Downloaded 26 times
Uploaded byGRESB
How the Real Estate Sector Can Contribute to Meet the COP21 Targets - EPRA - INREV - GRESB event, Brussels, September 29, 2016
This document provides the program for an event titled "How the Real Estate Sector Can Contribute to Meet the COP21 Targets". The program includes welcome remarks, statements from the European Commission and GRESB CEO, and a panel discussion on green energy and zero carbon emissions in real estate. It also lists over 100 investors that support GRESB's assessment of the ESG performance of real estate portfolios and companies.
More Related Content
Similar to How the Real Estate Sector Can Contribute to Meet the COP21 Targets - EPRA - INREV - GRESB event, Brussels, September 29, 2016
![PIIMA & GRESB: Performance Component [English]](https://cdn.slidesharecdn.com/ss_thumbnails/piimaperformancecomponentgresbenglish-210301212614-thumbnail.jpg?width=640&height=640&fit=bounds)
![PIIMA & GRESB: Performance Component [SPANISH]](https://cdn.slidesharecdn.com/ss_thumbnails/performancecomponentgresbspanish-210302082826-thumbnail.jpg?width=640&height=640&fit=bounds)
How the Real Estate Sector Can Contribute to Meet the COP21 Targets - EPRA - INREV - GRESB event, Brussels, September 29, 2016
- 3. Program How the RealEstate Sector Can Contribute to Meet the COP21 Targets • 15:00 - Welcome and introduction • Philip Charls, CEO, EPRA • 15:10 - Statement from European Commission • Marie Donnelly, Director DG Energy • 15:30 - GRESB Results and the Realization of the COP21 Targets • Nils Kok, CEO, GRESB • 15:50 - How Can Real Estate Investors Benefit from the Paris Climate Agreement: Practical Steps to Integrate Climate Aspects into Real Estate Investments • Katharina Lütkehermöller, Property Working Group Coordinator, UNEP Finance Initiative • 16:00 - Panel: Towards Green Energy and Zero Carbon Emissions • Moderator: Nils Kok • Panelists: • Bill Hughes, Head of Real Assets, Legal & General Investment Management • Olivier Elamine, CEO, alstria • Mathieu Elshout, Director Private Real Estate Europe, PGGM Investments • Matthijs Storm, Head of Real Estate, Kempen Capital Management • 16:55 - Closing remarks • Jeff Rupp, Director of Public Affairs, INREV • 17:00 - Networking & drinks
- 4. Statement from theEuropean Commission Marie Donnelly, Director DG Energy
- 5. GRESB Results andthe Realization of the COP21 Targets Nils Kok, CEO, GRESB
- 7. 7.3 billion 73 $ trillion 9.8 GtC/year +0.810C above20th century average Worldwide GDP CO2 Population
- 10. ACTIAM Aegon NV Alberta InvestmentManagement Corporation (AIMCo) Amundi AMP Capital AP1 First Swedish National Pension Fund AP2 Second Swedish National Pension Fund AP3 Third Swedish National Pension Fund AP4 Fourth Swedish National Pension Fund AP7 Seventh Swedish National Pension Fund Archbishops' Council Armstrong Asset Management ATP Australian Ethical Investment AustralianSuper Aviva Investors AXA AXA IM Baldwin Brothers Inc. Bank J. Safra Sarasin Bayerische Versorgungskammer Bedfordshire Pension Fund BMO Global Asset Management BNP Paribas Investment Partners Brawn Capital Brown University Sustainable Investment Fund BT Pension Scheme California Public Employees' Retirement System California State Teachers' Retirement System Cathay Financial Holding Co., Ltd. Catholic Super CBRE Global Investors Cbus Super CCLA Central Finance Board of the Methodist Church Christian Brothers Investment Services Christian Super Christopher Reynolds Foundation Church Commissioners for England Church of England Pensions Board Church of Sweden Connecticut Retirement Plans and Trust Funds Dana Investment