Posts

Net Zero carbon emissions by 2050: a Green Revolution

Bold Ambition? UK to Legislate 2050 Net-Zero carbon target.

Last night, Theresa May, in one of her final acts as UK Prime Minister, pledged to take on board recommendations from the Committee on Climate Change to establish a legally binding net-zero target by 2050.

The approach, proposed today (Wednesday 12 June 2019), would see the UK become the first member of the G7 group of countries to legislate for net zero emissions.

This is a bold commitment. It is a (in our view exciting) response to increased public awareness of environmental issues and the dangers faced from a ‘climate emergency’.

This follows parliament’s declaration of a climate change emergency back at the start of May and Theresa May’s determination to leave a positive legacy after she steps down from the role of Prime Minister.

Whilst this is an exciting step, there is a lot to do and 2050 is just over 30 years away.  The strategy and the means to deliver on this target is yet to be determined. Key questions include:

  • How will it be financed?
  • What technologies will be given priority?
  • And what will the role be of international carbon credits? Net Zero plans will allow the offsetting of emissions.  Control is needed to prevent and avoid loopholes

Some of the negative press about the plan focuses on cost. The Treasury has indicated that is will cost £1 trillion. However, this misses the point. Calculations don’t, for example, consider the uplift in the green economy for example. And in even simpler terms, the long term costs of not doing anything are far greater.

This is just the beginning of this new phase of tackling climate change, it isn’t a silver bullet and there is much detail to agree for an effective strategy to be set in place. Time will tell, but for now, I am going to be positive.

It really does feel like we are turning the corner.

Streamlined Energy & Carbon Reporting – What does it mean for you?

Since its initial announcement in 2016, the Department for Business, Energy, and Industrial Strategy (BEIS) has been working on a new framework to simplify the complicated environmental reporting landscape that exists currently. What they came up with is known as the “Streamlined Energy & Carbon Reporting Framework” (SECR).

Following an extensive consultation process, which EVORA took part in, the Government recently confirmed the details of how the framework will look. Under the new legislation:

  • All quoted companies will be required to report their UK energy use, associated Scope 1 & 2 emissions (in simple terms, covering electricity and gas use), an intensity metric and, where applicable, global energy use in their Annual Reports.
  • All “large” unquoted companies will be required to report their UK energy use, associated scope 1 & 2 emissions, and an intensity metric in their Annual Reports.
  • All “large” LLPs will be required to report similar to Unquoted Companies in their Annual Reports.
  • Unregistered companies required to prepare a Directors’ Report will also need to include similar information to unquoted companies.

The framework will be applied through Companies House, which means there are no requirements for non-UK registered companies. Meanwhile, the Companies House definition of “large” will be applied (i.e. when two or more of the following are true: 250 employees or more, annual turnover of £36mil or more, annual balance sheet of £18mil or more).

The Timescale:

The legislation takes effect on April 1st 2019 and applies to any financial reporting years starting on or after this date. This means the first SECR reports will need to be filed in 2020.

How we can help:

Here at EVORA, we have significant experience in the collation, management, and analysis of ESG data.

Through use of our bespoke ESG data management software, SIERA, and the support of our team of expert consultants we can fully manage the delivery of your annual SECR Report from start to finish, and help you use this information as the basis for a broader ESG strategy that will maximise value from the SECR process and deliver transformative change for your Company.

If you have further questions or are seeking assistance with your environmental reporting, get in touch and our team of experts will be happy to help.

Speak to EVORA today about SECR reporting and an accompanying ESG strategy that will help maximise value from the process

Clean Energy for all Europeans Package: future implications for the real estate sector

On the 13th of November the European Parliament adopted new targets for energy efficiency and renewable energy generation as part of its wider package of clean energy initiatives.

The “Clean Energy for all Europeans Package” aims at moving towards a renewable future with reduced dependence on coal, gas and oil. The new agreements adopted this week target a 32.5% energy consumption by 2030, as well as requiring 32% of energy spend be on renewably sourced energy by 2023 within the bloc. Additionally, 14% of fuels utilised in transportation will have to be issued from renewable sources by 2030.

The legislation, divided into three major documents, stipulates that member states will have to roll out specific measures to address disparities in energy production and provision, and make renewable energy available for citizens to produce, purchase and sell.

Each member state will be asked to develop a 10-year national plan addressing energy and climate, detailing objectives, contributions, policies and measures, by the end of 2019. This will then have to be updated each decade.


