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EVORA revealed as finalists in Edie’s Sustainability Leaders Awards

In EVORA’s first year of entering, we are thrilled to be finalists in three categories for the Edie Sustainability Leaders Awards 2019.

We are proud to be finalists in the ‘Consultancy of the Year’ category, along with a number of other outstanding organisations and we also made the list of finalists for the ‘Energy Efficiency’ category with our client Schroder Real Estate Investment Management.

Our Founder and Managing Director, Chris Bennett is also one of the finalists for ‘Energy Management Leader of the Year’ and will be presenting to the panel of judges later in the year.

Chris said, “This is an amazing accomplishment for EVORA. We have doubled in size over the last year and have built a really forward-thinking team, we’re also very fortunate to be working with some great clients. It’s wonderful to be recognised for the work that we are doing in the real estate sustainability sector and we have some really exciting plans on the horizon.”

The team looks forward to meeting fellow finalists and judges at the awards ceremony on 6 February.

There were a record-breaking number of entries this year for the awards, which have undergone a major revamp, with a new judging panel and additional new categories for 2019. The awards are a celebration of organisations who are embedding sustainability in their operations, business models and products, the winners are in the vanguard of sustainability and are driving demonstrable results through innovation, engagement and a commitment to doing business better.

You can find the full shortlist here.

Sustainable cities: innovative “hubs” and battlefields against negative change

Only ten years ago, knowing about sustainability meant that you might have accidentally read a piece of avant-garde research, speculating about harmful changes in our climate. In the blink of an eye, sustainability has gained wider momentum, and today has established itself as a global goal for our future and that of our planet.

However, years have passed but we still have a long way to go: threats to our environment and humankind haven’t disappeared as quickly as we’d hoped, and industrial production has largely been favouring short-term interests over environmentally-sound long-term benefits. Hence, the war against negative environmental impact is still on. What better battlefield than cities today?


Cities are expected to be home to over 70% of the world’s population by 2050[1]. In Europe, urban areas account for 75% of the population already. It is anticipated that US350 trillion are to be spent on urban infrastructure over the next 30 years[2]. How can we use those monetary resources effectively and sustainably?

Real Estate is a sector with one of the most comprehensive sets of tools and practical standards aiming to improve sustainability and resilience in cities. And thankfully so, as buildings account for almost 40% of carbon dioxide emissions globally, and in bigger cities up to 80%[3]. Ensuring that buildings are sustainable means finding ways to use resources efficiently, without compromising their overall purpose. Buildings should be designed with the best solutions and ideas at stake and should be a grounding element of future-proofed cities.

Great theory, great lesson, but what has been done so far?


Practical learning n 1: Business for sustainability, or sustainability for business?

A lot of initiatives and developments have taken place in the real estate sector to advance sustainability holistically. More and more, environmental standards and certifications such as BREEAM, LEED and many more have set out criteria to measure buildings’ sustainability and determine which actions can contribute to better results. Along this line, the GRESB sustainability survey has become a turning point for real estate investors’ business-wide future decisions. The speculative market environment can therefore easily be influenced by what investors believe to be future risks. This means that sustainable cities and structures are at the core of the international agenda, and they have the power to steadily shape what is next.

Practical learning n 2: All that glitters today is not gold tomorrow

Industries such as Real Estate, which deal with infrastructures that need sustainable (re)development, have started rewriting their founding lessons, with an eye for long-lasting value, rather than short-term benefit. Why is business, often the enemy to our environment, suddenly turning towards more sustainable solutions?

Industries such as Real Estate, which deal with infrastructures that need sustainable (re)development, have started rewriting their founding lessons, with an eye for long-lasting value, rather than short-term benefit.

Sustainable cities mean resilience, hence resistance to future risks and challenges. This means better stability and reward for the years to come as well as a greater understanding of how to peacefully live within our environment, rather than harming it or feeling threatened by it.  More in cities than anywhere else, where consumption patterns are the direct cause of environmental degradation, there is a need for enduring value, which can only go hand in hand with an increasing respect and understanding of how to treat our urban surroundings. What glitters today is not going to be the gold of tomorrow, if it cannot last until tomorrow!

