EEVS, Author at EEVS

By Ian Jeffries, Managing Director, EEVS.

Government commitments about carbon are like buses. You wait for a long time and then two come along, in the shape of the Prime Minister’s ten point plan for a green industrial revolution and last week’s commitment to cut emissions by 68% by 2030. It’s a hugely ambitious target particularly as the European Union is considering increasing theirs from 40% to 55%.

These are undoubtedly positive steps in a climate emergency, but as the National Audit office noted last week, the 2030 target is also a ‘colossal challenge’. Whatever way you look at it, the spotlight is now on government, business and consumers.

Many businesses have declared a commitment to net zero. That means that the glare of the corporate and societal spotlight is also shining on property teams too.

Why? Because buildings and their construction together account for 36% of global energy use and 39% of energy-related carbon dioxide emissions annually, according to the United Nations Environment Programme. Put simply, net zero societies will not exist without action from property and built environment professionals.

Delivering net zero requires decarbonised real estate and a new way of operating buildings. Here are three thoughts on some (not all!) actions for 2021 that are going to be important:

Get ready to tell the business that energy usage in buildings will go up

Property and energy teams need to prepare to tell the rest of their businesses that energy usage in buildings could go up. It’s going to require expectation management plus a plan to genuinely decarbonise. The age of Covid-19 and multiple lockdowns has meant that the energy usage in many office buildings in 2020 has been at a rate similar to that of the annual Christmas break. It’s been a green silver lining for efforts to cut carbon.

Additional ventilation in a Covid world is also going to lead to higher energy usage. The German government has already said ventilation was “one of the cheapest and most effective ways” to contain the spread of the virus. We can therefore expect to see ventilation technology play a greater role in the buildings of the near future. This will come with more energy requirements. Plus electrification with charging points for cars will also have an impact for many businesses.

2. Get your reporting match fit

To deliver meaningful action on carbon and energy consumption requires better reporting. Corporate reporting for many businesses is going to be notched up to higher levels because of the Government’s recent pledge to mandate carbon disclosure for listed and large private business. This will inevitably place companies under greater corporate scrutiny to cut carbon.

Independent assessment of energy performance across a property portfolio is going to be crucial. The reality is that many businesses do not have a detailed understanding of energy performance or the cost saving. Many companies pay their FM providers an incentivised fee to save energy but do not have a detailed qualitative and quantitative assessment of all the methodologies and calculations used to generate a savings figure. Independent verification is important for providing greater certainty and transparency to reporting.

3. Get contracts to improve energy performance

Decarbonising real estate will require behavioural, attitudinal and technological change. In energy terms there many things that you can effect now. It means putting in place contractual measures with FM providers to cut energy usage. Some corporate estate and property teams opt for a simple system where any energy costs savings are split 50:50 between client and contractor. Other options might use an incentivised energy reduction programme with clear targets and an agreed percentage shared with the providers. The key is to have an agreement and measure performance against it.

As we prepare for 2021, the Government has upped the ante on climate change. There’s undoubtedly a bit of climate diplomacy going on ahead of hosting COP26 next year. But I’d like to think that there is also a genuine comprehension of the climate emergency and getting the UK on a roadmap to net zero. Meeting the carbon commitments for 2030 will require significant societal change. For those working in property and real estate, the transition to this target and net zero is only just beginning.

LinkedIn Article (December 2020)

By Ian Jeffries, Managing Director, EEVS

Here’s a statement that we all know: in the transition to net zero all property teams should be considering how can they drive energy efficiency across their portfolio. But where should that focus be? Undoubtedly the initial attention for many businesses with a large estate might be to focus on their top fifty largest sites by energy consumption.

This is entirely sensible, but a priority also needs to be tackling the ‘long tail’ of smaller sites and offices too. Boosting the energy efficiency of the top 20 to 30 per cent in a portfolio of 500 to 1,000 sites is likely to be central to delivering meaningful portfolio-wide action on carbon and energy consumption.

What are the practical considerations to help property teams unlock the opportunity?

The starting point is to ask does the business really know what the long tail looks like and understand how it performs? What is the actual energy performance of all sites and what energy efficiency measures have been put place and how effective have they been? These questions are important particularly in the context of the last year. Despite low occupancy in offices, some businesses are seeing that energy demand is high because of increased 24-hour use of air conditioning.

The holy grail of better energy management is to have accurate energy performance data to make informed decisions. Across a large disparate portfolio this is likely to require remote monitoring to be in place.

In parallel, the next stage is to consider the current ability to remotely turn off lighting, cooling and heating. Many large occupiers that I’m working with are exploring technology which provides better remote connectivity for smaller sites.

But investment in tech alone is unlikely to be enough. Driving behavioural change remains important too. Empowering teams particularly in small sites to understand their role to support the energy programme is important.

