EVORA Giving to Sponsor Promise Dreams Throughout 2018

Following the publication of our EVORA Giving blog post in December, I am pleased to announce that our chosen charity to support through initiative number 4 is Promise Dreams.

EVORA Giving Promise Dreams partner logo


Promise Dreams is a national charity that aims to make a real difference to children who are seriously or terminally ill. Every child has a dream and whatever it may be, Promise Dreams aim to make it come true – whether it be to go on the holiday of a lifetime, spend time with their siblings following extended hospital stays, the chance to meet their celebrity hero, a specially adapted trike to enable them to join in on family bike rides, or essential equipment and resources for their home. In fact, anything that will make life happier and easier for the family in need.

Promise Dreams Image one

Promise Dreams accepts applications for children from all over the UK from birth up to the age of eighteen. Their workforce is a small team of highly trained staff and several volunteers with a positive attitude, lots of energy and a little bit of imagination.  They receive no government funding so rely on supporters to help raise much-needed funds through bag packs, bucket collections, gala dinners, sponsored walks, corporate sponsorship and much more!

[clickToTweet tweet=”Throughout the year, EVORA will be a dedicated supporter to Promise Dreams by holding many fundraising events.” quote=”Throughout the year, EVORA will be a dedicated supporter to Promise Dreams by holding many fundraising events.”]

Throughout the year, EVORA will be a dedicated supporter to Promise Dreams by holding many fundraising events. We are very excited about our partnership and believe every child deserves happiness and wonderful memories.

Promise Dreams Image two

I would like to encourage you to visit the Promise Dreams website where you can find lots of information on dreams they have made come true.

We will keep you updated on all our activities in the coming weeks. Any support you can provide to help us make dreams come true is invaluable.

We very much look forward to working with Promise Dreams and making dreams come true for seriously or terminally sick children.


Learn more about EVORA Giving.

Moving towards lower carbon electricity generation

The latest UK carbon (‘Carbon’ is being used here as short hand for carbon dioxide emissions – CO2) conversion factors from the Department for Business, Energy & Industrial Strategy (BEIS) demonstrate that a significant and much-needed decarbonisation of the electricity grid is being achieved.


The latest (2017) carbon emissions from UK electricity generation has reached its lowest recorded figure at 349g CO2/kWh. It is worth noting that there is a two-year delay in the release of updated carbon factors in the UK and so, in reality, this rate relates to electricity generated in 2015.  As seen in Figure 1 below, this compares favourably to the latest global average of 506g CO2/kWh2 (although the average for EU countries is still lower than the UK at 302g CO2/kWh).

Figure 1: Average carbon emissions from electricity generation.

Please note: These values relate to the direct (‘Scope 1’) carbon emissions from electricity generation only (i.e. ‘Scope 3’ or ‘well-to-tank’ emissions are excluded).

Given the two year delay between the electricity generated and the reported values, the true carbon emissions from electricity generated in 2017 are expected to be even lower than those stated in the latest carbon emissions. In November 2012 coal contributed 50% of electricity generation, however, in July 2017 the contribution was only 2%.  Based on this, we should expect a greatly reduced 2019 conversion factor given that coal generation in 2017 reached record lows.


Why the decrease?

In short, the observed trends in the fuel mix (and therefore the main driver of emissions) have been:

  • Less coal;
  • More nuclear;
  • More renewables; and,
  • More electricity directly imported from other countries with the use of interconnectors.

The UK is, typically, a net importer of electricity, with the majority sourced from France. This reduces our carbon conversion factor as France has a heavy reliance on nuclear fission which produces zero direct (‘Scope 1’) carbon emissions. For further information, please see Figure 2 which shows how the UK’s fuel mix has changed in recent years.

Figure 2: Quarterly UK electricity generation by fuel source.

As we all know, moving towards less carbon-intensive electricity generation is essential if we are going to meet our statutory carbon reduction commitments, most notability the 80% reduction by 2050 from 1990 (as outlined in the 2008 Climate Change Act).

