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Landlords and Tenants: Working Together to Reduce Costs & Carbon An event for commercial property Owners & Occupiers Welcome Oxford, 29 th March 2011

Oxford event 29 march 2011 jane edit

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Page 1: Oxford event 29 march 2011 jane edit

Landlords and Tenants:Working Together to Reduce Costs & Carbon

An event for commercial property Owners & Occupiers

Welcome

Oxford, 29th March 2011

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Agenda

• Welcome & housekeeping• Scene setting: Why Landlords & Tenants? • Sustainability & the Commercial Property Sector.• A Landlord’s story• A Tenant’s story• Overview of Fiscal Incentives• LoCUs - Solutions For Owners & Occupiers• Closing comments• Refreshments & Networking

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Commercial Property CO 2

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Commercial Property Carbon

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Cost Effective Carbon & Energy Reduction Measures

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Landlord: Tenant Divide – A Circle of Inertia

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Commercial Property sector carbon emissions are INCREASING

I’ll change the bulbs but not

the light fittings.

Its not my energy bill, and

it won’t increase rental

Property is just a long term

investment for me.

Energy efficient buildings are

expensive and difficult to

build.

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Commercial Property Lease Agreements

Landlord Tenant

Rent

Lease Obligations

Service Charge

Service Obligation

Quiet Enjoyment

Tenant CSRObjectives

Landlord CSRObjectives

A:Traditional Lease

Source: Cardiff University Centre for Research in the Built Environment

Angela Langley & Lara Hopkinson 2009

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Landlord Tenant

Rent

Lease Obligations

Shared building related CSR objectives

Service Obligation

Quiet Enjoyment

Tenant external CSR

Objectives

Landlord external CSR

Objectives

B:“Green Lease”

Source: Cardiff University Centre for Research in the Built Environment

Angela Langley & Lara Hopkinson 2009

Shared cost / benefit

Commercial Property Lease Agreements

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Martin Gibbons insert

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Mike Jennings Jennings of Garsington Ltd

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Reducing organisational footprints in partnership

Jacob Wallace

[email protected]

February 2011 ©Best Foot Forward

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This presentation

• About Best Foot Forward

• Keeping our own house in order

• Success stories with our landlord

• Where we’re heading next.

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Introducing Best Foot Forward…

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Our building

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Best Foot Forward: footprinting experts 14

years experienceover

3,500 footprint analyses

more than 300

footprint clientsover

2,500 footprint tool users

operate across25

sectors

Queens Award-winners

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About Best Foot Forward

• Metrics: Dedicated consultancy. Market leaders.

• Insight: Thought leaders. Innovation. Wrap-around support.

• Tools: In-house developers. Proven. Existing platform.

Insight Through metricsEstablished in 1997, Best Foot Forward is a specialist sustainability consultancy focussed on delivering an evidence base for decision making. We have completed well over 1000 analyses for more than 200 organisations.

Experience counts.

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Keeping our own house in order…

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Key goals

1.Measure our own annual greenhouse gas emissions.– Using Footprinter – our SME footprinting tool.

2.Track how we perform over time.– To ensure we stay on top of our impact as we grow

3.Strive to minimise our impacts across the business.– Both things we control + those we can influence

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www.footprinter.com

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We perform well in-house…

• BFF’s utilities Footprint compared to typical clients…

but…

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Last year, we grew…

• More activity, more staff = more challenge to manage your footprint.

• We needed to innovate to keep our in-house footprint under control.

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Success stories with our landlord

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What can we do…

• So we have identified a range of actions that we can pursue internally in the 2010-11 FY.

• Starting with utilities…as a key component of our footprint, and an area over which we have direct control

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The process…

• Previously unsuccessfully lobbied our landlord to install additional roof insulation.

• Landlord unwilling to pay for the installation.

• However, on this occasion took a different approach.

• Agreed that we would fund the insulation through our lease:– effectively a 0% financing arrangement– landlord gets the benefit of enhanced facility– tenant gets benefit of reduced energy bills

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Grants available

• £500 grants available for small businesses

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Net result

• Only installed at Christmas• Approx. 27% reduction in gas consumption vs

last winter.• Plus…a much more comfortable office

environment for our staff.

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Before After

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Before

After

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Payback periods

• Our insulation payback period is long (>20 yrs) and exceeds the terms of our lease (7yrs)

• However, was ‘well worth it’ on balance for staff comfort.

• It is useful however, to consider paybacks on infrastructure changes.

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Identifying the most cost-effective option

• The NHS England’s MAC Curve:

1.Packaging 2.Teleconferencing 3.Hibernation system for stations 4.Improve the efficiency of chillers 5.Voltage optimisation 6.1 degree C 7.CHP installation

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0.02

0.05

0.010.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

0.02 0.02

0.010.00

0.04

0.00

0.01

0.02

0.03

0.04

0.05

0.06

tCO

2/£

Abatement cost

zerocost

zerocost

Considering carbon‘bang for buck’…

• Case Study: Tubelines• Micro-level analysis

• Provided carbon cost-benefit analyses for 19 new and emerging technologies and possible interventions that could reduce energy use at stations. Everything from slowing down escalators and raising equipment room temperatures to new auto lighting control systems and more efficient hand driers.

