BEINFORMED The winter edit 2023
Issue 3
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LIZ HAMSON EDITOR-IN-CHIEF, BE NEWS
ESG... not quite as easy as ABC WHO knows where ESG now sits on the political agenda?
year away and immigration, wars in Gaza and Ukraine and
All that is certain is that it is not at or near the top. Indeed,
a faltering economy distracting politicians, the property
after the recent backpedalling by the Tories and Labour, it
industry will need to take the lead if meaningful progress
may well be closer to the bottom.
is to be made.
So, how does the built environment industry make
It’s not as simple as ABC, but neither is it rocket
progress in critically important areas such as net zero,
science. The will is there, and I hope this collection of
renewable energy, EPCs and social impact in the absence
articles helps people find the way.
of any political clarity or support? For a start, people can read this winter edit of BE
Join us in person
Informed on ‘The A to Z of ESG’. We kick off with a feature
To help people navigate the ESG minefield, BE News will
on the epic EPC mess. Then it’s over to the experts – you
also be holding two important events in the new year. The
– to share insights and practical advice from the ESG front
first, ‘How do we pursue renewable energy with renewed
line (I’d have said coalface if coal weren’t involved).
purpose?’, will take place on 23 January, while the second,
The articles are powerful because they showcase what
‘How to defuse the EPC time bomb’, is taking place in the
businesses and organisations that are truly leading the
week of 26 February. To find out more or to register your
way on ESG are doing. With the general election up to a
interest in attending, email me at liz@benews.co.uk.
WHAT’S INSIDE
Industry calls for EPC clarity P4
How to navigate MEES minefield P6
Wellbeing vital to social value P14
Rethink office furniture design P8
AI can help in drive towards net zero P16
Why investing in community is key P10
ESG is very fabric of good business P18
Make buildings fit for the future P12
The challenges of renewable energy P20 BEINFORMED | 3
Industry calls for clarity over EPCs Two months on from the PM’s U-turn over a number of green policies, the industry is still in the dark about how the UK’s building stock should be decarbonised. Matthew Valentine reports
RISHI Sunak used his net zero speech
buildings, leaving the sector in limbo
strategies of opposition parties would
in late September to row back on a
and sparking calls for greater clarity
be welcome too. This has not been
number of existing environmental
over how the UK’s building stock
forthcoming either.
policies. The prime minister
could, or should, be decarbonised.
described the move as a way to
So, has any clarity emerged over
Sharper focus on commercial
reduce environmental burdens on
what property developers, landlords
“There’s a lot of focus on homeowners
individual families.
and owners can expect in the next few
and social and low-income
years and how they should react? The
households from the government
short answer is no.
and the opposition, and that’s good,”
He announced the scrapping of Energy Performance Certificate (EPC) targets for homes, and pushed
As British Property Federation
he says. “Clearly, the government will
back the deadline for phasing out
assistant director Rob Wall says:
need to provide financing and funding
new fossil fuel boilers by nine years
“There’s been no announcement since
for those low-income households and
to 2025. In doing so, he also managed
the prime minister’s speech setting
social housing to decarbonise.
to sow widespread confusion in the
out the direction of travel around EPCs
“But what we would like to see
property industry.
and MEES [Minimum Energy Efficiency
from all parties is a sharper focus on
Standards] for domestic or non-
commercial real estate. We have a
developers and landlords, who had
domestic PRS [private rented sector]
massive role to play and, because
already made long-term commitments
and that is a concern.”
we have some really quite large
As well as angering residential
towards reducing emissions, the move
Wall’s comment echoes a wider
landlords, we can perhaps help to
infuriated the commercial property
industry frustration over the lack of
build supply chains to deliver heat
sector. Sunak gave no information at
information from the government.
pumps, etc, that can then benefit the
all with regard to what was happening
With an election looming, he says
wider housing sector.”
to environmental rules for commercial
that some insight into the proposed
4 | The winter edit 2023
Jo Preece, construction partner
at law firm Irwin Mitchell, agrees
non-domestic properties will be
that a lack of communication from
required to obtain an EPC rating of ‘B’
but we’ve heard it from a couple of
the government is still a problem.
or above by 2030.
the big finance lenders, who work with
Some businesses were already
mostly commercial properties. They
clients recognise the competitive
struggling to upgrade their buildings
have been chasing the government for
advantages of a better environmental
due to the challenging economic
clarity,” says RICS senior public affairs
performance from their buildings,
conditions, a situation not helped by
officer Sam Rees.
and may act accordingly despite the
the confusion caused by Sunak.
government’s plan – or lack of one. “Our clients are finding it
“Given the competing commercial
Frustration is growing
challenges, portfolio managers have
While some certainty is welcome,
problematic,” Preece admits. “I think
urgent decisions to make about
it does not address a number of
the industry as a whole needs to
whether to invest in their assets or
outstanding issues. Prior to the prime
plan and they need to develop their
move them on. Across the country,
minister’s announcement, RICS
property strategies, in particular their
this is likely to be a crucial factor in
had been calling for changes to the
ESG property strategies, if we are
catalysing asset management and
system in any case. “At RICS, we’ve
going to get anywhere near reaching
transactional activity over the coming
been calling for EPCs themselves
the targets that have been set.”
years, as fund managers, developers
to be reformed in a way that
They may also have to push ahead
and asset managers look to reshape
actually measures and incentivises
with those plans in the absence of
their portfolios,” says Search Acumen
decarbonisation properly,” says Rees.
any clear political direction, which
director Andy Sommerville.
is unlikely to emerge, if it does at
The sudden UK policy change
all, until after the general election
has been criticised by international
In addition, like other interested parties, RICS is keen to see the results of a government consultation
– unless it becomes a surprise
– conducted two years ago – on
campaigning issue. On the plus side, it
achieving higher EPC ratings for
is already evident that occupiers and
non-domestic buildings. Frustration
investors alike are placing a higher
“It appears the rental uptake is quicker
The government should really set out to reform the EPC process over the next year or so
and the rents higher, domestically
Sam Rees, RICS
value on properties that offer better environmental standards. “The value is in those properties that are energy efficient,” says Preece.
and commercially. That is the way the market is beginning to see these things.”
is growing over continued delays in delivering any response to that study. In the short term, RICS wants the same as the rest of the industry, says Rees: clarity on the future of MEES. “Are they going to expand it? Are they going to keep it – given that it has already been in force for a
groups such as the International
number of years – to the minimum
Energy Agency (IEA). The IEA’s latest
EPC ‘E’ legislation? We just want,
reluctance to be associated with
report, World Energy Outlook 2023,
really, certainty from government
properties that do not meet a certain
argues that countries that cut back
and, obviously, certainty around the
environmental standard, she adds.
