1. 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

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

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

4. 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”

5. 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/ :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/ :00

6. 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)

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

8. 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

9. 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

10. 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

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

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

13. 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

14. 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!!!

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