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The 2017 GRESB Reporting Cycle (Part 2): A Review of the Recently Released Reference Guide

Two months ago, I set out the main changes to the 2017 GRESB Real Estate survey, based on what could be gleaned from the ‘pre-release’ of the questionnaire.

Critically, the full 2017 Real Estate Reference Guide has now been released.

At the time of writing, the Health and Wellbeing module and its accompanying reference guide had still not been released.


Important updates to the 2017 GRESB survey - Part 2 of EVORA's series.Click To Tweet

Additional key changes to note

Having read (comprehensively skimmed!) all 203 pages of the new Real Estate Reference Guide, I can share a few additional key changes that are worth noting:

Content

  • Performance indicators: There is a new table to complete as part of the energy question (Q25). Participants must set out the following total floor areas for each property type (the contents of the table are not scored):
    • Managed Assets split across:
      • Common areas, shared services and tenant spaces and/or;
      • Whole building.
    • Indirectly Managed Assets:
      • Whole building.
    • Stakeholder engagement: The question, “Does the entity include sustainability-specific requirements in its standard lease contracts?” (Q39.1) has changed in the last two months (i.e. since the 2017 pre-release) and is now aligned with the BBP Best Practice Lease standard.

Evidence uploads

  • GRESB has introduced an ‘evidence template’ for use as standalone document or document cover page (see the last page of the guidance document).
  • The attachment feature has been amended, adding in an option to make uploaded documentation accessible to investors. This feature is optional on a document by document basis. The default option will be for documentation to not be made available to investors.
  • It will now be possible to upload multiple documents per indicator.

Response check

  • The deadline for the response check is two weeks earlier than last year (1st June).

Validation

  • The number of respondents subjected to Validation Plus and Validation Interviews, is expected to “increase significantly” this year. GRESB anticipates selecting approximately 25-40% of respondents for Validation Plus and approximately 5% for a Validation Interview.

What Next?

I’m sure many of you will agree that the speed at which these past two months have passed is somewhat terrifying. There are now approximately 100 days left until the 2017 deadline…

As before, these remain my five tips for GRESB survey submission success:

  1. Start early.
  2. Remind yourself what went well and less well last year – consider both the process and individual question responses.
  3. Engagement and education of people that will support you in delivering GRESB. Keep in regular touch with these people, particularly if they will be providing you with information.
  4. Data automation – our propriety software, SIERA, delivered 41 GRESB submissions in 2016, helping clients to seamlessly acquire and report data. Why not take a look at the following blog post: GRESB Data Automation: Ensuring Seamless Does Not Result in Senseless.
  5. Seek external support / advice.

Free eBook: 'GRESB Survey, Submission, Success!' Download it now in preparation for your 2017 submissionClick To Tweet

Tips for ESG management and performance success

For more general advice on how to implement practical and tailored sustainability solutions, download your free copy of our GRESB eBook.


For market-leading GRESB submission support, please contact our experts 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.

Healthy and Wealthy! Upcoming Event: How to Improve Health and Wellbeing in Existing Commercial Properties

On Monday 3rd April, EVORA is running an event in partnership with BRE focusing on the health and wellbeing of operational buildings. There has been a lot of attention on health and wellbeing at the design and construction stages, but practical steps need to be considered for our existing building stock.


Event: How to Improve Health and Wellbeing in Your Existing Commercial Properties - book now!Click To Tweet

As professional sustainability consultants, a key part of our role has focused on reducing the environmental impacts in buildings, especially energy, due to the greater carbon impact and cost.

However, with the World Green Building Council’s Health buy levitra india online https://levitraed.com/ Levitra is a modern medicine that can give me unforgettable emotions during sex. I prefer Vardenafil pills as it rapidly impacts my body, has a long-lasting effect and even is compatible with alcoholic beverages that I like to drink on a date. Wellbeing and Productivity in Offices study referencing that 90% of a typical business’s overheads are staff costs compared to less than 2% for energy, common sense dictates that we must also ensure focus on providing healthy and productive properties for our landlords.