If the occupier has a contract in place with a third party facilities management provider (FM) it’s important that there is a contractual requirement to save energy and put targets in place. The key is to have an agreement and measure performance against it. There is an important role too for independent assessment of the contract and also ongoing verification of energy performance.

Cutting carbon across real estate’s long tail is a priority in a market grappling with the transition to net zero. This shouldn’t be hard to achieve or put on the ‘too difficult’ pile providing businesses understand the current position, invest in technology, prioritise behavioural change and get their reporting in place.

Ends

By Ian Jeffries, Managing Director, EEVS

As published in Property Week (November 2020)

With lockdown 2.0 and Government guidance now requiring everyone who can work effectively from home to do so, there is a likelihood that some office buildings are consuming energy at rate similar to that of the annual Christmas break.

The silver lining to this under-utilisation of prime real estate is that energy and carbon savings for businesses with large estates are likely to be significant. But will these significant energy savings made during 2020 have a positive impact on the occupiers’ bottom lines?

For many, the answer will depend on the nature of agreements made with outsourced facilities managers (FM) paid to manage the building which includes regulating the electricity and heating. However, there are many businesses that do not stipulate in their contracts with these third party providers how the financial savings derived from lower energy consumption should be attributed. Even if they do, many have no way of independently verifying the savings and ensuring that they – rather than the provider reaps the financial rewards. It’s a costly oversight and in the age of Covid-19 means that some businesses will not recover all or a significant proportion of the savings.

There is no doubt that across a large estate, third party contractors have earned their fees during the pandemic. The reality is that you can’t just turn buildings off. There is a clear need for assets to be professionally managed even when office occupancy is low, so that heating and cooling systems are operating sufficiently to prevent water stagnation which can lead to legionella.

So, how should companies structure a contract with a third party provider tasked with energy performance? Some corporate estate and property teams opt for a simple system where any energy costs savings are split 50:50 between client and contractor. Other options might use an incentivised energy reduction programme with clear targets and an agreed percentage shared with the providers.

Businesses also need to consider contracts in the context of their building energy in a post Covid world. There is the potential that energy usage in buildings will significantly increase in the near future. This is because we will likely also see innovation in ventilation, and the subsequent installation of sophisticated ventilation systems in buildings.

The German government has already said ventilation was “one of the cheapest and most effective ways” to contain the spread of the virus. We can therefore expect to see ventilation technology play a greater role in the buildings of the near future. This will come with more energy requirements at a time when the property sector and wider built environment must play an active role in the transition to net zero.

Beyond putting in place appropriate contracts there is a need for clients to have energy reduction and associated annual cost savings independently verified.

A detailed qualitative and quantitative assessment of all the methodologies and calculations used to generate a savings figure is essential if an occupier is to truly understand how it has been calculated. It typically should involve a full review of all relevant contractual documentation, datasets and analytical processes.

This independent verification is important to provide greater certainty and transparency. The aim should be to spot contractual breaches and so-called ‘savings’ which do not account for unrelated changes such as a pandemic or events like a power cut.

In a world adjusting to Covid-19 where buildings are currently not consuming as much energy as they once did, all occupiers need a clear understanding of energy usage, and whether and how the financial savings will be correctly and fairly attributed.

Ends

By Hilary Wood, director, EEVS

As published in Estates Gazette February 2021

Too much attention at the start of the pandemic was focused on the alleged death of the office. Three lockdowns later and with vaccination rollout in gear, the focus has rightly moved to considering hybrid working models and the workplace strategies that will underpin this, re-energising staff and boosting productivity.

Questions about energy usage and the carbon performance of offices with currently low occupancy levels have perhaps not been front and centre for many businesses, as they consider new operating models and the shape and scale of their property requirements. But against the backdrop of a climate emergency and with many corporate and public sector occupiers declaring net zero commitments, it’s important that they are considered.

This is because there is a potential scenario in which increased energy usage will lead to a carbon rebound, as people return to offices as lockdown is eased and vaccination continues. Property, sustainability and energy teams are already focused on how their real estate strategy aligns with their corporate net zero vision. But they need to do this by preparing for a carbon rebound and, crucially, should now be making plans to mitigate it.

What’s the driver? Building operators seeking to create safe working environments are likely to require more from their ventilation systems. The German government has already said ventilation was “one of the cheapest and most effective ways” to contain the spread of the virus and some healthcare professionals have called for ‘hands, face, space and ventilate.’ We will see more innovation in ventilation, and the subsequent installation of more sophisticated systems in buildings. We can therefore expect to see ventilation technology play a greater role in the buildings of the near future.

