UK-GBC FUTURE LEADERS · INTRODUCTION This booklet summarises the business model concepts generated by the 2016 UK Green Building ... The UK-GBC’s Future Leaders programme brings

UK-GBC FUTURE LEADERS:Sustainable Business Models 2016

2 | Business Model Summaries 2016 www.ukgbc.org/FutureLeaders

CONTENTS

PAGESINTRODUCTION TO FUTURE LEADERS 3

PROJECT ONE: 2ND LIFE MATERIALS 6Contributors:

Craig Dodsworth (Saint-Gobain) Claire Meunier (Linkcity) Robin Palmer (John Lewis Partnership) Ben Spence (AECOM)

PROJECT TWO: BREATHABLE 9Contributors:

Jonathan Gibson (Bilfinger GVA) Mike Rider (Sir Robert McAlpine) Andrea Charlson (HS2) Heath Craster (Voyage Control)

PROJECT THREE: GIVEUSSPACE 12Contributors:

Jane Wakiwaka (The Crown Estate) Peter Kelly (ISG) Laila Mehrpour (Lendlease) Richard Griffiths (UK-GBC)

PROJECT FOUR: SALMO 15Contributors:

Zoe Young (Marks and Spencer) Mark Tomkins (Heathrow) Nicola Scorer (Gentoo) David Leonard (BRE)

PROJECT FIVE: STAY WELL 18Contributors:

Ben Coombes (Affinity Sutton) Neelum Choudhury (CBRE) Emma Kent (Cundall) Callum Scott (Canary Wharf Group)

PROJECT SIX: APLOTMENTS 21

Contributors:

Ronan Leyden (Bioregional) Madeleine Velupillai (Land Securities) Kostas Mastronikolaou (XCO2 Energy) Matthew Turner (Willmott Dixon)

www.ukgbc.org/FutureLeaders Business Model Summaries 2016 | 3

INTRODUCTION

This booklet summarises the business model concepts generated by the 2016 UK Green Building Council’s Future Leaders. These business models represent the innovation outputs from the nine month programme, which began in January 2016.

Prior to the programme, UK-GBC hosted a workshop where, through a review of future operating conditions of the built environment, major ‘problems’ were identified. This workshop was attended by business leaders from member organisations with a Future Leader on the programme and the long list, was filtered and six key challenges around the following themes emerged:

These six challenges were presented to the 2016 cohort in January, and the 24 Future Leaders from across the built environment sector set about developing an innovative new business model. Working in six teams, the Future Leaders worked through a structured process of innovation, enabling them to devise sustainable business models which challenge current operating conditions, and ensure the environmental and social aspects are fully integrated alongside the revenue generating potential.

This document showcases the six projects in summary form.

BACKGROUND TO FUTURE LEADERS The UK-GBC’s Future Leaders programme brings together early-stage professionals from across industry to take part in a unique programme of leadership and innovation.

The action-oriented programme provides a forum for tomorrow’s leaders to grapple with the most critical issues that the sector will face in the future, and challenges participants to work collaboratively to address these.

With a unique approach, the programme offers an interactive, high-impact learning experience around innovation, leadership and sustainability.

Key themes covered in this programme have been personal leadership, collaborative thinking, business model development, innovation and storytelling.

Providing access to nature in urban areas

Resilience against flooding risk

Promoting reuse of materials and reduction of waste

Adaptable housing fo an ageing population

Driving energy efficiency in commercial buildings

Improving air quality in urban areas

THEORY

PRACTICEACTION ACTION CHANGEACTION

Innovationlab 1

Innovationlab 2

Innovationlab 3

Projectpresentation

2 dayprogramme


Innovation Teams

PeerCoaching

Personal Leadership

Plan

Teams of four working to develop a sustainable business model

Business models developed through three innovation labs plus guided learning and group work

A powerful form of peer coaching, delivered via buddy coaching

Eight sessions covering leadership topics such as finding creative flow, creating change, creative leadership, decision making etc.

A bespoke personal leadership plan that sets goals against a series of traits and skills, to be followed over the programme and beyond.

As a whole, the programme has delivered three main types of learning as demonstrated below. This booklet focuses on the outputs from the innovation teams, and other personal leadership outputs from the programme are not specifically covered in this document.

FUTURE LEADERS PROGRAMME


THE PROCESS OF INNOVATION The six innovation teams worked through a structured programme to understand how to define a problem, challenge existing assumptions, to develop an innovative and sustainable business model. The challenge then was to learn the skills to communicate the business model in an interesting and compelling way, so storytelling skills proved to be a major area of focus for delegates.