Advisors Danske Bank Asset Management Danske Civil- og Akademiingeniørers Pensionskasse Deutsche Asset Management Dragon Capital EdenTree Investment Management Ltd. Encourage Capital Environment Agency Pension Fund Epworth Investment Management Ltd ERAFP ESSSuper ETF Partners Eureka Funds Management First Affirmative Financial Network Friends Fiduciary Corporation Friends Provident Charitable Foundation FRR - Fonds de Réserve pour les Retraites Greater Manchester Pension Fund Henderson Global Investors Hermes Investment Management HESTA HSBC Global Asset Management IFM Investors Impax Asset Management Inflection Point Capital Management Insight Investment Jesuits in Britain Juristernes og Økonomernes Pensionskasse Kempen Capital Management L&G Investment Management Local Government Super London Pensions Fund Authority Mercer Merseyside Pension Fund Miller/Howard Investments, Inc. Mirova MN Nanuk Asset Management Pty Ltd Natixis Asset Management NEI Investments New York City Comptroller New York State Common Retirement Fund New Zealand Superannuation Fund NextEnergy Capital Nordea Wealth Management North East Scotland Pension Fund OFI Ohman Old Mutual Global Investors OPTrust Oregon State Treasurer OTTP Pax World Management LLC PensionDanmark PGGM PKA Plater Trust Railpen Investments Rathbone Greenbank Investments Representative Body of the Church of Ireland Reynders, McVeigh Capital Management Robeco Russell Investments Sisters of St. Dominic of Caldwell, New Jersey Sonen Capital South Yorkshire Pensions Authority Stafford Sustainable Capital Statewide Super Tellus Mater Foundation Temporis Capital LLP The Barrow Cadbury Trust The Joseph Rowntree Charitable Trust The Pensions Trust The Sustainability Group at Loring, Wolcott and Coolidge The United Reformed Church Trillium Asset Management Trustees of Amherst College Unipension FAIF A/S Unitarian Universalist Association USS Veris Wealth Partners VicSuper Vision Super Pty Ltd Walden Asset Management Wespath Benefits and Investments West Midlands Pension Fund West Yorkshire Pension Fund WHEB 130 investors
- 11. INTRODUCING THE 11TH GICS®SECTOR: REAL ESTATE
- 12. Buildings are (abig part of) the problem… 99TWh 27.9Mt 0.47km3 15.5Mt Total impact measured by GRESB in 2016
- 13. Solar panels atSt Stephen’s British Land Company plc • Largest installation of PV panels at UK shopping center • 1,100 panels over 55,000 sq.ft. of roof • Partnership with British Land, Syzygy Renewables, St. Stephen’s occupiers • Results • 14% ROI/25 years • Save 3,000 tonnes CO2/ 25 years • 270,000 kWh/yr • £30,000 annual electricity cost savings
- 14. Carbon neutralizing roof HermesReal Estate • Proactive maintenance for 100,000 sq.m. • Water proofing & insulation • Olivine: converts carbon through contact with rainfall • First shopping center to install carbon neutralizing roof • Total potential: 350,000kg CO2 or 2.5 million miles in family car • 90-100% savings
- 15. Mall LED upgrade CanaryWharf Group plc • Retail is 11.3% of portfolio but 31.35% of electricity • LED upgrade • 9,260 fittings replaced • Motion sensors • Minimize tenant control • Savings of 3,719,360 kWh/year = lighting of 5,140 homes • Reduces 1,951 tonnes of CO2/yr • Savings > £400,000/year
- 16.
- 17. Sustainability Performance Building Stock Leading BREEAMOutstanding LEED Platinum Green Star Six Star Etc. Regulation
- 18. What about transformingcompanies? Top down, bottom up approach Capital Market Company Portfolio Building Investment Community CAPITAL Investment Manager Portfolio Manager/ Asset Manager Property Manager/ Facility Manager COMMITMENT
- 19.
- 20.
- 22.
