th Annual 40 Percent Symposium.

Founded in 2011 by John Pike, the aim of the Symposium is to create a one-day, high-quality conference which gives delegates a complete overview of current sustainability issues as they affect commercial property both from an investor’s and occupier’s perspective.

joh-pike“To attend a 40 Percent Symposium is to join a committed and thoughtful audience of like-minded property and investment professionals who understand the need to deliver a sustainable future in property. The 2016 Symposium was our most successful event yet.”

John Pike, Founder and Managing Director, The 40 Percent Symposium

After having been held in London in 2015, this year saw the Symposium make a welcome return to Germany, where the event has always been held in high esteem, not least for the fact that it manages to attract attendees from a broader spread of countries.

This year, we were delighted to welcome attendees from more than 7 countries including the UK, Germany, Sweden, Finland, Portugal, The Netherlands and the USA, all eager to network with their peers and share best practices.


Keynote Address

“Let’s pay more attention to the optimisation of existing buildings’ energy performance…”

The day was kicked off by Martin Brühl, Managing Director of Union Investment and RICS Past President 2015/2016. Mr Brühl delivered a catchy keynote address in which he stressed the importance of optimising the energy performance of existing buildings in addition to the weight that is often placed on the credentials of new builds.

Martin Brühl“Today’s 40 Percent Symposium will mark one essential step towards making sustainability our business as usual… Each of us can contribute to that today, embed what we learn from others in our business routine and tell our clients about it. So our work is cut out and we must succeed. This should be an exciting day.”

Martin Brühl, Managing Director, Union Investment


The Outlook for Political Change in the CRE Sector

The first session of the day saw four experts exploring the following topics:

  • European Union carbon dioxide targets and an outlook on the corresponding regulation changes in Europe and Germany.
  • Thoughts on opportunities and challenges of green policy in the commercial real estate sector.
  • Market perspectives on landlord and tenant relationships and legal implications. Examples beyond pure regulation.
  • How to get tenants on board. Launch of a new sustainability survey to get feedback from real estate users.

The audience showed their engagement early on, with several questions to the panel on the social side of sustainability, including the UK’s Modern Slavery Act, on which one of our sustainability consultants, Louise Russell, has written this informative and well-received blog.

Attendees were also particularly keen to hear more about the work that ECE has done across its shopping centres, which includes collaborating with Philips to develop a new lightbulb.


Economics, Opportunities and Risks, from an Investor Perspective

Next up, these four experts delivered engaging presentations on the following topics:

  • The investors’ long-term risk: without green investment, performance improvement is not possible.
  • How does the enhancement of health and wellbeing in the built environment affect value in real estate?
  • How can the GRESB Assessment support the industry to optimise risk/return profiles of real asset investments?
  • Update on market value of green building certified assets in Europe.

The audience was particularly eager to ask as many questions as possible to Dr. Whitney Austin Gray, Executive Director of Research and Innovation at Delos, following her presentation on health and wellbeing. Health and wellbeing is a topic that is gaining ever more interest each week; is it ‘the next sustainability’?

GRESB was also discussed at length during the panel session and the networking breaks, with many attendees asking us about the support we have provided on multiple GRESB submissions through the combination of our consultancy expertise and our sustainability management software, SIERA.

kay-killman“I thoroughly enjoyed the 40 Percent Symposium, especially the well-balanced mix of investors, developers and other organizations.”

Kay Killman, President, German Green Building Association


Best Practice From Across Europe, Focusing on Innovation

The final session of the day, split into two parts, saw these seven speakers present on the following subject matter:

  • 2050 climate goals for apartment buildings built and realised in 2014.
  • Spondability: Sponda’s signature of responsibility, which takes economic, social and environmental aspects into consideration.
  • Creating green value.
  • How data delivers sustainable value.
  • Turning global challenges into business opportunities.
  • The underestimated energy saving potential: premature pump replacement in existing buildings.
  • Harnessing consumer power.

In many ways, this session is what the 40 Symposium is all about – attendees learning about best practices from their peers.

The audience remained highly engaged right up until the close of the final presentation, keen to learn more about everything from water pump replacements to how seriously Sponda, the Finnish real estate investment company, takes CSR measures.