Practical learning n 3: The happier, the better

Cities are a hub of production, which means innovation, creativity, financial reward, increasing services and ambitious professional, social and cultural opportunities. As a result, however, cities can also be stressful environments, filled with people, vehicles, infrastructure, but with little space and resources to support them. This does not only affect the resilience of businesses and infrastructures, but also of the people contributing to them, who increasingly suffer from psychological distress, anxiety and hence lower productivity. Sustainable cities and their infrastructures can only achieve enduring value if they become healthier environments for their people.

The Real Estate sector has recently made advancements in establishing health and wellbeing as a part of the sustainability agenda. Not only do sustainable buildings mean good management of resources, which inevitably meet future human needs, but research has shown that proximity to more natural elements within our urban spaces is fundamental to advancing our well-being, and as a result our productivity[4][5]. Standards such as the WELL, RESET and Fitwel have taken health and wellbeing as their main focus to aspire to resilient and thriving communities within urban spaces. Similarly, GRESB recently introduced a health and well-being module in their annual survey and it will likely gain wider coverage in future years. It seems that if you feel great within your environment, you will be happier, healthier and will reach your full potential. Isn’t this what we are all looking for?

If you agree, then you have reason to believe that because our current cities are the major obstacle to improving sustainability and finding enduring value, they are also the inherent solution.

This blog post was originally written for and published on GRESB Insights.


[1] Neij, L., Bulkeley, H. & McCormick, K. (2015) Cities and climate change: The great decarbonisation challenge, Climate in Focus, 1-4.

[2] WWF (2012) Reinventing the City: Three Prerequisites for Greening Urban Infrastructures, p. 6

[3] WF (2012) Urban Solutions for a Living Planet. P.10

[4] WF (2012) Urban Solutions for a Living Planet. P.9

[5] Ryan, C., Gaziulusoy, I., McCormick, K & Trudgeon, M. (to be published) Virtual City Experimentation: A Critical Role for Design Visioning. In: Evans, J., Karvonen A. & Raven, R (eds) The Experimental City. London: Routledge.

Why sustainability cannot be ignored by the real estate industry

A key motivation when we started this business was for sustainability to be seen and accepted as a valuable asset management tool by the property industry. Seven years on, has our goal been achieved? Read on!


What is sustainability in Real Estate?

Sustainability can mean many different things to many different people so to keep it simple, I see sustainability in Real Estate as delivering enduring value. For the real estate industry, ultimately, for a building to be sustainable it needs to be occupied both now and for the foreseeable future, delivering an acceptable return to the investors.

Delivering value comes down to the key drivers of occupancy, rent, lease length and covenant strength so if a sustainable approach can enhance any of those key elements it will deliver value, in the same way as any other asset management tool. That has been my approach for the last seven years although I hope some of our methodologies have matured!

Sustainability is far more than managing energy, water and waste. Don’t get me wrong, these are important aspects, which can reduce the operating costs of a building and improve its resilience, all of which should be attractive to the occupiers.

Does this deliver quantitative returns?

The answer is not obvious in Europe, although the award-winning study entitled “Decomposing the Value Effects of Sustainable Real Estate Investment: International Evidence” measured the impact of sustainable investment on the value and performance of listed real estate investment firms (REITs) and found that strong sustainability practices are associated with superior investment performance.

If you ignore sustainability you marginalise your ability to attract the broadest scope of occupiers, potentially those most likely to have the best covenant strength who often also have the strongest CSR credentialsClick To Tweet

More importantly, if you ignore sustainability you marginalise your ability to attract the broadest scope of occupiers, potentially those most likely to have the best covenant strength who often also have the strongest CSR credentials. We have experienced, on a number of occasions, corporates matching this profile, willing to commit to longer leases for buildings which have excellent green credentials. This is of course not a one size fits all.

What does this mean?

At a regulatory level, in the UK it is now unlawful to let a building if it does not have a minimum EPC energy rating of an E. In addition E rated properties may still be at risk from MEES regulations. This is significant. For the first time we have energy efficiency regulation that impacts rental income and value. It will be interesting to see if this transitions into Europe in the future.

Interestingly though, we have seen greater uptake of sustainability through voluntary reporting than enforced regulation. GRESB, the global sustainability benchmark survey has mobilised the real estate industry over the last few years with 850 portfolios participating in 2017, representing more than USD$3.7 trillion in assets under management. GRESB is investor driven, to assess the environmental, social, governance (ESG) performance of their investment managers, where many see ESG as a fiduciary duty to protect and enhance future value of their investments. It is also interesting to note that research in July 2017 by Dirk Brounen and Maarten van der Spek identified a return premium of 3% between the highest and lowest GRESB scoring participants.