- 23. 3.9x The difference inoverall GRESB score between the Top 10% and Bottom 10% entities in 2016
- 24. “U.S. REITs withhigher GRESB ratings deliver higher returns per unit of risk” “2.75% return spread between the Top 10% and Bottom 10% European non-listed GRESB entities” This affects financial performance…
- 25. 73,988 Homes …and environmental performance LFLEnergy consumption of companies/funds reporting to GRESB (between 2014-2015)
- 26. 90,197 passenger cars Reduction in carbonemissions… LFL consumption of companies/funds reporting to GRESB (between 2014-2015)
- 27. 1,200 Olympic pools …in water LFL consumptionof companies/funds reporting to GRESB (between 2014-2015)
- 28. 14,963 truck loads … andin waste LFL consumption of companies/funds reporting to GRESB (between 2014-2015)
- 29.
- 30.
- 31. GRESB SCORE Policy & DisclosureBuilding Certification Monitoring & EMSManagement Performance Indicators Risks & Opportunities Stakeholder Engagement 8.8 % 9.5 % 12.4 % 25.2 % 24.5 % 10.9 % 8.8 %
- 32. DATA PARTNERS (API) GRESBASSET DATA FREE GRESB ASSET SPREADSHEETS
- 33. Validation Three-layer process forinvestment-grade data 100% Validation Plus Site Visit All Participant Check Open text boxes (quality) Open-ended questions Hyperlinks Evidence (presence) Evidence (content) Data accuracy18% 2.5% Reporting boundaries Data quality Evidence for answers
- 34.
- 35. 63 Countries 759Entities 66,000 Assets
- 37.
- 39. USD 7.6 trillion CommercialReal Estate Owned by Investors
- 40. USD 2.8 trillion GRESBCoverage
- 41.
- 42. GRESB Model Global ESGperformance
- 43.
- 44. ESG Performance Dynamics Globaltrends over time
- 45. Sector leaders Europe Listed Private DiversifiedCredit Suisse Real Estate Fund LivingPlus Linked Life Fund Retail Altarea Cogedim Steen & Strom AS 🌐 Office Cegereal Central Saint Giles Limited Partnership 🌐 Industrial Prologis European Properties Fund II Residential UBS (CH) Property Fund - Direct Residential CSA Real Estate Switzerland Residential 🌐 Other Leisure Fund Property Partnership - Legal and General Property 🌐 Healthcare Achmea Dutch Health Care Property Fund - Syntrus Achmea Real Estate & Finance 🌐 Diversified - Retail/Office British Land Company Plc Managed Fund - Legal and General Property Diversified - Industrial/Office Castellum AB 🌐 Diversified - Residential/Office Credit Suisse Real Estate Fund SIAT
- 46.
- 47. 13,645 Homes Energy consumption Europe: Footprintand LFL Consumption 2014-2015
- 48. 3,401 passenger cars Carbon emissions Europe:Footprint and LFL Consumption 2014-2015
- 49. 147 Olympic pools Water consumption Europe: Footprintand LFL Consumption 2014-2015
- 50. 225,583 truck loads Waste management Europe:Footprint and LFL Consumption 2014-2015
- 51.
- 52.
- 53. Intensities – energyconsumption Input versus output
- 54. Intensities – carbonemissions Input versus output
- 55.
- 56.
- 57.
- 58. …and many moreindicators Such as Health & Well-being
- 59.
- 60. 759 ENTITIES 60 (’15: 54) LISTED AUS/NZ -2% LFLChange in Carbon Emissions (427kt) SCORE LEADREPORT
- 63. And it’s notjust investors… Lenders are waking up… 18 GRESB Debt Participants USD44bln Total Loan Portfolio USD7.1bln Green Property Bonds
- 64.
- 65. Sustainability Performance Companies Leaders Will yourcompany lead? Or follow?
- 66. So, what isyour GRESB Rating?
