Hillbreak is pleased to release a further date for its highly-regarded “Real Estate Fundamentals” training course for sustainability and responsible property investment professionals.
The intensive one-day course is open for registration now and is exclusively available for those with an Environmental, Social and Corporate Governance focus working within property companies and real estate investment management organisations. The course is designed to enhance the confidence and ability of delegates to engage with their colleagues and stakeholders in the furtherance of positive ESG outcomes, and to enhance their contribution to the strategic, operational and financial goals of their employer organisations and investor clients.
The training will be held in central London on 11 December 2017 and will include coverage of topics including: the current state of the UK property market and its challenges; the property investment process; property value, valuations and appraisals, including the integration of sustainability factors.
The training, which has received excellent feedback from organisations including LandSec, Intu, The Crown Estate, Capital & Counties and Peel Land & Property, will be delivered by Hillbreak co-founders Miles Keeping MRICS and Jon Lovell.
The unique course, tailored specifically for real estate sustainability professionals, will be run in a roundtable format with a combination of classroom-style teaching, Q&A, individual and group exercises and facilitated discussions. In this way, it is hoped that all participants will learn by having the opportunity to steer content whilst interacting with each other and the facilitators.
Places are limited to 12 delegates and are available on a first-come, first-served basis.
https://www.hillbreak.com/wp-content/uploads/2017/08/real-estate-fundamentals.jpg682955Jon Lovellhttps://www.hillbreak.com/wp-content/uploads/2021/02/hillbreak-green.pngJon Lovell2017-09-29 12:43:252019-08-06 13:55:14Real Estate Fundamentals for ESG Professionals – New Course Date Announced
Potential £10bn rental bombshell just twelve months away in buildings failing green standards
Research on the impact of new green standards has estimated the value of failing commercial property in England and Wales could be as much as £10bn in annual rents.
The estimate is based on data included in a major new report by global advisory, broking and solutions company Willis Towers Watson, which calls for radical policy measures to green the UK’s building stock.
Willis Towers Watson – Real Estate Climate Risk Report 2017
The report, to which Hillbreak was a principal contributor, contains research by big data firm DealX showing that nearly a fifth of commercial properties in England and Wales are currently failing the Minimum energy efficiency standards (MEES) due to come into force from April next year.
The research has found over 115,000 commercial buildings – 17.5 percent of those rated – in England and Wales have Energy Performance Certificates (EPC) rated F or G. Landlords will be forbidden from re-letting commercial buildings with EPCs below E from next April.
Analysis of the figures by property consultancy Daniel Watney LLP based on the EPC data and the new business rates valuations estimates that the equivalent annual rental value of F or G-rated commercial buildings could be as much as £10bn. Figures released by the Investment Property Forum last year estimated the annual 2015 value of UK commercial property rents to be £55bn.
The Willis Towers Watson Real Estate Climate Risk Report brings together major listed firms and high street names including British Land, Land Securities, Lendlease, NatWest and the John Lewis Partnership to examine how to best bring property up to standard and help the UK meet the targets enshrined in the Paris Agreement, the world’s
The listed firms say that while they can leverage their economies of scale and the latest technology to achieve substantial energy efficiency gains, the key challenge will be to get smaller businesses to green their buildings.
Recommendations in the report for greening real estate include:
Government funding for a mass retrofitting programme
Ratcheting up the minimum energy efficiency standard to an EPC D rating by 2020
The industry-wide adoption of Display Energy Certificates
Potentially combining DECs with science-based targets in future legislation to drive ongoing emissions reductions
The report also details the potential harm to real estate if action is not taken to limit climate risk, proposing tougher stress testing and increased translation of climate risk to balance sheets. Many firms are not adequately insured against extreme weather events, as seen in the wake of the UK’s 2015/16 winter floods, which caused £600m in uninsured damage.
Paul Chetwynd-Talbot, managing director of the real estate practice at Willis Towers Watson, said:
“Buildings create 40% of carbon emissions and the fact than one in five properties are falling short of standards is worrying. Investors – many of whom are pension funds – increasingly recognise the risks associated with climate change. But we need to see more affirmative action from Government to help retrofit older buildings and drive forward take up of renewable energy.”
Miles Keeping, co-founder and director of sustainability consultancy Hillbreak, said:
“It is of course impossible to identify the precise value of the total rents at risk due to MEES. But relying on rateable value data gives us a very tangible sense of the money landlords are putting at risk if they do not attend to their EPC-related risks appropriately and very soon.”