1. Problem definition

Global trends and challenges

Understanding who’s affected, why it’s a problem and why it hasn’t been solved yet

2. Breakthrough innovation

Proposition

Assumptions

Breakthrough insight

Breakthrough proposition

Breakthrough vision

3. Concept development

Concept definition

Market insights

Competitor review

4. Business model development

Brand and scale strategies

Value proposition

Assumptions and risks

Cost structure and revenue streams

5. Storytelling

Creating a connection

Communicating the purpose and vision


PROJECT 1 - 2ND LIFE MATERIALS Contributors: Craig Dodsworth (Saint-Gobain) Claire Meunier (Linkcity) Robin Palmer (John Lewis

Partnership) Ben Spence (AECOM)

The construction and demolition sector is the largest contributor of waste in the UK. The industry functions on a Take-Make-Waste model that we, at 2nd Life, intend to disrupt to find a more circular approach to reusing materials whilst keeping the inherent value locked in.

The industry produces 109m tonnes of construction waste each year, of which 14m tonnes is delivered and unused. While efforts are being made within the industry to divert these unused resources from landfill, commonly materials that could be reused – such as bricks, timber, gypsum, and insulation – are instead recycled for a lower purpose or downgraded to a fuel source. The knock on environmental impact and costs associated with re-manufacturing and transportation are vast and make little economic sense. Thus, we need to challenge the current status quo and demonstrate the alternatives ways in which such materials can be given a 2nd Life.

2nd Life believes that unused construction materials are an economic, social and environmental opportunity today. The 2nd Life model gives these unused materials a new lease of life by providing local people and community projects with access to valuable materials that others deem to be waste.

2nd Life will be trialled in association with a local authority and industry partner within a localised area that has a deprived community and a high construction output. By utilising the unused materials that are marked for waste we will not only be benefiting local people but will also be relieving the construction site of their excess waste, thus helping to reduce the economic and environmental costs of disposal. By joining 2nd Life accredited construction sites and the community together we aim to create social integration and sense of value within the local area. Furthermore, value will be added to 2nd Life accredited construction sites via an online portal that will measure and report back on a number of metrics, including CO2 emissions and embodied carbon saved, local air pollution reduced, additional water use avoided and the economic & social benefits to the community.

Proposition

Unused materialseparated on-site

Unused material collectedValue added

Community access to low-cost materials

Materials locally stored

1

2

34

5

15% of waste reused

Pro�t magin improved

2nd life accredited

Environmental impact reduced

Community rewarded

re-use materials today tobuild a better tomorrow


AssumptionsThe Take-Make-Waste approach is being facilitated by low barriers/costs for waste disposal. Construction tenders focus on speed of installation rather than waste due to economic pressure. Waste is seen as a site issue rather than a design issue, restricting the scope and pace of solutions.

By developing 2nd Life, we anticipate that:

Regulatory and legislative environment will provide greater incentive for the re-use of materials;

Local communities will grasp the benefits and savings from low cost building products;

The construction industry social value will be enhanced through routing their unused materials into community projects.

The core income streams proposed are from:

The sales of construction-site excess materials to public, trade customers, and local communities at reduced prices;

A competitively priced site clearance and collection service;

Contractors annual fee to be 2nd Life Accredited.

Primary expenditure includes:

Design and build of online platform (£20-30k);

Leasing of storage containers;

Human Resources - Core team of 3-4 paid employees, complemented by trained volunteers;

Transport collection costs – aim to find excess capacity to keep costs low;

Storage costs – aim to keep low via utilising derelict or under used sites at a low rent in return for access to lower cost materials;

Marketing - to raise awareness and help scale the organisation through client engagement and sponsorships.

Cost & RevenueRisksThe primary risk is the financial sustainability of the model. Cost-effective partnerships must be established to ensure the segregation, transportation, storage and distribution of materials.

The value proposition must be compelling – with materials being made available to Local Authorities at a more competitive rate than buying new. This should translate into more cost-effective project delivery.

Success also relies on contractors willing to change behaviour to aim higher up the waste hierarchy. Critical to this will be making the segregation and collection of waste from site as easy as possible.

Last but not least, changes in regulations to incentivise reuse instead of re-cycling would increase the chances of success.

£


Opportunities for 2nd Life in the future include becoming a ‘one-stop-shop’ for unused or reclaimable construction materials – bringing a number of social enterprises that reclaim products together under one roof. The proposition could also be made more compelling by lobbying for re-used and re-manufactured materials to be exempt from VAT and Business rates.

Furthermore, data production will be 44 times greater in 2020 than it was in 2009. 2nd Life model could evolve to include a platform that collects data on construction material waste streams and connect this to secondary markets. This will also enables 2nd Life to create data trends and predict future supply of secondary materials. This could encourage the development of innovative solutions for reprocessing and re-manufacturing waste materials by predicting the amounts of materials within a region.

Taking the idea further

Environmental & Social Benef itsOur value proposition delivers on three core pillars of sustainability:

Better for the planet by keeping the carbon locked into unused and easily reclaimable materials and avoiding the environmental impacts of down-cycling or incineration for energy recovery. By reusing materials we also reduce the amount of new virgin materials required and the associated environmental impact of the sourcing, manufacturing and transporting them;

Better for profit by retaining the financial value rather than degrading it;

Better for people by creating a community benefit through access to materials at discounted prices, providing employment and skills to people, and creating social value between the contractor and the existing community.