What does it mean for real estate investors with pan-European portfolios? 

The agreement aims at reducing CO2 emissions, maximising energy efficiency, reducing energy costs for European consumers, and fighting global warming. These are goals that have been growing in prevalence over the past decade and are now at the heart of the EU’s agenda, with this recent legislative development further evidencing its importance to the bloc. With buildings consuming around 40% of the energy used worldwide, real estate is inherently at the heart of this commitment.

Firstly, real estate investors with pan-European portfolios can expect a wave of new incentives and regulations promoting renewable energy over traditional energy sources. The design, extent, and stringency of new legislation could however vary from country to country as each is being allowed to develop its own action plan. Considering renewable energy projects at your assets or switching to green energy contracts, now available from most major suppliers, are great ways to contribute toward these goals and enhance your portfolio’s environmental credentials.

An additional benefit of moving toward renewable energy sources is reduced exposure to the price volatility of traditional energy sources such as coal and oil as a result of geopolitical, legislative and environmental dynamics. Not only is renewable energy better for the planet, it may not be long before it comes at a lower and more stable price.

Real estate investors with pan-European portfolios can expect a wave of new incentives and regulations promoting renewable energy over traditional energy sources

It is unclear as to whether national-level plans will mainly apply to primary energy producers, and the extent to which they will involve public and private bodies. It is likely, however, given the scale of this new European directive, that such national goals will to some degree affect all stakeholders involved in the energy supply chain.

As the real estate sector is at the very core of the fight against climate change and in the reduction of greenhouse gas emissions, real estate investors may be expected to comply to new emission thresholds, standards and increased transparency, in order to meet new national targets. This will certainly require additional resources and capacity to be devoted to better, more structured and regular energy and environmental reporting to external governmental and institutional bodies. Moreover, these new commitments should act a trigger for creating a more transparent energy supply chain for buildings. Re-evaluating and adopting a better step-by-step energy supply strategy will become increasingly important in the years to come.

Real estate investors may be expected to comply to new emission thresholds, standards and increased transparency, in order to meet new national targets

Finally, the initial Energy Efficiency Directive of the European Commission clearly stated the overarching goal of this agreement. By reducing greenhouse gas emissions, improving air quality and using resources efficiently, the idea is to move towards a healthier, more comfortable and respectful future for people and the environment. It is of fundamental importance that all stakeholders understand the role that businesses and investments play in shaping the years ahead, and how this legislative step fits into a larger framework of creating resilient value for the future.


Sources:

  1. Energia, efficienza e rinnovabili al 32,5 e 32 per cento nel 2030. La Repubblica. Published.
  2. European Commission. 19 June 2018. Energy efficiency first: Commission welcomes agreement on energy efficiency American [Press release].
  3. European Commission. 13 November 2018. Commission welcomes European Parliament adoption of key files of the Clean Energy for All Europeans package. [Press release].
  4. European Commission. Buildings.

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.

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.Click To Tweet

 

Does the UK’s net zero future need the EU ETS?

The 2008 Climate Change Act already commits the UK to an 80% reduction in emissions compared to 1990 levels by 2050. However, the unwritten long-term target hopefully is, or at least should be, to achieve complete carbon neutrality.


Since its inception in 2005, the European Union Emissions Trading Scheme (EU ETS) has been Europe’s flagship climate policy. It has two stated aims, namely:

  • To reduce greenhouse gas emissions in an economically efficient manner.
  • To promote investment in low-carbon technologies and energy efficiency improvements.

Approximately 15400 installations, accounting for around 45% of EU greenhouse gas emissions, are now covered by the Scheme, over 1000 of which are in the UK. However, with the Brexit negotiations looming, the UK’s place in the EU ETS is under threat.

As an EU member, the UK is currently subject to the Emissions Trading Directive, but this is unlikely to be the case by the end of the negotiation process as such a position is not compatible with the incumbent government’s Brexit rhetoric of removing European Court of Justice (ECJ) jurisprudence.

The only obvious option for the UK to remain involved in the EU ETS, whilst avoiding ECJ jurisprudence, would be to create a UK ETS and then negotiate a unilateral or bilateral linkage. Switzerland has been undergoing just such a process over the past decade, culminating in a technical-level agreement in January 2016 that is awaiting ratification.

Before beginning to debate how a UK-EU ETS relationship should be formed however, the question that we should be asking first is: is it worth it?


