EVORA Global are delighted to announce that Philippa Gill will be
joining on February 1st as Director and will be merging Verdextra into EVORA’s
existing business operations.
Verdextra are a specialised Sustainability, Health and Wellbeing
and Operations Consultancy and have emerged as thought leaders in the Health
and Wellbeing arena. We are very excited to be integrating Verdextra’s
capabilities into our services portfolio as a key part of our commitment
to broadening and upscaling our service line offerings.
We are absolutely delighted that Philippa has agreed to join us. Philippa’s deep heritage in global real estate and current thinking in emerging key topics such as Health and Wellbeing will not only add to EVORA’s depth of capability, but will really add strength to our senior leadership team and help drive our international reach. This is a truly exciting time for EVORA and we look forward to 2020 being another key milestone in our development.
EVORA’s Managing Director, Chris Bennett
Philippa brings truly world class pedigree to EVORA having
previously occupied a range of senior sustainability leadership roles within
Global Real Estate organisations. Philippa has a proven track record of driving
real change through an extensive portfolio of Sustainability
Transformation Programmes, spanning construction through to software and
intelligent building management technologies.
Philippa also brings extensive experience from within the Private Equity community and will play a key role in driving our international growth plans and supporting bringing new Value Propositions to Market.
Verdextra and EVORA’s business expertise and philosophy align so well, and I am delighted to be merging our business with theirs. The opportunity to combine my own experience with the sector leadership EVORA embodies is truly exciting and I am looking forward to harnessing our joint capabilities.
Philippa Gill, Partner at Verdextra
https://evoraglobal.com/wp-content/uploads/2020/01/james-padolsey-152010.jpg11251500EVORAhttps://evoraglobal.com/wp-content/uploads/2017/06/EVORA-logo-for-small-applications-WHITE-300x172.pngEVORA2020-01-20 15:34:342020-01-20 15:34:35Philippa Gill to join EVORA Global as Director
Do the companies you partner with – your supply chain – understand your approach to ESG issues, and can work with you to meet your goals?
Supply chains can often be global, highly complex and of significant scale. Historically, technical quality, cost-effectiveness, speed of delivery and reliability has been the focus. Sustainability has now been added to the procurement and sourcing criteria because of operational, financial, regulatory and reputational risk drivers.
Real estate organisations are encouraged to embrace resiliency and responsibility in their supply chain management to adapt to externalities such as geopolitical conflicts, changing weather patterns and new legislation in areas such as modern slavery; and to improve their impacts on the workforce, local communities and the environment in the places where they develop, manage and invest. By improving ESG performance throughout their supply chains, organisations can enhance processes, save costs, uncover product innovation, achieve market differentiation and have a significant impact on society.
As organisations
apply a sustainability lens to the design, development, management and
marketing of their buildings and services, the inputs, construction methods,
labour conditions, workforce health and safety practices, and environmental and
community impacts of these processes will be under growing scrutiny.
The continuous improvement process expands supplier relationships significantly beyond auditing and monitoring, investing in training and incentivising top performers. Organisations share commitments with suppliers in order to achieve their sustainability goals. Procurement process preference is given to suppliers who can help them achieve these goals.
Leading organisations recognise that the sustainability attributes of their assets can offer market differentiation, resulting in increased lettability and stronger and long-term relationships with tenants.
They achieve competitive advantage in the supply chain through establishing meaningful, collaborative dialogue between themselves and their suppliers, alongside technology innovation, greater efficiency and supplier diversity. Suppliers are viewed as an extension of their business with a shared sustainability ethos integrated seamlessly throughout.
Figure 1 – Maturity model supply chain
EVORA provides consultancy support for the development and implementation of an effective strategy to endorse sustainability within supply chains, including:
Assessment of materiality to focus on the most pressing issues
Development of sustainability criteria and alignment with the procurement process
Providing training and knowledge sharing capabilities across the organisation and with suppliers
Stretching existing sustainability goals beyond direct operations, to include tiers of the supply chain
Advice on deploying technology to increase accountability and transparency through comprehensive supplier performance metrics
Guiding participation in industry collaborations and initiatives to leverage buying power and influence towards supply chain sustainability
Disclosure of supply chain information within integrated reporting, beyond stand-alone sustainability reporting mechanisms.
