Joanne Rourke

Peter Deer and Associates Sustainability Environmental ConsultancyPeter Deer and Associates

Peter Deer and Associates


Sustainability and

Real Estate

Joanne Rourke, Associate Director, PDA




What comes to mind?




Environmental

Social Economic

Three Pillars of Sustainability

Definition of sustainable development

“Sustainable development is development that meets the needsof the present without compromising the ability of futuregenerations to meet their own needs”

Brundtland report (1987)


What’s the link between property and the Environment?


• Property occupies land and uses resources

• Public, commercial, industrial & residential buildings account for 45% of UK CO2 emissions

• Domestic buildings produce almost 30 million tonnes of waste each year

• The Government has a target to locate 60% of new development on previously developed 'brown- field' land

What’s the link between property and economics?


• Property costs money

• Property accounts for around 62% of UK’s wealth

• Property estimated to be worth approximately £4,314bn

• The average household could save up to £300 per year on energy bills if energy efficient measures were implemented

What’s the link between property and people?


• People occupy property

• There are 24.5 million homeowners in the UK

• 70% of population would prefer to live in an eco-friendly house

• 75% of UK population would change habits to make the world a better place

The big BUT(s)…..


Green technology’s expensive….

Being sustainable is too complicated….

One person can’t make a difference….

Climate change isn’t really happening…..

I can’t be bothered…..

All valid points….

The big picture

• UK CO2 emissions to be cut by a third by 2020

• 40 per cent of the electricity used in 2020 is to come from low carbon sources

• 15% reduction in emissions through making homes more efficient

• From October 2008 EPCs are required whenever a building is built, sold or rented out


The current picture on EPCs….

• EPCs assess buildings’ energy performance – rating them from A-G

• New buildings are mostly achieving C ratings

• Existing buildings are achieving D-E ratings

• 80% of people would hesitate to rent a property with a low EPC rating

• 85% saying they would ask for 20% off if a building's energy performance was not up to scratch


Case study

The Netherlands:

• As in the UK, EPC ratings are required

• The government (country’s largest tenant) announced that it will only rent space in buildings with an EPC rating of A-C

• Conservative estimate is that only a third of building stock meets this standard

• Great fear that corporate market is due to follow suit


Why this matters in the property industry

• Similar case in UK – most of the stock owned by investors, property and building managers is not environmentally sustainable

• Government / consumers are enforcing targets and making demands relating to green buildings, cost effectiveness and stronger communities

• As energy costs go up and public awareness increases – firms who do not offer sustainable properties and solutions could be left behind


It’s not all bad news….

• Lots of “low hanging (and low cost) fruit” when it comes to improving sustainability in the short term

• In the long term the real estate industry can set example and lead the change

• By offering sustainable properties and solutions, real estate can marry the three pillars of sustainability


This is where you lot come in!


What your company can do….

• Demand more when procuring land or property – you need to account for increased targets & energy prices

• Offer tailored sustainability strategies to your prospective clients – residential & commercial

• Provide clients with clear overview on the sustainability of their property – e.g. waste produced, energy consumed, water & electricity consumption, utilities bills, impact on surroundings (people and land), etc

• Set targets, report results and measure occupant/user satisfaction

• Measure performance through independent, certification method OR develop thorough internal scheme





Responding to communities Saving your clients money

Those three Pillars again….

Reducing the impact our property has on our world and its resources


Thank you for your time



Sustainability Environmental Consultancy

Business

Joanne Rourke