Although far from easy, approaches like the WELL building standard are available to support application in design and construction phases. However, consideration in existing buildings, especially from a landlord perspective, is more challenging. The infrastructure is already in place and the fabric of the building is set, so is there much opportunity to address the key elements of health and wellbeing as defined by the WELL Building Institute, i.e.

  • Air
  • Water
  • Nourishment
  • Light
  • Fitness
  • Comfort
  • Mind

Secondly, where tenants are in situ, what influence can the landlord have? Energy management has generally been straightforward with the majority of managed offices providing shared services of heating and ventilation enabling the landlord to influence the energy efficiency throughout the building. Health and wellbeing is more complex where the real opportunity is in the tenants’ own demises. How should the landlord engage, who pays for an evaluation of the tenant’s space and what are the intended outcomes both for the tenant and the landlord?

In our Healthy Buildings event, we bring together a number of industry experts to share their knowledge, experience and latest research to provide clarity and practical application in achieving healthy and productive operational spaces to work in.

The event is split into three sessions: the first focusing on the landlord and occupier perspective; the second provides a consultant’s viewpoint, identifying both the challenges and opportunities; and the final session identifies research and the application of solutions in relation to key elements of healthy buildings including lighting, biophilia, air quality and thermal comfort.

Healthy Buildings event: join EVORA, UKGBC, BRE, Arup, The Crown Estate, British Land and others on 3rd April. Book now!Click To Tweet

Among the 15 speakers are:

  • John Alker, UKGBC
  • Rebecca Pearce, CBRE
  • Darren Wright, Arup
  • Jane Wakiwaka, The Crown Estate
  • Matthew Webster, British Land

I am extremely excited by this event which will challenge the real estate industry on what can be done to make our existing assets healthy and productive places to work.


Don’t miss this exciting event – click here to view the full agenda and book your tickets now.

INREV and Sustainability Reporting: Mandatory Requirements and Best Practice Recommendations

INREV is the European Association for Investors in Non-Listed Real Estate Vehicles. It is recognised as the leading platform for sharing knowledge on the non-listed real estate industry and has a goal to improve transparency, professionalism and best practices across the sector.


In 2016 INREV Sustainability Reporting Guidelines were revised to establish a disclosure framework that enables delivery of meaningful data to increase visibility and insight into an investment vehicle’s ESG efforts and also details their next course of action for improvements. The new guidelines aim to present a clear picture of sustainability strategies and require the reporting of energy performance data.  They are aligned, where possible, with other industry standards including GRESB, EPRA and GRI.

The new INREV Guidelines published in 2016 consist of mandatory sustainability reporting requirements and best practice recommendations.

The INREV Guidelines consist of mandatory sustainability reporting requirements and best practice recommendations.Click To Tweet

The mandatory requirements have to be reported on an annual basis to claim compliance with the INREV Guidelines. Managers are required to report, based on these guidelines, over the year 2017.


Mandatory Requirements

  • Describe the overall approach to setting a long term ESG strategy for the vehicle
  • Detail the vehicle’s approach for ensuring compliance for current legislation relating to ESG issues is in place
  • Set out the annual objectives and associated targets for the coming 12-month reporting period
  • Detail objectives for the next 12-month reporting period for ensuring compliance with current legislation in relation to ESG and about preparations for any future legislation that may be undertaken in this period
  • Report against annual objectives and associated targets set for the vehicle
  • Report against compliance with current legislation requirements and objectives and associated targets for preparations for upcoming legislation
  • Disclose absolute and like-for-like environmental data for the proportion of the vehicle’s portfolio that is in the fund manager’s operational control.  This should cover:
    • Energy
    • GHG Emissions
    • Water
    • Waste

Best Practice Requirements

  • Detail any additional key material aspects for the ESG strategy for the vehicle
  • Detail additional information on other annual objectives (related to key material aspects referenced above) and associated targets for the vehicle based
  • Report against the annual objectives and associated targets as set out above
  • Disclose absolute and like-for-like environmental data for the available tenant data for the vehicle’s portfolio

Whilst this blog focuses on INREV, EPRA – The European Public Real Estate Association – sets out CORE and Additional Requirements in much the same way.