https://evoraglobal.com/wp-content/uploads/2020/01/marc-olivier-jodoin-an8KAYg2nBo-unsplash.jpg10011500Joanna Tomlinsonhttps://evoraglobal.com/wp-content/uploads/2017/06/EVORA-logo-for-small-applications-WHITE-300x172.pngJoanna Tomlinson2020-01-20 10:22:362020-01-20 10:22:37Seeing the Value in Real Estate Supply Chain Sustainability
Upon entering the 2020s, which some dub ‘a decade for
delivery’ to improve sustainability across the board, it is perhaps wise to
consider the breakout trends that will carry forward. After all, a new year
always inspires new endeavours. It
provides a clean slate to readjust and redeliver, as well as a fresh opportunity
to realign and build upon past achievements.
The 2020s may have a lot in store for everyone across the real estate space; so what should we be looking out for?
Net zero heroes
This commitment has been on the lips of government officials
and real estate investors alike, marking a significant promise to achieve net
zero carbon across the UK by 2050.
In September 2019, 23 of the UK’s leading commercial
property owners have signed a commitment launched by the Better
Buildings Partnership (BBP) to tackle the growing risks of climate change,
pledging to decarbonise. Covering over 11,000 properties, this type of
agreement is likely to inspire more companies throughout the next decade to
also commit time and resource in the fight against climate change.
It is therefore expected that the dynamics behind climate strategy will shift in tow, with awareness of a pressing deadline introducing the need for a new radical mentality for rapid decarbonisation across a vast sector. The path to complete overhaul will not be simple, nor one that can be touched lightly, it will require serious engagement and in effect be one of the most major driving forces for change across the industry. Certainly, one to watch intently and something EVORA is already leading clients through the challenges and opportunities of.
New alignments and disclosure
Recent interest in broader ranging initiatives within the
real estate space have been gaining traction in the past several years. These
alternative policies are likely to continue to influence the direction of how
companies tackle sustainability issues, standing apart from the more prominent
examples such as GRESB, LEED and a host of others.
The 2015 United Nations Sustainable Development
Goals (SDGs) is one such example, acting originally as a framework for
nations to engage in improving global sustainability across areas such as
environment and energy, equality, health and wellbeing, alongside peace and
justice. Five years since their inception, it is the real estate sector which
is taking command of the targets put in place, using them to guide investment
and strategy for an all-around approach to sustainability. Aligning with the
SDGs is rising in popularity, and it is likely that a more open approach could
inspire newer players to also play their part, committing time and resource to
key targets.
Another key shift beginning to happen in 2020 focuses on the effective disclosure of climate resilience and risk to businesses through alignment with the Taskforce on Climate-related Financial Disclosure (TCFD). TCFD is a global voluntary disclosure framework launched in 2017 to allow organisations to identify climate risks and opportunities, and ultimately to disclose the financial impact of these in their annual reports. Awareness and mitigation of these risks is necessary to avoid any sudden losses in asset value and the associated impact on the wider investor market. Businesses engaging with this voluntary scheme provide greater transparency for stakeholders, but also gain an advantage when addressing wider strategies by actively moulding the methodologies behind TCFD, as well as gaining a footing ahead of competition for improving capital value. TCFD – based reporting is to become mandatory for PRI signatories from 2020.
Renewables reinvigoration
Off the back of net zero and related policies put in place
by nations across the globe, renewables investment is a key piece of the puzzle
to deliver ambitious targets by 2050.
It is no secret that renewables investment has been growing substantially over the previous decade, with total stock of the most widespread small-scale variant in the UK in terms of number and generating capacity (up to 5MW) – solar photovoltaic (PV) – growing from a total supply of just 88 MW in November 2010 to a staggering 13,305 MW in November 2019 according to the Department for Business, Energy & Industrial Strategy (BEIS).
This trend is set to continue, and not just for solar, as it is speculated that across the piece the total capacity of non-hydro renewable sources is set to expand by 91% on current values, reaching 80.3 GW by 2030 [1] as shown below in Figure 1.
Figure 1 – Installed capacity of non-hydro renewables through time, alongside forecast capacity out to 2030. Source: GlobalData, Power Database
Policy has been a major driver of this initiative in the UK;
however, it should not be forgotten that globally the price of renewables has
fallen drastically, reaching the lowest point to date making it ripe for
investment.