What practically should we be thinking about for the future?

So there appears to be some quantitative correlation to performance if enough research is done. But what practically should we be thinking about for the future?

For me, the three big impacts to plan for will be climatic change, technological advances and a generational shift in behaviour. I’m not going to dwell on climate change but the combination of rapidly advancing technology with a changing work culture will see a move away from honest work for honest pay to meaningful work in a meaningful environment. The advent of health and wellbeing to deliver a ‘meaningful environment’ is already upon us and my instinct tells me this will be the new face of sustainability, which will mobilise the industry far more quickly than just measuring energy.


To speak to a member of the team about how we can support you, please contact us.

EVORA to Manage Real Estate Sustainability Event for Over 100 Delegates

On Wednesday 7th February 2018, we are delighted to be running an event for over 100 commercial real estate and sustainability professionals.

Real Estate Sustainability: Planning for 2018 & Beyond


What started out as an idea in November for a small workshop-style event for up to 30 people quickly escalated into something much larger when we received over 30 bookings before Christmas. Thanks to our client, Schroders, who are hosting the event for us in the auditorium of their Gresham Street office, we are now able to accommodate up to 130 attendees.

With six guest speakers and panelists including Sander Paul van Tongeren, Managing Director of GRESB, Debbie Hobbs, Head of Sustainability at Legal & General Investment Management, and Murray Birt, ESG Thematic Research Strategist at Deutsche Asset Management, participants have been eagerly booking onto the event to hear from such industry experts.

We’re currently at 105 registrations, meaning we still have some spaces remaining! So, why not join your peers and kick-start your yearClick To Tweet

We’re currently at 105 registrations, meaning we still have some spaces remaining! So, why not join your peers and kick-start your year by learning the answers to the following questions:

  • How can you make 2018 your best year yet for meeting your sustainability goals?
  • What are the new risks and opportunities you should be aware of this year?
  • What changes are on the horizon for GRESB?
  • How can social value be measured?

We firmly believe this is set to be one of the biggest and best consultancy-organised events that the UK commercial real estate sustainability sector has seen to date. Don’t miss your opportunity to be a part of it. We expect the remaining few places to go very quickly!


Enquire now by completing the form on this page

EVORA Partners With Qube Global Software – A Leading Provider of Property and Facilities Management Software

We are delighted to announce that we have partnered with Qube Global Software through its expanding Connect Partner Programme, further supporting Qube’s goal of showcasing best of breed technology and services to its customers.


EVORA Qube PartnershipEVORA Partners With Qube Global Software

With an ever-increasing emphasis being placed on environmentally-efficient buildings, our expert services have been adopted by some of the UK’s largest investment companies to ensure their portfolios meet strict and often complex regulatory requirements, while optimising the performance of their buildings.

Through a holistic approach, we deliver end-to-end sustainability solutions for property managers and owners that are tailored to their specific needs, developed for the real estate sector.

EVORA Partners With Qube Global Software - A Leading Provider of Property and Facilities Management SoftwareClick To Tweet

Paul Manning, Executive Sales Director at Qube Global Software, says:

“Qube’s comprehensive suite of tailored property management functions is used by more than 1000 organisations, and consistently helps clients to deliver increased return on investment and portfolio growth.

Additionally, our real estate investment software is proven to help users manage properties anytime, anywhere by providing a panoramic view of their assets. EVORA offers the same excellent service for sustainability and energy management, and is a perfect complement to our existing solutions.”

EVORA offers excellent sustainability and energy management services, and is a perfect complement to Qube's existing solutions.Click To Tweet

To support our experienced consultancy, we offer both a highly-polished sustainability management software solution, SIERA, as well as technical engineering services through our specialist division, EVORA EDGE. Combined, we can provide unrivalled end-to-end real estate sustainability solutions, delivering strategic goals that achieve optimal performance of buildings.

SIERA is an innovative and easy-to-use environmental management software, which is leading the way in the real estate sector. SIERA combines powerful data acquisition capabilities with sophisticated data analysis tools, simplifying the complexities of regulatory and voluntary reporting. In addition, SIERA’s ground-breaking energy Monitoring & Targeting (M&T) module automatically alerts you of energy efficiency opportunities in buildings, enabling savings to be quickly achieved.