EVORA, supported by our proprietary software, SIERA, is highly experienced in the collation, analysis and reporting of data.  For further information, please get in touch.

The Internet of Things: Thinking Smart in the Commercial Real Estate Sector (Part 2 of 3)

There is no doubt that the Internet of Things (IoT) is transforming the commercial real estate sector. It has emphasised the use of space in buildings, tapping into the connections of people and the environment. For real estate investment and management, buildings, people and energy performance form part of the network which can benefit from the IoT movement.

Exploring the role of data and the Internet of Things (IoT) in the commercial real estate sector.Click To Tweet

In Part 1, I eluded to the IoT as the ecosystem of things that are interconnected through sensors and connections. A building is a perfect example of this. When we start to connect the dots between the elements of a building’s design and operation, we can use the data to tell us more about what is going on in that building and how we can manage it in a better way.

What are the opportunities for the IoT in buildings?

Many sensors in the building can ‘sense’ the environment and gather information in real-time. The types of information that can be collected are light, humidity and temperature etc. With the IoT, it is possible to collect, compile and analyse data remotely about that building, which can be conveniently accessed via the cloud. As I mentioned in Part 1, data is the currency in this age.


The Internet of Things- Thinking Smart in the Commercial Real Estate Sector

Here are five ways the IoT can add-value:

1. Energy Efficiency

IoT technology can help increase efficiency through enhanced building performance and better management of the portfolio. One way this can be achieved is through looking at how spaces are being used. Data exchanges can give an insight into the value of processes and interactions between occupants and building operation. The building will become a smarter hub, where data can inform systems which can directly engage with occupants and adjust for their needs and the environment. From this, we can create more targeted energy distribution strategies and tenant engagement programmes.

2. Connectivity to the Cloud

IoT enabling technologies such as sensors can ensure data availability and visualization without being on-site at the building. Data can give an indication of how the building is operating and patterns can be identified in energy consumption or temperature for example. From this, many metrics can be linked together to give the larger picture on building performance.

3. Improved Living and Working Spaces

IoT is the step forward in making the environment more comfortable and reduce wastage; this creates new avenues for revenue generation through tapping into the essence of building use and adjusting where necessary. In the future, we can expect smart building technologies to have self-learning capabilities, like the human brain, to recognise patterns and make real-time adjustments.

4. Sustainability strategies

Building sustainability management strategies can be informed by data, which can lead to more accurate predictive capabilities and better asset management. The building can be optimized and operational costs reduced through IoT-enabled Building Management Systems (BMS). For example, occupant comfort is an opportunity and the use of better zoning controls can help achieve this; keeping occupants happy whilst reducing operational costs.

5. Building Design

Sensors collect data on how spaces are being utilized and this data can feed into the mathematical models for building intentions at the design-phase.

Five ways the Internet of Things can add value to the commercial real estate sector.Click To Tweet

Overall, the IoT movement has the potential to generate new avenues for revenue generation by tapping into the connections between people and buildings. As the world is becoming an increasingly interconnected place, cities are becoming smarter and the need for data applications accessible through the cloud is necessary.

Why not look at our software, SIERA, which has been created specifically for the commercial real estate sector? In Part 3, we will explore SIERA in more detail.


To speak to us about SIERA, or for any other enquiries, please don’t hesitate to contact us today.

A Connected World: An Introduction to the Internet of Things (Part 1 of 3)

The world is becoming more interconnected than ever before. The ‘Internet of Things’ (IoT) is an exciting development for many industries and disciplines. You do not have to be a technology expert to realise the potential of IoT.

This blog series takes you on a journey to demystify the IoT concept. Throughout the series, you will understand the implications for real estate investment and management and applications to energy and sustainability performance and we will give you an insight into our very own SIERA platform.