Conversely, there is a growing
environmental initiatives could
commercial property piece as well,” he
Data from property research
damage their own economies as well
says. “We’ve only heard it through the
specialist Search Acumen supports
as hamper efforts by other nations.
commercial property lenders.”
that view. It suggests that commercial
“Countries that are slowing down
In the longer term, RICS wants to
properties in the UK that do not meet
in terms of pushing clean energy may
see a reform of the EPC process. “The
existing energy efficiency regulations
well have a disadvantage in terms
government, whatever the colour,
are causing owners to lose out on £1bh
of their competitiveness for the next
should really set out to commit to reform
a year in missed rent.
chapter of industry,” IEA director Dr
the EPC process over the next year or so,”
Fatih Birol told The Guardian.
Rees says. “At that point, you can then
According to the research, there are still more than 19,000 commercial
The Royal Institution of Chartered
rental spaces that do not meet EPC ‘E’
Surveyors (RICS) is working on the
standards. If no changes are made to
basis that existing commercial MEES
commercial property rules, all rented
rules will remain in place.
reintroduce further energy efficiency standards back into the marketplace.” The question is: what happens in the short to medium term? BEINFORMED | 5
NICOELNINO | SHUTTERSTOCK
However, she adds that her property
“It’s not been formally announced,
As the industry awaits clarity over Minimum Energy Efficiency Standards regulations, there are steps that responsible landlords can take to ensure they comply Anastasia Klein, head of ESG and partner, Maples Teesdale
THE BPF recently called on government to give “immediate clarity” on Minimum Energy Efficiency Standards (MEES) targets for commercial buildings. It has been over two years since a government consultation on proposed MEES changes closed and we still await a response. The British Property Federation and others believe that the ongoing uncertainty over future regulations risks delaying the sector’s transition to net zero
Navigating the MEES minefield
and are requesting: confirmation of timelines for new MEES ratings; clarity on exemptions and enforcement;
funded and how to gain access to
and information on responsibilities of
occupied premises to carry them out.
owners and occupiers.
All these issues take time to resolve,
Currently, the MEES regulations
and the longer it takes for government
for commercial premises require
guidance to be provided, the less
an EPC rating of ‘E’ or higher for any
time owners will have to get their
new or continuing letting. Premises
assets in order.
The longer it takes for government guidance to be provided, the less time owners will have to get their assets in order
with a rating of ‘G’ or ‘F’ are classed
This uncertainty adds to the
as substandard and cannot – unless
already numerous questions our
an exemption applies – be lawfully
clients have about MEES. The most
let. The industry anticipates that
pressing issues are who is required to
the landlord doing the works because
government will raise this threshold to
do works to improve the EPC rating
(i) the penalties fall on the landlord
‘C’ in 2027 and ‘B’ in 2030.
and who will bear the cost. In fact,
and (ii) generally – unless a lease
no one is obliged to do any works.
states otherwise, which would be
to a ‘B’ within the next seven years
MEES do not require specific works,
extremely rare – improvements are
is a challenge that goes beyond
nor do they require all commercial
the responsibility of the landlord.
changing lightbulbs. Landlords
rented properties to have an EPC
There is no standard rule about
are concerned about what works
of ‘E’ or higher. They just say it is
allocating costs and we have seen
should be done, whether they will be
unlawful to let or continue a letting
many approaches, which depend
sufficient to comply with current and
of a property that is substandard. In
largely on the bargaining powers
future regulations, how works will be
practical terms, however, it is usually
of the parties. A balanced and
To transform an ‘E’-rated building
6 | The winter edit 2023
Key actions for responsible landlords: • Check which assets are currently substandard or likely to become so in the near future and put in place funding and a works programme to address this • See if any exemptions might apply and, if so, whether they would want to use them
clauses in letting documents and, where this is not possible, engage in discussions with occupiers
increasingly common approach is
to carry out MEES-related works.
the landlord covering capital costs
Both landlords and tenants
green lease clauses, they should
(whether because they consider
are concerned about what happens
be able to avoid some of the issues
them ‘improvements’ or the ‘right
to the lease if the premises are
created by MEES going forward. We
thing’ to do) and the tenant covering
substandard. There is nothing to worry
look at clauses enabling the landlord
operational costs.
about here, because a substandard
to enter occupied areas and common
If landlords adopt at least some
EPC rating does not affect the lease
parts to carry out MEES-related works.
Specific access rights
terms. The lease is still valid, and
We also have clauses about the costs
Landlords should check whether they
the landlord and tenant relationship
of these works, and some restrictions
can rely on any exemptions. There
continues just as before. There is,
on what alterations and reinstatement
are a number, including consent,
therefore, nothing preventing a
tenants can do, where they might
property devaluation, seven-year
landlord from continuing to collect
negatively affect an EPC rating.
payback and ‘all relevant energy
rent in a substandard property.
efficiency improvements made’.
The biggest risk for a landlord
Even in this period of uncertainty, there are things responsible landlords
Historically, landlords used the
continuing to let a substandard
can do to address MEES. What we
consent exemption to avoid any MEES
property is receiving fines (on a
advise clients depends on factors
responsibilities, but this is becoming
sliding scale based on rateable value,
such as their ESG appetite and the
less common.
starting in the range of £5,000 to
nature and location of their asset.
