BE Informed | The winter edit | 2023

BEINFORMED The winter edit 2023

Issue 3

The A to Z of ESG Brought to you by

BEINFORMED | 1

Want to be in BEINFORMED? Did you miss out on the opportunity to be in this

incredible collection of thought leadership articles?

Don’t miss out again!

If you missed out on the opportunity to contribute to ‘The A to Z of ESG’, don’t worry.

We’re already working on the next one, which will be published in January 2024.

What we need from you:

It is on a subject that is at the top of the built environment agenda if not the political one: the living sector. So, whether you have something to say about volume housebuilding, general residential development, BTR, PBSA, senior living, affordable housing or social housing, we want to hear from you. Ditto if you are trying to transform the sector in some way, perhaps through an ESG initiative, smart technology or modern methods of construction.

Life Sciences

Living

Future BE Informed themes

Smart buildings

Industrial & logistics

•

1,000 words

•

yline and head-andB shoulders shot

•

hort company or S personal profile

•

Company logo

What you get in return: •

double-page spread A in a digital page turner collection

•

xposure to an audience E of 11,000-plus via BE News and BE Alert

•

opy approval before we C go to press

•

o be positioned as a T thought leader in your space

Get in touch with us today to ensure you don’t miss out on inclusion in ‘Living for the future’ edit or a slot in one of our upcoming BE Informed collections.

DE&I

Contact us: To secure your double-page spread in BE Informed now and take advantage of our amazing introductory rates, contact BE News editor Liz Hamson at liz@benews.co.uk or head of sales Nick Stroffolino at nick@benews.co.uk.

We look forward to hearing from you.

2 | The winter edit 2023

Be in BEINFORMED and help inform your built environment peers!

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

No cost. No hassle. No catch Want the latest real estate and deal news but fed up with soaring subscription costs? BE News brings you all the latest real estate news – and much more – for free.

We’re not talking free trial period. We’re talking free, period.

So, why pay when you don’t have to?

Sign up for free to BE News and BE Alert today.

BE Informed, BE Connected… with BE News Scan the QR code to register for BE News for free or visit www.benews.co.uk/register

22 | The summer edition 2023