Asset managers’ guide to hitting net zero
The UK Government’s target of net-zero by 2050 requires every industry to pull together to decarbonise their operations and collectively work to benefit the world as a whole, writes Anna Main of Landwood Group.
Naturally, the government has looked to introduce regulatory packages that are designed to gently spur these industries into action. The most prominent of these from an asset management perspective is the Minimum Energy Efficiency Standards regulation, which is a new piece of legislation that requires a minimum Energy Performance Certificate rating of ‘E’ for rented properties. If a property isn’t able to meet the standards required, landlords can be liable for fines and other commercial penalties, making this a truly hot-button topic for any asset manager to be on top of.
At Landwood Group, we are acutely aware of the increasing pressures on landlords and occupiers to embrace sustainability and achieve net-zero carbon emissions. It can be a big step to get everything right, especially when you have a number of areas to improve or a large portfolio of properties to manage, and choosing to work with an asset management expert can be a great way to lessen the burden on yourself to meet these new requirements.
Meeting the MEES
While meeting the MEES will require some investment, especially for older properties, for a landlord or asset manager they can also be seen as a worthy investment. Energy-efficient properties are attractive to tenants and buyers, often leading to higher rental income and property values, making it a change that is often worth the money.
To meet MEES and net-zero targets, landlords may need to invest in improvements like insulation, heating system upgrades, double-glazing, and renewable energy sources. While these investments can take time to complete, and often have upfront costs, they can also result in long-term savings through reduced energy bills and increased property values.
Luckily, there are steps that can be taken to help without significant investment. These steps will create good operational practices that will ensure upgraded building systems will have the maximum impact once they are introduced.
One of the steps is to implement effective building performance management. Building performance management encompasses the effective measurement and management of systems and processes such as a property’s HVAC, energy consumption and indoor air quality, all seeking to reduce operational costs, and create comfortable, healthy spaces for occupants.
This approach to asset management is only made more important by the still eye-watering costs associated with energy and gas. Energy efficiency is a critical factor in reducing these bills, so any steps that you can take to make your properties more energy efficient will go a long way to keeping your pounds in your pocket.
Additionally, by focusing on this vital aspect of property management, we can optimise building systems. This, in turn, contributes to achieving net-zero carbon emissions, improving asset value, and meeting the ever-growing expectations of sustainability-driven tenants and investors.
In response to these challenges, Landwood Group is committed to helping our landlord clients navigate the complexities of sustainability initiatives and legislation. We firmly believe that getting the basics right first, and building on a strong operational platform is key, and that addressing building performance management is not only essential but can be a quick and powerful win in this journey towards a more sustainable future.
Future of building performance management
For the modern asset manager, technology has enabled them to supercharge their understanding of the properties they manage, spotting problems and solving issues far faster than ever before.
For example, to support Landwood Group’s commitment to building performance management, we have invested in advanced IoT-based remote monitoring platforms, such as 4D Monitoring. This innovative solution enables us to establish a baseline for good building operation and provides us with the measurement capability that is essential to managing performance.
Real-time data and analytics allow us to swiftly identify inefficiencies, collaborate with service partners, and ensure a shared commitment with all stakeholders to managing and optimising building performance. We have a comprehensive picture of every factor that affects a building’s performance, from air quality through to heat generation, and can react swiftly to rectify any issues that can impact your properties and damage your bottom line.
Why effective asset management practices are vital
The potential impact of net-zero and sustainability initiatives on landlords is significant. Landlords who fail to adapt to these changing expectations may face reduced asset values, lower occupancy rates, and even penalties for non-compliance with regulations such as MEES. By embracing building performance management, our clients not only stay ahead of legislative requirements but also enhance their assets’ long-term value.
At Landwood Group, we know that in order to ensure that we are always delivering the best asset management experience for our clients, we have to be on top of the latest changes in the sector. We always ensure that our team is up-to-date with the latest training and education programmes to better understand building systems, energy management strategies, and the benefits of remote monitoring. Additionally, we work closely with our service partners to align our objectives and foster a culture of sustainability and continuous improvement within our properties.
By utilising building performance management and leveraging advanced remote monitoring platforms, Landwood Group is dedicated to helping our landlord clients navigate the path to sustainability. Through our efforts, we can support the achievement of net-zero carbon emissions, improve asset value, and contribute to a greener, more responsible world.