Responsible landlords are keen
£50,000, rising to £10,000 to £150,000
Clients are also increasingly aware
to comply with MEES, so are including
after three months) and being officially
that tokenism could lead to
specific access rights to enable them
named and shamed.
accusations of greenwashing. BEINFORMED | 7
MONGTA STUDIO | SHUTTERSTOCK
• Include green lease
Are you sitting comfortably? It’s high time we think hard about the decision processes that result in thousands of pieces of decent office furniture being send to landfill every week during commercial refits
Tim Pyne, creative director, FOOTPRINT+
A CONVERSATION with Nick Searl of Related Argent prior to the first FOOTPRINT+ first raised the issue of the carbon emissions resulting from
The search for brand identity in colours is still seeing a lot of perfectly good furniture simply thrown away
repeated interior refits. Over the last few years, the construction industry has
could see, and then round the corner
clearly made huge advances in carbon
to the next vast warehouse, and so on.
reduction from both the embodied
We’d imagined that the furniture
and operational aspects, but as he
would all be a bit tatty, but on
described, refits are a different animal,
inspection there were thousands of
and one that the developer has little
mint-condition Vitra chairs worthy of
control over.
any ad agency in Clerkenwell. There
At a time when even Formula 1
were beautiful Knoll rosewood tables,
is going net zero, should we not be
leather-upholstered Egg chairs, sofas
thinking hard about the decision
that wouldn’t look out of place in any
processes that result in thousands
boutique hotel reception and Charles
of pieces of office furniture being
and Ray Eames signature pieces in their
thrown away every week during
thousands. Incredibly, all this had been
commercial refits?
rescued from being sent to landfill.
Last week, we went to visit Clear
To move away from knee-jerk all-new and uniform-brand-colour
Environment, an office clearance
Parts for refurbishment
specifications, designers and clients
company in High Wycombe
It wasn’t exclusively designer high-end,
will have to go through a mind-
(incidentally for you pub-quiz-minded
but Clear Environment is careful to
shift because the turnover in these
people, this town was the centre of
avoid junk copies, and it’s all available
warehouses precludes lengthy
UK chair production in the 1800s and
at one third of the list price with no
approval periods. It’s a shoot-from-the-
1900s, and indeed the town’s football
lead time. The company keeps a
hip decision-making process that the
team was colloquially referred to as
huge list of parts for refurbishment –
brand police will no doubt hate, but
the Chairs). On a tour with the
often the arms of office chairs can be
in the new office, which is becoming
managing director, Richard Ryll, we
worn by sliding under desks – and I
steadily more homely post-pandemic,
passed acres of high-quality furniture
met the parts man who clearly knew
surely commercial offices can adopt
that to the casual observer appeared
every number in every manufacturer’s
the hospitality precedent set up by
brand new. It went as far as the eye
catalogue by heart.
the Eagle gastro pub in the early
8 | The winter edit 2023
Sponsored by
1990s. Everything was unmatched, secondhand and cheap. Most commercial interiors are stripped out and refitted every three to five years for offices, and five to seven years for hospitality. Companies are finally emerging that are producing low- or even zero-carbon interior products, but the search for brand identity in colours, and the observance of trends, is still seeing a lot of perfectly good furniture simply thrown away. I expect companies like Richard’s aren’t particularly popular with furniture
manufacturers for obvious reasons, FOOTPRINT+ is the world’s most advanced international conference for the decarbonisation of the built environment. Constantly breaking new ground, it has set a precedent in the UK’s swiftly advancing and ever more integrated property and technology sectors.
but it cannot be ignored that reuse is a strategy to employ when it comes to interiors. As they say, reuse is the ultimate form of recycling. At FOOTPRINT+ next May, all our furniture will have been sourced the month before from Clear Environment. There will be information on the carbon saved by the reuse of each item, sourced from Furniture Industry Research Association-approved data, and this will certainly provide food for thought while you’re having your lunch. BEINFORMED | 9
Community matters For SEGRO, investing in the local community isn’t only the right thing to do – it’s also key to the success of the business
Paul Dunne, group customer and operations director, SEGRO
credentials that are transparent, credible, measurable and auditable prior to making an investment. In order to continue attracting investment, putting in place an authentic ESG
THE notion of property developers
strategy that includes community
investing in communities is not new.
investment is fast becoming a
At SEGRO, we started doing this over
prerequisite for funding.
100 years ago, but it’s fair to say the
Government policy and legislation
expectations on companies today are
are also changing, and many of the
quite different to what they were then.
proposed changes are designed to
To do community investment well requires planning, focus, local knowledge and commitment We need to build trust and
There are plenty of cynical
benefit local communities by improving
help to shape emerging social-led
views about why companies invest
low-carbon growth, creating jobs and
planning policies to ensure they are
in communities. Every developer will
increasing local authority income.
fit for purpose for the community and
have to invest in the community as a
our industry.
condition of planning, whether through
Building trust
Section 106, affordable homes, the
There is also an expectation at
employees are passionate about
Community Infrastructure Levy or
government and local authority
community investment and the sense
something else, but others choose
level that the real estate sector can
of pride this creates. It therefore plays
to implement community investment
and should do more to mitigate the
a vital role in attracting and retaining
programmes above and beyond this.
impact of development on the local
talent into the sector.
So why do communities matter?
area and maximise the opportunities
Finally, we know that many
It might sound easy, but one
First and foremost, it’s the right thing
for local people. Furthermore,
important lesson we have learned
to do. But at SEGRO, we also believe
communities can make or break local
is that to do community investment
it is fundamental to the success of
authority decisions, so it is important
well requires planning, focus, local
our business.
to build strong, trusting and mutually
knowledge and commitment. We
beneficial partnerships with a wide
need to engage and listen to what
range of local stakeholders.
communities want and respond
Investors increasingly require businesses to demonstrate ESG
ABOUT SEGRO: SEGRO is a UK real estate
£21.0bn serving customers from a
to happen. From modern big-box
investment trust (REIT), listed on
wide range of industry sectors.
warehouses, used primarily for
the London Stock Exchange and
Its properties are located in
Euronext Paris, and is a leading
and around major cities and at key
distribution hubs, to urban
owner, manager and developer
transportation hubs in the UK and
warehousing located close to major
of modern warehouses and
in seven other European countries.
population centres and business
For more than 100 years,
districts, SEGRO’s high-quality
industrial property.
regional, national and international
It owns or manages 10.3m sq
SEGRO has been creating the space
assets are designed to allow its
m (or 110m sq ft) of space valued at
that enables extraordinary things
customers to thrive.