This seemingly simple question has a rather more complex answer. The UK economy is large enough to have an emissions trading scheme of its own, however being part of a larger trading scheme with more participants carries efficiency benefits, through increasing the volume of available low-cost abatement options and through increasing market liquidity and stability.

What is not clear is the extent to which the UK receives these benefits. Given that the EU ETS is now in its twelfth compliance cycle, there seems to be remarkably little research into the extent of the benefits the Scheme produces. With the March 2019 Brexit negotiation deadline fast approaching, the Government should give serious consideration to commissioning such a study for the UK.

The EU ETS is also far from perfect which, to be fair, is to be expected given that it was the first, and continues to be the largest, emissions trading scheme in the world. The large surplus of allowances, a lingering remnant of the 2008 financial crisis, and the persistently low and unstable allowance price are the stand out issues, and add up to mean the EU ETS is not functioning as well as it could.

The majority of the EU ETS’ regulatory design features could simply be replicated in an independent UK ETSClick To Tweet

If the UK Government wishes, the majority of the EU ETS’ regulatory design features could simply be replicated in an independent UK ETS. Therefore, the decision of whether to remain involved in the Scheme boils down to weighing the aforementioned economic efficiency benefits against the issues the EU ETS is facing and the challenges of negotiating an acceptable linkage deal for both parties.


The UK business community should seek to take greater ownership of this issue, firstly by pushing the Government to conduct the necessary research to make this decision properly, and secondly by each firm reflecting themselves on what the EU ETS does or does not do for them in the pursuit of carbon neutrality. As the global threat of climate change grows, stricter environmental regulations are inevitable, but high costs don’t have to be. Emissions trading schemes are a proven mechanism for producing low-cost emissions abatement, but to get the most out of them they must have the right design. Is the EU ETS right for the UK? This is something we need to work out.

This blog was originally published on Edie.net

Net Zero and On-Site Renewables: Opportunities and Considerations for Net Zero Energy Buildings

This blog is part of our Net Zero series for World Green Building Week 2017 – read more here.


As part of the World Green Building Week 2017 theme #OurHeroisZero, this blog explores the opportunities and considerations for on-site renewables in the wider context of net zero energy buildings.

What are net zero energy buildings?

Net zero energy buildings can be defined in many ways, but on a simple level, it is a building connected to the grid where the energy generation matches energy consumption and balanced out to net zero. Net zero is usually assessed at the annual level, but it is becoming increasingly common to account for finer timescales in calculations to improve analyses to inform decision-making. This can be achieved by finding opportunities at all phases of the building life-cycle from construction materials at the design stage, reduction in energy consumption during operation, implementation of efficiency measures and incorporating renewable energy systems.

A building connected to the grid where the energy generation matches energy consumption and balanced out to net zeroClick To Tweet

What are the opportunities for on-site renewable technologies to help achieve net zero energy buildings?

Alongside design, construction, building management factors and small-scale retrofitting such as efficient lighting, on-site renewables have also played a key role in achieving net zero energy for building energy generation and operation. On-site renewable energy generation have helped to harness clean energy, improve efficiencies and reduce dependency on the energy grid.

On-site renewable energy generation have helped to harness clean energy, improve efficiencies and reduce dependency on the energy grid.Click To Tweet

On-site renewable energy is a popular approach as the energy generated can be used to offset the actual energy use of the building and can even be integrated as part of sustainable building envelope design. It is not possible to strive for net zero at the design phase only, as net zero energy must be realised through on-going operation and maintenance throughout the building life cycle.

The technologies and mechanisms available are:

  • Solar Photovoltaics (Solar PV)
  • Purchase of green energy from the grid
  • Micro heat and power generation systems
  • Wind turbines
  • Energy storage technologies (battery and heat storage solutions)

More advanced approaches are:

  • DC microgrids
  • Smart grid and digital technologies
  • Active facades, e.g. artificial leaf technologies

Solar PV and Systems Integration

Solar PV is becoming a more viable option because of decreasing costs of materials and maturity in the marketplace. The mature status of the key solar technologies makes them key players in the energy world. According to the IEA’s Technology Roadmap for Solar Photovoltaic Energy (2014), it is projected that solar power could generate 22% of the world’s electricity by 2050. Solar energy is therefore a viable contender for energy and CO2 mitigation. Solar PV is also more versatile due its multi-disciplinary approach and scalability. In comparison, micro-heat and power generation is less scalable and wind energy through turbines are usually applied as off-site renewables.