As demonstrated by the data, the trends are going in the right direction, however, there is still a lot more the UK can do as we continue to lag behind some of the developed European countries (especially the Nordics). Future progress is being halted by a number of factors.


The Challenges

1.  Despite investments in UK clean energy more than doubling from 2010-2015, investments fell by 56% between 2016 to 2017. However with technological advancements in terms of affordability and efficiency, for solar and wind, there could be a reverse in the recent trend. Most notably, the operational costs of offshore wind farms costs have halved to £58/MWh. This is in contrast to the much more expensive rate agreed for Hinckley Point C at £92.5/ MWh6.

2. Continuing with nuclear as our main source of lower carbon electricity is approaching a bottleneck, with many of our active reactors due for decommissioning in the mid-2020s. This creates issues due to the lengthy process involved in commissioning new nuclear plants meaning we may not have enough time to adequately replace them.

3. The current government’s proposal is to substantially increase our reliance on directly importing electricity from other countries, from a current capacity of 5.7 GW to 20 GW by 2024. This equates to a jump of 6.5% to 24%, which further reduces our own energy security. This means the UK will need to become more reliant on mainland Europe than ever before to meet our increasing electricity demand.

4. Carbon efficiency assessments (i.e. conversion factors) often do not consider lifecycle emissions. Therefore, the carbon associated with the materials used in the building of each power station/turbine is ignored. This is especially pertinent to the nuclear power industry which requires huge amounts of concrete (which indirectly emits large amounts of carbon in its manufacturing), combined with a comparatively short operating lifespan.


Final Thoughts

Despite an uncertain future, there is cause for cautious optimism as the UK is moving in the right direction, with appropriate fuel switching as low carbon technologies become more economically viable. However, whether future changes in our fuel mix will be sufficient to meet our climate change obligations whilst simultaneously balancing electricity demand and energy security remains to be seen.

[clickToTweet tweet=”Despite an uncertain future, there is cause for cautious optimism as the UK is moving in the right direction.” quote=”Despite an uncertain future, there is cause for cautious optimism as the UK is moving in the right direction, with appropriate fuel switching as low carbon technologies become more economically viable.”]

 

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.

[clickToTweet tweet=”We’re currently at 105 registrations with some spaces remaining! So, why not join your peers and kick-start your year” quote=”We’re currently at 105 registrations, meaning we still have some spaces remaining! So, why not join your peers and kick-start your year”]

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

Real Estate Sustainability: Planning for 2018

The new year heralds new journeys for individuals and organisations as we seek to learn from experiences in 2017 and focus on opportunities that preserve and enhance ‘value’ in the myriad forms that it takes.

It is a tremendously exciting 2018 for EVORA and one that has started incredibly positively. We are looking to forward to working with existing and new clients as we implement best practice solutions that deliver value to their funds, assets and the environment.

Below I identify my predictions for 2018 across five topics. In addition, where risks are identified, I propose solutions, to mitigate and manage.

There are many more areas and topics that could be covered, and this reflects the rapid changes the industry is currently seeing. I’d love to hear your thoughts on my predictions plus any of your own.  I will commit to reviewing these predictions at the end of 2018, to see how things panned out.


GRESB: an evolution

The GRESB survey is in its ninth year and participation shows no sign of waning, particularly in the Real Estate assessments.

GRESB does not suit all fund strategies and our research demonstrates that Core funds, particularly those with a high percentage of directly managed (multi-let) assets, do perform better than those with Opportunistic strategies and / or a high percentage of indirectly managed (single-let) assets. Perhaps this is no surprise. Consequently, GRESB is reviewing the method in which is benchmarks and scores data availability for indirectly managed (single let assets).

[clickToTweet tweet=”Early adopters tend to perform better, as investment managers develop (and align) ESG strategies with GRESB criteria” quote=”Early adopters of GRESB tend to perform better, as investment managers develop (and align) their ESG strategies with GRESB criteria, particularly through the use of structured frameworks such as an Environmental Management System.”]