- 68. FINANZ FORUM KLIMAWANDEL UNEPFinance Initiative • Break out session: • Real Estate Investment How can real estate investors benefit from the Paris climate agreement? Practical steps to integrate climate aspects into real estate investments 29. September 2016 Katharina Lütkehermöller United Nations Environment Programme Finance Initiative (UNEP FI)
- 69. S U ST A I N A B L E R E A L E S T A T E I N V E S T M E N T Implementing the Paris Climate Agreement: An action framework
- 70. Excellence. Responsibility. Innovation.2016 SOURCE: PWC Low Carbon Economy Index 2014 A 5-fold increase in the rate of carbon reduction is required to limit climate change to 2C
- 71. After Paris… • Regulatorychanges • Physical impacts will very likely intensify REGULATORY TRENDS • In Europe, the EU non- financial reporting directive on disclosure of non-financial and diversity information • In Australia, SASB envisions a world where a shared understanding of corporate sustainability performance • In Japan the Corporate Governance Code requires companies to take appropriate measures to address sustainability issues . EXTREME WEATHER EVENTS In 2070, 150 million people in the world’s large port cities will be at risk from coastal flooding, along with US$35 trillion worth of property – 9% of global GDP. FINANCIAL RISKS Global direct losses to real estate and infrastructure by re-insurance companies were US$150 bn annually between 2002 and 2012.
- 72. Seize opportunities • Increasedinvestment performance • Increased social economic chances for society, job and productivity growth Growing evidence connects “green real estate” positively with investment fundamentals: • increased client demand, lower vacancy lengths, reduced rates of depreciation, lower operational costs, and higher liquidity; • lower risk of mortgage default for green and energy certified office and residential buildings compared to non- certified properties. A EU study found that health benefits from energy efficiency improvements in buildings could be worth €40-80bn a year. The investment opportunity in energy efficiency building retrofits globally is around US$300 bn annually by 2020. Fiduciary duty
- 73. 118 Sustainable Real EstateInvestment: An action framework • Step-by-step framework and clear signposts for action to “flip the switch” • Tool mapping to make sense of the abundance of tools, resources and information published over the last 5 years • Focus the attention as to where to start and/ or how to increase the ESG integration with clear ‘should’ and ‘could’ actions Audiences: Asset Owners and Trustees and their Investment Advisors, Direct Real Estate Investment Managers and Property Companies and their Real Estate Consultants, Real Estate Equity and REITS, Bond and Debt Investors and their Financial Advisors.
- 74. Why use thisguide?
- 75.
- 76. Strategy: Develop ESG& climate strategy • . • Asset owners & their advisors
- 77. Develop an ESG& climate strategy • . • Recommended resources, excerpt
- 78. Implementation: Integrate ESG& climate in your investment strategy • . • Asset owners & their advisors
- 79. Alignment: Advisers andconsultants selection process Equity, bond & debt investors
- 80. Other UN-led opportunitiesfor action UNEP Finance Initiative • New Global Alliance for Buildings and Construction • Brings together 24 governments, 60+ organizations • Objective: Better coordination and more effective measures to support the buildings sector achieve its full potential with regards its contribution to meet the Paris climate goals • Portfolio Decarbonization Coalition • A multi-stakeholder initiative to drive GHG emissions reductions • Convenes 25 investors overseeing the decarbonization of $600bn in commitments out of $3.2 trillion in AuM. • Positive Impact • “Positive Impact Finance is that which verifiably produces a positive impact on the economy, society or the environment once any potential negative impacts have been duly identified and mitigated.” • Pilot planned for EE in buildings • Global energy efficiency mobilization • 56% of measures will need to come from EE • Statements for both banks & investors showing support and committing to action
- 81. Investors managing closeto USD 4 trillion support the G20 Energy Efficiency Investor Statement