Let’s begin with the concept of the Internet of Things. What is it?

The IoT is a network of physical objects, an ecosystem of devices, buildings and other ‘things’ connected to one another electronically, through software, sensors and connections. Data flows between these ‘things’. They are internet-enabled with links between devices, apps and services, data and the cloud. This sits within something called the ‘Internet of Everything’ which is the connection of data, processes, people and things. As the world is becoming an increasingly interconnected place, some people have even called this phenomenon the 4th Industrial Revolution.

EVORA Internet of Things Blog Part 1 of 3

Source: Booz Allen (2014). https://www.boozallen.com/content/dam/boozallen/documents/2014/12/Internet_of_Things.pdf


What’s all the fuss about?

It’s all about data and how it interacts with the ‘things’. Through data exchanges, we can begin to get a deeper understanding of the value that can be extracted from core processes and interactions. For real estate investment and management, buildings, people and energy performance forms part of the network. Later in the blog series, we explore the opportunities of IoT for the industry. Many industries are now future-proofing for IoT; attention has been drawn to big data and data management.

Gartner summarised it quite nicely by framing ‘data’ as the currency of the IoT, from which the value can truly be harnessed if the data can be translated to information which can create business transformation and inform strategy.


Four Impacts of the IoT

Impact 1:

The IoT will transform and shape the future for many industries including the commercial real estate sector

Impact 2:

Connectivity and platforms are crucial. There is a requirement that data can be accessed anytime and anywhere in the world. Whether you are in Hong Kong, New York or London – your data is there, anytime, anywhere, in any context and on any network.

Impact 3:

It is not just about connectivity, but accessibility, availability and security are also important. We found that in the real estate investment and management sector, data management has been a key issue – data is traditionally stored on numerous computers, held offline on paper and data loss has been a core risk. Nowadays, data is no longer restricted to a hard drive on a desktop computer, or a USB, but the cloud is a popular means to store data.

Impact 4:

A big focus on data. Data visualisation, data analytics and data mining approaches will be some of the ways to interrogate the data in more detail. Data validation and verification will be essential to question the data and ensure it is meaningful.


Sustainability Intelligence Environmental Reporting & Analysis (SIERA)

We are working hard at the leading-edge to understand our industry needs. We have adopted an agile development and management methodology which has enabled us to situate ourselves within a data-driven landscape. Get in touch to book a demo of SIERA today, which is our proprietary sustainability management software designed for the information age. We would love to have a personal conversation with you to assess your current infrastructure and to discover how SIERA could help you tap into new opportunities.

Part 2 of this series will focus on the implications and applications of IoT for commercial real estate investment management, sustainability and energy performance.


To speak to us about SIERA, or for any other enquiries, please don’t hesitate to contact us today.

Commercial Real Estate Sustainability in 2017: Seven Likely Highlights

I think most will agree that 2016 has been year of surprises and uncertainties in many arenas. In spite of this, we’ve seen some positive moves in many aspects of the world of commercial real estate sustainability and 2017 could shape up to be an equally encouraging one. I wanted to share EVORA’s thoughts on what we think the highlights of the next 12 months could be.


1. EU and US Political Surprises

The question is will the progress of recent years to a greener and more energy efficient real estate sector be halted or even reversed following Britain’s vote to leave the EU and the US electing Trump? However, the reality is that for the next 5-10 years there could be very little regulatory change, certainly in Europe. Let’s not forget the global context; the UK and other members of the EU are all also members of the International Energy Agency (IEA). As such all are committed to implementing IEA guidelines which is a good example of why the UK as a whole, and more specifically the real estate sector, would still be required to act on climate change whether part of the EU or not.

Aside from Brexit we’ve already been anticipating some ‘rationalisation’ of the UK energy legislative landscape i.e. the review of how its main elements work together; Carbon Reduction Commitment (CRC), Climate Change Levy (CCL), the Energy Savings Opportunity Scheme (ESOS) and mandatory GHG reporting etc.