Martin Siegert, co-director of the Grantham Institute for Climate Change and the Environment at Imperial College London, said:
“The need to decarbonise our economy is critical. It is going to be a profound change: the developed world will need to have no net carbon emissions by 2050. Ending emissions from our electricity system, manufacturing, transport and supply chains will be challenging enough for our larger companies, but we will need all of our smaller companies to achieve this too.”
Sarah Cary, head of sustainable places at British Land, said:
“Retrofitting old buildings on a mass scale requires a far more complex solution than simple tax incentives to replace boilers or windows. Retrofitting should be set as a priority for a national infrastructure programme.
“The benefits would be twofold: it would be a boon for job creation, and it would work wonders in helping reach energy goals.”
Paul King, managing director of sustainability at Lendlease Europe, said:
“We need to make sustainability easier for everyone to engage with – both in terms of consumers and companies. An industry-wide agreement to have LCD screens on the front of every building showing real-time energy use would be more than welcome. Just as with the example of energy labelling on white goods, while it may not directly cause many consumers to switch from one business to another, the incentive to a CEO to avoid having a negative label compared with a competitor could generate real results in driving businesses to retrofit their buildings.”
Caroline Hill, head of sustainability at Land Securities, said:
“Changes in technology and the ability to access growing pools of data have allowed us to set increasingly ambitious commitments to reduce both energy intensity and emissions by 40% per square metre by 2030. If more leading businesses agreed to using 100% renewable power, this could provoke a serious step-change in how society approaches the challenges we face.
“Giving property owners a hard stop deadline to improve buildings or lose the right to rent them out has clearly had some positive effect. Ratcheting MEES so all buildings must be at least D grade by 2020 would provide the impetus for inefficient buildings to get the investment they need.”
Andrew McAllan, managing director of Oxford Properties Group and chairman of the Canadian Green Building Council, said:
“Most ‘Tier 1’ companies – those with the greatest capital reserves and profits – are by and large already taking the necessary action on making their buildings greener and making more efficient use of energy. It’s that next level down of ‘Tier 2’ companies that need engaging and support. Mandatory reporting of energy consumption would be useful: what gets measured gets managed.
“The best sustainability strategies are built on a foundation of good data, and there are ways of bringing in these measures without making them onerous for smaller businesses. Once you have that compulsory recording in place, smaller businesses then see the easy efficiencies they can make on their utility costs. Combined with something like carbon pricing to add impetus to the need to invest in more efficient installations, that is how we can effect the change we need.”
Richard Garner, head of commercial agency at property consultancy Daniel Watney LLP, said:
“As our research into the value of England and Wales’ F and G rated buildings shows, many investors in commercial property face a ticking timebomb with their properties being potentially unlettable from April next year – this is particularly the case in the office hotspots of Westminster, Kensington and the City, which have commercial space with a collective annual rental estimate of nearly £800m currently not up to standard.
All the evidence demonstrates that adding sustainable features to offices adds value and drives worker productivity and satisfaction, advantages that will serve landlords well over the long term.”
Jon Lovell, co-founder and director at sustainability consultancy Hillbreak, said:
“It is important that that the government clarifies some of the glaring gaps in the confusing regulations. Many large fund managers and REITs are on top of them, but we have a real concern for the long tail of smaller landlords, businesses and family trusts, who own a disproportionate amount of F&G rated properties and will suffer if they don’t get their acts together very quickly.”
— ENDS —
Contributors to the Willis Towers Watson Real Estate Climate Risk Report 2017 included Hillbreak, British Land, Land Securities, Lend Lease, Oxford Properties, John Lewis Partnership, Nattiest, Hermes Investment Management, Blackstock, Grantham Institute for Climate Change & the Environment and DealX.
For more information, please contact Blackstock Consulting / Tyron Wilson / tyron@blackstockpr.com / 07725 197364
Notes for editors
Daniel Watney LLP is not a contributor to the report, but their research on the value of F + G-rated property is based on the DealX data within the report. The rental estimates are based on the latest rateable values used to calculate business rates, calculated using the average rateable value in each local authority and the number of F + G-rated buildings in each district.
About Willis Towers Watson
Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 40,000 employees serving more than 140 countries. We design and deliver solutions that manage risk, optimize benefits, cultivate talent, and expand the power of capital to protect and strengthen institutions and individuals. Our unique perspective allows us to see the critical intersections between talent, assets and ideas – the dynamic formula that drives business performance. Together, we unlock potential. Learn more at willistowerswatson.com.