- 82. Over 100 banksmobilized to increase the financing of energy efficiency Societe Generale Banka AD Beograd State Export Import Bank of Ukraine Sudameris Bank Sumitomo Mitsui Trust Holdings Tatra banka Triodos Bank TuranBank Türkiye İş Bankası Türkiye Sinai Kalkinma Bankasi UK Green Investment Bank Ukrsibbank Unibank Unicredit Bank DD Mostar Unicreditbank Serbia Unicredit Bulbank Unicredit Tiriac Banka United Bulgarian Bank Vakiflar Bankasi VTB Georgia Xac Bank Yapı ve Kredi Bankasi YES Bank Zagrebacka Banka ING Group Kyrgyz Investment and Credit Bank La Banque Postale Megabank Microinvest Minsk Transit Bank Mobiasbanca Moldincombank Moldova Agroindbank Mutualista Pichincha National Bank of Egypt NLB Tutunska Banka A.D. Skopje NRW Bank Ohridska Banka A.D. Ohrid OTP Bank Romania Pireaus Bank Procredit Group Raiffeisen Bank Aval Raiffeisen Bank D.D. Bosnia and Herzegovina Raiffeisen Bank Romania SEF International Universal Credit Organization Şekerbank Shinhan Bank Slovenska Sporitelna Societe Generale Group BRAC Bank Limited BRD - Groupe Societe Generale CASA DE Economii SI Consemnatiuni CenterInvest Bank CIBanco Connecticut Green Bank Crédit Agricole Crédit Coopératif Crédit Foncier CREDO Daegu Bank Demir Kyrgyz International Bank Demirbank DenizBank Desjardins Group Ecobank Erste & Steiermarkische Bank Eurobank Firstrand Garanti Bankasi Garanti Leasing Halkbank Skopje Hana Bank HSBC Bank Armenia Humo MDO Imon International Industrial Bank ABN AMRO ACBA - Credit Agricole Bank ACCESSBANK Agjencioni Per Financim NE Kosove AKBank Ameriabank Armswissbank ASN Bank Bai Tushum & Partners Banamex Banca Transilvania Bancolombia Bancompartir Bank Eskhata Bank Millennium Bank of Georgia Bank of India Bank of Valletta Bank Republic Basisbank BBVA Belgazprombank Belvnesheconombank BMCE Bank of Africa BNP Paribas Bpifrance BPS-SBERBank
- 83. THANK YOU YOU CANDOWNLOAD THE INTERACTIVE COPY OF THE FRAMEWORK HERE: http://www.unepfi.org/work-streams/property/SustainableREI/ FOR FURTHER QUESTIONS PLEASE DON’T HESITATE TO CONTACT ME: [email protected]
- 85. Panel: Towards GreenEnergy and Zero Carbon Emissions Moderator: Nils Kok Panelists: Bill Hughes, Head of Real Assets, Legal & General Investment Management Olivier Elamine, CEO, alstria Mathieu Elshout, Director Private Real Estate Europe, PGGM Investments Matthijs Storm, Head of Real Estate, Kempen Capital Management
- 87. Closing Remarks Jeff Rupp,Director of Public Affairs, INREV
Editor's Notes
- #8 7.3 billion people, of which most live in cities. This was only 14% a century ago. Annual worldwide GDP output is massive: 73 trillion USD per year This also translates to a considerable carbon footprint, of almost 10 Gigatonne of carbon per year – 400ppm
- #10 New global commitment to reduce emissions First ever legally-binding climate agreement The Paris Agreement on climate change provides a clear signal to investors that the transition to the low-carbon, clean energy economy is inevitable and already underway. Governments have a responsibility to work with the private sector to ensure that this transition happens fast enough to catalyse the significant investment required to achieve the Paris Agreement’s goals including: Holding the increase in the global average temperature to well below 2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, and Achieving net zero greenhouse gas emissions (“a balance between anthropogenic emissions by sources and removals by sinks of GHGs”) in the second half of the century."
- #11 New global commitment to reduce emissions First ever legally-binding climate agreement The Paris Agreement on climate change provides a clear signal to investors that the transition to the low-carbon, clean energy economy is inevitable and already underway. Governments have a responsibility to work with the private sector to ensure that this transition happens fast enough to catalyse the significant investment required to achieve the Paris Agreement’s goals including: Holding the increase in the global average temperature to well below 2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, and Achieving net zero greenhouse gas emissions (“a balance between anthropogenic emissions by sources and removals by sinks of GHGs”) in the second half of the century."