For the time being, companies will still need to comply with existing legislation and instruments such as ESOS (and MEES – see No. 3, below) should surely, at the very least, only promote the business case for investment in energy efficiency rather than hinder it. Although broader economic performance has not been as bad as predicted since the Brexit vote, the continued uncertainty will be stifling company decision making and the sooner the UK government can provide clarity the better.


2. The Health & Wellbeing Agenda

Recent months have been awash with this topic and I would like to think that, despite staff engagement within many organisations still having some way to go, there need be no more debate that addressing health and wellbeing has a demonstrable business case. There are some great case studies coming out of the retail and commercial office sectors but can we expect 2017 to be the year in which there will be more action? EVORA expects the profile to continue to be increased but perhaps firm action (and to a certain extent, interest) could be limited to major developers and larger investment companies. That said, rapid acceleration of relatively inexpensive monitoring technologies should enable ease of access to valuable data (such as indoor air quality) to organisations of all sizes. This could lead to occupiers taking the initiative on health and wellbeing conversations with their landlords. It will also be interesting to follow the uptake of and insights provided by GRESB’s Health & Wellbeing Assessment; 2016 already saw nearly 25% of the entities that reported to the GRESB Real Estate Assessment voluntarily report to the Health & wellbeing module.


3. EPCs

With the 2018 Minimum Energy Efficiency Standards (MEES) deadline looming, we could see potential high profile litigation relating to historically incorrect EPC assessments. With not much more than a year to go, 2017 should see a lot of activity in this space with a push to understand and address EPC risks. This is something EVORA have recognised the need for expertise in having recently launched EVORA EDGE, our technical engineering division.


4. Science Based Targets

Following the first theme regarding the global context to action on climate change, 2016 saw an increase in the commercial real estate sector’s interest in science based targets (SBTs). One of our Junior Consultants, Kim Diep, wrote two blogs on this providing considerations for the real estate sector. EVORA anticipates that SBTs will continue to gain interest amongst the REITs and Institutional Investors that consider themselves at the forefront of carbon reduction target setting. This will no doubt be a topic on the minds of those following the ongoing response to the COP21 outcomes as a means of aligning the carbon reduction strategies for real estate to the requirements of broader climate policy.


5. Increasing Momentum in Voluntary Reporting

2016 saw a 30% increase in the number of participants in GRESB (Global Real Estate Sustainability Benchmark) in two years, with Europe participants alone comprising $750 bn in total asset value. EVORA was certainly kept busy managing the process of more than 40 submissions for our participating clients. Indeed, the uptake of GRESB in the real estate sector is a fairly good barometer of interest. Investors are asking more and more about ESG and GRESB appears to be an increasingly popular means of engaging in the topic with their fund and asset managers. GRESB has recently released the guidance for the 2017 survey; whilst it’s important that participants engage with GRESB to shape the methodologies to ensure scoring is reflective of market conditions, it will be good news to the ears of those involved with administering submissions that the Real Estate Assessment is being kept stable. EVORA expects increased uptake but also even more focus on score improvement.

Stay tuned to our newsletters for information on the release of our upcoming GRESB eBook and our GRESB Masterclass in March.


6. Focus on Data Accuracy

With more and more data being collected and analysed to inform real estate decision making, accuracy is going to be ever more important. We’ve already highlighted this in respect of EPCs but also GRESB as an example where accuracy of information will be key to implementing improvements and where there is a trend increasingly toward the need for investment grade data. These are merely two examples against a background of emerging ‘big data’ trends which are increasingly pertinent in the real estate sector. Our Technical Architect, Alex Graham, blogged about this very topic in 2016; he highlighted how big data will continue to shape our approach to our software SIERA, for example, to enable our clients to get the insights and information they need to improve their sustainability efforts.