About Hillbreak
Hillbreak is a unique training and advisory firm that helps organisations seeking competitive advantage in a changing urban world. Its mission is to expedite the transition to a sustainable policy, business and investment environment by bringing intelligence, challenge and inspiration to its clients and stakeholders. Please visit hillbreak.com for further information or follow us on Twitter, Facebook, and LinkedIn.
Hillbreak Co-Founder and Urban Land Institute (ULI) UK Vice-Chair, Jon Lovell, will be speaking on the main conference programme at Regen2017. The event, to be held at the iconic St George’s Hall in Liverpool, brings together renowned thought-leaders in UK regeneration and economic development.
Representing the ULI, Lovell will join UK-GBC Campaign & Policy Director, John Alker, and the Chief Executive of The Land Trust, Euan Hall, on a session focusing on Sustainability & Growth. He will address the topic of “Leadership in the responsible use of land and investment” through which he will highlight how the burgeoning momentum of the Responsible Investment agenda is shaping investor and developer attitudes to the creation of places and communities with lasting appeal. He will illustrate how a clear focus on futures thinking and strategic foresight is an essential hallmark of the civic and business leadership needed to shape and nurture successful cities and communities in our rapidly-changing world.
The conference, exhibition and networking event, now in its third year, is free to attend and features participants including the Heseltine Institute for Public Policy & Practice, Peel Group, Urban Splash, Triodos Bank and the Department for Communities and Local Government.
This article was first published on the Urban Land Institute website.
Well, that was some year! A year of extraordinary paradoxes and contradictions. In truth, I’m still trying to get my head around it, such was the peculiarity of the many events which unfolded. Hot on the heels of the Paris Agreement on Climate Change, I headed in to 2016 with a renewed sense of hope and determination.
Finally, after years of effort, the world had taken a unanimous stand against one of the defining threats of our time. Political resolve unparalleled in living memory, emboldened by the clarion call from the world of business, investment and civic governance. The implications for real estate were (and remain) profound, clarifying a new imperative for our industry and those who invest in it. Importantly, the momentum continued with ratification of the Treaty being secured much earlier than expected. It was complemented too, by another ground-breaking Agreement: that struck by 170 nations in Kigali to phase out the use of hydroflourocarbons.
A ULI highlight of mine within this context was the publication of L’Accord de Paris: A Potential Game Changer for the Global Real Estate Industry. My firm, Hillbreak, was honoured to have been asked by ULI to author the Report, supported by an exemplary global steering group. Together, we sought to draw out the key considerations for real estate owners and developers arising from the Agreement and we were rewarded with overwhelmingly positive feedback from across the world.
The Report highlighted, I think, the very unique place which ULI holds in the real estate universe. No other organisation in our sector has quite the reach or depth of insight to be able to take a topic of such pervasive significance and distil it into something resonant across all the major market geographies.
The optimism with which I started the year was soon tempered by a cascade of political shockwaves: a deluge of populism; uprising at the hard ends of the political spectrum; Brexit; the murder of Jo Cox MP; the vitriol of the US Presidential elections. Not in my lifetime have the forces of progress and disorder been pulling against each other so forcibly.
All these things and more throw a heavy veil of uncertainty over many of the issues with which our ULI Sustainability Council is concerned; social cohesion, tackling climate change, energy policy etc. Despite the upheaval around us, we’ve tried as a Council to address these themes with the balance, rigour and inquisition that they deserve, and I think we’ve been successful in that. Certainly, the feedback which we received from the many ULI members and friends that have attended our events throughout this year suggests that we are.
The Sustainability Council has, I believe, now reached an inflexion moment and we need to reflect carefully on what we have achieved and how we can operate with maximum impact and effectiveness into the future. Many of the events that unfolded around us in 2016 suggest that we need to reappraise the issues which require our focus.
Meanwhile the continued success and maturing of ULI UK means that the organisation is broadening and deepening its activity and its reach (the advent of the Development and the Technology Forums are good examples of this). This is unquestionably brilliant, but also means we need to act smartly to ensure we are delivering nothing but the best experience for our members. With all this in mind, my first priority as Chair of the Sustainability Council for 2017 will be review our form and function. I’m determined that ULI UK continues to be a leader of the organisation’s global efforts on sustainability matters, and I’m looking forward to working with our Committee to define the next phase of growth and development for the Sustainability Council.
As ever, I’d welcome any suggestions on how we enrich our programme and enhance our usefulness for members.