It was also our chance to shine, with our Managing Director, Chris Bennett, delivering a highly entertaining presentation on the value of data to commercial real estate firms. If you’d like to learn more about the relationship between frothy beer and well-managed sustainability data, you’ll have to get in touch! To whet your appetite, you can watch a short clip of Chris’ presentation in the embedded Tweet below.

frank-rader“For my colleagues and I, this was a fantastic event; well organised and with top content. We had many interesting discussions!”

Frank Räder, Head of Customer Training, Grundfos


The 40 Percent Symposium Will Return in April 2018!

We’re delighted with how well this year’s Symposium was received by all attendees. So much so, in fact, that a placeholder date has already been set for the next one in April 2018!

Based on the excellent feedback of attendees saying that they valued being able to get to Berlin very easily and the opportunity to meet colleagues from all over Europe and beyond, the Symposium will once again be held in Berlin.

Here’s what our partner, Dr. Birgit Memminger-Rieve has to say:

birgitmemminger-rieveTo host the 40 Percent Symposium and bring it back to Germany as an international sustainability conference has been a great experience. Very many thanks to John Pike, who moderated the conference with ease and charm and to the EMA Events team that made sure that our schedule was followed with no delays. I’ve talked to a lot of attendees to get their feedback, which I’d like to summarize here.

The Regent Hotel was a great venue and everyone felt at ease during the day, enjoying and discussing versatile and interesting topics with great speakers from various countries. They say they appreciated having this international symposium in Berlin, giving them insight to the actual political framework, current sustainability studies, and best practice experiences. More practical examples would be good to learn about next time. They also emphasized the excellent networking opportunity during the breaks and at the drinks reception in the evening.

All in all, we’re looking forward to the next Symposium in April 2018.”

Dr. Birgit Memminger-Rieve, Managing Partner, ES EnviroSustain – German consultancy partner to EVORA


To register your interest in attending the next 40 Percent Symposium in Berlin in April 2018, click here now.


Follow us on LinkedIn:


IEA Energy Efficiency Market Report 2016: Key Takeaways for the Commercial Real Estate Sector

About 10 days ago, the International Energy Agency (IEA) released the long awaited Energy Efficiency Market Report 2016, confirming the agency’s growing support for energy efficiency policies and initiatives worldwide. One of the key themes of the report was the emphasis on the critical contribution that energy efficiency can make to broader energy policy goals.

With investment in energy efficiency in 2015 reaching $221 billion and energy intensity improving by 1.8% in the same year, the IEA confirmed that energy efficiency initiatives have reached a sufficient scale to influence global energy markets. The energy intensity improvement seen in 2015 amounts to triple the average rate seen over the past decade, which is a considerable advance, especially in the context of relatively low energy prices. The progress so far should, however, be seen in the context long term targets – as the IEA emphasizes, substantial further improvements will be required to ensure a smooth and timely transition to a sustainable energy system. Particular emphasis is given to the implementation of policy in areas which are either not regulated or subject to inadequate policies.

Given that an estimated 70% of global energy consumption is not subject to any efficiency requirements at present, the scope for improvement is substantial.

The regulation of previously unregulated areas of energy consumption is, however, not the only way to achieve substantial improvements. While the report analyses energy efficiency in the context of a wide range of sectors (e.g. energy intensive industries, light-duty vehicles, rail, shipping and aviation, envelope, lighting, appliances) the real estate sector clearly stands out. In 2015, the real estate sector (commercial, industrial and residential buildings) accounted for 53% of global incremental investments into energy efficiency; more than the next two largest sectors (transport and industry), combined.

Energy efficiency as the fuel of economic development

The report takes an interesting approach to energy efficiency, prompting readers to think about it as the “first fuel” – an energy resource which is available to all energy system stakeholders in abundance and whose integration into energy development strategies can yield varied but important savings and benefits. The IEA highlights energy efficiency as a means to reduce emissions, help tackle air pollution concerns and climate change, but also praises it for its capability to lower energy expenditure. The report also places a lot of focus on the ways in which energy efficiency can help satisfy growing energy demand, improve energy access and energy security and ultimately contribute to economic resilience and the betterment of living standards. The priorities and goals of stakeholders committing to energy efficiency schemes will inevitably vary based on their specific circumstances.

The main achievement of the Energy Efficiency Market Report 2016 is that it manages to bridge the gap between sectors and stakeholders by portraying energy efficiency as a tool which can not only help deliver existing energy and climate goals but also bring about a broader range of the positive impacts such as those listed above.