It's projected that solar could generate 22% of world’s electricity by 2050 making it a contender for CO2 mitigationClick To Tweet

Of course, climate and locational factors have roles to play in determining the level of renewable energy generating capacities as well as cost and scalability. On-site renewables are however most effective when technologies are coupled together into a system to create a smart on-site renewables DC microgrid, with the application of energy storage and digital technologies. This can prove to be effective for local energy management, as well as scaling up net-zero energy buildings from the single building to the regional scale.

Solar PV as Design

In terms of sustainable building envelope design, there is an opportunity for integration into buildings materials, such as rooftops and facades. Solar PV has been especially popular due to its versatility as in the case of building integrated PV. As well as being decorative and architectural interests, innovative designs can make construction materials more productive and cost-effective compared to traditional building materials. Another element of building design is comfort for occupants which is linked to the wider issue of health & wellbeing as a value indicator for buildings.


What are the considerations for on-site renewable technologies to help achieve net zero energy buildings?

Economics

Market incentivisation is key to paving the way for net-zero energy buildings. This boils down to more cost-effective design and construction. Falling costs of renewable energy technologies have helped to increase the use of on-site renewable energy. Increasing digital technologies can help to align tariffs to real-time pricing strategies.

Balancing Loads and interactions with the wider power grid

For building energy management, there always the need to link power generation to building loads. Opportunities can be gained from balancing supply and demand to optimise performance in terms of energy and costs. On top of this, the peak load times and peak consumption reduction prospects must also be considered, as well as interactions with the wider power grid. Digital technology is creating ways to optimise and adjust demand and supply in real-time which improves energy security from outages, systems integration, reducing operation and maintenance costs.

Scaling it up!

Net zero energy buildings should be viewed at both the local and regional scale since net-zero could be achieved at the single building level, but also with the wider energy grid which is becoming smarter with the application of the smart grid. With more digital data available, it is becoming increasingly possible to use this to inform decision-making.

Holistic approach of design, construction and operation

There is a common view that most opportunities will be achieved at the building design stage. This must however be integrated into the operation of the building and integrated across the building life cycle. This is where on-site renewables present an opportunity for energy generation. A joined-up view must be taken for net-zero energy buildings. This is because a building may be designed to be net-zero, but building operation is the challenge when it comes to energy performance despite the intention at design phase and lead to deviations between modelled vs. actual energy performance.


Concluding Remarks

The role of systems thinking can be appreciated within the contexts of energy management, technological developments, economics and policy. Advances and trends in energy storage technology in the microgrid have opened opportunities for net zero buildings and on-site renewable energy generation. For grid and microgrid management, a mismatch of supply and demand is an issue, however this is being resolved by energy storage. For net zero energy buildings to be realised, a coupling between technologies, systems, solutions as well as an eye for scale is required. This can be achieved by finding opportunities at all phases of the building life-cycle from construction materials at the design stage, reduction in energy consumption during operation and implementation of efficiency measures and incorporating renewable energy systems. It is not possible to strive for net zero at the design phase only, as net zero energy can be realised through on-going operation and maintenance.

For net zero energy buildings to be realised, a coupling between of technologies, systems, solutions as well as an eye for scale is requiredClick To Tweet

If you would like to learn more about EVORA and how we can help your organisation, please contact a member of the team.

ESOS Phase 2 Practical Hints and Tips

This post follows on from the article that my colleague, Neil Dady wrote, ‘ESOS Phase 2 – It’s time to start planning‘ which provides a clear overview of requirements and further detail is available online. I’m not going to go over old ground but instead, I set out a few ESOS Phase 2 practical hints and tips.


Don’t forget the purpose – identify energy saving opportunities

ESOS was developed to help businesses identify energy saving opportunities.  Legislation often gets a bad press, however, the principles here are laudable.  A strategy that identifies savings, then importantly, acts to implement them (something missing in the legislation and a step that is up to the participants) can only be a good thing.  Reducing energy consumption has many benefits:

  • Lowered costs
  • Reduced carbon footprint
  • Improved corporate responsibility
  • The ability to wrap up into tenant engagement programmes
A strategy that identifies savings, then importantly, acts to implement them (something missing in the legislation and a step that is up to the participants) can only be a good thing.Click To Tweet

ISO 50001 – a structured approach to understanding and improving energy performance

If you want to get ISO 50001 up and running, start now.