Jon Lovell , Founding Director, Hillbreak and ULI UK Sustainability Chair
https://www.hillbreak.com/wp-content/uploads/2016/12/glass-200888_640.jpg417640Jon Lovellhttps://www.hillbreak.com/wp-content/uploads/2021/02/hillbreak-green.pngJon Lovell2016-12-21 22:20:412017-01-25 16:34:44Looking back at 2016
Jon Lovell, co-founder of Hillbreak, was recently interviewed by ULI Connect, the official newsletter of the ~40,000 worldwide members of the Urban Land Institute (ULI). He discusses the impacts of the Paris Agreement on Climate Change for the global real estate industry, the risks and competitiveness drivers of climate change and evolving market expectations, and what motivates him to challenge convention in the industry.
Hillbreak recently concluded its first year of business, during which we’ve been fortunate to work with some of the best clients the real estate market has to offer. We’ve been engaged on an array of truly fantastic engagements, from global responsible investment strategies to the cultural envisioning of regeneration schemes; from coaching a new wave of graduate talent into the profession to helping the Boards of worldwide and pan-European organisations to understand and respond to the impacts of a changing urban world. We’ve spearheaded industry initiatives with worldwide reach, and have contributed to projects with an inherently local focus.
We wanted to share with you the story of an impactful and enjoyable first twelve months, captured in this short document:
Our First Year in Numbers
As proud as we are of the projects we’ve worked on, the clients we’ve worked with and the initiatives we’ve supported, we’re very much focused on what lies ahead.
If you would like to find out more, we’d love to here from you.
We’re just getting started!
https://www.hillbreak.com/wp-content/uploads/2016/11/fractal-1390553_640.jpg480640Jon Lovellhttps://www.hillbreak.com/wp-content/uploads/2021/02/hillbreak-green.pngJon Lovell2016-11-11 10:10:052016-11-28 14:20:21Just Getting Started
Hillbreak was the principal author on a major new report on the global real estate implications of the Paris Agreement on Climate Change, published today by the Urban Land Institute. The publication of the report coincides with the gathering of world leaders at the United Nations in New York, during which progress on the ratification of the Paris Agreement gathered significant pace.
The central element of the Paris Agreement is the aggressive scientific objective of holding the increase in the global average temperature to well below 2°C above pre-industrial levels and of pursuing efforts to limit the temperature increase to 1.5°C. The agreement is expected to have significant and far-reaching implications for national and municipal policy making and for business and investment decisions.
Here’s today’s press release on the report:
REAL ESTATE INDUSTRY MUST ADDRESS CLIMATE CHANGE TO MAINTAIN COMPETITIVENESS, SAYS NEW RESEARCH FROM THE URBAN LAND INSTITUTE
Paper analyzes the real estate implications of UN Paris Agreement on climate change
WASHINGTON (September 21, 2016) – As world leaders gather at the United Nations this week to ratify the Paris Agreement on climate change, a new paper released today by the Urban Land Institute (ULI) argues that many real estate organizations are not adequately prepared for the implications of the agreement, which was made at last year’s 21st annual Conference of the Parties in Paris (COP-21).
Entitled L’Accord de Paris: A Potential Game Changer for the Global Real Estate Industry, the paper provides an overview of the key issues that arose from the COP-21 agreement and outlines steps that the real estate industry can take in response. Since buildings account for nearly one-third of global climate-changing carbon emissions, the agreement could trigger significant changes in requirements for building design, development, operations and management. In order to remain competitive, the industry must proactively limit and respond to the effects of climate change, the paper says.
It notes that from a business perspective, taking action to address climate change can help real estate organizations manage risks and capitalize on new opportunities. Investors and developers who proactively respond to impacts of the Paris agreement can ensure that their buildings remain competitive within changing policy, market, and climate conditions. They are also likely to see bottom-line benefits, as improving energy efficiency to reduce the carbon impact of buildings is one of the most cost-effective solutions to mitigating climate change.
“As leaders in the responsible use of land, ULI’s global members have a pivotal role to play in addressing some of the greatest challenges facing our rapidly urbanizing world, including the pressing threat of climate change,” said Patrick Phillips, ULI’s Global Chief Executive Officer. “The Paris Agreement on climate change will have important implications for both developed and emerging real estate markets, including new business and investment opportunities. ULI has published this paper to support our members in navigating the implications of this agreement, and charting strategies for success.”
ULI leader Jon Lovell, cofounder of Hillbreak and principal author of the report, said, “the Paris Agreement was undoubtedly a landmark diplomatic success, but was only possible because of the groundswell of demand, action and support from business leaders, investors, mayors and industry bodies from across the world.” He added, “Given the value at stake and the weight of evidence collated by this paper, it would be naive to think that investors, tenants and regulators won’t all begin to turn the screws on real estate companies and asset owners. The message is clear — act now to address the implications of the Paris Agreement or face irrelevance in the market.”