- #12 More responsible investors (130 investors respresenting USD 13 trillion) More focus than ever on environmental, social, and governance performance across all asset classes They urge to: Increase pace of transition Increase green investments I short: carrots & sticks are needed List of investors that signed G20 letter from: http://www.igcc.org.au/resources/Documents/FinalWebInvestorG20Letter24Aug1223pm.pdf
- #14 4 months electricity supply in the UK 4% of all global carbon emissions from ailrine sector 188,000 Olympic pools 2.5 times the Great Pyramid of Giza
- #15 Purpose of the project British Land creates outstanding places which make a positive difference to people’s everyday lives. The company aims to reduce carbon intensity (Scope 1 and 2) by 55% across its entire portfolio by 2020 compared to 2009. Its award-winning efficiency programme generates energy cost savings for occupiers, protects asset value for investors and cuts carbon emissions. St Stephen’s, Hull, is home to over 50 stores and restaurants. The scheme has transformed Hull’s retail and leisure provision. Managed by a property team that had reduced energy use by 40% in six years and with a large roof area under British Land control, St Stephen’s was identified as a great asset for testing the potential of solar photovoltaic (PV) panels for wider use across British Land’s portfolio. Approach British Land and St Stephen’s partnered with Syzygy Renewables to assess the feasibility and returns of a PV array at St Stephen’s. They looked for solutions that generated the highest level of renewable energy to maximise long-term financial returns and carbon savings, at the same time as reducing reliance on the National Grid. With technology changing fast, it was a balancing act to ensure that the right product was chosen, at the right time and for the right price. Syzygy specified high-quality products, CSUN PV panels and ABB inverters, and optimised the design to maximise the yield from the PV panels within the structural limitations of the roof. It was agreed that the panels would provide clean electricity for use in common areas. British Land would fund the installation, with electricity then used to ease the utility burden of the occupiers at St Stephen’s. Syzygy would oversee the installation of the panels and manage the panels on an ongoing basis. Implementation The team completed the largest installation of PV panels at a UK shopping centre in December 2015, delivered on-time and to budget. More than 1,100 panels, covering 55,000 sq ft of roof space, were installed over a four-week period at the end of 2015. The contract was G&H Sustainability. Syzygy submits all meter readings to get tariffs paid, as well as providing quarterly reporting and 24hr monitoring for faults. The team also ensures the system is working efficiently to maximise returns. The panels build on St Stephen’s award-winning efficiency programme, with other innovations including a rainwater harvesting system that re-uses 1 million litres of water each year, an on-site food-to-water treatment plant that recycles 15 tonnes of food waste each year, and the region’s first electric car charging points in the region introduced at St Stephen’s in 2011, free for visitors to use. Results 14% return on investment over 25 years • 3,000 tonnes less carbon over 25 years • 270,000 kWh of clean electricity each year • 1/3 of all electricity use in common areas at St Stephen’s • £30,000 annual electricity cost savings • Demonstrating sustainability credentials • Reducing reliance on the National Grid • Generating positive media coverage Magnitude of the benefits 30-40% Savings
- #16 Purpose of the project The Carbon Neutralising Roof System is a proactive maintenance initiative for the 100,000 sq.m of roofing at thecentre:mk. From a maintenance angle, it provides both water-proofing and insulation upgrades to the roofs. Moreover the system utilises roof areas to provide carbon neutralising properties to offset the carbon output of the buildings. It has delivered both financial and operational benefits. Approach The team looked how to take advantage of the roof maintenance programme to offset carbon emissions. The new system has the same waterproofing build up as conventional systems and one that is highly regarded within the industry. The big difference here is that the surface of the cap sheet is covered in a product called Olivine. Olivine has a natural quality that can convert carbon when it comes into contact with rainfall into 100% natural by-products. Implementation It was negotiated using the centres preferred contractor, M&J Flat Roofing, who developed and continue to implement a Roof Asset Management Plan (RAMP) for just £7k per annum (0.07p/sq.m). As part of this process, conventional roofing systems are continually assessed alongside new technological solutions which take into account the environmental impact of roofing works. The Carbon Neutralising Roof System is a proactive maintenance initiative for the 100,000 sq.m roofing at thecentre:mk. The system is rolled out with the maintenance programme and 1000 sq.m of new roof have now been covered . Results The first phase at thecentre:mk was 1000 sq.m of new roof covering, which converts 1750kg of CO2. This is the equivalent to 12,500 miles in a standard family car or 665 litres of Diesel. centre:mk is the first shopping centre in the UK to install a carbon neutralising roof (non-sedum). The potential CO2 capture from the total roofing stock is 350,000kg or the equivalent of 2.50 million miles in a family car. Magnitude of benefits 90-100% Savings