10 | The winter edit 2023
Sponsored by
accordingly. We can’t assume we know what is best. At SEGRO, our community investment approach is implemented through our Responsible SEGRO framework through which we are delivering our ESG commitments. We have set a goal to create and implement Community Investment Plans for all our key markets. The plans are designed to support local people
COMMUNITY CASE STUDIES:
to develop the right skills to get a job, help the local economy to thrive and
ENVIRONMENTAL PROJECTS:
SCHOOLS WORK PROGRAMME –
deliver environment-led community
SEGRO has partnered with
SLOUGH:
projects that enhance biodiversity and
Groundwork UK to deliver 30
In partnership with Learning to
improve health and wellbeing.
community environmental
Work, we are engaging with all
projects. Since 2022, 13
secondary schools in Slough
Measurable outcomes
projects have been completed
through a range of activities
As well as encouraging SEGRO
supporting the improvement
delivered to all year groups,
colleagues to get involved, we will, by
of biodiversity and community
including careers talks and
the end of 2023, have enlisted the help
wellbeing.
workplace visits to the Slough
of over 100 customers and suppliers
From schools to community
Trading Estate.
in the Community Investment Plan
centres, food hubs to meadows,
programme to further enhance the
the projects have improved
resource, Work Ready Club, is
reach and impact.
more than 10,000 sq m of
also providing careers leads
community green space.
in school with a wide variety
outcomes that will have the biggest
The projects have
of material to support their
positive impact. We believe that over
also supported over 70
students as they make decisions
the next 10 years our £25m-plus
disadvantaged, long-term
about their future careers.
investment will enable 50,000 students
unemployed and vulnerable
to be engaged and inspired to fulfil
members of the community
has helped inspire more than
their potential through our schools
to change their lives through
6,800 students from 18 schools
programme; 15,000 people to
accessing ‘Green Skills’ training,
about career opportunities in
benefit from skills, training and job
mentoring and skills support,
sectors including real estate,
brokerage programmes; and 300
and helping them on the path to
construction, manufacturing and
initiatives delivered to improve the
employment.
digital technology.
We are focused on measurable
The creation of an online
Since 2022, the programme
environment, health and wellbeing of the local community. At SEGRO, we believe that as
EMPLOYABILITY SUPPORT:
an industry we can act as a catalyst
SEGRO has supported Action West London – an employability and
and an accelerator for good in the
careers-focused charity – to provide focused training and guidance to
communities in which we operate.
unemployed people in west London.
We are very happy to share our
The company has delivered focused and bespoke employability
experiences with any of our peers if it
training for vulnerable, unemployed people to equip them with the
helps to drive an industry-wide effort.
skills and confidence they need to enter the workplace, as well as
Now is the time to create
a range of short courses, with each client supported by a personal
momentum that will respond to the
adviser/mentor and bursaries for six months once in employment.
needs of these stakeholder groups and help change the lives of the most
The first tranche of funding up to March 2023 resulted in 201 engagements, 164 project starts and 70 beneficiaries into work.
vulnerable in our society. BEINFORMED | 11
Retrofit for the future Commercial acumen is what’s required to drive the necessary rate of retrofit implementing an effective business
encouraging innovation in the supply
plan to make the asset fit for the future.
chain and the further development of
Of course, now there is a greater
new technologies.
imperative influencing this commercial Hedley Jones is Head of ESG (Refurbishment & Development) at Workman and a Chartered Building Surveyor with 30 years’ experience across all major property sectors. Hedley acts for leading institutional investors, private property companies and overseas investors, advising on ESG targets and initiatives including carbon reduction strategies within multi-million-pound retrofit, refurbishment and new-build projects across the UK.
objective: if we don’t tackle climate
Retrofit first, not retrofit only
change, talk of income streams, yields
Merely promoting a green agenda,
and returns becomes irrelevant.
making unsubstantiated claims or believing green badges tick the box
Apply a commercial lens to meet
will do more harm than good. We have
the challenge
to examine each building individually
Now more than ever, identifying
to identify the schemes that will
commercial solutions that make
measurably reduce embodied carbon
previously unviable investments
and lower energy intensity, while
fit and feasible for the future is so
simultaneously delivering the business
important. Office agency Knight Frank
plan of the building. Retrofit may not
estimates that the rate of retrofit needs
always be the optimal pathway, but it
to quadruple to more than 500m
should always be considered first.
sq ft per year to meet the existing Minimum Energy Efficiency Standard (MEES) target of 2030. But MEES is just a (notional) minimum standard – one that many occupiers’ and investors’ requirements already exceed. So the
If we don’t tackle climate change, talk of income streams, yields and returns becomes irrelevant
REFURBISH, repurpose, retrofit. The
need, or opportunity, is actually far
terminology and triggers for these
greater. It is estimated that around 70%
projects may change over time –
of commercial building stock in use
change of use, repositioning of assets,
today was constructed before 2000,
meeting occupier demands, improving
so thousands of buildings will need
energy efficiency, carbon reduction,
to undergo some form of retrofit to
statutory compliance. But ultimately
improve energy efficiency before 2050.