Key takeaways for the commercial real estate sector

While being subject to a wide range of energy efficiency policies (including Energy Performance Certificates, Minimum Energy Efficiency Standards and Energy Savings Opportunity Scheme in the UK), the commercial real estate sector retains significant potential for further improvement.

On the one hand, energy expenditure in commercial real estate office buildings, for example, usually accounts for a large share of building service charge costs, providing a strong bottom-up incentive to improve energy efficiency. On the other hand, commercial real estate buildings make up a high share of global energy consumption and are also seen as having a wide range of energy savings opportunities, which raises their importance in the eyes of policy-makers. The combination of these top-down and bottom-up factors is a growing interest in the pursuit of energy efficiency in the sector.

What renders the commercial real estate sector truly unique is the range of market-driven certification, assessment and benchmarking initiatives which set an ever increasing industry standard for resource management and efficiency.

Initiatives such as BREEAM, LEED, HQE, ENERGY STAR and GRESB all reinforce incentives for stakeholders to measure and improve energy performance. Moreover, while energy management only constitutes one aspect evaluated in many of these initiatives, the identification and redressing of inefficiencies can go hand in hand with a stakeholder’s ability to attain higher scores.

So how can commercial real estate assets progress towards their potential for energy efficiency?

Our recommendation is to start with a robust measurement and analysis strategy which can, for instance, be undertaken as part of an asset and/or portfolio energy assessment aligned to standards such as ISO 50001. Such an approach is established on the basis of improving accuracy and completeness of energy consumption data which is fundamental in identifying potential areas to enhance energy management and improve efficiency. Analysis can then form the basis of meaningful performance improvement targets and ongoing monitoring and reporting to ensure continued progress. Such ongoing, documented processes will support in voluntary reporting to indices and certification, which can in turn provide an incentive for further improvements.

The growing interest and participation we have witnessed in voluntary certification, assessment and benchmarking initiatives, such as GRESB, are certainly a very good indicator of the commercial real estate sector’s engagement in energy management.


To gain more insight into the ways in which commercial real estate assets can benefit from becoming more energy efficient, refer to one of the following case studies:

For any other questions and to find out how we can help your organisation, please don’t hesitate to get in touch.


Follow us on LinkedIn:


SIERA Sustainability Software: By Numbers [An Infographic]

Leading Sustainability Software for the Real Estate World

SIERA, our proprietary sustainability management software, has, until recently, been an inadvertently well-kept secret. As a result, “This is great, why haven’t I seen it before?” is one of the most common questions we are asked when demoing the software to our commercial real estate prospects.

Well, no longer will SIERA remain a secret!

We are actively demoing the software to multiple businesses with assets across the globe. What’s more, our clients who are already using it are reaping the rewards of having all their environmental data in one secure database, with powerful validation tools ensuring the accuracy and completeness of their data. SIERA has proved particularly popular with regards to its GRESB reporting automation capabilities. Read more about that here.

We have put together the infographic below to provide a visual overview of some of SIERA’s key figures. The numbers are, of course, changing each month as we add more clients’ assets to the system, but at least this provides a bit of a starting point. We’re very proud of SIERA and what it has achieved for our clients so far.

Would you like a demo of SIERA at your convenience?
Please don’t hesitate to get in touch.


Click the image to view it in full size

(You will also be able to save it as a PDF should you wish to.)

siera-by-numbers-infographic-leading-sustainability-software-for-the-real-estate-world


Further SIERA reading:


Follow us on LinkedIn:


Scotland’s Approach to Building Energy Efficiency

This post originally appeared here on the UKGBC blog, to which we are regular contributors.


 

Scotland’s ‘competitor’ to the much publicised Minimum Energy Efficiency Standards (MEES), due to be introduced in England and Wales in 2018, has been finalised and will be introduced next month. The approach is markedly different to the plans in place for the rest of the UK.

The scheme in summary

In Scotland, building owners who plan to sell or lease space will need to comply with the new regulations for units over 1,000 square metres in size, from 1 September 2016[1].  An energy performance certificate (EPC) is required, as usual.  However, an Action Plan must also be established to identify energy saving opportunities.  Action Plans can be issued by qualified Section 63 Advisors (many EPC assessors are in the process of gaining this additional accreditation) who use approved software to calculate improvements.  The software has been developed to consider the feasibility of seven improvement opportunities.