The international standard for energy management, provides a structured approach to understanding and improving energy performance, however, implementation cannot be rushed through. As Neil highlights in his recent blog, organisations that wish to use ISO 50001 as the compliance route should start work now.

As many will know, organisations with ISO 50001 do not have to complete audits, however, it is a mistake to think that this simplifies matters.  ISO 50001 is not an easy way forward.  It requires completion of a baseline assessment and the establishment of objectives for improvement.  As a result, organisations that operate ISO 50001 management system will have also completed audits in some format.

As many will know, organisations with ISO 50001 do not have to complete audits, however, it is a mistake to think that this simplifies matters.

Those in real estate should also note that ISO 50001 does not count towards GRESB points, whereas ISO 14001 certification does.  Although this is something we are lobbying GRESB on, I can understand the reasoning.  GRESB is a sustainability benchmarking scheme, ISO 14001 requires consideration of all significant environmental issues, whereas ISO 50001 is focused on energy only.


Audits for compliance – beware of changing portfolios

Obligated organisations must assess energy consumption over 12 months, which must include the qualification date of 31 December 2018.  90% of energy identified must then be assessed.  As a result, auditing assets now, solely to comply with ESOS, would be a waste of time if the assets were then sold before the qualification date.


Audit anyway – the savings start to add up

Despite the above point, audits will still identify improvement opportunities that reduce energy consumption.  Subject to wider asset management plans (redevelopment, sale etc), I would recommend that audits are completed on all assets with an energy spend of over £200,000 per year – irrespective of ESOS obligations. Our audit team typically find quick win savings of 5% and often more (5% on a £200,000 spend per year equates to £10,000 – with a typical payback of less than a year).  Apply these principles to a portfolio of 10 assets and the savings start to add up significantly.

Our audit team typically find quick win savings of 5% and often more (5% on a £200,000 spend per year equates to £10,000 – with a typical payback of less than a year).Click To Tweet

EVORA employs a team of Energy Auditors and ESOS Lead Assessors.  For further information, do not hesitate to call or email.

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.

 

EVORA To Be Main Sponsor of The Crowd’s X Energy 2017

We are delighted to announce that we have teamed up with our friends at The Crowd and will be one of the Main Sponsors at X Energy 2017 in October.


EVORA has come a long way in its six years.

It’s amazing to think that Chris, Paul and Ed left DTZ to start Sustainable Commercial Solutions together in 2011, spotting an opportunity to deliver a better level of sustainability consultancy expertise to the commercial real estate sector. And then came SIERA, our sustainability management software, which was specifically designed for the commercial real estate investment market.

Fast forward six years and the EVORA team is now 21 strong, we’re revolutionising the way technical engineering and M&E consultancy services are delivered thanks to EVORA EDGE, and SIERA now manages data for the likes of Schroder Real Estate, USS, Europa Capital, and Rockspring to name a few. Not to mention all the GRESB work we do as a Premier Partner, and the multiple events we’ve hosted, including the 2016 40% Symposium in Berlin, and the Healthy Buildings Conference with BRE and Arup in London.

To be one of the Main Sponsors of an event like X Energy 2017 is another big step for us.

EVORA will be a Main Sponsor at The Crowd's X Energy 2017 in October. 50+ already registered. More details here...Click To Tweet

With 160+ senior energy, sustainability, property, and facilities professionals in the room, we will be hosting two roundtable sessions that play to our deep expertise in sustainability, energy, and data management (exact topics TBC), as well as having a series of one-to-one meetings with key decision makers who will be looking for support with their sustainability goals.

Here’s some information about the event, direct from the X Energy landing page:

This impactful half day event will explore the intersection of energy and tech, inspiring and connecting the leading minds from a mix of energy intensive sectors.

We’ll explore how disruptive technologies, new energy management strategies and financing models are exponentially changing energy programmes in large organisations, and share knowledge and latest thinking amongst the community. The programme on the day is a mix of inspiring keynotes, high level panels, peer roundtable discussions and structured networking.

With over 50 attendees already registered five months in advance, X Energy 2017 is already lining up to be a fantastic event.

We will be publishing a series of event-related content between now and October, so stay tuned to our blog and social media channels, and make sure you’re signed up to receive our newsletters.

Follow us on Twitter @evoraglobal, The Crowd @thecrowd, and search for the hashtag #XEnergy for event-related Tweets.


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