Cost reductions for solar and wind power technologies are set to continue to 2020 and beyond. Current auction and power purchase agreement (PPA) data suggests that by 2020, onshore wind and solar PV will consistently offer less expensive electricity than the least-cost fossil fuel alternative worldwide, according to IRENA [2]. And for the UK as shown in Figure 2, the current expected trajectory for wind technologies is to dip below the cost of gas, closely followed by solar which is expected to reach the same level in the late 2020s if not sooner.
Figure 2 – UK costs (£ per kWh) for various technologies. Source: Carbon Brief, 2019
With costs expected to fall, the integration of renewables will become easier and the investment more worthwhile as payoff times also decrease. This is despite the removal of the Feed-in Tariff (FiT) scheme in March 2019, however commercial contracted energy still proves to pull in promising numbers for those willing to invest in generation. Furthermore, the Smart Export Guarantee (SEG), a partial replacement for the FiT, came into force on the 1st January 2020 setting an obligation for licensed electricity suppliers to offer a tariff and make payment to small-scale low-carbon generators for electricity exported to the National Grid.
This could provide a valuable route to market for businesses wishing to put money aside for renewables, serving to cut electricity costs due to self-generation, but also providing the opportunity to export and earn money by supplying back to the grid.
Furthermore, the benefits for businesses from Corporate Power Purchase Agreements (CPPAs), specialised agreements for the supply of energy to specific sites or assets from a generator, have also grown in recent years. This differs from the standard green tariff opportunities presented by utilities, as energy is directly sourced from a known generation site which in turn spurs the delivery of greater grid investment into private energy sources as significant hurdles for generators are bypassed. Engaging in this market has proved to be a reliable means of utilising renewable energy over short term (6 month) to as long as 15-year contracts relatively inexpensively, alongside proving a positive look for companies to boot.
Who knows, perhaps this could grow into something larger? The prospect of peer-to-peer trading of energy or smart grids to efficiently serve grouped assets could also take off from greater private investment; effectively lighting the fuse for a more sustainable real estate sector, and aiding the push of ambitious policies to grow the market.
Grand designs
Changing up building management and design is also a crucial
factor to consider, in order to provide more efficient, healthier and happier
buildings for tenants to grow their businesses in.
One example of how legislation is progressing this scene is
the recent Minimum Energy Efficient Standards (MEES) for non-domestic
commercial buildings strategy, published on the 15th October 2019 by
BEIS, which
we reported on last year.
Under the consultation, the government propose a new plan to raise the minimum EPC rating from ‘E’ to ‘B’ by 2030. In order to achieve this, a great deal of investment will be necessary, as an estimated 85% of non-commercial buildings will require improvements to meet these standards.
Improving new build design is a clear route to achieving this across portfolios, by integrating more passive design choices, smart technologies and more controllable systems for fundamentals like HVAC systems and lighting. These include such changes as tighter building fabrics to help reduce heat loss in the building, double glazed windows as well as greater exploitation of sunlight with Passivhaus like architecture. Not only will this reduce energy usage and as a result improve the returns from markets such as the SEG for renewables, it will also result in a more comfortable space for tenants to work in, improving wellbeing from the get-go. Furthermore, buildings can also engage in improving other factors such as the integration of biodiversity into building design with green walls and roof gardens alongside open planted plazas that not only serve as refuges for wildlife but for pleasant places for employees to enjoy for increased social value.
However, this is easier said than done, as the vast majority of buildings which will be used in the commercial space have already been built. Therefore, a great deal of effort will need to be focused on deep retrofitting to bring buildings up to scratch, allowing them to stay competitive and sustainable for years to come.
Big data for bigger change
At the heart of spurring the aforementioned changes is our
understanding of the ongoing trends, causes and solutions to issues at hand;
and how is that really possible without proper evidence?
As the world mobilises towards an ever more data-centric model to drive cost analyses, environmental modelling and of course the progress of sustainability, appropriate levels of data access are necessary to implement effective and lasting change. Therefore, a growing need for data coverage and reporting will likely manifest throughout the 2020s, improving the understanding of where and when energy is being consumed across a portfolio to identify, implement and track improvements.
The key to engaging here is being proactive about monitoring how businesses run and how properties are managed. An example includes the continued smart meter rollout which showed promise earlier in the 2010s, however, it has fallen short of what is required as the original deadline of 2020 is pushed back to 2024. Therefore, big data companies and real estate investors may begin to invest more heavily in their own solutions to provide better coverage of how assets perform. Furthermore, by partnering more closely this could prove to be more productive than just face value cost reductions.