Crucially, ventilation will be used more energy intensively. Some offices are now operating ventilation over a 24-hour period and switching to 100 per cent fresh air, rather than a mix of fresh and re-circulated air – both of which are already driving up consumption. For example, there are some offices that have 80 per cent less staff but are only saving 10 per cent of energy compared to before the pandemic.

The reality is that you can’t just turn buildings off. There is a clear need for assets to be professionally managed even when occupancy is low, so that heating and cooling systems are operating sufficiently, as well as to prevent water stagnation which can lead to legionella.

Conversely, for many offices during lockdown the average energy consumption has been at a level usually associated with weekend use. With a shift to home working, selected sites have effectively been ‘hibernated’ for the lockdown period. The carbon and cost savings have been significant.

What in practical terms should property teams consider to mitigate the impact of increased energy usage?

When businesses consider the new workspace strategy for different occupancy levels, they should think about the energy dimension to that as well. Yes, space utilisation is key for a world where there is a need for new collaboration spaces and quiet areas for virtual meetings, but in many buildings it might not be practical or efficient to operate all floors and disperse people around the building.

The days of every floor in a multi storey office being operational every day of the week might be over. Smart controls and understanding the performance data of offices and space usage will need to come to the fore.

To deliver meaningful action on carbon and energy consumption requires better reporting. Corporate reporting for many businesses is going to be notched up to higher levels because of the Government’s commitment to mandate carbon disclosure for listed and large private business.

There are several examples of FTSE-100 companies successfully incentivising their facilities management (FM) providers to save energy across their estates. How they structure these innovative contracts – with their FM’s paid to manage the energy consumption of buildings, including the operation of the internal environment – is key. Performance-based contracts incorporating financial rewards for over-performance provide a tried-and-tested solution. They also represent an area of significant untapped potential for both occupiers and outsource facilities management providers.

Beyond putting in place appropriate contracts, there is a need for clients to have energy and cost saving initiatives independently verified. A detailed qualitative and quantitative assessment of all the methodologies and calculations used to generate a savings figure is essential if an occupier is to truly understand how it has been calculated.

This independent verification is important to provide greater certainty and transparency. This will be important for robust carbon reporting and understanding at a granular detail where the energy savings or increases are happening. Get all that right and you can fully understand the performance of a building and wider office portfolio. We’re living in a time of unprecedented change and a climate emergency. Businesses are going to adjust to new working models and the death of the office is greatly exaggerated. But buildings in the age of Covid-19 will need increased ventilation and therefore energy. As more business consider a return to the office, let’s do everything we can to prevent a carbon rebound

By Ian Jeffries, Managing Director, EEVS

April, 2021

Global energy-related carbon dioxide emissions are on course to increase by 1.5bn tonnes in 2021 – the second-largest increase in history – reversing most of last year’s decline caused by the Covid-19 pandemic, according to a new report from the International Energy Agency.

With many organisations declaring a commitment to net zero, there is increased scrutiny of their progress. The glare of the corporate and societal spotlight is also shining on property and energy teams.

Why? Because buildings and their construction together account for 36 per cent of global energy use and 39 per cent of energy-related carbon dioxide emissions annually, according to the United Nations Environment Programme. Put simply, net zero societies will not exist without action from property and built environment professionals.

As lockdown measures ease in the UK there’s a potential scenario in which increased energy usage will lead to a carbon rebound as people return to offices. Many energy teams will already be focused on how their real estate strategy aligns with their corporate net zero vision. But they need to do this by preparing for a carbon rebound and, crucially, should now be making plans to mitigate it.

Here are five thoughts and some actions for avoiding the great carbon rebound:

Prepare for energy usage in buildings to go up

Additional ventilation needed in a Covid world is going to lead to higher energy usage. Building operators seeking to create safe working environments are likely to require more from their mechanical ventilation systems. The HSE guidance is clear that adequate ventilation reduces how much virus is in the air. Ventilation helps reduce the risk from transmission, when someone breathes in small particles (aerosols) in the air after a person with the virus has been in the same enclosed area. The risk is greater in areas that are poorly ventilated.

Watch out for offices with less people using more air conditioning

Mechanical ventilation is already being used more energy intensively. Some offices are now operating ventilation over a 24-hour period and switching to 100 per cent fresh air, rather than a mix of fresh and re-circulated air – both of which are already driving up consumption. I know of some offices that during lockdown had 80 per cent less staff but were only saving 10 per cent of energy compared to before the pandemic.

Align workplace planning with energy strategy

Some businesses have made commitments to hybrid and flexible working for staff. When businesses consider the new workspace strategy for different occupancy levels, they should think about the energy dimension to that as well. Yes, space utilisation is key for a world where there is a need for new collaboration spaces and quiet areas for virtual meetings, but in many buildings it might not be practical or efficient to operate all floors and disperse people around the building.