  • Draught-stripping windows and doors
  • Upgrading lighting controls
  • Adding central timer controls to the heating system
  • Insulating hot water storage
  • Improving lighting
  • Improving insulation
  • Replacing boilers if existing units are older than 15 years

Following completion of the Action Plan the owner can then decide to implement the relevant measures or produce an operational energy rating in the form of a Display Energy Certificate (and maintain this on an annual basis). Owners have 12 months to decide which approach to take and have a further 3.5 years to implement improvements if progression of the Action Plan is chosen as the approach.

Exemptions

It is also important to note that buildings constructed in accordance with a building warrant applied for on or after 4 March 2002 are exempt (for now)[2] – although there is a likelihood that this date will change over time to bring more assets into the scheme.  In many cases, exemption due to date of construction will be clear.  However, this rule has already raised questions.

For example, will a recently refurbished unit located in a building constructed prior to 2002 be exempt?

Consideration will need to be made on a case-by-case basis. The software used to generate EPCs and Action Plans will identify whether the unit meets the exemption criteria or not. As a result, the first part of the process, the EPC assessment, will need to be completed before the requirement for an Action Plan can be confirmed.

The Challenges

The approach, at first glance, seems practical.

Seven sensible improvement measures have been identified that, if feasible, need to be considered for implementation, and the bar has been set at the relatively low level of 2002 building warrant standards.  However, practical challenges remain.

Take the following scenario:

An owner wants to let an old (pre 2002) and large (over 1,000 square metre) office building on a Full Repairing and Insuring (FRI) basis.  The EPC and subsequent Action Plan will be produced.  To continue to comply, the owner will need to produce either a Display Energy Certificate or progress the implementation of the Action Plan.  However, lease structures for most FRI buildings will prevent compliance (as the owner will not have access to data and will not be able to implement improvements). 

To ensure compliance, owners of such buildings will need to ensure lease clauses are in place that require single-let FRI tenants to provide energy performance data to owners, as a minimum.

As a priority, landlords should review their portfolios and develop compliance plans to prevent problems in future.

[1] Units under 1,000 square metres will still need to produce an EPC, but will not be required to progress further.

[2] Transactions that are exempt from requiring an EPC are also exempt from additional action plan requirements.


If you have any questions, please don’t hesitate to get in touch.


Follow us on LinkedIn:


Publication of Energy Performance Certificate (EPC) Data

In an effort to make more data publicly available, the Department for Communities and Local Government will be releasing cumulative EPC data for domestic and non-domestic buildings.

Until 30th June 2016, owners and occupiers of commercial property who hold EPCs are able to opt-out of the data release should they not want their EPC information to be released to the public.

However, EVORA advises against blanket opt-outs, without careful consideration and defined reasons, on the following grounds:

  • Each EPC must be opted out individually – the opt-out process becomes very time consuming.
  • The reuse of addresses for other purposes (including marketing) is prohibited.
  • The information is valuable to researchers, whose goal will be to advise on the effectiveness of the regime and will help inform future government policy and the real estate industry is crying out for better informed Government Policy.

Information is still available via the national non-domestic EPC register (where it is possible to search for EPCs on an asset-by-asset basis – so interested parties can still check for individual asset EPCs).

Data was previously released in January 2015. You can download the data to see how it is displayed here.

Holders of EPCs can opt-out of the data release and can do so by visiting this site.

More information on this subject is provided here.

For further information or guidance please contact Paul Sutcliffe: psutcliffe@evoraglobal.com or 07557 529 104.


Follow us on LinkedIn:


Changes to the 2016 GRESB Survey- Part Two

This is the second part to our blog on notable changes to the 2016 GRESB survey.

Pilot Indicators

Six new Pilot Indicators have been included in the 2016 survey. These are indicators that are not scored this year, but will be included in 2017. This level of transparency is a great method of promoting action and allowing participants to respond to a range of environmental impacts not currently scored by GRESB. Pilot indicators include completion of assessments to measure and improve water efficiency, waste management and health and well-being. Tracking the impact and uptake of green clauses also features.

Health and Well-being

GRESB has released a new Health and Well-being module in recognition of the rapidly emerging and important area of opportunity for the real estate industry. The module seeks, firstly, to address efforts to promote health & well-being of the employees responsible for real estate entities and secondly, to address efforts to provide products and services that promote health & well-being of tenants and/or customers.