By engaging with tenants directly to shape their ‘energy behaviour’ from a top-down policy and technologically driven view, visible and accessible evidence of energy usage can itself inspire change from the bottom up, with tenants altering how they perceive energy usage and the impacts of their day to day. Attacking from both ends in this way may prove an effective weapon.
Big data also stretches to the social issues that real estate faces on an ongoing basis, after all, people drive business. More widespread and granular coverage of social value, health and well being among other strategies could help change the perception of how usually qualitative analyses is treated, providing quantitative means to expand the efficiency of implementing changes into businesses.
EVORA will, of course, examine the growth of these trends (as well as many more) throughout the year, as we expect a great deal of exciting activity is upcoming. So, watch this space!
https://evoraglobal.com/wp-content/uploads/2020/01/brandon-griggs-wR11KBaB86U-unsplash.jpg10001500Stuart Leaverhttps://evoraglobal.com/wp-content/uploads/2017/06/EVORA-logo-for-small-applications-WHITE-300x172.pngStuart Leaver2020-01-13 12:06:522020-01-13 12:28:57Five sustainability trends for the 2020s: what’s in store for real estate?
For those of us old enough to remember the amazing and thought provoking Baz Luhrmann song of the late 1990’s ‘Everybody’s free to wear Sunscreen’ you will be amazed to know that it is twenty years since this early viral internet phenonium grabbed our attention.
You will also no doubt recall those thought provoking and immortal words of the writer Mary Schmich, the original author of the words that were wrongly attributed to Kurt Vonnegut. For those of you too young to remember the song I recommend you hunt it down and listen.
It was whilst listening to a recent BBC World Service programme of the history of the song it occurred to me, as somebody who has spent the past 30 plus years in the sustainability world, what advice would I most like to pass on to the younger generation about the climate change challenge and living sustainably. So in honour of Mary, Baz and the amazing voice Lee Perry, here goes my reinterpretation of their lessons in life….
Ladies and gentlemen, Readers of EVORA Global.
Act on Climate Change
If I could offer you only one tip for the future,
Acting on climate change would be it.
The long term impacts of climate change have been shown by scientists whereas the rest of my advice has no basis more reliable than my own meandering experience.
I will offer my advice on how to address this challenge now.
Take seriously the power and passion of youth.
Dismiss this at your peril.
You may not understand the power and passion of youth until you have children and grandchildren of your own.
But trust me, in 20 years from now you’ll back at this time in a way you can’t grasp now and wonder why you didn’t act when there were still possibilities to change our trajectory and how many opportunities acting now could open up before you.
The future is not as hopeless or as difficult as you imagine.
Don’t worry about the science, but know that worrying is not effective or going to change the outcome.
The real challenges in modern life are our relentless consumptive behaviour in pursuit of false happiness but know that it’s not about having what you want but wanting what you have; the simple things in life such as spending time with family and friends is free.
Do something every day that challenges the perceived wisdom.
Publish your commitment to act on climate change.
Don’t be reckless with our resources and don’t be reckless with other counties resources.
Don’t accept the suggestion the world has endless capacity.
Recycle.
Don’t waste; do more with less. The world has evolved over billions of years and everything in the universe is recycled. Time is endless and our future uncertain but our place in history is not guaranteed.
Be respectful.
Remember your successes and learn from any mistakes but don’t let them restrict you; the journey in tackling climate change is challenging and we are all in it together.
Display any awards for best practice; it will keep you motivated. Don’t throw away your utility bills; it’s valuable data that can help you improve management of your assets.
Innovate.
Don’t feel guilty; you don’t know how yet. Embrace the possibilities and engage with technology. Some of the best businesses I’ve known didn’t know how to innovate at the start of their sustainability journey; some of them have been able to secure Government grant funding to help them.
Embrace the power of the Sun.
Preserve the rainforest, biodiversity and ecosystem services you’ll miss then when they are gone.
Maybe you’ll strive to solve the challenge on your own.
Maybe you’ll partner with others to work together.
Maybe you’ll offset your carbon.
Maybe you’ll just go veggie and reduce meat consumption.
Whatever you do don’t congratulate yourself too much or be defeatist; the future of humankind is in our hands today. So is the rest of life on Earth.