- #17 Purpose of the project The replacing of the lighting across our malls is to address the issue of energy consumption and GHG emissions from conventional lighting. The implementation of this solution aligns with our long term targets of taking steps to reduce and control our impact on the environment and local community; by acting to reduce emission, consumption and waste. Retail makes up 11.3% of our portfolio in area yet contributes to 31.35 % of our annual electricity consumption as of 2014, therefore there needed to be significant improvements to reduce this ratio. Approach In order to reduce the energy consumption across our retail assets it was vital to find a solution that could be implemented across all areas and that was far reaching. However, it was important that the solution minimised disruption to the vast Canary Wharf community, with 112,000 people working at Canary Wharf and an additional 100,000 visitors each weekend. The solution was to work alongside Minimise Energy to install a state of the art light-emitting diode (LED) system that replaced 9260 fittings and 5.3km of lighting stip. In addition, 30% of luminaries have been fitted with motion sensors within our shops to deliver further efficiency savings, and minimising tenant control which can often drive up consumption across the estate. Implementation The upgrade to the lighting system was first piloted in 2014 in which 1.4km of lighting was installed at Canada Place Mall reducing energy consumption by 54%. This was then rolled out in early 2015 across all our major shopping malls Canada Place, Jubilee Place and Cabot Place, as well as associated car parking areas Results They key success factors of this project were: An estimated saving of 3,719,360 kilowatt hours per year; equivalent to the average energy lighting requirements of 5,140 homes in the UK, or total electrical consumption of 925 houses 1,951 fewer tonnes of carbon dioxide (CO2) per year; equivalent to the amount of CO2 produced in 5.9 million miles of car journeys[3] Lighting energy reduction of 65% Annual cost savings of over £400,000 a year Magnitude of benefits 60-70% Savings
- #18 But how to differentiate between leading and lagging? GRESB provides unique insight for real estate, and real estate only GRESB provides a global “yardstick”/business intelligence tool to define and recognize leadership Assess Score Benchmark Communicate
- #19 How can the real estate sector contribute to solving climate issues
- #21 Regulation provides minimum performance requirements Leaders are in the right tail, however, the bulk is still in the “bell” So, how to move the bell forward (= transformation to net-zero buildings that are safe, healthy, comfortable, connected, socially engaged etc.)
- #22 We’ve seen that the capital market provides a very effective top down push towards bottom up commitment PRI currently meeting in Singapore – 1,500 asset owners
- #23 Regulation provides minimum performance requirements Leaders are in the right tail, however, the bulk is still in the “bell” So, how to move the bell forward (= transformation to net-zero buildings that are safe, healthy, comfortable, connected, socially engaged etc.)
- #25 Add real numbers
- #26 Transparency companies and funds vary significantly in their environmental, social, and governance performance Opportunity leadership, quality, competitive advantage, resilience, superior returns, lower operating costs, mitigation of social and environmental impacts Risk regulation, compliance, obsolesce, competitive disadvantage, physical damage, material impact, lower returns, higher operating costs, excessive social and environmental impacts
- #27 Almost 4x The difference in overall GRESB score between the Top 10% and Bottom 10% entities in 2016 Message: there is a great differentiation amongst GRESB reporters. Our aim is to provide transparency to the bottom performers in terms of how the top performers are managing risks and utilizing opportunities, so they can close the gap. Top 10% average score: 86.6 Bottom 10% average score: 21.9
- #28 There is an increasing amount of evidence that backs the correlation between financial performance and ESG performance. Studies using GRESB data clearly show that market transformation also makes business sense.