A 2014 report issued by the World Green Building Council identified that staff costs typically account for about 90% of business operating costs; rental costs 9% and utilities 1%. The report identifies the “overwhelming evidence which demonstrates that the design of an office impacts the health, wellbeing and productivity of its occupants” –productivity improvements of up to 11% are identified as achievable where good indoor air quality conditions are maintained at recommended standards.

This is clearly an area that needs greater focus and GRESB has taken steps to start addressing the topic. It is noteworthy that some organisations are demonstrating leadership on this issue, but the message (and actions to be taken) needs to reach the masses.

New Assessments

In addition to the health and well-being module, three new separate assessments have been released:

  • GRESB Developer Assessment – for organisations that develop projects or acquire properties exclusively for redevelopment and resale.
  • GRESB Infrastructure Assessment – for assessing infrastructure assets and funds, such as airports, railways, ports, waste/water and energy management facilities.
  • GRESB Real Estate Debt assessment – launched in 2015 to private real estate funds, the 2016 survey is open to banks, life companies, pension funds and mortgage REITs, in addition to real estate debt funds.

Asset Level Interface

Although not new to the 2016 survey, using the asset interface as a way of entering data is a tool that we recommend highly. The Asset Level Interface provides significant advantages over manual upload. For example, data outlier (validation) checks are made prior to upload. Automation reduces the risk of errors and the response speed to data queries is quicker and more specific. These are all important benefits as erroneous or unexplainable data will receive zero points. We are using our SIERA software platform to deliver this, which simplified the GRESB process enormously in 2015, delivering significant efficiencies.

More on SIERA

Overall, changes in the 2016 GRESB survey appear progressive in supporting the long term aim of improving Environmental, Social and Governance impacts within real estate. As stated in the first blog, the key to scoring well in GRESB remains the same:

  1. Plan your strategy based on current and future risks and opportunities.
  2. Prioritise delivery according to the value proposition.
  3. Measure and report the ongoing impact.
  4. Review new risks and opportunities and repeat from step 1.

GRESB Premier PartnerAs a GRESB Real Estate Premier Partner, we are perfectly positioned to provide GRESB support. View our official Premier Partner profile.

We can work with you to complete the submission and understand your scoring, as well as develop a sustainability plan that will improve your future GRESB performance and align with your organisation’s key environmental objectives.

Changes to the 2016 GRESB Survey- Part One

The GRESB 2016 Real Estate survey was released on 1st April and with it came the detailed (231 page) reference guide. GRESB has always been transparent about the categorisation and scoring of their indicators, which is useful if you have the time and inclination to go through those 231 pages. In this first blog of two, I have set out my thoughts on the more notable changes.

Increased focus on performance

GRESB’s goal is to “provide investors with the ESG information they need to make more informed investment decisions“. You can’t knock this goal, but there are questions as to how GRESB portfolio level assessments can provide investors  with sufficient information at the asset level. That said, GRESB scores clearly indicate how sustainability has been incorporated into participant business strategies.

GRESB results can be analysed and broken down in a number of ways.  However, fundamentally GRESB assesses sustainability across two broad levels (or dimensions as GRESB calls them):

  1. Management and Policy – a measure of the intent of your ESG programme
  2. Implementation and Measurement – a measure of the impact and performance the intent is delivering.

The GRESB quadrant is shown in the Figure 1 below.

GRESB graph

Figure 1: GRESB Quadrant Scoring Model and Global Average Scores 2011 – 2015

Participants scoring more than 50% in both dimensions are placed within the Green Star quadrant. Lower than 50% in both dimensions places you within the Green Starter quadrant. A strong Management and Policy score but weak Implementation and Measurement score results in a Green Talk score (i.e. you have good intent but it is not backed up by performance). Conversely, a strong Implementation and Measurement score but weak Management and Policy score results in a Green Walk score (i.e. you have good performance but seemingly no co-ordinated management structure behind it).

In general, participants score better in Management and Policy (2015 global average 63%) compared to Implementation and Measurement (2015 global average 52%). This is to be expected – it is relatively easy to develop plans and policies, the biggest challenge lies in achieving the results.

The global average result in 2015 for all participates was Green Star (the best rating).  To put it another way, more than half of participants achieved this GRESB rating. This has led to criticism of the GRESB scoring mechanism, as it was seen as too easy to achieve a Green Star, without performance being sufficiently scrutinised. In the 2016 survey, the overall weighting for Implementation and Management (or performance) has increased by 2 percentage points from 70% to 72%. The goal posts have shifted.