Get plenty of exercise; walk cycle run; don’t over eat or poison your body with unhealthy substances, it’s the only one you’ll own.
Pause…..take time to look around you and marvel at the wonders of life.
Read and keep abreast of climate science; it’s moving fast.
BEWARE of the fashion industry; it contributes more to global warming than aviation and shipping combined.
Celebrate and respect your culture and heritage; we can learn lots about good lives from our ancestors that can guide our future.
Work together with your peer group; they understand your challenges and together you can find mutual respect and encouragement in the future.
Spend time with family and friends; enjoy preparing and eating local seasonal food together; avoid cheap fast foods.
Work to bridge the gaps in geography; although the challenges can differ slightly between countries the essential issues are the same. Think global, act local.
Only travel sustainably.
Accept certain inalienable truths; carbon taxes will come.
Politicians will eventually legislate.
You too will get older, and when you do you’ll fantasize that taxes were reasonable, politicians were noble, and will recall it was our children that made us aware of the threats of climate change to life on earth.
Respect Mother Nature.
Maybe you need financial support, maybe you can reinvest some profits, but be under no illusion, time is running out.
Don’t rush ahead without considering proper science based targets or by the time we hit 2050, you’ll realise you’ve been chasing the wrong goals.
Be careful with those who sell existing stuff carefully repackaged with a green claim. Get proof of their credentials with an appropriate assurance or verification certificate. Engage a good independent consultant to help you.
But trust me on the seriousness of climate change.
by Matthew Brundle, Associate Director
https://evoraglobal.com/wp-content/uploads/2020/01/sebastien-gabriel-IMlv9Jlb24-unsplash.jpg10001500EVORAhttps://evoraglobal.com/wp-content/uploads/2017/06/EVORA-logo-for-small-applications-WHITE-300x172.pngEVORA2020-01-08 16:45:092020-01-09 10:15:57Act on Climate Change
We’re used to hearing about Corporate Social Responsibility (CSR), it’s been around for years, but when did being responsible turn into something much more for the built environment?
Many years ago now, I began my career at Business in the Community, and so my journey (eventually) into sustainability. Even then, as one of the Princes Trust charities, the message was loud and clear – the biggest and best companies were all talking about CSR.
“… the idea that a company should be interested in and willing to help society and the environment as well as be concerned about the products and profits it makes.”
But at that point, when we talked about ‘the environment’, we were talking about recycling and waste, not really about the physical building. Being environmentally responsible still seemed a fairly new concept when compared to diversity and inclusion or, local communities or ethics.
‘Green wash’
After a segway into other countries and sectors, about eight years ago, I found myself working for a large construction company and landed smack in the age of Health and Safety. CSR was evolving into charitable events and effective communications with local communities. People before profit.
I’m not sure I ever heard about sustainability. The key word then, I suppose, was ‘green’. In doubt? Want to charge more money? What to sound innovative? Say it’s green.
“Also known as “green sheen,” greenwashing is an attempt to capitalize on the growing demand for products that are environmentally sound.”
But no one was really willing to pay for it yet. Green projects or proposals had to be taken to the Board, and you had to justify the business case and show the return on investment. Only the leading companies had a team who worked on it, and even then, it was probably only one person.
At the same time there were companies dressing up services or initiatives that were environmentally friendly and ‘green’ without any real substance to whether they actually were or not.
The business case for sustainability
It wasn’t until a few years later, when I joined UKGBC that the momentum really picked up. The early adopters and the pioneers of the green building agenda were no longer content to just say they were doing something, they wanted to really show they were walking the talk. They were really doing what they said they were doing, and they wanted to prove it to you.
Increasingly, more companies were realising that there was in fact a business case for green, and it wasn’t just about making more money.
“A built environment that enables people and planet to thrive…”
As soon as the penny started dropping on the long-term benefits of building green and of retrofitting existing buildings (giving them a new lease of life!), the conversation really began. Suddenly, it wasn’t just about green, it was about sustainability.
I believe that a huge part of getting the sustainability conversation more mainstream in the built environment sector, was health and wellbeing.
Here was the real business case for those lagging behind – happier, healthier staff who stayed with the company longer, had less time off, were more productive and therefore made the business more profitable. There’s the hook.
An ESG (re)evolution
Since joining EVORA two years ago, I’ve seen the biggest shift in opinion. Not just in the industry, but the whole conversation of sustainability, responsibility to the environment and climate change.