The business model will be measured against the following criteria:

The amount of unused materials diverted from landfill/recycling/recovery and the associated natural resources that have been saved or mitigated;

The cost benefit against contractor losses and local community projects;

The impact on local people through increased employment and up skilling.

Market ConditionsThere are a well-established and growing number of social enterprise operations focussed on reuse and recycling such as Azko Nobel Re>Paint, Community Wood Recycling, or Yooz.

However, current propositions to re-sell unused material are not gaining sufficient traction. Concepts to re-use these materials within a company or between businesses endure obstacles, such as product warranty validity and potential fines where movement of materials does not follow regulations.

While the landfill tax escalator is increasing incentives to avoid waste to landfill, recycling incentives are making it more economic to crush, scrap and burn materials rather than reuse them. A change to the government policy is required to incentivise reuse ahead of recycling.


PROJECT 2 - BREATHABLE

We believe everyone has the right to know the quality of the air they breathe - whether at home, work or play – and feel empowered to make clean air choices.

In 2015 9,000 people in London died prematurely from breathing poor quality air. Deaths and illnesses, such as undeveloped lungs in children associated with polluted air, costs the UK up to £19billion annually. Despite health implications, we found there to be low awareness levels of these impacts amongst businesses and individuals.

A signal of change in 2016 saw Mayor of London, Sadiq Kahn, commit to tackle London’s dirty air after listening to the concerns of Londoners, who placed air pollution as the number one risk to their health. We realised that despite this growing concern, there is very little data available and even less information promoting better choices to empower individuals.

Our platform, breathable, raises awareness and empowers individual and collective change through aggregating live, crowd sourced air pollution data from sensors and combining it with personalised alerts and suggested actions. We will provide customers a unique service with accurate exposure data and provide alerts when exposure reaches levels harmful to health. Personalised behavioural and technical solutions will help people take action to create a cleaner healthier environment for all.

By empowering the public with the right information we ask people to use their voting power to influence the design and use of the built environment and by doing so help make the air around us more……breathable.

Proposition

Contributors: Jonathan Gibson (Bilfinger GVA) Mike Rider (Sir Robert McAlpine) Andrea Charlson (HS2) Heath Craster (Voyage Control)

Your current air quality:Air-aware

SO x (ppm)

VOC (ppm)

CO (ppm)

NO x (ppm)

Breathable has detected unsafe levels of NOx

Find out what this means

Alert!

View solutions(sponsored)

New route suggestion:Airways

SO x (ppm)

VOC (ppm)

CO (ppm)

NO x (ppm)

BusinessesBusinesses purchase breathable service to monitor and improve air quality

Personal air quality sensor

Employee

Crowd sourced air quality data

Solutions providers pay breathable to promote

their services

Air-awarelive, accurate air quality mapping

Air-alertsindividual exposure

monitoring

Air-actionspersonalised suggestions

Individuals can download breathable app at entry price point and upgrade

for more features

Air-aware citizens and businesses

Empowered individuals


AssumptionsThere is an assumption that individuals and all other key stakeholders care about the quality of the air they breathe and recognise the health benefits, improvements to productivity and quality of life cleaner air provides. To successfully operate as an aggregator of air quality data we also assume:

3rd party air quality monitoring providers will allow individuals to share data with us;

Due to the trend for wearable and portable technology we anticipate the number and accuracy of monitoring devices will significantly increase on today’s usage to provide a more robust dataset;

We believe the number of solutions providers will increase over time, will be attracted to utilise our platform and that these solutions will provide the positive environmental and health benefits we visualise.

The initial start-up and running costs of breathable are likely to be low. Creating the platform will be the largest cost with software developers and designers a key part of the initial delivery.

Setting up the platform will require:

Design, development and maintenance of an online application to collate, analyse and present data;

Development of a purchase or partnership agreement with air monitoring hardware companies to enable breathable to provide personal air monitoring device manufacturer for hire or purchase;

Agreement with other existing air monitoring organisations and air monitoring owners to provide additional and comparison data to complement our own;

Promotion and marketing campaigns.

breathable revenues will come from:

A fee to access the breathable platform for businesses, individuals and landlords. A premium fee will exist to receive air alerts and gain access to air actions;

Hire or purchase of breathable personal air monitoring devices for employees, businesses and building owners;

Advertising and sponsorship from sustainable and clean air solutions providers using our platform;

Commission on selling big data to retailers, local authorities and other stakeholders;

Developing partnership links with health insurance companies and other health and performance apps e.g. Strava and Citymapper.

Cost & Revenue

RisksThe challenges and risks identified are:

There are a number of platforms starting to emerge which offer a similar service and could be perceived as competition. However, the limitations to these platforms are that they are typically linked to an expensive personal sensor or data source. Our differentiator is the wide availability of free or inexpensive data;

The focus on a wide range of pollutants adds complexity to our model but is essential to deliver full benefits to our customers;

Incorrect use or poor reliability of personal monitoring devices can result in a loss of accuracy of data;

We don’t yet know the effectiveness of technical products to improve air quality within buildings or at home. This makes judging feasibility and cost effectiveness challenging;

Humans aren’t always motivated or incentivised to improve their long term health when empowered with information – sun exposure and alcohol warnings being two such examples.