• Case Study: Tubelines• Micro-level analysis

• Provided carbon cost-benefit analyses for 19 new and emerging technologies and possible interventions that could reduce energy use at stations. Everything from slowing down escalators and raising equipment room temperatures to new auto lighting control systems and more efficient hand driers.

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Where we’re heading next

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Further phases• Currently have a new bicycle shed in for planning

approval…match funding grants available through sustainable routes up to £1000. WE have also ‘rentalised’ this capital cost with landlord.

• New server – thin clients…rather than desktop computers: 90% reduction in energy consumption.

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The goal

• In partnership with our landlord and, and with the assistance of some small grants, we’ve managed to make a significant dent in our footprint in a short time, despite already efficient practices.

• The goal is an absolute reduction in our carbon footprint, while growing the business, and expanding our range of influence.

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Two client experiences for context…

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Importance of good measurement

0

500

1,000

1,500

2,000

Rehearsal, pre-production

Internationaltravel

Equipment -whole tour

Travel & energyfor 19 shows

Merchandise &catering for 19

shows

Fans Travel

tCO2 EF

…to get your priorities right

Radiohead Nth America tour

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Allocating responsibility to achieve results

IT team

Travel team & SMT

FM

HR

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-

500

1,000

1,500

2,000

2,500

3,000

tCO

2e

Updated 06/07 Footprint 08/09 Footprint

15% reduction (aiming for a further

23%)

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Questions.

?www.footprinter.com

[email protected]

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Fiscal incentives for green energy

LoCus Landlords & Tenants event, Oxford

Gabriel Berry29th March 2011

[email protected]

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Agenda

• Introduction: green energy

• IncentivesFeed in tariff + case studyRenewable heat incentive + case studyCapital allowances

• Issues & opportunities

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Introduction – green energy

POWERSolar electricity

HEAT COOLING

Small wind

Biogas

Hydro power

Wood boilers

Wood heaters

Solar thermal

Heat pumps

Wood boilerswith chillers

Heat pumps

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Feed in tariff

• Incentives for small-scale electricity• 18,500 installations by end-2010 • Incl. 14,300 kW commercial capacity

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Feed in tariff (2)

• Generation + Export Tariffs• Rates of return 5–8 % • Benefits 325+12+38= £375 /kW/yr

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Case study – Conference centre

• Owner: Sheepdrove, a Berks SME• 32 panels, 5.44 kW, 4800 kWh p.a. • Benefits 1814+74+240= £2128 p.a.• Likely cost £18k, payback ~8yr

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Renewable heat incentive

• Renewable heat excl. ASHP/stoves• World’s 1st; from Autumn 2011• Paid ¼ly over 20yrs; RoR 12% (6%)

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Case study – Offices on estate

• Landlord: Steljes, a Berkshire SME• 220kW boiler, solar £20k• Benefits 14.7k+2.7k+14.2k= £31.6k pa• Cost £60k + £20k, payback <3yr

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Capital allowances

• Annual investment allowance• Enhanced allowance: Energy tech. list• Plant only: not works, fuel, other kit

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Issues

• Legislation• Insurance • Tax• State aid• Independent advice

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Opportunities

• Local & secure• Cash generating • Energy & carbon efficient• Marketing• Innovative finance

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Conclusion

Green energy:

• Get advice

• Select tech.

• Save & earn

[email protected]

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Green Deal

• Pay as you save funding mechanism• Starts late 2012• Domestic & Small business premises• Covers retrofitting but not renewables• No up-front costs• Charge applied to energy meter• Installation costs recovered by utility provider

http://www.decc.gov.uk/assets/decc/legislation/energybill/1010-green-deal-summary-proposals.pdf

Assessment Finance Installation Repayment

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“Golden Rules” of the Green Deal.

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Introducing LoCus:Solutions for commercial tenants and

landlords

Oliwia MilekLoCus Project Officer

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property

landlordtenant

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Things you control.

• How you use stuff• 20% savings • Boring to do … … but effective• Staff Engagement• Low / no cost

Things you don’t control.

• Legislation,

• Energy supply issues

• Energy cost/ unit

In the middle

LoCus Environment Review LoCus One to One / training: Legislations update

Cost- effective energy- efficient

measures

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In the middle

Retrofitting building fabric, i.e. - • draught proofing• insulation• lighting & heating controls• replacement windows• replacement boiler• renewable energy

Cost : Benefit – whose?

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Define the cost benefits

Years

Cost &

length of

lease

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Define the cost benefits

Occupier Owner

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Negotiations arena:

Find mutual benefit -• the economic business case• CSR “ticks”• good publicity• seen as modern and progressive• be reasonable

• be reasonable• acknowledge your rights and duties

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LoCus services

Contact Neighbours

Create Clusters

Reporting

Contact Landlord

Site based Services

CO2

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LoCus support is free and flexible to your needs and objectives, but for example:• Ideas to save money and realise revenue • Individual on-site visit• Environmental improvement plan• Training & events• Renewable energy assessment • Ongoing environmental business support

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• no risk• save money• tailored advice• differentiate yourself• gain competitive advantage• let us do some work for you! • prepare for the low carbon tomorrow

Why to take advantage?

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Oliwia Milek, Project OfficerOn behalf of Reading Borough Council and the 19 Partners

0118 973 [email protected]

www.locusproject.org.uk

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Landlords and Tenants:Working Together to Reduce Costs & Carbon

An event for commercial property Owners & Occupiers

Thank You

[email protected]