“ESG stands for Environmental Social and Governance, and refers to the three key factors when measuring the sustainability and ethical impact of an investment in a business or company.”
As consumers and customers wake up to the state of our planet and the environment, the pressure on companies to act in a responsible way has really ramped up. But what does this mean for the built environment?
People are beginning to insist that the built environment in which they live, work, shop and spend much of their time, puts their health and wellbeing – as well as the future of the planet – at the heart of everything. And it’s not just about the places; increasingly, people are making their decisions on who to do business with, based on a company’s green and ethical practices.
A recent study found that nearly two-thirds (64%) of millennials said ESG issues are important in their investing decisions with Gen Xers not far behind at 54% and Baby Boomers at 42%. In addition, majorities across all generations say ESG is a key factor in which companies they choose to do business with.
With this in mind, ESG is going to play a critical role in how the built environment is managed going forwards. From inception, through design, build, occupation and disposal. ESG needs to be fully embedded into an organisation’s decision-making. Those that fail to integrate ESG into their practices face the risk of finding themselves obsolete in the future. ESG is here to stay and will be at the forefront of tackling climate change and ensuring a sustainable future.
https://evoraglobal.com/wp-content/uploads/2019/10/EVORA-blog-csr-esg.jpg8001200Sam Wheelerhttps://evoraglobal.com/wp-content/uploads/2017/06/EVORA-logo-for-small-applications-WHITE-300x172.pngSam Wheeler2019-10-01 12:04:512019-10-01 12:13:27CSR to ESG: an evolution
EVORA is pleased to be working in collaboration with the Estates Gazette and other industry leaders to share knowledge and key learnings about sustainability with the real estate industry.
Read the article “How real estate is mobilised to face a real and present danger” by Chris Bennett here.
Listen to the podcast “Hope or fear? How the built environment needs to approach the climate change” featuring Ed Gabbitas here.
Listen to the podcast “Property and the climate crisis: how should real estate respond?” featuring Matthew Brundle here.
There has never been a better time to be talking about climate change and the broader sustainability agenda and Estates Gazette are ideally placed to inform the industry as a whole. Working with the Better Buildings Partnership, Hammerson and Drees & Sommer, we aim to share our wide knowledge of the industry and sustainability with the EG audience.
Real estate is one of the biggest contributors to global warming, representing around 40% of global carbon emissions, which means it is also an industry that has the biggest opportunity to make a difference.
“We are fortunate to work with many clients who already have sustainability high up on their agenda, but we recognise the wider real estate industry still needs guidance and support. With the sustainability agenda ever evolving and climate change and net zero at the forefront of everyone’s mind, we believe it’s the ideal time to share our knowledge and expertise with a wider audience. By partnering with the Estates Gazette provides the perfect platform to share our learnings and support the industry to rise to the challenge and tackle this issue head on.”
Chris Bennett, MD, EVORA Global
The new programme coincides with the launch of the Climate Change Commitment by the Better Buildings Partnership (BBP), which has been signed by 23 of the UK’s leading commercial property owners.
The Commitment highlights the need for buildings to be net zero carbon by 2050 and commits signatories to publicly publish their own pathways to achieving this by the end of 2020. Read the full BBP press release here.
If you would like more information about how EVORA Global can support your business in achieving its climate goals, please do contact us.
https://evoraglobal.com/wp-content/uploads/2019/09/EVORA-blog-estates-gazette.jpg6631200Sam Wheelerhttps://evoraglobal.com/wp-content/uploads/2017/06/EVORA-logo-for-small-applications-WHITE-300x172.pngSam Wheeler2019-09-23 16:44:232019-10-31 11:23:44EVORA Global announced as headline partner on Estates Gazette new Sustainability Programme
EVORA support many of our real estate clients to develop sustainability strategies and management systems. The overriding objective of approaches developed is to establish plans that help our clients understand their impacts, manage risks and, perhaps most importantly, drive performance improvement. Often, and unsurprisingly we focus on energy, carbon, water and waste.
However, there are wider opportunities. Biodiversity can often be pushed down the agenda. Real estate owners can develop programmes designed to positively contribute to biodiversity. As you will see in the rest of my blog, I consider this to be very important.
So what is Biodiversity?
Biodiversity, in simple terms, means the variety of life, in all its forms and at all levels. This ranges from genes to species to ecosystems – everything that collectively forms the biological diversity on Earth.