According to the paper, the Paris Agreement has catalyzed a change in attitudes and expectations surrounding the real estate market. Organizations are under increasing pressure to divest from carbon-intensive companies and assets, and to engage with policymakers and stakeholders on sustainability issues. Furthermore, they are expected to demonstrate a heightened disclosure of carbon performance and the risk posed by climate change to their assets, and to retrofit development standards through new technologies and financing models. Assets that do not conform to these new standards risk low demand and suppressed value.
The first priority for real estate organizations, says the report, should be to audit their resilience against post-COP-21 impacts. The audit should include a review of the risk exposure of their assets and the capabilities and expectations of their stakeholders. The paper suggests a list of specific questions on the topics of climate risk, client and stakeholder expectations, competitor approaches, policy change, asset performance, value chain, people and processes.
L’Accord de Paris: A Potential Game Changer for the Global Real Estate Industry is a precursor for a more detailed report, including case studies, scheduled for release in October.
About the Urban Land Institute
The Urban Land Institute is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the institute has nearly 40,000 members worldwide representing all aspects of land use and development disciplines. For more information, please visit uli.org or follow us on Twitter, Facebook, LinkedIn, and Instagram.
For more information, please contact Trish Riggs Senior Vice President of Communications at 202-624-7086 email: trisha.riggs@uli.org or Peter Walker, Vice President of Strategic Communications: +44 (0)20 7487 9586 or e-mail peter.walker@uli.org
About Hillbreak
Hillbreak is the new name in training and advisory services for organisations seeking competitive advantage in a changing urban world. Its mission is to expedite the transition to a sustainable policy, business and investment environment by bringing intelligence, challenge and inspiration to its clients and stakeholders. Please visit hillbreak.com for further information of follow us on Twitter, Facebook, and LinkedIn.
For more information, please contact Jon Lovell, Co-Founder & Director at +44 (0)7825 531031 or e-mail: jon@hillbreak.com, or Miles Keeping, Co-Founder & Director at +44 (0)7971 457959 or e-mail miles@hillbreak.com
https://www.hillbreak.com/wp-content/uploads/2016/09/urban-city-1245777_1280.jpg400600Jon Lovellhttps://www.hillbreak.com/wp-content/uploads/2021/02/hillbreak-green.pngJon Lovell2016-09-21 12:00:502017-08-04 15:24:40Real Estate Industry Must Address Climate Change to Maintain Competitiveness
Jon Lovell sets out his thoughts on the implications of the Paris Agreement on climate change for the real estate industry. He asks what difference the Agreement will make to business as usual and what are the implications that developers, asset owners, occupiers and funders should be preparing themselves for.
Article published originally in, and reproduced here with the permission of, www.europroperty.com.
https://www.hillbreak.com/wp-content/uploads/2016/02/implications-of-paris-deal-on-climate-change.jpg6531280Jon Lovellhttps://www.hillbreak.com/wp-content/uploads/2021/02/hillbreak-green.pngJon Lovell2016-02-01 10:01:452016-05-06 10:56:37Global Warming – It’s Paris or Bust!
Jon Lovell today presented to the Building Energy Symposium in Lisbon, Portugal. He illustrated how a range of global megatrends are coalescing to create a new operating environment, with associated risks and opportunities, for the commercial real estate market, and for cities.
https://www.hillbreak.com/wp-content/uploads/2015/11/lisbon.jpg533800Jon Lovellhttps://www.hillbreak.com/wp-content/uploads/2021/02/hillbreak-green.pngJon Lovell2015-11-25 22:25:232016-05-06 11:24:22Shaping the Future – Key Trends in the Real Estate Sector
Here’s a Q&A with Hillbreak’s Jon Lovell, published by leading Insurance Broker & Risk Advisor, Willis Towers Watson, on key sustainability issues affecting Real Estate.
Do take a look, and let us know what you think…
Jon Lovell Q&A, Willis Real Estate Risk Insights
https://www.hillbreak.com/wp-content/uploads/2016/04/jon-lovell-hillbreak-founder.jpg1280848Jon Lovellhttps://www.hillbreak.com/wp-content/uploads/2021/02/hillbreak-green.pngJon Lovell2015-11-11 09:34:052016-05-06 11:23:41Q&A with Jon Lovell in Willis Towers Watson Real Estate Risk Insights
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