Sustainable Environmental Improvements in the Commercial Sector (SEnvICS, Newport, South Wales)

Angela Langley, Lara Hopkinson, Vicki Stevenson Centre for Research in the Built Environment, Welsh School of Architecture, Cardiff University

There are numerous reasons why commercial landlords and tenants should consider their responsibilities to improve their environmental performance, particularly in relation to energy consumption. Some of these reasons are provided below, and whilst the list is not exhaustive, they provide bottom-line business reasons, which all aim to reduce carbon emissions from the built environment and improve environmental performance.

• The Energy Performance of Buildings Directive (EPBD) introduced in the UK in 2006, has led to the amendment of the UK Building Regulations, which will require all new commercial buildings to produce 27% less carbon than previously allowed. Under the EU Directive, the Government is introducing new measures for inspecting and rating energy efficiency of a building, which will need to be declared when the building is sold, let or refurbished.
• Further articles from within the EPBD are likely to be implemented in the future which will have direct relevance to the commercial sector. All buildings will have to be compliant by 2009
• Reports from Government and the Royal Institute of Chartered Surveyors suggest that Green Buildings will be of greater value.
• Better performing buildings may provide better value for the tenant in terms of the rent, whilst offering more flexible leases.
• Compulsory carbon trading may be introduced by the Government, which may include, amongst others, larger occupiers and property owners who use greater than £250,000 energy per annum.

What is SEnvICS?

SEnvICS is a European Regional Development Funded (ERDF Objective 2) project running until the end of June 2008. As part of Newport’s major regeneration programme, SENVICS forms a pilot flag-ship project for Newport City Council facilitating their focus on improving economic growth and environmental improvement. SENVICS aims to disseminate and encourage the uptake of a Good Practice Guide developed from 2 previous Carbon Trust funded projects, which were supported and assisted by King Sturge, Eversheds, RICS Foundation and the Environment Agency Wales.

The Guide (Incorporating Environmental Best Practice into Commercial Lease Agreements) aims to help commercial landlords and tenants to incorporate a sustainable method, through the commercial lease agreement, to meet their environmental obligations, whilst improving the environmental performance and energy efficiency of the building in line with EU requirements.

When the landlord of a building and a prospective tenant embark on the development of a commercial lease agreement, certain clauses can be included, withdrawn or amended by agreement of both parties. Preceding research has identified that the commercial lease agreement is often considered a systemic barrier to environmental improvement and resource efficiency within the commercial built environment, particularly in multi-tenanted buildings.

This Good Practice Guide is divided into 2 parts. Part 1 provides a summary of the recommendations and model lease clauses, including tips and advice for compliance with EU legislation (in particular the Energy Performance of Buildings Directive). Part 2 provides the explanatory notes, including a background to the driving legislation and the research undertaken to provide practical feasible solutions for UK based commercial landlords and tenants. In essence, the Guide provides model lease clauses and recommendations, which can be discussed and included, as appropriate, during lease negotiation stages so can be applied in both new and existing buildings for single or multi-let occupancy. Adoption of the model clauses and recommendations presented in the document will assist commercial property landlords and tenants to incorporate and maintain good environmental practice into building management and operation. Reduction in resource consumption and improvement in efficiency could potentially:

• Provide bottom-line business benefits for both parties
• Improve corporate image
• Encompass aspects of the Energy Performance of Buildings Directive and other relevant environmental legislation.
• Encompass aspects of the relevant UK Building Regulations.

The project is working alongside private and public sector landlord and tenant companies together with property agents and commercial tenants in respect to commercial premises based in Newport. The work focuses on:

• The Identification of opportunities within existing commercial lease contracts for incorporation of environmental improvement and energy efficiency.
• Encouraging the adoption of certain elements of the Good Practice Guide into new commercial lease agreements.
• Working with landlord and tenant cluster groups to improve environmental management within the building through workshop training sessions
• Distribution of focused questionnaires to all participants to assess effectiveness of uptake.

Our dissemination event “Don’t Forget your Greens – Green Buildings, Green Leases and Green Credentials” in 4th March (Newport) featured a key note speech from Liz Peace (CBE), Chief Executive at the British Property Federation.  Case studies from SENVICS were presented, and can be downloaded from http://www.greenleases-uk.co.uk/casestudies.php.  For more details about the SENVICS project, please contact Angela Langley (details below).

For further information, please contact:

Angela Langley (Project Manager)
Centre for Research in the Built Environment,
Bute Building,
King Edward VII Avenue,
Cardiff. CF10 3NB
Tel: +44 (0)29 2087 5968

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