Early adopters of GRESB (with years of experience) also tend to perform better, as investment managers develop (and align) their ESG strategies with GRESB criteria, particularly through the use of structured frameworks such as an Environmental Management System.

To counter the above two points, GRESB has launched a Pre-Assessment module. This survey is designed for:

  • New investment products that are raising capital and / or undergoing initial investor due diligence;
  • Real estate strategies with opportunistic, short-hold or development focus;
  • Real estate vehicles beginning to incorporate ESG into their operations

I expect this ‘toe in the water’ approach will lead on to greater participation in the full survey, despite the fact that GRESB is now charging participants that complete the main and/or pre-assessment survey. This change will have limited impact for participants who are already members or those who pay for the benchmarking reports (which will be issued automatically as part of the service)

The final, encouraging point for 2018, is the increased engagement by GRESB with a wide range of stakeholders as they seek to shape survey components. This is an important facet to ensure that the survey remains relevant to market needs, whilst continuing to push ESG strategies to deliver meaningful performance improvement.

Prediction: Continued growth in the main Real Estate survey, with respondents in North America and Europe leading the field in terms of number of participants. As it is the first year of operation, I expect a small uptake in the Pre-Assessment, which will increase over time as investors and their managers gain awareness of this approach.

I expect the main GRESB survey to incorporate more Health & Wellbeing (H&WB) questions, possibly at the expense of the separate H&WB module. I expect ‘pilot indicators’ for the measurement of social value, H&WB impacts and potentially governance scorecards. Measurement of environmental impacts alone will not be sufficient as the sole indicator of performance for too much longer.

Debbie Hobbs, Head of Sustainability at Legal & General Real Assets will be speaking about measuring social value, alongside Sander Paul Van Tongeren, MD of GRESB, at our industry event on 7th February. Get in touch if you would like to attend.

Resolution: Continue to work proactively with both GRESB and our participant clients.  Last year we supported over 55 submissions.  We expect this to increase significantly in 2018.

Maintain and enhance our clients GRESB ratings through practical and value driven sustainability programmes, as appropriate to their investment strategy. In 2017, our client Hines achieved Sector Leader status and was rated the number 1 non-listed European fund.


Building certifications: more than just a tick-box exercise

Sustainability building certifications have been in operation for around 28 years following the launch of BREEAM in 1990. There are now numerous in-use and design/construction stage standards around the world. Schemes cover individual topics such as water and air quality, to comprehensive multi-themed sustainability / health and wellbeing  standards.

Whilst the use of these standards for new developments is fairly common-place (particularly in the office sector within major cities), the application for existing (in-use) buildings is less so. However, market drivers such as GRESB, who reward participants for holding certification, together with (future) policy standards and incentives for efficient retrofits have, in our experience, increased the interest for in-use schemes such as BREEAM In-Use and Fitwel. It is important that the application of these schemes leads to performance improvement rather than just a tick box exercise.

[clickToTweet tweet=”It’s important that the application of schemes leads to performance improvement rather than just a tick box exercise.” quote=”It is important that the application of these schemes leads to performance improvement rather than just a tick box exercise.”]

Prediction: Increased application of certification for standing investments through schemes such as BREEAM In-Use and Fitwel for major refurbishments.

I also predict more, but not many, WELL certifications for new developments. It will be interesting to see if WELL issue a ‘lighter’ certification route that has wider commercial application that the full WELL standard.

Resolution: Grow the number of EVORA employees that are accredited professionals for sustainability building certification schemes.

Support completion of health and wellbeing certifications through the recognised standards (WELL, Fitwel, RESET) that EVORA has expertise in.


MEES: you might feel the pinch come April

I am sure it is well known to most (but probably not all) real estate professionals, that as of 1st April 2018 landlords will no longer able to lease (via new leases and lease renewals) commercial or domestic space in buildings with an EPC lower than an E rating. Unless that is, a five year time-limited exemption applies and is registered on an Exemptions Register.