£


Initially we would conduct a survey of office workers to test the appetite for our platform. Beyond that we would seek to engage health and wellbeing conscious businesses to launch our platform on a pilot basis.We want to market test the technical aspects of our app using data sourced from existing monitoring products available in the market. This test would involve speaking to app designers and developers to understand how our platform will interface using open API technology.

We will work with health organisations to determine the levels at which prolonged or persistent exposure to poor quality air harms our health or effectiveness. Finally, we would undertake research into potential solutions providers and collate these to support the future business case of the breathable platform.


Environmental & Social Benef itsBy raising awareness of poor air quality and monitoring personal exposure to harmful pollution we empower people to change their behaviours and become advocates of a clean air society.

We also hope that providers of clean air solutions will eventually create an incentive for others to follow and ultimately reward people who seek out clean air solutions. Examples of this include retailers supporting a drive for clean air shopping environments and rewarding health aware consumers.

We hope to reduce the financial burden on the NHS, improve productivity and effectiveness in the workplace and help tackle climate change by lowering the environmental impact from operations producing harmful pollution.

Market ConditionsThe consumer health market is expected to double in size by 2020, generating a £737billion industry. Over 20,000 health and wellbeing apps are on the market today, with the global mobile phone health and sensor market to grow 40% between 2013 – 2018. In 2016 this trend is reflected in a sharp rise in the number of technology companies focused on providing air quality monitoring sensors. Whilst this trend is strong, a silo product driven approach exists. An open, systemic approach to tackle the problem across key stakeholders in the built environment remains absent.

A focus on the quality of indoor air by forward thinking organisations is being driven by emerging standards such as Delos’ WELL Building Standard. Driving these considerations into best practice property management should be a priority.


PROJECT 3 - GIVEUSSPACEContributors: Jane Wakiwaka (The Crown Estate) Peter Kelly (ISG) Laila Mehrpour (Lendlease) Richard Griffiths (UK-GBC)

There is ever-growing evidence that workplaces exert a powerful influence over the health and productivity of the workforce. Yet for a large part of the market – particularly non-micro SMEs – there is relatively limited understanding of what constitutes a good office space, and what is available to them in the market. These organisations lack the time and resources to conduct an extensive search and as such frequently end up occupying offices that fail to adequately meet their needs and those of their staff. With the balance of market power in the hands of the office providers and their agents, there is also little incentive for office standards to improve over time.

GiveUsSpace flips the current business model on its head. Building on trends in both property and other sectors, it provides a quick and easy-to-use platform on which SME office occupiers can specify their precise requirements and wait for offers to come to them. By making it easy for customers to compare the various offers they receive from office providers and their representatives, the website will encourage competition in the market, and drive up quality. Reinforcing this will be a facility for users to rate their experiences, creating a powerful feedback loop. Sustainability and wellbeing are expected to be key differentiators in this new and vibrant market, bringing significant benefits to both people and planet.

Proposition

Occupier posts their requirements on the platform

Providers respond with bids against the occupier’s post

.COM

Occupier and providersupply feedback

Occupier reviews bids and chooses preferred

Occupier signs the leaseand moves in

KEY BENEFIT:Customers can easily provide a detailed speci�cation

matched to their team’s particular needs

KEY BENEFIT:Customers receive a wide range of offers, better re�ecting the choice available

KEY BENEFIT:Two-way review systems encourages collaboration and drives continuous

improvement in building quality

KEY BENEFIT:The platform allows customers to easily compare and choose between offers based on a range of criteria

KEY BENEFIT:The platform provides for easy

and direct communication,with a host of guidance

Where your perfect of�ce �nds you

in the market

provider

and support


AssumptionsThe model has been built on the assumption that larger SMEs are currently unable to easily find and procure suitable office space. The “micro” end of the market is increasingly well catered for – though not exclusively – by new, flexible office space providers such as WeWork and The Office Group.

Larger businesses are considered to be relatively sophisticated and generally more able to secure spaces that meet their needs, and thus are less relevant to the model. The success of the business would be contingent on office providers – especially those that are SMEs themselves – being willing to pay to gain access to this potentially significant portion of the market.

As a web-based business, the primary costs are website development and marketing, which although significant are not expected to be prohibitive. Short-term, revenue generation is largely based on subscription fees and commission on transactions, both paid by office providers. Longer-term, these will be diversified to include advertising revenues (e.g. for premium listings and associated services such as fit-out, legal support, etc.); rating data sales; and add-on “freemium” services for occupiers.

These kinds of revenue sources are comparable to those currently built into the business models of similar web platforms in other sectors such as MyBuilder, TripAdvisor and Freelancer, a number of which have gone on to achieve significant financial success.

Cost & Revenue

RisksThe primary risk to the business model is the potential failure to attract occupiers to the site – without whom there would be no incentive for office providers to create accounts and pay fees. To mitigate this, an early decision was made to avoid charging these customers for the core service, leaving them with little to lose by using the site.

