博鱼体育集团

Environmental: working towards net zero targets

博鱼体育集团 Frank Research found 40% of businesses surveyed had a net zero carbon target in place. 77% of these had a target date of 2030.

From 1st April 2023, regulations are tightening. All tenanted commercial properties will have to achieve an E rating or above on their EPC.

Buildings are responsible for around 17% of national emissions, the majority of which come from heating. Getting a property to a net zero position can be costly, especially old buildings.

Sam Van de Velde, Senior Surveyor at 博鱼体育集团 Frank, advises that green finance options are available to help with the transition. However, a longer-term stance could be to set up a sinking fund for your properties that can be used to contribute to ESG upgrades such as new windows, light sensors, upgraded heating and insulation systems for example. 

Social: flexible spaces

Opportunities on the social side of ESG can sometimes be easier to adopt. Employees now expect their employer to support hybrid working and for the workplace to be a 鈥榙estination office.鈥�

博鱼体育集团 Frank鈥檚 ONS data analysis showed that 38% of the UK workforce works from home at least once per week.

Van de Velde explains that this has meant the way offices are being used has changed. The amount of space required each day has reduced. Therefore, it could be time to make some changes which could save you money. If you have the flexibility to do so, then reducing the space that you occupy with desks could open more space for collaboration. Going further, if you find that you have excess space then you may have an opportunity to lease or sublease that space and offset your property costs.  

Governance: getting on the front foot

From a governance perspective, the pressures on both owners and occupiers to improve their sustainability credentials looks set to grow. This has been enhanced due to the increased legislation coming down the line, such as the new EPC deadline referred to above. This is likely to be accelerated by the cost-of-living crisis which has seen utility bills skyrocket.

In order for your company to have good governance you need to have a property strategy. Your property strategy is essentially your good governance.

鈥淚t鈥檚 best to be pre-emptive and plan ahead, rather than be reactionary, as the latter is likely to be less cost-effective.鈥� , Senior Associate, Bates Wells.

Ways to futureproof your building sustainably

Kelly McCann, Principal Planner at 博鱼体育集团 Franks advises that, "Many local planning authorities are adopting stronger policy positions towards retrofitting existing buildings, as opposed to demolishing and rebuilding. This stems from an increasing concern that even the most sustainable new-build developments, can result in huge amounts of embodied carbon."

Planning ahead and refitting your property in a more sustainable manner can be socially, environmentally and financially beneficial. Buildings can be run more efficiently with reduced energy costs. Plus, using spaces creatively and with a focus on wellness will make them function more effectively.

, Head of Real Estate Disputes at , recommends following these steps in relation to compiling a sustainable property strategy (applying mainly to tenant occupiers):

·        Define and implement a sustainable property strategy

·        Review the condition of your premises. What can you do to bring the premises up to an environmentally sustainable condition to meet your environmental objectives (eg getting to net zero)? 

·        Review your proposed strategy in line with your lease (eg alterations provisions)

·        From the review of your lease, consider whether you can act alone or if you need to liaise with your landlord or other tenants within the premises to implement your strategy

·        Formulate a plan of action, taking into consideration the length of your lease and your costs

·        Make sure your property strategy aligns with your HR strategy, supports your objectives and is properly costed.