Previous studies have indicated as much as 20% of the market could be impacted. From our experience, a high proportion of ‘sub-standard’ EPCs (those lower than an E) have improved their ratings when reassessed by a trusted and competent EPC assessor. Many EPCs issued in 2008-09 were completed quickly using default setting for efficiency ratings. Whilst this was acceptable and legally compliant at the time, the resulting EPC typically did not reflect the state of the energy system in place.

That said, there will be a number of F and G rated units that may leave landlords scratching their heads on what to do, when to do it and crucially, IF they have to do anything at all – noting the relative ease that exemptions could be achieved, albeit with some resource implications to administer.

Prediction: Organisations that were slow to respond may feel the bite come April. I expect the regulation to be largely self-policing, via appointed solicitors, as is the case for the availability of an EPCs for lettings (and sales). However, I also expect enforcement (by local authorities) to be weak based on the relative ease of gaining an exemption and the convoluted nature of MEES guidance.

Resolution: Continue to utilise SIERA’s EPC profiling capabilities to assist clients to quantify the risk of MEES against Estimated Rental Value (ERV), lease and EPC expiry dates. We shall look ahead to the hard backstop of 2023 for existing leases.


Blockchain: new ways of working

Beyond cryptocurrencies such as Bitcoin, blockchain has the potential to revolutionise the method in which individuals and organisations digitally transact with one another in a secure and verified environment.

Blockchain came into operation ten years ago. It’s use beyond cryptocurrency is becoming clear (in property and sustainability) through applications such as:

  • Smart contracts – simplifying the retrieval of data through distributed ledgers
  • Governance – transparency is key to blockchain and it could increase the range of publicly available documentation.
  • Intelligent grids – facilitating the buying and selling of renewable energy generated by decentralized systems
  • Data management – countless possibilities for swiftly transferring secure and validated data

One final comment on blockchain (particularly mining of crypto-coins) that needs to be made, is how immensely energy inefficient it is. The process of using individual PCs to mine coins has led to Bitcoin alone having the annual energy footprint equivalent to Hungary, at the time of writing, and this is increasing on a daily basis as more ‘nodes’ are added to the blockchain. Bitcoin transactions require several thousand times the energy of other means, such as Visa transactions (source).

[clickToTweet tweet=”Process of using individual PCs to mine coins led to Bitcoin having the annual energy footprint equivalent to Hungary” quote=”The process of using individual PCs to mine coins has led to Bitcoin alone having the annual energy footprint equivalent to Hungary”]

Prediction: An exciting year where I expect Proptech companies to introduce new ways of working (more efficiently) through utilising blockchain applications. It is something that our SIERA team is busily exploring.

Resolution: Continue to track the emerging blockchain market (I will do this on a personal level to ensure I can understand what my software colleagues are talking about!)


Policy Landscape: hopeful for clearer messaging

A continued lack of clarity on future policy measures is one prediction that can (unfortunately) be confidently made for 2018. Through BREXIT and the fragility of global politics, uncertainty on the future of medium term policy instruments shall, I think, remain.

Long term achievements have been ratified by global leaders (minus one), however, specific programmes for achieving this for the building sector will not become clear until 2020. The UK government is yet to confirm the replacement to the CRC or ESOS  (carbon and energy assessment and reporting schemes) beyond 2019, although I do appreciate that consultations are ongoing.

Recent UK government publications such as the Industrial Strategy and 25 Year Environment Plan are welcomed. However, industry needs to understand how the government intends to act on these strategy papers, rather than see recognition that the points covered are important.

Prediction: 2018 is unlikely to herald the launch of forward-thinking and fit for purpose policies that will progress the sustainability agenda.  However, I am hopeful of a clearer message on the future of carbon reporting and disclosure requirements for organisations towards the end of the year.

Resolution: Continue to voice our concerns and aspirations for clear and forward thinking policy through participation in government / industry consultations and working groups.


Join us on 7th February for an industry event that that looks at planning for Real Estate sustainability in 2018 and beyond.