At 99 Gresham Street, a multi-occupied London ofce building, Legal & General Property
engaged with occupiers to pilot a new approach to improving environmental performance.
This has cut annual energy costs by 69,510 and reduced CO 2 emissions by 530 tonnes. Single Building Retrot CASE STUDY: LEGAL & GENERAL As a multi-let ofce owner we are always being told that sustainable operation is too difcult. The experience we have had at 99 Gresham Street overcomes those barriers and shows how sustainable management can appeal to occupiers both on nancial and corporate social responsibility grounds. Pippa Burchett, Head of Technical Services at Legal & General Property Situation Legal & General Property has a strong and long-term commitment to sustainability, adopting or investing in pioneering solutions. Across its multi-occupied offce portfolio, the company faces the challenge that, whilst it owns the buildings and controls how common parts operate, it is occupiers who consume and control much of the energy. Legal & General Property can therefore only achieve signifcant reductions in whole building consumption by working in partnership with occupiers. Since 2007, the company has been piloting a new approach at 99 Gresham Street in the City of London, working in partnership with all seven occupiers and its managing agent. Legal & General Property carried out a thorough environmental audit and gained agreement from all occupiers for capital expenditure via the service charge on improvement measures. The company is now applying the best practices from this pilot project at other properties. Actions Energy Legal & General Property carried out a thorough environmental audit and developed a detailed action plan to improve performance. Initiatives included: Chiller system and air conditioning: Modifying the control strategy to improve the effciency of the main air-conditioning plant; introducing foor isolation valves for air conditioning pipework, so that air conditioning can be supplied to the foors where it is needed at any given time, rather than across the whole building. Building Management System (BMS): Replacing fan-coil unit controllers with newer energy effcient controllers; upgrading main building plant outstations and installing BMS optimisers on each foor to enable the system to monitor and modify performance from historical analysis. Since this project began, occupiers have also become more proactive about driving improvements, for instance requesting that security personnel visit their areas to ensure that all lighting has been turned off out-of-hours. Waste Since 2006, Legal & General Property has also introduced a series of measures to reduce waste to landfll at 99 Gresham Street. Initiatives include: Purchasing a cardboard baler and additional waste containers for plastic, drink cans, glass and toner cartridges. Since May 2011, cardboard has been collected and processed at no cost Communicating with occupiers on waste management, outlining changes to facilities and explaining how these should be used Encouraging occupiers staff and contractors to segregate waste at source Since June 2011, all non-recyclable, compacted waste has been sent for incineration at an off-site Combined Heat and Power (CHP) plant, with zero waste to landfll Working with occupiers and contractors to encourage suppliers to remove and recycle their own packaging. Legal & General Property is now rolling out the measures introduced at 99 Gresham Street across its multi-occupied London offce portfolio, starting with the 18 highest energy users. 9 9
G r e s h a m
S t r e e t Challenges Occupier engagement Financial responsibility Attitude change Members of the Legal & General Property team met with occupiers to outline the companys aspirations for improving the building, at the same time as highlighting that cost reductions were a key driver for the work. They have now developed strong relationships, and representatives from Legal & General Property meet with occupiers each month to discuss ongoing performance and improvement opportunities. Developing a robust business case with accurate energy data was key to the success of the project. There was open and honest dialogue around the likely return on investment of a range of initiatives. All occupiers agreed to fund the capital expenditure via the service charge for the installation of foor isolation valves, main building plant outstations and BMS optimisers. This is being overcome through ongoing, open communication with occupiers. Each situation is different and requires an individual approach to bring people along. How to achieve buy-in from all the occupiers at 99 Gresham Street for improvements at the property level, in addition to their own individual environmental improvement schemes? How to gain agreement on the way occupiers would fund improvement measures and beneft from energy cost savings? How to change attitudes, for instance overcoming the perception that the air conditioning system has a problem when there is no mechanical noise as the temperature is comfortable without artifcial cooling? Achievements Benefts In 2010, compared to its 2008 baseline, 99 Gresham Street achieved: 16% less energy use, saving over 1 million kWh and cutting CO 2 emissions by 530 tonnes 41% less water use, saving 3.6 million litres of water 23% less waste generated, saving 34 tonnes of waste 24% recycling, up from 18%, diverting 28 tonnes from landfll. Financials Overview Capital investment: 95,000 for the BMS upgrade 2010 energy savings: 69,510 2010 water savings: 2,000 Payback period: less than two years. The initial investment was funded through the service charges paid by occupiers. The service charge account includes a pot for energy effciency initiatives, which is generated by payments received from occupiers for using the air conditioning system out-of-hours. A Better Buildings Partnership case study from: Legal & General Property For more information contact: Pippa Burchett pippa.burchett@lgim.co.uk | +44 (0) 20 3124 2733 | www.lgim.co.uk/property