The current economic conditions, post-Brexit vote, also present a risk through their demand-dampening effect, though the resulting increase in competition between office providers to secure tenants may also offer an opportunity for GiveUsSpace.

£


There is huge potential for GiveUsSpace to grow and develop. On the occupier side, an early add-on would be the ability for customers with similar needs to join up and advertise and negotiate collectively as a means of securing better deals. Website functionality would also be boosted through the provision of staff survey tools and downloadable guides for customers, alongside the potential to directly deliver or partner with providers of complementary consultancy services. As the detailed ratings database is populated, augmented by external data sources, there would also be a source of revenue from office providers keen to use the information to better understand the needs of their customers and the quality of their spaces. Longer-term it is envisaged that this could be a major income stream.


Market ConditionsThere are a host of existing and emerging trends that have laid the foundations for GiveUsSpace’s success. The concept of Health and Wellbeing is gaining increasing traction in the property market, and it is only a matter of time before smaller businesses realise that poor/unsuitable workplaces are impacting their teams’ productivity – a problem that GiveUsSpace can help them solve.

The success of businesses such as WeWork show that there is money to be made by offering quality space to smaller businesses, while at the same time web platforms such as MyBuilder and Freelancer have made it increasingly common for service providers to competitively “bid” against customer requirements. These same platforms, along with others such as TripAdvisor, have also clearly demonstrated how customer ratings can help to raise standards over time.

Environmental & Social Benef itsThe challenge set for the GiveUsSpace team was to improve the uptake of energy efficiency measures in commercial buildings. While the model is not directly focussed on addressing this issue, it has been specifically designed to boost the market for high-quality office space. It is assumed that in doing so, a natural outcome will be to drive demand for offices that are energy efficient, healthy and productive.

In order to accelerate this process, sustainability and wellbeing characteristics would be given significant prominence both in the template occupiers use to create their specifications, and in the responses offered by office providers. The platform would also provide a means through which both current landlords and developers could engage early with would-be occupiers, potentially allowing them to avoid costly and resource intensive fit-out activities.


PROJECT 4 - SALMO

Floods devastate lives and create long term emotional and financial stress for homeowners at the greatest risk of flooding. In the winter of 2015/2016 alone the Association of British Insurers estimated the cost of flooding to be £1.3bn. Unlike the insurance industry who offer traditional insurance protection to homeowners because it is deemed to provide reassurance and security through financial compensation, we have realised that homeowners want more choice including the option to relocate from high flood risk areas as extreme flooding events become more frequent and severe.

We are offering a regeneration model that supports the relocation of those in high flood risk areas as part of a wider redevelopment, which uniquely offers homeowners the choice of greater security and certainty, and creates a more sustainable use for the flood plain. The regeneration model will create value for all those with a stake in flood risk areas, and the neighbouring communities, in a future of uncertainty and disruption. To support this we invite you to take a stake in our first pilot scheme.

Proposition

Contributors: Zoe Young (Marks and Spencer) Mark Tomkins (Heathrow) Nicola Scorer (Gentoo) David Leonard (BRE)

Salmo offers a collaboration model, bringing people together to mitigate the impact of �ooding on local communities and generate bene�ts for those who get involved.

Creating the connections for a �ood free future

Resilient business• Economic growth

from �ood resistant industries

Developer

• Return on investment from the sale of non-salmo houses

Home owner

• Reduction in insurance premiums

• Protect asset values


AssumptionsThis model assumes that people are aware of and concerned enough about the risk of flooding, and how this risk will increase with climate change, to look beyond the short-term and reliance on insurance to a more sustainable vision of a flood-free community. To achieve this vision, there is a need for the identified stakeholders to be willing to work together.

Our concept is a collaboration model that brings together a number of key stakeholders in a way that offers ‘win-win’ relationships for all parties, including economic benefits.

The primary cost will be building new houses in low flood risk areas, a share of which will be ringfenced for those relocating from high flood risk areas. This cost is incurred by the developer in return for a high proportion of the profit in the short/medium term from the sale of the remaining houses at market value. Industry or leisure activities on the vacated flood risk zone will offer a long-term return for the consortium. Home owners relocating from high flood risk areas will receive high-quality housing without being financially impacted.

Our model removes the economic cost of flood damage; this benefits mortgage providers & insurance providers who may offer financial input in return for reduced exposure.

Cost & Revenue

RisksThe success of this concept is dependent on the ability to bring together the relevant stakeholders. If particular stakeholders do not engage with the process, it could become challenging or impossible. Possible scenarios include failure to attract a development partner, failure to reach agreement with councils over suitable development land and lack of interest/commitment from homeowners. It is quite likely that some homeowners in a particular area will not wish to move and if a ‘critical mass’ cannot be reached, then the model will not be viable. A further key challenge will be finding a suitable use for the vacated site (flood plain). This is heavily dependent on the location and its suitability for industrial, leisure or other activities.

£


The next step is to identify stakeholders who could form a pilot consortium and apply the model to a pilot area to test key principles and assumptions. Once this pilot has been worked through, the aim is to create a model that can be applied to any flood risk area and mitigate the risk for those residing in high flood risk zones likely to be impacted by climate change.