In short, biodiversity is a good thing. It is essential in maintaining a healthy environment and therefore, has an impact on our quality of life.
The decline of biodiversity has serious consequences and its protection and enhancement is essential if we are to achieve a sustainable future. We depend on biodiversity for food, health, natural resources and a range of ecosystem services such as air and water purification, soil fertility and plant pollination. Maintaining biodiversity is also crucial to the development and discovery of new medicines.
The variety of life, in all its forms and at all levels. This ranges from genes to species to ecosystems – everything that collectively forms the biological diversity on Earth.
Increasing urbanisation is contributing to the decline of biodiversity due to the loss and division of natural habitats. Providing opportunities for biodiversity in our built environment is one way that it can be protected and enhanced.
Development schemes can utilise a number of approaches including Biodiversity Net Gain (BNG) – a quantitative, stepwise methodology that aims to enhance biodiversity after development. However, we are increasingly being asked for advice on how Biodiversity can be implemented into strategies, by clients who manage standing investment funds.
Several BNG principles are valuable for application to existing real estate assets, notably: to achieve the best outcomes for biodiversity, to optimise sustainability and to be transparent.
Biodiversity in action
Implementation of approaches to support these aims will result in greener, more biodiverse assets that not only offer homes for wildlife but can also provide wider benefits for people, such as improved air quality and health and wellbeing. It also gives asset managers positive news stories to tell and helps to create great places for people to live and work.
[click_to_tweet tweet=”Biodiversity will result in greener assets that not only offer homes for wildlife but can also provide wider benefits for people, such as improved air quality and health and wellbeing.” quote=”Biodiversity will result in greener assets that not only offer homes for wildlife but can also provide wider benefits for people, such as improved air quality and health and wellbeing.”]
So, in simple terms, what can be done?
Real Estate Organisations can raise the profile of biodiversity within the workplace by:
Assessing the material risks and opportunities associated with biodiversity across portfolios;
Ensuring staff have understood these risks and opportunities;
Raise awareness amongst suppliers;
Implementing practical approaches – suitable for assets in question. If you are struggling to contextualise, think; – Green walls – Beehives – Indoor and outdoor planting regimes – Although many more opportunities exist
Report publicly on organisational performance with regards to biodiversity.
Organisations, wishing to progress further can:
Develop site-specific Biodiversity Strategies or Action Plans for managed assets, with the aim of achieving enhancements for selected species and/or habitats identified in the Local, Regional or National Biodiversity Action Plan;
Incorporate specific biodiversity objectives within asset management plans;
Collect biodiversity data e.g. number of plant types considered pollinators;
Where handing over the asset to new owners, work to “pass on” commitment to biodiversity at the asset, potentially through a handover manual;
Report to local authorities and, where necessary, other bodies, based on the data collected.
Finally, we positively encourage the reporting of progress, through new or existing routes – highlighting positive steps such as:
Measures taken to collect biodiversity information;
Key Performance Indicators, such as % of assets with Biodiversity Management Plan, % of direct employees with biodiversity awareness training;
Records of sightings of endangered/rare/protected species;
Reporting on habitats under threat;
An account of how and where operations have led to the achievement of targets in Biodiversity Action Plans;
Case studies to highlight what has been learnt from biodiversity mitigation and enhancement.
In short, Sustainability is not just about energy, water, waste – Biodiversity often presents an opportunity to progress significant improvements.
For more information, please don’t hesitate to get in touch.
https://evoraglobal.com/wp-content/uploads/2019/07/EVORA-blog-biodiversity.jpg8001200Joanna Tomlinsonhttps://evoraglobal.com/wp-content/uploads/2017/06/EVORA-logo-for-small-applications-WHITE-300x172.pngJoanna Tomlinson2019-07-30 10:32:592019-07-30 10:32:59Biodiversity: enhancing the built environment
At EVORA, we are able to apply our depth of knowledge and experience to help organisations understand and manage environmental risks, as well as realise the opportunities to protect and enhance the long term value of their assets. Our breadth of knowledge and client base have grown year on year and every member of the team is passionate about sustainability as a professional service.
We intend to grow our team by identifying individuals who have similar values, technical expertise and enthusiasm for their work.
