Pulling the plug on inefficiency

Paul Roche discusses the sustainable changes that businesses and commercial property owners can make to improve their buildings - and the importance of them then doing so

The importance of buildings in tackling climate change has been well covered in past months. The sector accountable for nearly half of the UK’s carbon emissions, making it central in delivering the UK’s carbon reduction targets of 80 percent by 2050. Up until now however, the attention of policy makers and the construction industry alike has tended to focus on improving the energy efficiency of our homes and making sure new builds are constructed to higher sustainability standards.

Addressing the emissions from our existing non-domestic building stock – accountable for a significant 18 percent of those built environment emissions - is next on the Government’s sustainability hit list. But don’t panic just yet. In addition to the environmental benefits of creating a low carbon property market, there is money to be made and saved too. The Government’s Low Carbon Transition Plan estimates that if all UK business undertook cost effective measures they collectively could save themselves £6.4bn - that’s two percent of UK profits.

Where to start
There are two fundamental approaches when considering how to reduce carbon emissions from existing buildings: firstly, it requires a concerted effort to reduce demand for energy in the first place and the second requires businesses to shift our energy supply to low carbon sources.

The first approach is more difficult than it sounds because it requires buy-in from building owners and occupiers alike. It starts with the need to promote a more widespread understanding about building performance – that means educating people about how buildings function and how people operate within them. What we cannot do is expect this to happen of its own accord and so government and industry bodies have to take responsibility for disseminating the information and providing advice which then needs to be communicated down to businesses and their employees. The wider roll out of regulations such as Display Energy Certificates and Energy Performance Certificates should help considerably by actually measuring energy performance and encouraging transparency but it is then up to people themselves to implement change.

Only once everyone understands the impacts of their actions, are we in a position to encourage behavioural changes which reduce energy consumption in the first place. For example, all businesses should implement an energy efficiency strategy which could include company wide policies and encourage employees to think more carefully about how and when they use heating, lighting and equipment. For example, simple measures such as turning of computers and lights when not in use and keeping photocopying and printing to a minimum can have a considerable impact if done collectively. Only by establishing that direct link between how we use buildings and how this in turn impacts the environment and running costs, will any of this start to make sense.  

As well as considering behavioural changes that occupiers can make, we can start to think about making improvements to the fabric of the building, the task of which would fall on those responsible for the property itself – be it a landlord, letting agent or FM provider. This could begin with incorporating tried and tested upgrades such as installing light sensors and low energy light bulbs, improving existing insulation or installing double or triple glazing. Even Smart Building Control Systems, which were once only suitable for large buildings are now a cost-effective option for small and medium sized buildings too and will monitor and regulate everything from occupancy and electricity usage, to temperature and lighting. Then there are revolutionary new products to consider such as window films which reduce solar gain or the energy absorbing phase change material. This is a wax compound which is stored in panels which can be installed on walls and ceilings. It has the ability to absorb and release heat into a room in order to sustain a comfortable temperature, reducing the need for mechanical ventilation and thus saving building running costs.

With demand for energy reduced and thorough energy efficiency strategies in place, it is time to consider more advanced technologies which actually allow you to generate your own energy. When you consider that you could not only guarantee your own energy security but also make money by selling it to the national grid, the idea of installing renewable energy solutions starts to stack up. The development of low carbon technologies, such as solar PV panels, has come far from the days of initial conception and is no where near as expensive and disruptive as it is often perceived. It is also worth bearing in mind that there are considerable financial incentives available through measures such as the Feed in Tariff – a government backed scheme designed to provide a rate of investment of up to eight percent.  

So who should take responsibility for this?
Everyone has a role to play in making this happen from policy makers who need to set direction and provide a balance of carrot and stick, to the building industry which needs to continue to innovate and bring to market cost-effective solutions that can be applied on a mass scale. Then, of course, we are still left with the issue as to who is responsible for implementing these changes on the ground and the case is made all the more complex by the fact that most commercial properties are owned by one party and used by another. This creates a dilemma between owner and occupier as to who should take responsibility and who gets the reward. However, the truth is that both parties would stand to lose from inaction and both would gain from working together to improve energy efficiency and building performance.

In most cases it is the landlord who holds the contract with energy suppliers and therefore will ultimately be the one who will be penalised for a high polluting building through forthcoming policy such as the Carbon Reduction Commitment Energy Efficiency Scheme but the tenant will equally suffer from increasing utility and maintenance costs. Looking to the future, by considering energy efficiency just as one would ensure a building was safe and functional, owners will be able to attracting premium occupiers, at higher rates and for longer terms as well as being able to command a greater re-sell price. If we look at trends from the United States, thermally efficient buildings command 3 percent higher rental rates and an average increase of 7.5 percent in building value. Alongside this, they deliver 3.5 percent higher occupancy rates and ultimately improve return on investment by an average of 6.6 percent. Equally, occupiers stand to gain from lower utility costs, increased comfort and increased productivity as a result.
The fact is that more rigorous building regulations and carbon policies will impact everyone from the small business owner to the large corporate enterprise and letting agent. There is no one size fits all solution so businesses and property owners alike should make it a priority in 2010 to seek expert advice on everything from impending legislation, to cost-effective energy efficiency measures and low carbon technologies. The exact cost of making these changes can only be calculated on a case by case basis but suffice to say the cost of doing nothing will be greater.

For more information Paul Roche is director of SIG Sustainable Solutions