Following the success of the regeneration model in areas at risk of flooding, it could be expanded to regenerate areas at risk of other extreme climate related weather events.


Environmental & Social Benef itsThe environmental and social benefits include:

Reduced risk of flooding: In returning land back to nature it will alleviate the impact of recurring flooding and assist in managing the increasing risk and exacerbation of flood events through the impact of climate change;

Improved habitats to enhance biodiversity: Biodiversity will be enhanced through returning land back to a natural habitat and providing sanctuary/protected status to reintroduce species;

Reuse of materials: The relocation of existing settlements to low flood risk areas will be managed in a way that will limit the impact to the environment, for example, materials and resources will be reused where possible from existing sites;

Enhanced community engagement: As well as delivering new houses to support the local housing need, the new development will increase social activity through opportunities to establish community groups and support networks;

Development of industry: The change in land use will allow for new business ventures and activities to develop that are water based. This will provide new economic opportunities and prosperity for the area;

Reduced emotional distress: By relocating those negatively affected by flooding the emotional distress of extreme weather events is removed, and a more positive relationship with water will be nurtured.

Market Conditions

The rise of flooding events in the UK has led to the increase in damage to homes and cost of insurance. In response to this, the Government and insurance industry have developed Flood Re. Flood Re provides equity in guaranteeing availability of insurance to homeowners in flood risk areas (for the next 25 years), however this is not a truly sustainable approach because it falsely maintains the value of such properties and acts as a disincentive to flood resistance and resilience measures being implemented on properties. Salmo is a longer term solution to the increased risk of flooding, focusing on removing the risk to property in its entirety.


PROJECT 5 - STAY WELLContributors: Ben Coombes (Affinity Sutton) Neelum Choudhury (CBRE) Emma Kent (Cundall) Callum Scott (Canary Wharf Group)

By the end of the next decade, the number of people aged over 60 in the UK will increase by a third. Although people enjoying better health until later in life is a great indicator of social progression, it comes with financial pressures on an already tight public purse. In some instances, the desire to maintain an independent lifestyle at home may be detrimental to an individual’s health. Those who have been admitted to hospital may face the prospect of long delays prior to being discharged, because their home environment is deemed unsafe or unsuitable. According to the National Audit Office, delayed discharges of older patients who no longer need care cost the NHS £820 million per year. Furthermore, Age UK estimate that poor housing for the elderly costs the NHS £1.4billion per year.

Stay Well will leverage the opportunity to create a collaborative connection between healthcare professionals and the built environment sector. A pro-active health risk assessment by GP practices resulting in a prescription-based system to home adaptations, physical and smart, will future-proof homes for aging occupants. This will benefit occupants through: increased social wellbeing by remaining in their home community; lower risk of health problems and needs for hospital stays; independent living for longer with reduced reliance on other people; lower energy bills and home running costs; and a safe, warm, accessible home, meeting likely future health requirements. In turn this will save the NHS millions of pounds, as well as allowing older people to reap enormous health and wellbeing benefits. Pivotal to this is Stay Well’s training to the built environment sector to allow them to achieve accreditation as later life specialists. Likewise, Stay Well will offer health professionals training on the opportunities that pro-active home adaptations can provide to the occupants. We believe that a Stay Well home is a great home.

Proposition

Aging person with home that is detrimental to their health

Aging person with home that meets their individual needs

Accredited, trusted built environment professional

Built environment professional pre-training

Reactive healthcare professional Proactive healthcare professional

• Improves potential customers’ trust in them• Allows greater access to an untapped and growing market • Provides competitive advantage over other contractors• Adds social value to their offering providing

• Provides independent assurance of their skills/methods• Access to CPD and further modules as they’re developed

Contractor benefits:

Stay Well is a social enterprise enabling healthcare practitioners and built environment contractors to collaborate and provide prescription-based modi�cations to an aging person’s home, allowing

• Lessens chance of repeat appointments

• Aids GPs’ core function of increasing patient wellbeing

• Reduces cost to NHS/CCG

• Helps GPs diagnose housing-related medical issues and plan to mitigate/circumvent future medical conditions

• Allows GPs to provide proactive medical care

GP / NHS benefits:

them to live a sustainable and independent

by Stay Well

procurement bene�ts

life for longer.


AssumptionsDespite the current political climate, there is an assumption that the NHS will remain a public body and that some older care provision will remain state-funded. Conversely, a large proportion of aging people will continue to fall outside the means-testing criteria for receiving care-related financial support. Lifestyle diseases are increasing, with the health system treating symptoms rather than underlying causes - but Big Data projects such as Google DeepMind will facilitate future pre-emptive health assessments for patients, before health problems occur.

Older people will continue to wish to stay at home, but will still lack the funds or capacity for adaptation of their home. Although residential care will remain an undesirable last resort, limited availability and lack of investment will mean they are oversubscribed.