Chris Bennett, Managing Director at EVORA, says:

“By understanding and addressing clients’ risks, then realising the opportunities, we are able to offer practical and easy-to-understand strategic advice combined with intelligent tools capable of putting it into practice. We look forward to working with Qube users in this way, and to exploring the many potential benefits of this exciting new relationship.”

'We offer practical and easy-to-understand strategic advice combined with intelligent tools capable of putting it into practice.' Chris Bennett of EVORAClick To Tweet

To find out more about effective sustainability management, you may wish to attend a joint Qube-EVORA webinar that will run on Wednesday, 11th October.

Those who attend the Qube World event on 31st October will also have the chance to learn about our solutions, as we are the Platinum Sponsor.

GRESB Results 2017: How SIERA Delivered Immense Efficiencies

The GRESB Results 2017 are out and the EVORA team is eagerly reviewing the scorecards and reports to see how our participating clients fared. Early indications are that the news is generally excellent. EVORA will have a presence at the results event in London next week, so we look forward to joining the other attendees to get GRESB’s view on the overall direction of travel.

Visit our GRESB support service page.


As one of the members of EVORA’s GRESB delivery team, I’ve been reflecting on the journey we took over the summer months to get to this point.

From a numbers perspective, it’s interesting to me that the effort to collate, validate and aggregate many and often disparate data points gets distilled down to a handful of scores across the main GRESB Aspects. The process of data gathering is a necessary function and can take a lot of time, but it’s important that participants and their delivery partners allow for time to understand the materiality of the data in each of the Aspects in relation to their business strategies. However, this is easier said than done when delivery times can often get compressed near the submission deadline. So it’s even more important that there are tools that drive efficiency in the data gathering and validation process so that we can take a step back from the detail to understand what the data is showing us.

GRESB data gathering can take a huge amount of time. The good news is that much of it can be automated.Click To Tweet

For us as a delivery team, our system SIERA was vital in being able to provide the efficiencies we needed to be able to manage the sheer quantum of data that we were handling. The number of GRESB submissions that we were directly involved with delivering increased from last year by 57% to 36 in 2017. As many will appreciate, the sharp end of the data processing often relates to asset level data as this is more granular, so usually more assets means more data. To put this into context, in these direct submissions, we saw an 84% increase to just shy of 1000 assets collectively that without SIERA we would likely have found far more time consuming to manage.

New to SIERA? This video explains the software in less than 2 minutes.

SIERA is one of the systems that is helping with the shift away from manual entry to more automated transfer of data to the GRESB portal. Our Managing Director, Chris Bennett, wrote previously on how a more seamless transfer of data is welcome but it’s important we have visual clarity of the data being submitted. I’d like to explain a little more how SIERA helped provide both visual clarity but also massive efficiencies.

First of all, we had replicated GRESB’s Asset Level interface in SIERA so we could automate the transfer of not just the Performance Indicators but also a key set of qualitative asset level question responses and building characteristics. This meant that when we were happy with the data we could simply upload the SIERA template directly into the GRESB Portal and populate the Portfolio data, thus entirely removing the need to manually enter data into the GRESB Asset Spreadsheet.

This integration is only possible because SIERA’s database structure is fully aligned to GRESB’s data requirements. Even GHG calculations and waste volumes by disposal route are automatically calculated, which further reduces the chance of human error.

SIERA software significantly reduces the risks of human error when it comes to GRESB's data requirements.Click To Tweet

In 2017 we took SIERA beyond the Asset level interface to drive further efficiencies by automatically calculating the responses to a number of percentage coverage-related questions. Again, this was only possible due to SIERA’s ability to hold broad range of data types. For example, SIERA can store and profile EPC data for any EU region which meant that SIERA could automate the response to Q31, saving vast amounts of time using what would otherwise likely be spreadsheets. SIERA also replicated question RC 5.1 utilising the property characteristic information SIERA holds, which helped to align responses to the Performance Indicators.

The examples that I have highlighted in this post demonstrate how SIERA helped to save countless hours of data input which we typically estimated to be around a 70% time saving. EVORA is continuing to expand the question responses SIERA can auto-calculate and survey Aspects that can be more efficiently answered, so we look forward to being able to support on even more GRESB submissions in 2018.


