British Land Company PLC · LSE:BLND
British Land — ESG Presentation (January 2012)
36 slides from British Land's sustainability presentation, January 2012
Slide 1: The Landlord and Energy Reduction
THE LANDLORD AND ENERGY REDUCTION Justin Snoxall, Head of the Business Group Matthew Webster, Energy Executive 1 www.britishland.com
Slide 2: Straw Poll
STRAW POLL How much of the energy used in buildings do landlords influence? • 0%? • 15%? • 50%? • More than 50%? 2
Slide 3: Goals for Today
GOALS FOR TODAY • Show energy management as evolving area for the property sector • Share British Land’s own journey • Explore the role landlords play in managing buildings efficiently 3
Slide 4: Our Portfolio: Management Influence
OUR PORTFOLIO MANAGEMENT INFLUENCE As at 30 September 2011 4
Slide 5: Our Portfolio: Energy Use
OUR PORTFOLIO ENERGY USE * Based on British Land’s 2010/11 data (£17.5 million energy spend) 5
Slide 6: What Role Can the Landlord Play?
WHAT ROLE CAN THE LANDLORD PLAY? • Manage more efficiently • Influence occupier actions • Encourage appropriate capital investment 6
Slide 7: Manage More Efficiently: Landlord Influence
MANAGE MORE EFFICIENTLY LANDLORD INFLUENCE * Based on British Land’s 2010/11 data (£14.7 million energy spend for offices) 7
Slide 8: Manage More Efficiently: Can't Fix and Forget
MANAGE MORE EFFICIENTLY CAN’T FIX AND FORGET WHAT’S THE PRIZE? At least 20% reduction in shared services through better management 8
Slide 9: Our Performance – Last Three Years
MANAGE MORE EFFICIENTLY OUR PERFORMANCE – LAST THREE YEARS Based on 16 like-for-like office properties, out of 26 office properties 9
Slide 10: Further Reductions – Last Six Months
MANAGE MORE EFFICIENTLY FURTHER REDUCTIONS – LAST SIX MONTHS Landlord influenced energy reductions (shared services and common parts) 155 Bishopsgate, Broadgate 201 Bishopsgate, Broadgate 1 & 2 Broadgate The Broadgate Tower Broadwalk House, Broadgate Exchange House, Broadgate 10 Exchange Square, Bro
Slide 11: Manage More Efficiently: Normalisation
MANAGE MORE EFFICIENTLY NORMALISATION 11
Slide 12: Issues with LES-TER
MANAGE MORE EFFICIENTLY ISSUES WITH LES-TER • No overall energy rating for landlord influence in common parts and shared central services • No normalisation for extended operating hours • No normalisation for naturally ventilated or air-conditioned space • No carbon allowance for energy sources – e.
Slide 13: Operational vs Design: Bishopsgate Total Building
OPERATIONAL VS DESIGN 201 BISHOPSGATE - TOTAL BUILDING • Consumption for Nov 10 to Oct 11 = 14,022,000 kWh • Extrapolation of Oct consumption over 365 days = 13,370,539 kWh 13 13
Slide 14: Operational vs Design: Bishopsgate Regulated Loads
OPERATIONAL VS DESIGN 201 BISHOPSGATE - REGULATED LOADS 14 14
Slide 15: Manage More Efficiently: Operational vs Design
MANAGE MORE EFFICIENTLY OPERATIONAL VS DESIGN 15
Slide 16: To Summarise
MANAGE MORE EFFICIENTLY TO SUMMARISE We need to: • Understand where landlords and occupiers have significant influence • Recognise that better management is the most cost effective way to reduce energy - and that this requires ongoing resource We also need an effective landlord energy rating tool: •
Slide 17: Influence Occupier Action: Our Objectives
INFLUENCE OCCUPIER ACTION OUR OBJECTIVES IN DOING THIS • Improve occupier knowledge of own energy efficiency • Encourage occupiers to take action • Support occupiers where energy is a priority • Bring forward capital expenditure plans where appropriate 17
Slide 18: Influence Occupier Action: Performance Transparency
INFLUENCE OCCUPIER ACTION PERFORMANCE TRANSPARENCY 18