RisksA key challenge is convincing Clinical Commissioning Groups (CCGs) and the NHS to re-direct money from reactive healthcare costs (“today’s budget”) to invest in preventative measures to save money in the future (“tomorrow’s problem”). At present there is a limited evidence-base relating to home upgrades and the impact they have on key metrics such as GP visits or hospital discharge days. Additionally the process of assessing the measures from which an individual may best benefit may be viewed as time-consuming by over-stretched GPs.

Another key area is creating a trusted accreditation brand, which would likely need to be adopted by an independent body to validate qualifications, such as the Chartered Institute of Building for example. Contractors and tradespeople need to see the benefit of receiving training on working with older people, in order to invest time and effort in it. Stay Well must prove it leads to reliable work with valuable customers, again without an evidence-base.

Stay Well would be established as a social enterprise that applies commercial strategies to maximize improvements to aging people’s well-being. The primary revenue stream for the business would be the training and accreditation programme, which would be paid for by contractors and tradespeople. Using this scheme they could reach the increasing aging market, who are willing to pay for trust and integrity. This income would be used for the training of healthcare professionals about the built environment solutions they could suggest to their patients.

The vision of the business model is to facilitate the redirection of NHS funding to pay for home upgrades to reduce the future costs of caring for older people as a result of poor housing. Stay Well would seek to become the service provider for the NHS and the patient in delivering the right prescription adaptations.

Cost & Revenue£


Stay Well has many ideas for future growth. Accreditation could be extended to products specifically suited to the later life market – emphasising aesthetics as much as functionality. An agency for the re-sale of homes which have received accredited modifications may prove valuable, allowing for the re-use of modified homes. On-going facilities management of the home could also be a future proposition. Routes to funding could be investigated with the potential for an equity release offering for those who do not qualify for state-funded assistance.

Focussing on the training and accreditation element, new and enhanced training modules will continue to be developed to ensure signatories remain engaged. An awards programme could be rolled out to supplement this. Stay Well could also lead development of technical standards and best practice guides for the sector.


Market ConditionsIn terms of home modifications, the “Help to Adapt” scheme in Scotland offers homeowners equity release options for adapting their homes to their changing needs. The main market proposition for aging people is entry into a care home or sheltered housing, but supply is not meeting demand in this area. Almost one in 10 beds in Britain’s care homes will disappear in the next five years because of the financial crisis facing the sector, according to recent research.

A key trial was carried out by Gentoo, called “Boilers on Prescription” which gives direct evidence that upgrades to heating systems and thermal performance of homes result in reduced GP visits and costs to the NHS.

For training and accreditation, there is a Certified “Aging in Place” qualification available in the USA to contractors working in the residential remodelling market. There are some accreditation schemes already available in the UK such as Which? TrustMark and the Considerate Constructors Scheme, but nothing that specifically targets those working with older people.

Environmental & Social Benef itsThe biggest social benefit of Stay Well will undoubtedly be the improved wellbeing, safety and security of older people, who are able to stay within their home and local community independently for longer. Housing Associations’ Charitable Trust (HACT) has developed a means of financially measuring the social impact of poor housing on the occupants, which demonstrates that positive economic impact can be generated by improving housing quality.

A further benefit would be improvements to the existing housing stock, meaning more homes are warm, safe and affordable to run. For people whose prescription included remedies for a cold and damp home, such as improved building fabric and heating systems, there would be a consequential improvement to the carbon footprint of homes as well. This would have the social benefit of a reduction in fuel poverty, as well as a reduction in pressure on hospital beds, GP visits and discharge delays.

A further economic and social benefit would be an improved trust and perception of contractors and tradespeople, who could use Stay Well to highlight that they are trained to work with aging clients, showing respect and care.


PROJECT 6 - APLOTMENTS

Imagine if our cities were blooming with flowers and vegetables; wouldn’t we all feel a bit less stressed, happier even?

And yet our urban environment is increasingly dense with front gardens disappearing and increased living in high rise apartments. At the same time demand for allotments has never been higher, with some local authorities struggling to meet their statutory duty.

Have you ever noticed how many neglected pockets of space there are across our cities? Awkward, temporary or underused sites that haven’t quite found their purpose. These spaces currently cost the land owners money; clearing weeds, removing fly-tipped waste and cleaning up after anti-social behaviour.

Urban Aplotments, micro-allotments, will transform neglected spaces into oases where people can come together to connect with nature and each other.

To make these happen we generate funds in two ways:

People rent the plots for less than a morning coffee (£1/day);

Landowners pay to have their sites improved and looked after.

With the proceeds of each site, we will grow and replicate across the cities of the UK. That way we all get a little more connected to nature. Doesn’t that sound like a city better for you?

Proposition

Contributors: Ronan Leyden (Bioregional) Madeleine Velupillai (Land Securities) Kostas Mastronikolaou (XCO2 Energy) Matthew Turner (Willmott Dixon)

LAND OWNER APLOTMENT USERS

Grow your own – for urban living

HOW ARE SITES SELECTED?