7. Continued Fall in Cost of Low Carbon Tech

Despite the recent backtracking from the Government on the fiscal incentives for low carbon technologies, EVORA would argue that the shortfall in policy could be replaced by market forces which seek similar objectives to ensure a low carbon, energy efficient, economically viable and productive real estate sector. Therefore, despite the seemingly persistent barriers, we expect to see a continued uptake and fall in cost of low carbon technologies. Getting the strategic balance between decarbonisation of energy supplies/generation and energy efficiency will continue to be important.


If you have any questions or if you would like more information on any of the topics covered in this blog post, please don’t hesitate to get in touch with our experts today.

Giving Our Clients The EDGE With Our New Technical Engineering Division

I hope you are having a very happy new year, which will also bring you good health and prosperity. It has been three months since my last update bringing the exciting news of our rebrand to EVORA, recognising our own evolution, as well as that of the real estate industry, being transformed by the impact of sustainability.

A lot can happen in three months, as we experienced in 2016 with some pretty groundbreaking changes around the world. So, not to be outdone, we have some pretty groundbreaking news of our own with the launch of EVORA EDGE, our new technical engineering division.

CRE sustainability consultancy, EVORA, launches EVORA EDGE - its new technical engineering division.Click To Tweet

Technical Engineering Solutions for the Built Environment

EVORA EDGE, being an acronym for Energy, Design, Generation and Engineering, further positions EVORA as a leading full service provider to meet the ever-evolving needs of the commercial real estate sector. EVORA EDGE will complement our current energy and M&E consulting provision with a much more comprehensive breadth and depth of engineering solutions.

I am also delighted to announce that Andrew Cooper, an expert in asset and energy management, and Neil Dady, a senior building services engineer, have merged their respective businesses with EVORA to head up EVORA EDGE. Both Andrew and Neil have joined as Directors and bring a wealth of knowledge and practical experience.

Andrew Cooper & Neil Dady join EVORA as Directors of its new technical engineering division, EVORA EDGE.Click To Tweet

EVORA EDGE will not only significantly strengthen our existing technical offering, which includes the delivery of Part L of Building Regulations, energy audits, EPC work and MEES (Minimum Energy Efficiency Standards) compliance, but will also provide us with a wealth of new services, including:

  • Building services specification and management
  • Compliance with the Heat Network (Metering and Billing) Regulations and with CIBSE CP1(Heat Networks: Code of Practice of the UK)
  • Indoor air quality performance auditing (health and wellbeing)
  • Life cycle assessment including embodied carbon

Please click here to see the full list of services delivered by EVORA EDGE.


Andrew Cooper EVORA EDGE Technical Engineering SolutionsAndrew Cooper

Andrew has over 23 years of property experience. He is regarded as an expert in asset and energy management, and has a background in lease advisory. He is a Chartered Institution of Building Services Engineers (CIBSE) Low Carbon Consultant (in Building Design, Building Simulation and Heat Networks), a CIBSE Low Carbon Energy Assessor (to Level 5, the highest level of accreditation possible) and a MEI Chartered Energy Manager. Andrew comments:

“I have worked as an independent consultant and Deloitte LLP sub-consultant since 2008, and I am delighted to be joining EVORA to help set up its new engineering division. EVORA EDGE will both complement and expand upon the existing technical services offered by company.”


Neil Dady EVORA EDGE Technical Engineering SolutionsNeil Dady

Neil has over 25 years Director-level experience in the building services sector, specialising in air conditioning and mechanical services. He has a wealth of experience in delivering energy audits, identifying inefficiencies and optimising energy performance whilst project managing deliverable solutions. Neil comments:

”Having worked with the EVORA team for many years, I am excited to be joining this dynamic business. EVORA EDGE will bridge the gap between design concepts and engineered projects. Our focus will be on practical solutions with measured and managed outcomes.”


Looking Ahead

This continues to be a very exciting time for EVORA. Our mission from the beginning has been to work with our clients to provide practical solutions whilst providing an outstanding level of service.

