Paving the way to a better future

The London Climate Change Agency is pleased to announce the latest partnership to be formed under its Better Buildings Partnership (BBP) and Green500 initiatives. With the facilitation of BBP and Green500, Legal & General Property (LGP) is engaging with several of its high-profile tenants in an unprecedented collaboration between landlords and occupiers to work together to improve the sustainability of buildings. LGP is the first company to take advantage of this unique partnership between the BBP and Green500, London’s premier carbon mentoring scheme.

The BBP has been developed by the London Climate Change Agency with the aim of improving the sustainability of buildings in the city by influencing the wider commercial property market. Green500 is a carbon mentoring scheme for London’s top 500 organisations aimed at reducing the city’s overall carbon emissions. Both the BBP and Green500 are LDA initiatives aimed at establishing the capital as a beacon of environmental excellence.

The two schemes are working side-by-side to help break down the barriers that may occur between owners of commercial and public property and their tenants/occupiers when implementing carbon saving measures in the capital’s existing building stock. Their expertise will be crucial as around 90 percent of office space in London is currently leased, while 40 percent of office buildings are multi-tenanted.

Members of the Green500 and BBP teams have been working with LGP and the occupiers at 99 Gresham Street, EC2, which is owned by LGP’s Linked Life Property Fund, to provide guidance on how, through collaborative working, the sustainability of the building they share can be improved. Occupiers at 99 Gresham Street include Butterfield Bank (UK) Limited, City Golf & Health Clubs, Steptoe & Johnson LLP and Tradeweb Europe Limited.

Green500 will provide specialist guidance to LGP and its tenants through its carbon mentor scheme, a member of which will then carry out a Carbon Opportunities Assessment (COA) of the building, to determine where efficiencies can be enhanced, such as energy and water use and waste management. The COA will form the basis of an action plan which is developed with the support of the carbon mentor and implemented by the landlord and occupiers.

Helen Gordon, Director at LGP, commented: “If we are to elevate the sustainable performance of London’s building stock, it is essential that owners of leased buildings and occupiers work together in identifying the best methods of improving each building. The Better Buildings Partnership and Green500 have provided a very valuable platform from which to collaborate in a more efficient and productive manner than was true in the past and at Gresham Street in particular, we are establishing a stronger understanding between LGP and our tenants. LGP manages £11bn of property in the UK (as at End March 2008), including 114 properties in London and we believe that this represents an excellent opportunity to establish a more collaborative working model, which we believe will be applicable throughout our portfolio and beneficial to ourselves, our tenants and the market.”

All Green500 members will be recognised for their carbon savings in an annual awards scheme hosted by the Mayor of London. Awards, ranging from bronze all the way to diamond, are based on the level of achievement against targets set in the action plan. A special annual award will recognise the most effective partnership between landlord or property owner and its tenants or occupiers.

The public and commercial sectors accounted for 18m tonnes of London’s annual carbon emissions in 2006 – or 40 percent of the capital’s total CO2. The main sources of emissions from the public and commercial sector are heating (36 percent) and lighting (26 percent). The work of the BBP and Green500 will therefore go a long way to improving the sustainability of the capital’s buildings and facilitating powerful and fruitful partnerships between the people who are responsible for them.

An interview with David Mummery, head of customer services at Legal and General Property.

What work are you doing with the Better Buildings Partnership and Green500?
We are working with BBP and Green500 to develop sustainable improvements for LGP’s assets in London, under the first partnership to be implemented since BBP and Green500 were founded. One important aspect of the partnership is the capital’s first carbon mentoring scheme which seeks to educate occupiers and landlords on how buildings can be operated more efficiently.

What does the partnership involve?
It focuses principally on energy, water, wastes and gas in a pioneering initiative that will develop joint carbon reduction programmes, which will benefit both owners and occupiers.

Why is the scheme important?
It enables the sharing of best practice initiatives by owners, landlords and fund managers with the aim of reducing costs, improving efficiency and addressing environmental and sustainable concerns and responsiblities.

What makes the initiative unique?
This is the first partnership between a major owner/developer, the BBP and Green 500 and will help to promote the potential efficiencies that can be achieved if owners and occupiers work together in a more open and transparent working forum. We believe that this will form a good working model that can be transferred and evolved for use at other assets.

In your experience, what barriers can occur between the owner of a commercial property and its tenants?
Traditionally, the barriers that occur between landlords and occupiers are due to a limited or inconsistent dialogue between the two parties. Through this partnership, we are aiming to form an enhanced working relationship with our tenants to ensure that we fully understand their business needs and operational requirements.

This, we believe, will help us to build up both a more detailed knowledge of our tenants requirements and a positive working relationship, thereby instilling a sense of trust and understanding between both groups. It is vital that owners and developers understand their occupiers and gain their trust as without it progress cannot be made; it is predominantly about honesty on both sides.

Talk me through the actual process of a meeting between the owner, tenant and carbon mentor. What actually happens?
We have a good on-site team, which has the occupier’s interests as its highest priority and can relate to their needs on a property-specific level. We make the initial introduction by setting out our aims and objectives, in terms of the LGP/BBP/G500 partnership, and what it can deliver if we all work together. Group meetings are then held on-site between LGP, the G500 Director, Building manager and our property agent, King Sturge.

Collaboration is the key to the success of these meetings. We jointly explain how we can make a difference and the details, such as use of energy, water, gas, waste and occupation of space, through which tenants can best improve their environmental efficiency, with a resulting reduction in operating costs.

Following this, we map out a programme for each occupier, which outlines where efficiencies can be made. The carbon mentor will then continue to work with LGP, the occupiers and building managers to provide the appropriate advice and support, thereby ensuring that savings are maximized and knowledge transferred to subsequent assets where similar success can be achieved.

For more information visit; www.green500.co.uk or www.londonclimatechange.co.uk for Green500 and BBP information and www.legalandgeneral.com for Legal & General