The ESPRO Stockholm Conference “The move towards a sustainable property sector in Europe” The Property Investor’s Commitment to Sustainable Development – Turning Words into Action Liz Peace Chief Executive British Property Federation 5 April 2005 Stockholm, Sweden

It’s more pressing than ever! “it’s proved more difficult than we thought” – Margaret Becket

What goes round…! Contractors Occupiers Finance Space Investors/Bankers Return Rent Commercial Property Company/Developer Interest Pensioners/Savers Shareholders Shareholder/Owner

The Circle of Blame Occupiers “we would like to have more sustainable buildings to fulfil our corporate policy commitments but there is little choice of properties” Constructors “We can build environmentally efficient buildings, but the developers don’t ask for them” Investors “We would fund environmentally efficient buildings, but there is no demand for them” Developers “We would ask for environmentally efficient buildings, but the investors won’t pay for them”

The Industry is Waking Up! “We need to nurture the planet not rape it. We need a capitalist system which is sustainable and eco friendly and therefore works with nature not against it” Andrew Wyatt, Quintain – IPD/IPF Conference 2005 Hermes’ first steps towards green balance Rupert Clarke 18/02/2006 15:25 RPI drive Chief Executive Rupert Clarke explains how Hermes set about creating a framework to weigh the needs of the company against the needs of the planet Estates Gazette “MIPIM 2006: Hammerson prepares to go green Estates Gazette Peter Bill 15/03/2006 11:00

But there is still an air of political unknown! UK Government Departments cannot even decide who is in the lead EPBD implementation - confused Pt L guidance - unclear Code for Sustainable Buildings – only partially implemented (residential not commercial)

Taking the law into our own hands….! Proving the financial benefits Using buildings better A roadmap for the future

Proving the financial benefits Kingston University’s Sustainable Property Appraisal Project future proofing property questionnaire produces a performance score which is then…. …..translated into impact on either rental growth or depreciation feeds into IPD Sustainable Property Index differential so far from -5% to +1.85% on sustainability NPV

Using buildings better (1) a major BPF project funded by the Carbon Trust aimed at reducing carbon emissions in existing buildings targeting operational usage of energy based on studies of a sample of real buildings aimed at producing a useable framework

Using buildings better (2) Some broader property issues: difference in attitudes of landlords, tenants and managers landlords’ knowledge (or lack) of tenant habits embedding energy assessment into leasing/management arrangements keeping it simple

A roadmap for the future (1) the challenge is to produce a simple framework for the commercial property industry already a plethora of methodologies

BPF and UBT : Framework for Assessing Sustainability of Commercial Buildings Issues covered, emphasis and popularity

A roadmap for the future (1) the challenge is to produce a simple framework for the commercial property industry already a plethora of methodologies understand difficulty of translating intentions to outcomes incorporating financial benefits

A roadmap for the future (2) achieve senior level buy-in from key industry players develop a map of sustainability topics develop a rapid sustainability assessment checklist that could become the commercial property industry’s code prepare and publish an awareness raising document deliver!!!

Challenges Government co-ordination international co-operation incentivisation spreading the net wide enough transport occupiers