For those who see this as an
the rationale remains the same: to
As an industry, we have the
opportunity and are looking to buy,
secure a building’s commercial viability
creativity, ingenuity and tenacity to
that starts with pre-acquisition due
for the future, ensuring its liquidity for
tackle this challenge – we shouldn’t
diligence. Increasingly, our advice
both leasing (by meeting occupier
be ashamed of applying a commercial
here is driven by identifying the
demands) and sale (by meeting
lens in order to meet it. Without a
opportunities to drive environmental
investor standards).
financial engine and sound economics,
performance, set against the potential
the required rate of change simply
risks of not doing so, and evaluating
won’t happen.
this within the context of the intended
Statutory, environmental or market targets are essentially just the tactical levers to meet the overall
We have to find ways to make
strategic objective: to prevent assets
existing solutions such as mass timber
becoming stranded without a viable
construction and heat pumps more
modelling (both operational and
use or market; by identifying and
widely feasible and adoptable, while
embodied) enables early option studies
12 | The winter edit 2023
business plan. We have data on our side. Carbon
© BEN MCPHEE / ASSOCIATED ARCHITECTS
Sponsored by
10 Bindley Place, Birmingham
to consider what delivers the best
through the thermal insulation, air
outcomes before key design decisions
Workman is the largest,
tightness, glazing ratios and glass
are made, allowing carbon to be part of
independent commercial
specifications included in the design,
the design process and viability testing.
property management and
will achieve energy savings for the
Knowledge from previous projects can
building consultancy firm in
occupiers of around 65% compared
help spark the process and our pre-
the UK.
with equivalent-sized typical buildings,
redevelopment audits and whole-life-
equating to 658 tonnes of carbon
carbon assessments, which form part
dioxide per year.
of our feasibility advice, demonstrate
Occupier demands and sustainability
the value of data to facilitate carbon
requirements converge
present even greater challenges, the
and cost reduction through the use of
Fortunately, occupier demands
retrofit-first principle is even more
less material. Addressing this early in a
and sustainability requirements are
important in these cases. We’ve seen
project is key to avoid heading off down
converging, so meeting the latter often
first hand what can be done. The
the business-as-usual route.
satisfies the former. The nature of
Hanover building in Manchester’s
workplace design, quality of amenity
NOMA district saw an unoccupied
‘Radical collaboration’ is a phrase I first
and level of building performance
former Co-op office and drapery
heard championed by Sarah Ratcliffe of
that occupiers and their staff most
warehouse, and a beautiful example
the Better Buildings Partnership, while
value naturally lend themselves to
of the city’s Baroque architecture,
the work of groups such as the Green
improved environmental performance
sensitively converted into modern,
Property Alliance and UK Net Zero
and creating a green premium
energy-efficient office space with
Buildings Standard, in bringing together
for investors.
market-leading amenities that was
Finally, we have to do this together.
multiple stakeholders and areas of
At 10 Brindleyplace in Birmingham,
While heritage buildings can
let to Amazon. A clear example of
expertise from across real estate, is
the city’s largest office refurbishment
making sure buildings from the
essential to find the solutions needed.
scheme completed this year and
previous century meet the needs of
As an ESG Project Advisor, I
project managed by our Venture team,
modern occupiers.
collaborate closely with project teams
the state-of-the-art cycle amenities
and technical consultants throughout a
for up to 100 cyclists and 24 electric
the effects of climate change is on a
project’s lifecycle. We challenge them
vehicle charging bays are the quality
different scale to any other. But only
to look beyond statutory minimums
of amenity that occupiers require, yet
by applying the real estate industry’s
and maximise every opportunity
will facilitate the behavioural change
keen-eyed commercial principles
and innovation to drive tangible ESG
needed to significantly reduce the
to renewing the stock of existing
performance in line with the project
impact of commuting staff.
commercial buildings will the market
brief (and beyond where a business case can be found with the client).
In addition, the reduction in heating and cooling demands, achieved
The goal of saving the planet from
move quickly enough to deliver the scale of change needed. BEINFORMED | 13
All well and good Health and wellbeing are key to Regal London’s social value strategy, which is why it is designing its office The Clarendon Works to achieve the highest-possible wellness rating
Paul Eden, co-founder, Regal London
Important as jobs, skills and
meaning The Clarendon Works is set
the local economy are, a focus on
to join only six other buildings in the
health and wellbeing should not be
entirety of the UK that have achieved
overlooked. We think of it as the third
WELL’s highest rating.
leg of a stool: along with sustainability
Achieving WELL certification
WHAT do you think about when you
and socio-economic impact, health
through the International WELL
hear the term ‘wellbeing’? Yoga?
and wellbeing are critical to our social
Building Institute requires the focus
Green smoothies? Mindfulness?
value strategy.
of the entire project team, right from
Certainly, the concept has become
the outset. There are seven key
all-pervasive in contemporary culture,
What does it really mean to be a
criteria covered by WELL – air, water,
with ever more products and services
healthy building?
nourishment, light, fitness, comfort
making bold claims about how they
At The Clarendon Works, we are
and mind – and The Clarendon
will make you a better you. Gurus
following the WELL Building Standard,
Works is being developed to meeting
abound, and it can be hard to separate
which is an international performance-
exacting standards on each of these.
scientific fact from clickable meme.
based assessment methodology
These include factors such as
grounded in medical research that
ensuring there is abundant natural
is exclusively focused on human
light, fresh air, specially filtrated
There is therefore some scepticism about the claims from the built environment sector that offices
drinking water, healthy eating options,
can be designed to improve the
indoor planting and noise reduction
health and wellbeing outcomes of
measures, as well as a layout aimed
employees, boosting productivity and a company’s bottom line. But at our best-in-class, highly sustainable office development The Clarendon Works in Watford, that is exactly what we are doing. Working closely with our architects and
Important as jobs, skills and the local economy are, a focus on health and wellbeing should not be overlooked
consultants, we are designing The
at encouraging movement around the workplace. Shared amenity spaces in the building and a rooftop café and terrace also offer places that enable employees to relax and interact with others. The benefits of WELL
Clarendon Works to ensure it has a
health and wellbeing in the built
But why does this matter? The WELL
range of special characteristics that
environment.
accreditation reflects the attention
will benefit the minds and bodies of
The standard has become a key
the people who work in the building.
marker of new office design in the US,
and wellbeing outcomes for the
we’re placing on transforming health
This is important not just for the
and an increasing number of major UK
future employees who will make The
benefit of the end users, but because
office developments currently under
Clarendon Works their workplace.
improving health and wellbeing
construction are registered for the
outcomes plays an important role in
rating. The Clarendon Works is being
a focus on enhancing workplace
our overall approach to sustainability
designed to achieve WELL ‘Platinum’
wellbeing has significant positive
and social value – and can sometimes
certification – the highest-possible
impacts on productivity. For example,
be set aside in the discussions around
rating. We are well on track to achieve
improved air quality can enhance
social impact, which often focus on
this, having secured pre-certification
cognition by as much as 61%; drinking
socio-economic outcomes.
for WELL ‘Platinum’ over the summer,
ample fresh water can increase
14 | The winter edit 2023
According to a range of studies,
Sponsored by
The Clarendon Works: on track to achieve WELL ‘Platinum’ certification
productivity by 14%; and an office
The Regal London Real Estate
design that enhances movement can
Regal London is one of
Academy, in partnership with charity
boost productivity by 12%.