Slide 19: Changes in Operating Exchange Square
INFLUENCE OCCUPIER ACTION CHANGES IN OPERATING 10 Exchange Square £23k annual saving by scaling back central HVAC by one hour Shared services (before) Shared services (after) External temperature (before and after) 19
Slide 20: Capital Investment: Not the Silver Bullet
CAPITAL INVESTMENT NOT THE SILVER BULLET • Significant opportunity from better management • Barriers to green investment in commercial buildings − Split incentives between landlord and occupier − Significant landlord investment only at refurbishment or replacement − Service charge recovery requires
Slide 21: Summary
SUMMARY Manage efficiently Influence occupier action Capital investment 21
Slide 22: What Are the Results? York House
WHAT ARE THE RESULTS? YORK HOUSE Building information • 10,650 m2 building with 5 occupiers over 5 floors with residential and retail areas • Completed in 2005 to Cat A • BREEAM ‘Very Good’ • Double glazed, solar coated façade • Fresh air provided to each floor via roof mounted AHUs. Supplied on flo
Slide 23: York House – 29% Reduction
WHAT ARE THE RESULTS? YORK HOUSE – 29% reduction 5.0 York House 4.5 4.0 3.5 3.0 Million kWh 2.5 2.0 1.5 1.0 0.5 0.0 Apr 2008 Apr 2009 Apr 2010 to Mar to Mar to Mar 2009 2010 2011 BRITISH LAND OCCUPIED AREAS (E) 643,418 612,014 623,842 DIRECT CONSUMPTION (E) 1,405,114 1,234,350 1,251,252 HVAC (G & E)
Slide 24: How Achieved? Timeline of Actions
HOW ACHIEVED? TIMELINE OF ACTIONS 1.4 EWG established 1.2 1.0 New chiller Adjustment of fan control coils PIR installed LED to OOH Lighting occupier Millions kWh 0.8 survey areas Metering Boiler weather installed LED in car compensation park 0.6 system 0.4 0.2 0.0 COMMON PARTS (E) DIRECT CONSUMPTION
Slide 25: Breakdown of 29% Energy Savings
HOW ACHIEVED? BREAKDOWN OF 29% ENERGY SAVINGS 5% 14% Lighting and motion sensors 2% Chiller strategy 36% MARS items 43% British Land Occupied Areas Occupier actions 25
Slide 26: Heating and Cooling Optimisation
HOW ACHIEVED? Heating and cooling optimisation 26
Slide 27: Chiller Management
HOW ACHIEVED? Chiller management 27
Slide 28: Small Items Add Up
HOW ACHIEVED? Small items add up 28
Slide 29: Fix and Forget vs. On-going Management
HOW ACHIEVED? Fix and forget vs. on-going management 29
Slide 30: What Are the Results? Exchange Square
WHAT ARE THE RESULTS? 10 EXCHANGE SQUARE Building information • 21,303 m2 building with 4 occupiers over 11 floors • Completed in 2004 to Cat A • Double glazed, solar coated façade • Fresh air provided to each floor via roof mounted AHUs. Supplied on floor via fan coils • Cooling: two multiple elect
Slide 31: Exchange Square – 18%
WHAT ARE THE RESULTS? 10 EXCHANGE SQUARE – 18% 7 6 5 4 Million kWh 3 2 1 0 Apr 2008 to Mar 2009 Apr 2009 to Mar 2010 Apr 2010 to Mar 2011 DIRECT CONSUMPTION (E) 3,996,394 3,794,643 3,189,173 HVAC (G & E) 1,869,404 2,005,597 1,639,157 COMMON PARTS (E) 762,105 639,182 637,274 31
Slide 32: How Achieved? Timeline of Actions
HOW ACHIEVED? TIMELINE OF ACTIONS 2.0 1.8 OOH Lighting survey 1.6 AHU override deactivated Frost 1.4 Split chiller protection Car park PIR pump 1.2 Car park ventilation and EP&T adjustments fan strategy Millions kWh initiated Reduce 1.0 AHU operation Lighting 0.8 hours upgrades 0.6 0.4 0.2 0.0 COMMO
Slide 33: Breakdown of 12% Energy Savings
HOW ACHIEVED? BREAKDOWN OF 12% ENERGY SAVINGS 11% Lighting MARS Chiller split 52% Occupier actions 36% 1% 33
Slide 34: Managed to Lease Conditions
HOW ACHIEVED? Managed to lease conditions 34
Slide 35: Occupier Behaviour
HOW ACHIEVED? Occupier behaviour 35
Slide 36: Thank You
THANK YOU www.britishland.com/responsibility 36