Established

Proposed

Areas of de cy in access to nature (GiGL)

Will be charged a small annual fee in return for the improvements made to their site (site clearance and ongoing maintenance). The fee will be roughly equal to their current outgoings for managing the site (£500-£2,000), with the added bonus that they are contributing to a

Will pay a monthly rental fee for access to their own micro-allotment plot. The charge will be £10-£30/month, depending on exact location and size of site.

Urban Aplotments; micro-allotments, will transform neglected spaces into oases where people can come together to connect with nature and each other.


AssumptionsPeople are willing to pay for access:

UK allotments already come with an annual fee;

We hedge our risk by also gaining income from some landowners.

Landowners are willing to pay to improve sites:

Some rail companies have funds for ‘greening’ stations;

Local Authorities should support in line with their statutory duty for allotment provision;

Development sites with temporary areas of unused land can provide local community benefit with little effort;

Landowners currently pay to maintain sites (removal of fly tipped waste, weed clearance, security).

The business model for each site is built around gaining income from two sources:

Landowners will be charged a small annual fee in return for the improvements made to their site (site clearance and ongoing maintenance). The fee will be roughly equal to their current outgoings for managing the site (£500-£2,000), with the added bonus that they are contributing to a community benefit;

Aplotment users will pay a monthly rental fee for access to their own micro-allotment plot. The charge will be £10-£30/month, depending on exact location and size of site. A similar business model identified in Melbourne Australia charges approximately £45 per month in a city centre location.

Each site’s capital costs range from £2,000 to £12,000 depending upon utility connections, clearance and groundworks, and size. Operational costs range between £6,000 and £11,000 and include insurance and security, utility supplies and site maintenance, and a share of central staff salaries and overheads. Each aplotment site has the potential to generate up to £9,000 profit per annum, and will likely take one to four years to payback the capital outlay. Profits will be used to pay off debt and establish new aplotment sites.

Cost & RevenueRisksThis business model is relatively low risk, with small initial capital outlays and independent sites each isolated from the risks of others. Key risks are:

Lack of uptake – we propose to mitigate this by securing a critical mass of customers before developing a new site.

Poor seasons - this could put off growers and have them leave their plots neglected or opting out. Our customers will receive supporting communications during tricky growing conditions with advice and support to keep it up!

Vandalism – our plots are about improving neglected corners, so we hope through social cohesion and passive surveillance, the plots will remain unharmed. However, we have included insurance costs to be able to replace and repair any damage that may be caused.

Personal Injury – Gardening is a relatively low-risk activity, but we would be insured for third party liability in the case of injury. Our customers would be advised on safe practices before signing-up.

£


With increased uptake we would launch an app, allowing users to meet like-minded gardeners, discuss tips, exchange and learn new skills and find new Urban Aplotments. This service would also help identify demand for future locations; Onsite cafes and shops could also develop, where growers can exchange or buy produce. We envisage partnership opportunities between gardening centres, beekeeper associations and home delivery services such as Rocket Gardens and Hello Fresh;

We would expand to schools and hospitals, getting students and patients involved in gardening and growing to enhance their learning and health; doctors may increasingly recommend social prescriptions.


Environmental & Social Benef its Our business model provides the following benefits:

Environmental

Contributes towards the greenification of cities enhancing biodiversity with natural habitats and improving air quality through pollutant absorption;

Improves the microclimate by cooling down air and contributes to reducing the urban heat island effect;

Helps reduce rainwater run-off by attenuating rainfall.

Social

Supports greater social interaction and community cohesion at a local scale;

Reduces antisocial behaviours such as graffiti and vandalism by removing neglected spaces;

Improves the health & wellbeing of people within dense city environments, which typically result in deficiency to access to nature;

Reduces stress, mental fatigue and attention deficit through improving aesthetic experience;

Growing your own food provides a form of exercise and gives access to healthy food.

Market Conditions

150,000 allotments in the UK with 52 people waiting per 100 plots, with little increase in supply. In part because they are neither flexible nor mobile;

In 2009 Hugh Fearnley-Whittingstall launched Landshare – a free website which facilitated the sharing of private gardens with other growers. 75,000 signed-up but due to lack of income the project has now closed;

Numerous community projects nationally have delivered at small scale gardens e.g. Olympia Station, Kensington and Culpeper Community Garden, Islington. Some have sponsorship, such as from the RHS and BBC. Similar concepts include The Edible Bus Stop, Mobile Gardeners and Global Generation, all of which are local, non-charging projects. None have been replicated at scale;

No examples were found of commercial ventures looking to scale transformation of neglected urban spaces in areas of ‘deficiency in access to nature’.

With thanks to the Strategic Partners of the Future Leaders programme:

CONTACT USWebsite: www.ukgbc.org/FutureLeadersEmail: [email protected]: @UKGBCPhone: 020 7580 0623

UK Green Building CouncilThe Building Centre 26 Store StreetLondonWC1E 7BT 2016

Documents

UK-GBC FUTURE LEADERS · INTRODUCTION This booklet summarises the business model concepts generated by the 2016 UK Green Building ... The UK-GBC’s Future Leaders programme brings