Our services now extend to:

  • EVORA – expert commercial real estate sustainability consultancy across Europe
  • SIERA – leading sustainability management software for the commercial real estate investment market
  • EVORA EDGE – industry-leading technical engineering solutions for the built environment

EVORA SIERA EVORA EDGE logos together

EVORA - providing practical sustainability solutions and an outstanding level of service to the commercial real estate sector.Click To Tweet

To learn more about any of the services delivered by EVORA EDGE, or to contact Andrew or Neil, please don’t hesitate to get in touch.

New Guidance on Climate Related Disclosure and Reporting

On December 14th 2016 the Financial Stability Board’s Task Force on Climate Related Disclosure published its long-awaited recommendation report. The report sets out recommendations for helping businesses disclose climate-related financial risks and opportunities.


The report states that the impact that global warming can have on economies is widely recognised.  However, at present, it is difficult for investors to know which companies are vulnerable to climate risks.  It is recognised that without financial disclosure, the financial impacts of climate change may not be effectively priced.  Pricing of risk is an essential function of financial markets.  It it is increasingly important to also understand the governance and risk management context in which financial results are achieved.

At present, it is difficult for investors to know which companies are vulnerable to climate risks.Click To Tweet

The Task Force states that non-financial disclosures should be:

  • Adoptable by all organisations
  • Included in financial filings
  • Designed to solicit decision-useful, forward-looking information on financial impacts
  • Strong focus on risks and opportunities related to transition to lower-carbon economy

The Task Force’s recommendations apply to all financial sector organisations including real estate asset managers and owners. Importantly, it is recognised that large asset owners and asset managers sit at the top of the investment chain and, therefore, have an important role to play in influencing the organisations in which they invest to provide better climate-related financial disclosures.

Recommendations are structured into four categories, as summarised below.

Governance

Organisations should disclose their governance approaches covering climate-related risks and opportunities.

Recommended disclosures:

  • The board’s oversight of climate-related risks and opportunities
  • Management’s role in assessing and managing climate-related risks and opportunities
Organisations should disclose their governance approaches covering climate-related risks and opportunities.Click To Tweet

Strategy

Organisations should disclose actual and potential impacts of climate-related risks and opportunities.

Recommended disclosures:

  • Climate related risks and opportunities the organisation has identified over the short, medium, and long term
  • The impact of climate-related risks and opportunities on the organisation’s businesses, strategy, and financial planning
  • The potential impact of different scenarios, including a 2°C scenario, on the organisations businesses, strategy, and financial planning (a clear link to the adoption of science based targets)
Organisations should disclose actual and potential impacts of climate-related risks and opportunities.Click To Tweet

Risk Management

Organisations should disclose how they identify, assesses, and manage climate-related risks.

Recommended disclosures:

  • Processes for identifying and assessing climate-related risks
  • Processes for managing climate-related risks
  • Processes for identifying, assessing, and managing climate- related risks are integrated into the organisation’s overall risk management
Organisations should disclose how they identify, assesses, and manage climate-related risk.Click To Tweet

Metrics and Targets

Organisations should disclose how metrics and targets are used to measure and manage risk.

Recommended disclosures:

  • Metrics used to assess climate risk
  • Scope 1, 2 and if appropriate (3) GHG emissions
  • Targets used to manage climate change risks and opportunities
Organisations should disclose how metrics and targets are used to measure and manage risk.Click To Tweet

To underpin these recommendations, the Task Force also sets out seven principles for effective disclosure.

  1. Disclosures should represent relevant information
  2. Disclosures should be specific and complete
  3. Disclosures should be clear, balanced, and understandable
  4. Disclosures should be consistent over time
  5. Disclosures should be comparable among companies within a sector, industry, or portfolio
  6. Disclosures should be reliable, verifiable, and objective
  7. Disclosures should be provided on a timely basis

The Task Force’s recommendations provide a foundation to improve investors’ and others’ ability to appropriately assess and price climate-related risks and opportunities.   They are wide ranging but also practical in the near term allowing the financial industry to develop and grow capability to report within a structured framework.