London’s leading residential-
Building Heroes, is supporting Watford
led mixed-use developers.
residents to gain the skills to begin a
Why? Because a workplace focused on wellbeing creates happy,
Our focus on unlocking
career in construction through a mix of
healthy and focused people that are
value from complex urban
classroom learning and onsite, hands-
good for businesses – they are more
settings has enabled us to
on training at The Clarendon Works.
productive, enthusiastic and likely to
transform London’s landscape
stay longer in a job and need fewer
and deliver high-quality
space is complete in 2024, there will
sick days as well. These positive
housing and spaces for people
have been nearly 100 graduates of the
outcomes are evidenced in numerous
to live, play and work in.
Regal London Real Estate Academy
research studies, scientific research
Our developments
in Watford, over the course of nine
and data and make a strong case for
reflect the diversity, vibrancy
cohorts. These people who come
the benefits of a WELL building.
and eminence of one of the
from all walks of life, with many of
most inspiring cities in the
them calling Watford or a nearby town
Green, good and healthy
world. Bespoke design and
home, will have gained valuable new
And these positive health and
uncompromising quality
skills, experience and contacts that
wellbeing outcomes work hand in
define us.
may have changed the course of their
hand with our wider approach to
By the time this best-in-class office
careers and, in some cases, their lives.
sustainability and social impact. The
At The Clarendon Works we are
Clarendon Works is being designed
year compared with a typical office
working hard to ensure that our social
to the highest sustainability standards.
building, giving the businesses in
impact is positive and enduring. We
Significantly, it will run entirely on
the building the confidence that it
don’t only want to build Watford’s best
electricity, rather than using gas for
is working hard to reduce its impact
and most sustainable workplace –
heating, meaning it can be connected
on the environment and helping
we want to also be a great neighbour
to 100% renewable energy sources.
companies achieve their own
and a responsible member of the
This is unusual for UK office buildings
sustainability targets.
Watford community.
but is a hugely important step in
Our team at Regal London
reducing the carbon footprint of
has also been working closely
means ensuring the project supports
commercial real estate.
with the community to ensure the
positive health and wellbeing
development of the building has a
outcomes. A job well done is one that
positive impact on the neighbourhood.
is green, good and healthy.
With a range of green features, it will save 69 tonnes of carbon per
For Regal London, that also
BEINFORMED | 15
The ESG puzzle Artificial intelligence, data and technology are essential tools to help the property industry in its drive towards net zero
Correy Faccini, head of marketing, Smart Spaces
As the head of marketing
WITH the drive to net zero, property
into the equation, we limit the need
owners, operators and managers
for human intervention. We can use
are looking towards tech companies
AI to sift through the terabytes of
for support in bridging the gap and
information, creating algorithms
helping to solve some of the biggest
for reading patterns, enabling us to
questions the industry has faced.
identify the data that really matters.
Whether new build or retrofitting
We can then translate that
at Smart Spaces, Correy
existing properties, it’s no longer
information into stories that landlords
Faccini is helping to build the
a question of ‘if’ but ‘when’. Each
and tenants can understand, giving
brand into a household name
property is unique and presents its
actionable insights into how to reduce
and the go-to solution for
own challenges – whether these are
the carbon emissions of a building.
smart buildings.
outdated systems that need replacing,
With the number of touchpoints for
With a passion for
understanding the specific needs of
gathering data increasing, so will the
consistent innovation and
tenants or simply engaging with the
need for AI.
creativity, Correy looks to
workforce occupying each asset.
tear up the rulebook for
The ‘E’ in ESG is a costly, time-
Social impact enabler
property marketing, applying
consuming and often political topic
We can then take the technology
learnings from a diverse range
– and that’s only one part of the puzzle
further and give AI the power to
of industries.
that the commercial real estate sector
make real-time automations to help
is trying to solve.
optimise energy usage during any
Working in marketing for more than eight years,
For a sector that has been
given day. The ability for AI to analyse
he has hands-on experience
historically slow to adopt new tech, it
data instantaneously also enables it to
with an impressive roster of
has become increasingly apparent that
help make incremental energy savings
household names across a
innovation is needed. Entire teams are
while ensuring the tenant experience
broad spectrum of sectors
being assembled across the industry
remains unchanged.
including hospitality,
to drive change. But still the question
pharmaceuticals, space
remains: how?
This brings us to the ‘S’ in ESG. Social impact is often the least well-
and satellite technology,
The answer lies in the data.
defined factor and can be overlooked
food and beverage, fashion
Each system within a building can
when discussing ESG. This is because
and more.
be connected by way of sensors to
it means something different to
Now turning his hand to
a piece of software that can pull this
each organisation. Social impact is a
proptech, Correy is working
data and give landlords and tenants
uniquely human factor and while we
with Smart Spaces to tell
a clear image of how energy is being
look to build efficiencies and become
the stories that truly matter
consumed. This can then highlight
a more connected society, we can’t
for the future of property,
flawed systems that either need to be
become too embedded in technology
with particular emphasis on
fixed or replaced completely.
that we lose that human touch.
sustainability, connectivity,
This isn’t the end of the journey,
emerging innovations and
though. If the data isn’t being used
enabler for connectivity and thus social
security.
in the right way, it’s just an expensive
impact. By connecting with the tenants
exercise that yields few results.