We are currently recruiting for the following exciting consultancy positions:
If none of these current roles fit your expertise, but you are a sustainability professional who’d really love to work for a company like EVORA, please get in touch anyway. The team is expanding rapidly and we are always open to speaking with individuals who fit with our culture and values.
We are also recruiting for the following operations and software roles:
Our EVORA EDGE team are also looking for people working in the following areas:
Building Physicists, Building Services Designers and Engineers, EPC assessors, Air Conditioning Energy Assessors, CAD engineers, M&E Tech iCal Services Managers.
No agencies please!
How to apply
Passion and enthusiasm are essential qualities as is a practical common sense approach and a determination to deliver the highest quality of work.
If you think you’ve got the skills and experience to join our rapidly expanding business, we’d love to hear from you!
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.
https://evoraglobal.com/wp-content/uploads/2019/06/EVORA-blog-climate-net-zero-2050.jpg8001200Richard Hillyardhttps://evoraglobal.com/wp-content/uploads/2017/06/EVORA-logo-for-small-applications-WHITE-300x172.pngRichard Hillyard2019-06-12 11:23:092019-06-12 11:23:09Net Zero carbon emissions by 2050: a Green Revolution
Environmental Social Governance (ESG) refers to “the three central factors in measuring the sustainability and ethical impact of an investment in a company or business”. These factors are becoming increasingly important investment considerations.
Since 1970, there have been more than 2000 academic studies seeking to identify if there is a link between ESG and financial performance[1], this really isn’t a new subject. The findings demonstrated high ESG ratings and strong sustainability practices. These correlate to better financial performance across multiple asset classes and regions.
ESG and Fund Performance
Recent award-winning research found that “sustainable” Real Estate Investment Trusts (REITs) benefited from higher rental income and lower interest expenses, resulting in an increased cash distribution to shareholders [2]. A lower risk profile was also identified attracting higher premiums to Net Asset Value (NAV). Transparency through public disclosure was found to be a key facilitator of driving improvement.
GRESB is one of the most popular voluntary certifications for private Real Estate portfolios. Research shows that strong GRESB performance correlates to enhanced fund returns for non-listed funds. Overall, a 3% fund return uplift was observed between the lowest and highest GRESB scoring funds.
Both these examples demonstrate the level of impact ESG is having in the real estate sector. More companies are taking this seriously as it makes economic sense with increased profitability, social sense through the implementation of ethical values and environmental sense through reduced ecological impact.
People & Planet Before Profit
There have also been recent surveys, highlighting that nine out of ten millennials believe the success of a business should be measured by more than just financial performance [3], and 60% of millennials want to join companies that have a societal purpose [4]. Added to that, climate change has rapidly climbed their list of concerns. This strongly correlated with their overall opinion of businesses. Young people and indeed our emerging workforce could not be clearer when it comes to how they expect businesses to act – people & planet before profits.
Integrating an effective strategy
Given the above benefits, it is no wonder that EVORA has been so busy advising clients on how to incorporate ESG principles into fund strategy. The key to success is developing a tailored solution that focuses on material issues and is designed to deliver value in the myriad form it can take. From our experience, an effective ESG strategy must consider its relationship with:
Fund investment strategy
Investor expectations
Portfolio characteristics and material impacts
Tenant needs
Future requirements and trends
How to Integrate GRESB into your ESG Strategy
We recently ran a webinar where we discussed how developing a deep understanding of GRESB, and incorporating reporting and appropriate progression of GRESB targeted improvement initiatives can strengthen your wider ESG strategy.
To request a copy of the webinar, please submit your details below
Conclusion
There are many and varied reasons why you should be considering ESG as a fundamental part of your business strategy and planning. It’s certainly something that we have been helping a large number of our clients with. When we talk about setting an ESG strategy, it’s no longer met with head-scratching and debates about the value it can bring but is increasingly seen as a fundamental business need in today’s economy. Momentum is building, but the real estate industry still has some catching up to do.
So the question is, why do we still need to be setting out the business case? Shouldn’t ESG be business as usual?
https://evoraglobal.com/wp-content/uploads/2019/02/EVORA-blog-header-ESG-business-case.jpg5871200Sam Wheelerhttps://evoraglobal.com/wp-content/uploads/2017/06/EVORA-logo-for-small-applications-WHITE-300x172.pngSam Wheeler2019-03-08 12:03:172019-03-08 13:36:01The business case for ESG. Shouldn’t it just be business as usual?