For information and if you want to get more involved, a public consultation to solicit views on the Task Force’s recommendations is now open until 12 February 2017 and can be accessed here.


EVORA is uniquely positioned to support commercial real estate organisations in the development and reporting of climate risk strategies through to implementation of management plans and collation and analysis of sustainability data using SIERA – our industry leading sustainability management software.

Please do not hesitate to contact us for more information.

EVORA is uniquely positioned to support commercial real estate organisations in the development and reporting of climate risk strategies.Click To Tweet

Season’s Greetings and Tips for the Festive Period

With Christmas less than a week away, 2016 is almost at a close, bringing a year of important and exciting developments in the sustainability sector to an end.

Between the outputs of the COP22 UN Climate Change Conference in Marrakesh and a growing emphasis on the need for greater energy efficiency and the potential improvements in the built environment by the International Energy Agency, 2016 has been a year during which sustainability and energy management concerns remained at the forefront of international attention. The recent interest in science based targets and increased participation in GRESB in turn demonstrate growing awareness of the importance of sustainability in the real estate sector.

The outcome of the EU referendum in the UK, the abolition of the Department of Energy and Climate Change and the election of Donald Trump to the post of president of the United States all, however, continue to raise concerns about the outlook of environmental regulation and the scope for coordinated efforts to combat climate change. The close of 2016 thus leaves us with a range of sustainability commitments, opportunities and challenges to address in the coming year.

On behalf of EVORA we would like to wish you a Merry Christmas and a Happy New Year.

We look forward to helping you to stay informed about important developments and supporting you as you navigate the sustainability challenges and opportunities that 2017 is set to bring.

For those committed to keeping up their energy and resource efficiency efforts over the festive periods, see below for a number of tips for the festive period:

  1. Turning down the thermostat: Reducing the heating temperature by 1°C degree between Christmas and new year could reduce the average office energy usage by up to 8% and save enough energy to roast 108 Christmas turkeys.
  2. Switching off all non-essential appliances such as monitors, chargers and printers in the average office over the festive period could save enough energy to power 137,934 TVs during the Queen’s Christmas speech.
  3. Switching off or turning down non-essential lighting: In the average office, switching off non-essential lighting over the festive period could save enough energy to light up 12,163 LED Christmas trees lights for a day.

Would you like to know more about the sustainability challenges and opportunities that 2017 is set to bring? Please get in touch.


 

CRC Annual Report Publication: Key Results for Phase 2

The CRC Energy Efficiency Scheme Annual Report Publication (ARP) covering the first 2 compliance years of Phase 2 has been published today.

CRC Annual Report: key results

Key results for Phase 2 to the end of the 2015/16 compliance year show:

  • Total revenue through carbon allowance purchases in 2015/16 increased 18.2% to £902,957,350 compared to 2014/15
  • Total energy use reported for 2015/16 was 3.2% lower than 2014/15: equivalent to 3,558,208MWh
  • Total reported emissions for 2015/16 were 9.7% lower than 2014/15: equivalent to 4,415,594tCO2
  • 1,858 participants registered for Phase 2; this is a small reduction in the number of participants when compared with the final year of Phase 1

The key results present some very serious numbers, including a near £1bn revenue stream for the government and some notable improvements in energy usage and carbon impact.

3.2% reduction in annual energy usage

The CRC is due to be scrapped following completion of the 2019 compliance year (in July 2019). The Scheme has been widely criticised by Participants as overly burdensome and costly to administer.  Others will argue that the benefit of identifying and reporting annual emissions has brought attention to energy efficiency improvements, as demonstrated through the 3.2% reduction in reported energy use.

Irrespective of what happens going forwards, monitoring will continue to be essential to ensure understanding of energy performance and to help track energy efficiency. Our proprietary software, SIERA, is a market leading, innovative and easy-to-use environmental management software system. SIERA is already managing billions of pounds worth of real estate, and is being rapidly adopted by large organisations across the globe.


Find out how SIERA can transform your data capture and reporting by calling our experts today.