and occupiers through a workplace
By adding artificial intelligence (AI) 16 | The winter edit 2023
Technology can, however, be an
app, social initiatives can be put front
GOLDEN DAYZ | SHUTTERSTOCK
Sponsored by
and centre. Social wall functionalities
standardised reporting, especially in
As with any tech advancement,
in workplace apps empower the
relation to sustainability, where the
there will be hiccups – and we need to
workforce through events, charitable
industry looks to pull away from the
take the necessary steps to mitigate
initiatives and key announcements,
potential of greenwashing.
against this. AI bias can occur when the
which support the engagement
To truly standardise reporting and
person training it is seeking a specific
with the local area. Moreover, they
governance, we need to look at the
output. This is a further topic of debate
can support each company in
information and data that are being
that many technology companies are
understanding how and where to
collected. Here lies the opportunity for
looking to overcome.
define its social impact through direct
The solution lies in the
engagement with employees.
sophistication of the technology and
Through an ongoing and direct dialogue with those occupying the building, workplaces can become more than just the grey lifeless husks of yesteryear and move towards more holistic and attractive places that people enjoy spending time in. This in turn can help entice teams back to the
the system’s ability to determine false
If the data isn’t being used in the right way, it’s just an expensive exercise that yields few results
office once more, a topic that has been
or inaccurate information. In addition, it requires experts in the field who are adept at creating algorithms that capture all truthful and impartial information. The industry is taking significant advancements here and this issue is becoming less common as time passes.
hotly debated in the industry since the
AI. By increasing our capabilities for
All in all, AI, data and technology
end of the Covid-19 pandemic.
analysis, we can in turn increase the
provide the answers to many of the
vast amount of data that is collected to
industry’s biggest questions. But they
Move away from greenwashing
find the most important and accurate
must be seen as tools for attaining
Finally, we turn to ‘G’. Head to any
figures to be reported on. Moreover,
the end goal with the help of human
event in the commercial real estate
this analysis will remain impartial,
intervention and there is no one-size-
sector and you’ll hear in-depth
without falling into the trap of selecting
fits-all solution for a sector where each
discussions about the need for
only the most attractive statistics.
property’s needs are unique. BEINFORMED | 17
The reality of ESG We must stop viewing ESG as an additional layer of responsibility – rather, it must be seen as the very fabric of good business As someone who has Joseph Michael Daniels, founder, Elixr
I once navigated taught me that
experienced the raw realities of life
authentic social impact begins with
on the streets, I understand that the
understanding and empathy.
consequences of environmental degradation hit the most
G: evidence-free territories
IN the labyrinth of corporate
vulnerable the hardest. Simplifying
Governance, the silent guardian of
sustainability, environmental, social
environmental initiatives not only
corporate responsibility, is often
and governance (ESG) factors
benefits the planet but also ensures
lacking the very thing it purports to
have become the guiding stars
that the less fortunate are not
uphold – evidence. How can we claim
for conscientious investors and
left behind in our pursuit of a
to govern responsibly when decisions
responsible businesses. However,
sustainable future.
are made without a solid foundation
the journey through the alphabet
of data? It’s like building a house of
of ESG is riddled with complexities,
cards in a windstorm – it is destined
contradictions and a lack of genuine
to crumble.
commitment. As an intellectual urbanite who has traversed the uncharted territories of homelessness and hardship, I cofounded the Live Data Trust, driven by the belief that ESG should be more than just a checklist; it should be a
How can we claim to govern responsibly when decisions are made without a solid foundation of data?
visceral reflection of our commitment
I have witnessed first hand the consequences of decisions made without evidence. Whether in corporate boardrooms or the halls of government, we need a paradigm shift toward evidencebased governance. Without it, our commitment to sustainability
to the environment, society and
S: the illusion of understanding
transparent governance.
When it comes to the social aspect
becomes nothing more than a facade.
of ESG, we often fall into the trap of
The Live Data Trust: filling the gaps
E: cut the red tape
assuming we know what’s best for
Recognising the deficiencies in the
The environmental leg of ESG
communities. We claim to listen,
ESG alphabet, I co-founded the Live
should be a straightforward pursuit: a
but are we really hearing the voices
Data Trust (with Tom Fenton and in
commitment to preserve and protect
of those affected by our actions?
co-operation with the Construction
our planet. Yet we have tangled
My personal journey exposed me
Data Trust, founded by Grant Findlay)
ourselves in bureaucratic red tape,
to the harsh realities of a society
with the aim of creating a beacon of
making environmental initiatives
that often neglects its most
transparency and accountability. In a
more convoluted than they need
marginalised members.
world drowning in data, the Live Data
to be. From cumbersome permit
To truly address social factors, we
Trust is a response to the critical need
processes to regulatory roadblocks,
must move beyond assumptions and
for reliable, real-time information to
we’ve created a web of obstacles
actively engage with communities.
drive responsible decision-making.
that hinder progress. It’s time to cut
It’s not enough to tick boxes and
through the red tape and streamline
claim social responsibility; we need
efforts in the realms of E, S and G
our efforts, focusing on tangible
genuine, informed dialogue to
are nothing more than smoke and
actions that make a real impact on
guide our actions. The homeless
mirrors. The Live Data Trust seeks
our environment.
shelters and poverty-stricken streets
to bridge the gap between good
18 | The winter edit 2023
Without trustworthy data, our
Sponsored by
questionable; they’re bad business. As co-inventors and investors, our journey should be more than just a quest for financial gains; it should be a commitment to building ventures that stand the test of time. It’s not sustainability vs profitability The Live Data Trust, Elixr and ‘Generationally Yours’ are living proof that sustainability is not an add-on but an intrinsic part of good business. We must challenge the status quo that separates sustainability from profitability. The best returns are not 3RDTIMELUCKYSTUDIO | SHUTTERSTOCK
fleeting gains that disappear like smoke; they are investments that echo through generations, sustaining communities, environments and businesses. Quick profits that compromise the long-term health of our planet and society are not just myopic; they are a betrayal of the very essence of entrepreneurship. Eco-entrepreneur Joseph Michael Daniels founded sustainable affordable housing business Etopia, which he stepped down from
The fabric of good business
recently. This July, he founded Elixr, a purpose-driven venture builder
So, let’s discard the notion that ESG
focused on supporting ESG entrepreneurs, and appointed Catalina
is an additional layer of responsibility.