Questions? Come and meet us at the GRESB Results 2017 Launch event in London on 13th September. To book a demonstration of SIERA, please don’t hesitate to get in touch.

 


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.

BIM:SAM – A Revolutionary Way To Optimise And Future-Proof Your Buildings In A Digital Age

Strategic asset management within the BIM environment; bringing all the information you need into one building model

EVORA EDGE‘s remit is to support clients to implement sustainability at both fund and asset levels. We do this by helping to design, deliver and manage technical engineering solutions to the built environment. To support our delivery of these technical services, EVORA EDGE has developed an innovative management approach, which we call BIM:SAM – Building Information Modelling for Strategic Asset Management.

BIM:SAM is nothing mysterious or untested. It’s our way of delivering a connected, intelligent approach to designing, maintaining, monitoring and reporting asset performance within the Commercial Real Estate sector.

BIM:SAM is our approach to managing the many challenges that exist within commercial real estate, and is our way of future-proofing properties in a digital age.Click To Tweet

BIM:SAM – a ‘one stop shop’ for managing real estate challenges.

  • Building Information Modelling (BIM) is an intelligent 3D model-based process that gives architecture, engineering, and construction professionals the insight and tools to more efficiently plan, design, construct, and manage buildings and infrastructure.
  • Strategic Asset Management (SAM) involves the balancing of costs, opportunities and risks against the desired performance of assets.

EVORA has created a methodology for combining BIM technologies with SAM processes into a ‘one stop shop’ solution that informs the building management process, resulting in a useful transferable asset – the building information model.

The schematic below demonstrates how, acting as a technical manager, we use BIM:SAM to manage commercial real estate and developments.

BIM:SAM Projects diagram

As you can see, the BIM can be created for a number of solutions, such as a high-level MEES risk assessment, a Health and Wellbeing study, or as part of a building services design project.

Whatever the requirement, the same BIM can be used as a ‘digital passport’ for your building, recording data and information of the building and its services – one model, multiple functionalities.

The launch of BIM:SAM now provides a ‘one stop shop' approach to delivering M&E technical consultancyClick To Tweet

Merging real intelligence and innovation with strategic asset management.

The typical M&E/FM service model below illustrates how the M&E consultant’s role can be restricted to periodic checking and/or specific project involvement:

Conversely, our BIM:SAM model below illustrates how EVORA EDGE, as a Technical Manager, continuously interacts with the Property Manager by using a dynamic building information model.

This BIM can be integrated with our SIERA software to create a powerful monitoring and targeting (M&T) toolset. BIM:SAM merges real intelligence and innovation with strategic asset management.

SIERA BIM:SAM diagram

At the heart of BIM:SAM is the relationship between our Technical Manager and the Property Manager. We develop and provide the building information model that informs the decision-making process.

Within our model and our SIERA platform, we collate the information required such as energy usage, CO2 emissions (embodied carbon and operational), asset condition reporting, maintenance scheduling and life expectancy reporting.

By using a dynamic BIM model, alongside monitoring and targeting through our SIERA software, we can bring real intelligence and innovation within the strategic asset management approachClick To Tweet

Outputs that are easily integrated and simple to understand.

EVORA EDGE is experienced in using BIM processes to manage MEES risks, engineering and energy efficiency, resource efficiency and capital cost planning.

Our systems follow the recommendations in the RICS New Rules of Measurement (NRM) Order of cost estimating and cost planning for capital building works. This ensures that any outputs can be easily understood and integrated into capital cost planning and asset management by non-engineering professionals.


BIM:SAM in action.

Guildford Borough Council

We used our BIM:SAM approach to undertake an exciting project for Guildford Borough Council, supporting it with its CO2 reduction strategy.

Download our Guildford Borough Council case study here.

EPAM

We have been appointed by our client EPIC Property Asset Management Ltd (EPAM) to conduct a BIM:SAM project at 120 Old Broad Street – a 49,000sqft multi-let office building. We look forward to sharing the results of this work soon, and at X Energy 2017 in October, at which we are the Building Optimisation Partner.


