Green communication in a challenging economic climate Andrew Teacher Head of media British Property

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Green communication in a challenging economic
climateAndrew TeacherHead of mediaBritish
Property Federation

• CIPR
• London
• 29 October 2008

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What commercial property is

• 6 of GDP
• 740bn capital value as at end 2006
• 12 on UK tangible assets
• 66bn (28) of capital creation
• 446,000 jobs
• ONS Blue Book 2007

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How commercial property works
Contractors
Occupiers
Finance
Space
Investors/Bankers
Return
Rent
Commercial Property Company/Developer
Interest
Shareholder/Owner
Shareholders
Pensioners/Savers
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The British Property Federation is . . .

• . . . the only advocacy organisation devoted
  to representing the interests of the
  UKs commercial property industry.

Mission To represent and promote the interests
of the UK property industry in order to maximise
its contribution to the economy, to the savings
and investment industry and to the built
environment.
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Objectives

• To raise further the profile of the property
  industry with political stakeholders, the media
  and the public
• To obtain for the industry legislative, fiscal
  and regulatory conditions that maximise its
  success and so enhance the benefits the industry
  can bring to the UK
• To encourage best practice within the industry as
  a means of increasing long term value and
  improving stakeholder perception

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How do we do it?

• Direct advocacy to Government ministers,
  officials, MPs, other stakeholders
• Proactive campaigns
• Reactive responses to formal consultations
• Energetic media relations programme
• Alliances with useful partners
• Briefing material / visits for MPs, ministers,
  officials

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Challenging times
IPD UK Monthly Property Index Results to
September 2008
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Challenging times

• Rental growth

• Changing vacancy rates

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Challenging times

• Construction Activity

RICS, Construction Market Survey, Q3 2008
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Industry reactions

• Avoid risk
• No spec build
• Cut costs
• Sweat the existing assets
• Plan for the future

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Energy performance

• Made energy a public issue (HIPs, EPCs)
• Full impact yet to be assessed
• Tells tenant about fabric of building little
  more
• IPF investigating ways to improve grades and
  landlord/tenant relationship

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Display energy certificates

• Annual rather than 10 yrs
• Occupiers responsibility
• Measure actual use
• Apply to public buildings over 1000m2 occupied by
  body performing public function, visited by
  public
• Private firms doing voluntary DECs

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Opportunities

• Industry can finally get some good PR
• Measurement and transparency are key
• Focus on existing units
• Focus on facts not aspiration
• Use heightened political climate for PR gain

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Landlords energy statementTenants energy review

• Toolkit to measure benchmark energy use
• Focus on operational use
• Progress tracked yearly
• Trial scheme being expanded to look at retail
• If landlords are to start buying carbon
  allowances, theyll need to be able to measure
  and predict use

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Carbon reduction commitment

• Cap and trade scheme
• Landlord buys carbon allowances
• Halfway between simple and fair
• Key things measurement and landlord tenant split
• Massive unawareness
• Affects energy users over

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Cash for carbon

• Firms with total half-hourly metered electricity
  use gt6000 MWh p/a (approx 500,000)
• Once in, it includes fuels burnt as well (gas,
  oil etc)
• Cash goes to govt then back to those who do well
• CRC has to cover 90 of tenants use in advance
  or a fine

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Can government help us go green?

• Reinstate empty property rate relief
• Change tax rules for investment vehicles
• Maintain infrastructure investment
• Allow novel funding for infrastructure e.g. TIFs
• Be sensible about energy efficiency
• Be sensible about CIL

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Road ahead political agenda

• Existing buildings consultation 28 Nov
• Full formed housing
• Fluffy on commercial
• New CRC consultation Dec
• New commercial buildings 2019 paper renewables
  Dec
• Pre-Budget report - Nov

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Changing perceptions

• Innovative, fact driven approach
• Real people, real things
• Admit defeat
• Work together
• Make case for measurement and reporting this
  drives the whole agenda

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WORK WITH THE BPFAndrew TeacherHead of
mediaBritish Property Federation020 7802 0113
/ 07968 12 45 45ateacher_at_bpf.org.ukwww.bpf.org.u
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