Valentino as chief executive.
Instead, let’s embrace the reality that it’s the very fabric of good business. The Live Data Trust, Elixr and
intentions and meaningful impact
often seen as a breeding ground
‘Generationally Yours’ are not isolated
by providing a secure platform for
for rapid growth and short-term
endeavours but interconnected
sharing accurate, up-to-the-minute
gains, can be a major contributor to
chapters in a narrative that challenges
data. Why? Because data is not just
environmental degradation. However,
the dichotomy between profits and
a commodity – it’s the lifeblood
Elixr stands apart by integrating
sustainability.
of responsible governance and
sustainability into its core. We
sustainable practices.
understand that the best returns are
be a choice we make; it should be the
not just financial – they benefit our
foundation upon which we build our
communities and our planet.
ventures, make our investments and
Elixr: a venture builder My business, Elixr, was born of the
Ultimately, sustainability should not
shape our legacy. The alphabet of ESG
belief that sustainability is not just
Generationally Yours
is not a code to crack; it’s a language
an ethical choice; it’s a strategic
I’ve taken to the airwaves with
we should speak fluently in every
imperative. Entrepreneurs are the
‘Generationally Yours’, an ESG
boardroom, on every podcast and in
creators and shapers of our carbon
podcast that aims to strip away the
every entrepreneurial endeavour.
footprint and I track my own carbon,
acronyms and unveil the essence of
The true measure of success is
not merely as a token gesture but as a
why sustainability is good business.
not just financial gain but sustainable
commitment to lead by example.
Quick profits without long-term
returns that echo through the annals
sustainability are not just ethically
of time.
The venture builder industry,
BEINFORMED | 19
The real power struggle We must take steps to overcome the challenges surrounding renewable energy as we strive to achieve net zero by rising costs, most recently reflected Stelios Coutsavlis, partner, Irwin Mitchell
in the 5th Contract for Difference auction round, which saw no offshore wind operators taking part, as well as the cancellation of one of the
Stelios Coutsavlis is a partner
UK’s largest offshore wind farms,
in the property team at Irwin
Norfolk Boreas, owing to a lack of
Mitchell. He specialises in
financial viability.
renewable energy around
Further, the lengthy delays
the UK, acting for developers
in obtaining grid connections for
and landowners on the
consented schemes and the pricing of
development of wind, solar
‘contracts for difference’ will need to be
(ground-mounted) and rooftop
addressed for the sake of the health of
and gas-peaking plants.
the industry. The growing backlog of projects awaiting approval is creating a negative effect.
IN AN increasingly uncertain world
There were signs in the recent
offshore wind, geothermal, solar
renewable energy is becoming
King’s Speech that the former is being
and tidal technologies for Allocation
increasingly important and is set
addressed, while this government,
Round 6 due to take place in 2024.
to play a growing role in our lives –
or its successor, will need to address
Offshore wind projects will also have
but it faces challenges that must
the latter to enable the reset of UK
an additional funding source from the
be overcome if we are to swiftly
renewable energy policy on its path
UK government and will benefit from
achieve net zero.
to net zero. The UK government will
the introduction of Sustainable Industry
need to spend many billions of pounds
Rewards from 2025.
First the good news: the pace of renewables growth across the globe
in making contracts for difference
Developers and funders have
is quickening as technologies improve.
attractive to developers and their
to navigate these obstacles while
However, the bad news comes in the
funders and to ensure that the national
dealing with perennial issues of
form of a retreat by the UK government
grid is fit to transmit the necessary
obtaining planning permission and grid
from its commitment to net zero, which
electricity from developments and
connections that are viable for their
risks the UK’s global standing and
to the many charging stations to
proposed schemes.
damages its economic prospects.
be installed as part of the electric
Recent analysis from Cornwall
transport revolution.
Streamline planning
Insight reveals that the government
On an optimistic note, the
The current planning legislation
will miss its 50-gigawatt offshore wind
Department for Energy Security and
also prevents the prompt delivery
capacity target for 2030 owing to
Net Zero has since confirmed that it
of energy projects and related
delays in offshore wind deployment.
is increasing the administered strike
infrastructure needed to move to net
The delays are largely brought about
prices for offshore wind, floating
zero. Planning legislation therefore
20 | The winter edit 2023
NUTTAWUT UTTAMAHARAD | SHUTTERSTOCK
Sponsored by
Recent analysis reveals that the government will miss its 50-gigawatt offshore wind capacity target for 2030
develop schemes that are attractive
agreements; on the flexibility needed
to all. In particular, the growth of
to obtain all relevant consents for
renewable energy projects has
the projects; and on navigating
been driven by creative forms of
the difficulties of dealing with the
financing from funders, increasingly
consenting regime. However, if the
infrastructure and other non-
appropriate statutory and market
commercial bank funds, as well as
framework is provided by the UK
the innovation of technology.
government, then this process will be
Lower investment costs have served to increase viability and
made easier and the achievement of net zero will be accelerated.
has to be streamlined to accelerate
return-on-investment capital,
the construction of energy projects
meaning that renewable energy
on having a proactive and experienced
and essential infrastructure to meet
schemes are becoming increasingly
renewable energy team led by Claire
the energy needs of the future. This
cheaper to build in comparison with
Petricca-Riding and myself in England
will not be easy, but it is imperative to
fossil fuel projects.
and Wales and we work with Andrew
At Irwin Mitchell, we pride ourselves
balance environmental protection and
In view of the obstacles being
McFarlane and his team at WJM in
the need to modernise the energy grid.
faced currently, it is more important
Scotland, providing expert advice to
than ever that developers and
guide clients through the process. The
and funders to work closely with
landowners are properly advised
team is based throughout our network
landowners, planning authorities and
regarding the obstacles in negotiations
of offices and provides advice to clients
development network operators to
for land contracts and supply
throughout the UK.
It is important for developers
BEINFORMED | 21
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22 | The summer edition 2023