- #29 What does current market transformation look like in terms of reducing the built environment’s footprint? Less energy consumption
- #30 Less carbon emissions
- #31 Less water consumption…
- #32 …and less waste streams
- #34 Our process to connect industry stakeholders Central in this process is data quality, both at the company/fund level and at the portfolio level
- #36 Scoring framework is based on what is most material to investors.
- #37 But increasingly, also at the asset level. Our API and asset-level spreadsheet provided GRESB participants to report on building data for about 1/3 of all assets that are (indirectly) covered by the benchmark.
- #38 Process that supports in providing investment-grade data (co-developed with PwC)
- #39 Something different: highlight GRESB leaders
- #40 This map shows the countries asset count based on asset level data
- #41 Listed: 201 Private: 558
- #44 No need to show these (already included in previous slides)
- #50 Let’s put these figures in context
- #51 Disclaimer: this figure is from 5 September 2016 iPhone 7 will be presented today, let’s see what Apple’s market cap is tomorrow morning
- #54 Transparency on ESG provides competitive differentiation & advantage. The opposite is true for lack of transparency.
- #64 Conclusion: transparency leads to improved performance/leadership
- #87 The good: renewable energy consumption increases by 25% The bad: overall energy consumption increased as well, and the net impact is marinal
- #88 The good: renewable energy consumption increases by 50% The bad: overall energy consumption increased as well, and the net impact is marginal
- #91 Drilling down deeper, companies and funds are also differentiated in terms of carbon output Looking at intensities, this differentiation provides interesting insights into sector types and their impact Looking at intensities per unit of invested capital, it becomes clear where the opportunities for improvement are, and how “green investments” might actually have the most positive impact
- #92 Drilling down deeper, companies and funds are also differentiated in terms of carbon output Looking at intensities, this differentiation provides interesting insights into sector types and their impact Looking at intensities per unit of invested capital, it becomes clear where the opportunities for improvement are, and how “green investments” might actually have the most positive impact
- #93 These are all insightful environmental performance results, but performance is more than just “E”
- #100 I thought there were 43 leaders?
- #103 ESG policy includes carbon emissions Carbon emissions target in place Due diligence process includes carbon emissions Risk assessments include carbon emissions Data management system in place Reporting carbon emissions data Offsetting carbon emissions Reporting carbon intensity data External review of carbon emissions data
- #106 New global commitment to reduce emissions First ever legally-binding climate agreement The Paris Agreement on climate change provides a clear signal to investors that the transition to the low-carbon, clean energy economy is inevitable and already underway. Governments have a responsibility to work with the private sector to ensure that this transition happens fast enough to catalyse the significant investment required to achieve the Paris Agreement’s goals including: Holding the increase in the global average temperature to well below 2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, and Achieving net zero greenhouse gas emissions (“a balance between anthropogenic emissions by sources and removals by sinks of GHGs”) in the second half of the century."
- #107 New global commitment to reduce emissions First ever legally-binding climate agreement The Paris Agreement on climate change provides a clear signal to investors that the transition to the low-carbon, clean energy economy is inevitable and already underway. Governments have a responsibility to work with the private sector to ensure that this transition happens fast enough to catalyse the significant investment required to achieve the Paris Agreement’s goals including: Holding the increase in the global average temperature to well below 2°C above pre-industrial levels, and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, and Achieving net zero greenhouse gas emissions (“a balance between anthropogenic emissions by sources and removals by sinks of GHGs”) in the second half of the century."
- #110 Regulation provides minimum performance requirements Leaders are in the right tail, however, the bulk is still in the “bell” So, how to move the bell forward (= transformation to net-zero buildings that are safe, healthy, comfortable, connected, socially engaged etc.)
- #112 Add real numbers