The increased focus on performance may well be significant, particularly noting the 2015 global average Implementation and Measurement score was 52% in 2015. The 2% weighted increase for Implementation and Measurement could see a large group of borderline participants shift from the Green Star quadrant to the Green Talk quadrant,

Participants should expect a greater scoring emphasis on Implementation and Measurement to continue in the future. Current participants will need to maintain forward thinking ESG strategies that deliver results to keep pace. New participants may find themselves significantly behind the curve on first submission (fortunately a grace period provides anonymity in the first year’s submission). Wherever you are in your sustainability journey, it is clear that neither complacency nor inactivity is an option.

In the second part of this blog, I will highlight the key changes to the Real Estate assessment and also introduce new GRESB assessments and modules.

Regardless of the changes introduced by GRESB, our message to achieving an impact driven Environmental, Social and Governance strategy remains the same:

  1. Plan your strategy based on current and future risks and opportunities.
  2. Prioritise delivery according to the value proposition.
  3. Measure and report the ongoing impact.
  4. Review new risks and opportunities and repeat from step 1.

 

To read Part 2 of this blog, click here.


GRESB Premier PartnerAs a GRESB Real Estate Premier Partner, we are perfectly positioned to provide GRESB support. View our official Premier Partner profile.

We can work with you to complete the submission and understand your scoring, as well as develop a sustainability plan that will improve your future GRESB performance and align with your organisation’s key environmental objectives.

Budget 2016: Changes to the UK Government Energy Efficiency Strategy

Significant changes to the Government’s energy efficiency strategy were announced in today’s budget (16 March 2016).  Key points are summarised below:

  • The Carbon Reduction Commitment (CRC) energy efficiency scheme will be scrapped at the end of the 2018-19 compliance year (the end of Phase 2). Obligated businesses will be required to surrender allowances for the final time in October 2019.
  • Lost revenue will be recovered through an increase in the Climate Change Levy (CCL).  This will come into effect from 1 April 2019.  This is designed to cover the cost of CRC abolition (although 2019 appears to be a bumper year for the Government – with increased CCL rates and a final CRC payment).
  • CCL rates and CRC allowance prices will increase in line with RPI annually until 2018-19.
  • The CCL discount for sectors with Climate Change Agreements will be increased to cover increases in CCL main rates.
  • The Government will retain existing eligibility criteria for Climate Change Agreement schemes until at least 2023.
  • The main rates of CCL for different fuel types will be rebalanced to reflect recent data on the fuel mix used in electricity generation. In the longer term, the Government intends to rebalance rates to deliver greater energy efficiency savings and reach a 1:1 ratio of gas and electricity rates by 2025.
  • Finally, the Government will consult later in 2016 on creation of a simplified energy and carbon reporting framework planned for introduction by April 2019.

Please contact Paul Sutcliffe at EVORA for more information (psutcliffe@evoraglobal.com)

Pre-Budget: Rethinking the Energy Efficiency Taxation Landscape

With the energy efficiency taxation review just around the corner, it is expected that the CRC Energy Efficiency Scheme will be scrapped or at least changed significantly.  Below, we make three key predictions:

What are the key predictions for the upcoming budget review?

  1. A simpler energy efficiency taxation landscape: A single new tax based on the climate change levy and a single reporting framework
  2. Scrapping of the CRC Scheme
  3. Further developments based on ESOS supported by an incentivisation scheme to drive the implementation of improvement measures.

Moving away from the older policy environment, the translation of theory to practice will present new opportunities to utilise ESOS to spur the uptake of energy efficiency measures. Following on from our reflections on ESOS, it makes sense for businesses to develop strategies to address energy regulations in a coordinated fashion and to reap the benefits of a combined approach. A good example of this is having a combined approach to ESOS and MEES, where meeting minimum energy efficiency requirement aligns with the broader achievement of reducing energy costs in the building.

Please stay in tune for the budget announcement on the 16th of March 2016 and our post-budget review.

Links:

Reforming the business energy efficiency tax landscape

http://www.lse.ac.uk/GranthamInstitute/wp-content/uploads/2015/11/Consultation_reforming_the_business_energy_efficiency_tax_landscape1.pdf

http://uk.practicallaw.com/3-623-4911?source=rss#