The benefits of our BIM:SAM approach:

  • Managed by technical M&E specialists
  • Centralised data collation, consistent processes and simplified reporting structures
  • BIM ‘Digital Passport’
  • Data quality and performance modelling
  • Conditioned-based monitoring and intelligent PPMP
  • Performance Management – energy and productivity
  • Future-proofing of assets
  • Health and Wellbeing planning
  • Improved fund performance

BIM:SAM Brochure cover image
To learn more about BIM:SAM and how it can revolutionise your approach to asset management, please don’t hesitate to get in touch or download our BIM:SAM brochure for all the information in a handy PDF.

 

Are You 100% Prepared for GRESB? Take this 2-minute survey to find out

The window for GRESB submissions opened on 1 April and participants have until 1 July to complete the survey.

At EVORA, we support over 50 submissions each year, making this time of year a very busy period for us.  We are GRESB Premier Partners, and operate SIERA, our market-leading software, to ensure effective collation and analysis of data. In short, we are GRESB experts!

To help you with your preparations, we have created the following self-diagnostic questionnaire.

It takes 2 minutes to complete and is comprised of simple Yes or No questions. The questions can be used to analyse progress and preparation, and to flag where further consideration is needed.

With less than 50 working days before the survey deadline, ensuring you’re well prepared is key.


Prepared for GRESB Survey Button


Further GRESB Reading:


For any questions about GRESB, please don’t hesitate to get in touch. We are perfectly positioned to assist you.


GRESB

Minimum Energy Efficiency Standards (MEES) Regulations: How they will impact flexible workspace from April 2018

Scroll down for our MEES Management 10-Point Strategy


What I’m about to write will come as a great shock to many operators in the serviced and managed office industries: you may not be able to sign up clients for more than 6 months as of April next year. This is less than a year away!


Why is the flexible workspace market at risk?

As of April 1 2018 landlords are no longer able to lease out commercial office space in buildings with an F or G EPC rating unless a time-limited exemption applies, which must be registered on an Exemptions Register.

Many serviced and managed office providers thought that they were exempt from this rule as they are not the primary landlord, however this regulation applies to any tenancy agreement over 6 months and this can include sub-leases and agreements sometimes referred to by serviced operators as licenses (we’d recommend that you speak to your solicitors to determine if your “license” really is a license or a lease/tenancy). This creates something of a challenge for the serviced workspace sector. But they are not the only ones who are not aware of the legislation: in a recent survey by Property Week magazine, 32% of all respondents did not know what MEES was and how it would impact their business.

In a recent PropertyWeek survey, 32% of respondents still didn't know what MEES was and how it would impact their business.Click To Tweet

MEES represents a significant risk to companies looking to sub-let space, because they may be treated as a landlord and as a result must undergo the same process of due diligence as the superior landlord.


What about the rest of the market?

Outside of the serviced office sector, occupiers of all types of non-domestic property may struggle to sublet sub-standard space without undertaking improvement work, the benefit of which may ultimately revert to the superior landlord. And while assignments are not captured until 2023, sub-standard properties may become stigmatised by their poor EPC rating making this type of transaction difficult. Indeed, there are already occupiers, such as Government and large corporates that will not lease sub-standard space. As an example, EVORA was recently engaged to develop an EPC improvement strategy by a fund landlord that needed to obtain a C EPC rating to secure a Government department. This requirement for a C rated property goes far beyond the requirements of MEES, highlighting the growing importance of EPCs as a benchmark for predicted energy efficiency.

Landlords with E (or even in some cases D) rated properties may still be at risk because the EPC calculation is dynamic. The calculation methodology is linked to Part L of Building Regulations which deals with the conservation of fuel and power in new properties. Part L, like most of Building Regulations, is updated on a periodic basis and the minimum energy efficiency targets in Part L have to-date been strengthened with each successive iteration. This has impacted the EPC rating, and in particular the changes adopted in 2010 affected EPC ratings from 1 April 2011 onwards (the date on which EPC software was updated). In plain English, what this means is that an E rated property before 1 April 2011 if reassessed today is likely to be an F or G rated asset if nothing in the building has changed. This means that planned preventative maintenance and improvements will need to factor in these regulations.

Landlords beware: even your D or E rated properties may still be at risk from MEES regulations...Click To Tweet

Failure to comply with the regulations will result in fines of between £5,000 and £150,000. The enforcement authority may also impose a publication penalty. This means that the enforcement authority will publish some details of the landlord’s breach on a publicly accessible part of an Exemptions Register.


What actions can you take?