Make sure your reporting is match fit

Delivering meaningful action on carbon and energy consumption requires better reporting. Corporate reporting for many businesses is going to be notched up to higher levels because of the Government’s recent pledge to mandate carbon disclosure for listed and large private business. This will inevitably place companies under greater corporate scrutiny to cut carbon.

Get contracts in place to improve energy performance

Decarbonising real estate will require behavioural, attitudinal and technological change. In energy terms there are many things that you can effect now. It means putting in place contractual measures with FM providers to cut energy usage. Some corporate estate and property teams opt for a simple system where any energy costs savings are split 50:50 between client and contractor. Other options might use an incentivised energy reduction programme with clear targets and an agreed percentage shared with the providers. The key is to have an agreement and measure performance against it.

Organisations are going to adjust to new working models. Buildings in the age of Covid-19 will need increased ventilation and therefore energy. As more businesses plot the return to the office, let’s do everything we can to prevent a carbon rebound.

By Ian Jeffries, Managing Director, EEVS

As published in Energy in Buildings & Industry, April 2021

With lockdown restrictions easing and the vaccination rollout continuing, the focus for many organisations is now about considering the future of their working models. Will they be introducing hybrid working models where staff work from home for part of the week, or will employees return to offices on a permanent basis? Are they disposing of sites as part of an estate rationalisation drive?

Questions about energy usage and the carbon performance of offices during the pandemic are perhaps not always part of these discussions. But in the face of a climate emergency and with many corporate and public sector organisations declaring net zero commitments, it’s important that they are considered as part of any new workplace and real estate strategies.

There is a potential scenario in which increased energy usage will lead to a carbon rebound as people return to offices. Many energy teams will already be focused on how their real estate strategy aligns with their corporate net zero vision. But they need to do this by preparing for a carbon rebound and, crucially, should now be making plans to mitigate it.

Why could we see an increase in carbon emissions? Building operators seeking to create safe working environments are likely to require more from their mechanical ventilation systems. The HSE guidance is clear that adequate ventilation reduces how much virus is in the air. Ventilation helps reduce the risk from transmission, when someone breathes in small particles (aerosols) in the air after a person with the virus has been in the same enclosed area. The risk is greater in areas that are poorly ventilated.

New Government recommendations made as part of the proposed Future Buildings Standard from the MHCLG will also increase usage. The current regulations suggest a minimum air exchange rate of 10 l/s/p and the new report from the MHCLG recommends an increase of 50% on top of this. The requirement to filter air and provide such high air change rates makes natural and passive ventilation strategies difficult to achieve. It is likely that some new buildings will have larger air handling units to pump air around buildings.

The MHCLG has suggested that larger equipment running at lower capacity will reduce the energy consumption required.

This is debatable. Mechanical ventilation is already being used more energy intensively. Some offices are now operating ventilation over a 24-hour period and switching to 100 per cent fresh air, rather than a mix of fresh and re-circulated air – both of which are already driving up consumption. For example, there are some offices that during lockdown had 80 per cent less staff but were only saving 10 per cent of energy compared to before the pandemic.

What in practical terms should energy teams consider to mitigate the impact of increased energy usage?

To deliver meaningful action on carbon and energy consumption requires better reporting. Corporate reporting for many businesses is going to be notched up to higher levels because of the Government’s commitment to mandate carbon disclosure for listed and large private business.

Informed decision making will be key. One potential solution could be provided through building sensors. Careful monitoring of air quality could provide data for facilities management (FM) providers to operate ventilation within a building in a more targeted manner.

There are several examples of FTSE-100 companies successfully incentivising their FM providers to save energy across their estates. How they structure these innovative contracts – with their FMs paid to manage the energy consumption of buildings, including the operation of the internal environment – is key. Performance-based contracts incorporating financial rewards for over-performance provide a tried-and-tested solution. They also represent an area of significant untapped potential for both client organisations and outsourced facilities management providers.

With potentially greater ventilation demands and in some cases 24-hour use, organisations should also pay particular attention to contracts with M&E contractors paid to maintain their systems. Changes to these systems could well have interactions with performance-based FM operations, requiring relevant information to be shared and actions taken according to their governance processes, which may be further complicated if different suppliers are involved in providing these services.

This independent verification is important to provide greater certainty and transparency. This will be important for robust carbon reporting and understanding at a granular detail where the energy savings or increases are happening. Get all that right and you can fully understand the performance of a building and wider office portfolio. We’re living in a time of unprecedented change and a climate emergency. Organisations are going to adjust to new working models. Buildings in the age of Covid-19 will need increased ventilation and therefore energy. Government policy in the form of the Future Buildings Standard is evolving. As more business plot the return to the office, let’s do everything we can to prevent a carbon rebound.