Here is The EVORA 10-point Strategy for Managing MEES (an image version is available at the bottom of this post):

  1. For landlords with multiple assets, such as funds or workspace providers, review how you store your data. This should be digitalised and in a central and accessible location
  2. Identify where there are gaps in the data (missing EPCs etc.) and identify those assets that are at risk by virtue of their (EPC) rating, capital or rental value and/or a lease or transactional event
  3. Consider the use of software such as EVORA’s highly versatile, market-leading platform, SIERA
  4. Use or involve CIBSE (Chartered Institution of Building Services Engineers) accredited assessors, or assessors that work for a recognised and reputable engineering practice – preferably with additional professional qualifications (such as those recognised by the Engineering Council)
  5. Have your professional EPC assessor review the existing certificate for accuracy and relevance
  6. If it is necessary to prepare a new EPC, ask for an indicative (draft) certificate. The assessor may be able to deliver an improved rating by using better quality data and/or by having better knowledge of building services. However, if the asset remains at risk from MEES, then commission a strategy to improve the building to include capital costs, energy savings and, where appropriate, life cycle costs
  7. Review point 6 in the context of the lease(s) and the fund or asset management strategy
  8. Consider ways to recuperate capital costs through energy savings or asset management driven opportunities
  9. Ensure you retain future access to the energy model used to prepare the EPC and utilise it for energy and asset management purposes, including MEES management. After all, you paid for it!
  10. Finally, to ensure that you’re getting the best result from your EPC-driven improvements, review how operational performance can be monitored to determine if the predicted energy savings align with the operational realities. Again, SIERA can assist with this, thanks to its intuitive and easy-to-use monitoring and targeting capabilities
Here is The EVORA 10-point Strategy for Managing MEES Regulations...Click To Tweet

Final Thoughts

This all sounds very onerous, but in fact MEES should be regarded as an opportunity.

For occupiers

MEES is obviously an opportunity to save money through reduced energy bills and resultant CO2 emissions, and energy efficient buildings are more likely to help deliver a productive working environment.

There are also opportunities for occupiers to use MEES to mitigate rental increases after 1 April 2018 as a result of rent reviews and lease renewals. And it may be the case that occupiers can use MEES to reduce or remove any liability towards dilapidations.

For landlords

MEES is a great opportunity to engage with tenants, but if that were not incentive enough – MEES will become increasingly synonymous with building value and building resilience. Improve your EPC rating and you reduce your risk, and this could influence yields and even, in time, headline rents.

Energy savings could provide an opportunity to look at alternative methods of financing, using the value (£) of the energy saved to redeem finance. This could provide a cost-effective method of improving your estate.

Finally, for those looking to buy or sell sub-standard properties, MEES introduces an opportunity to discuss the price!


As CIBSE accredited assessors, we are perfectly positioned to support you with EPCs and MEES compliance. Please don’t hesitate to get in touch.


EVORA MEES 10-Point Strategy

Introducing the GRESB Public Disclosure Score for Listed Real Estate Companies

In January, GRESB released its first public disclosure score (PDS) cards for listed funds. These new ratings are designed to complement the existing assessment and to provide investors with insights that are not fully captured in the standard GRESB reports for listed real estate companies.

The GRESB Public Disclosure Assessment evaluates each participating listed property company’s sustainability information disclosure. The results are communicated by a scorecard. An example is shown below.

GRESB Public Disclosure Score for Listed Funds

The GRESB Disclosure Score is based on an A to E sliding scale (where A is best). Listed participants that score an “A” demonstrate leadership in their approach to environmental, social and governance disclosure, and are characterized by a high degree of transparency on ESG commitments.

The PDS is generated by using responses to a subset of existing GRESB questions that relate to public disclosure of ESG issues.

GRESB states that:

‘ [The PDS] represents a base level of information for about 400 listed property companies globally, and could be utilized for integration into existing data platforms such as Bloomberg and S&P Global Market Intelligence.’

Results published in January 2016 are only available to participants. However, 2017 results will be available to GRESB members who are investors in the relevant funds – in the same way that full GRESB results are available now.

EVORA is a GRESB Real Estate Premier Partner and approved Service and Data Provider. In 2016, we provided GRESB support to 44 participant funds. Click here to download a copy of our free GRESB eBook, Survey, Submission, Success!’

For all GRESB support enquiries, please contact us today.

 


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.