A Guide to Sustainability in UK Purpose Built Student Accommodation: Challenges and Opportunities

sustainable interiors for a Purpose Built Student Accommodation building (a.i. generated image by biofilico)

The State of Sustainable Student Housing

Introduction to Student Accommodation UK Sustainability

The global push towards sustainability is reshaping industries, and the real estate sector is no exception. As the UK strives to meet its ambitious net-zero targets and combat climate change, the Purpose-Built Student Accommodation (PBSA) sector is under increasing pressure to adapt. The urgency of addressing the climate crisis makes it essential for sustainable student accommodation to be a priority.

This sector, catering specifically to students, must integrate sustainability into its core operations to meet the evolving expectations of a new generation of eco-conscious students.

This comprehensive guide explores the landscape of sustainable student accommodation in the UK, highlighting the challenges and opportunities inherent in transforming this sector to be more environmentally responsible.

Understanding the PBSA Sector

What is Purpose Built Student Accommodation?

Purpose-Built Student Accommodation (PBSA) is a specialized segment of the real estate market designed exclusively to meet the housing needs of students. Unlike traditional housing options, PBSA developments are constructed by private developers and tailored specifically for student life.

They typically feature a mix of shared flats or private studios and are equipped with amenities like modern study areas, reliable Wi-Fi, and communal spaces aimed at fostering a vibrant and conducive study environment.

In recent years, the PBSA sector has expanded rapidly in the UK, driven by the increasing demand for quality student housing. These accommodations offer more than just a place to live; they provide a unique living and learning experience designed to support students academically and socially. However, as the sector grows, so does its environmental footprint, raising important questions about sustainability.

Sustainability Challenges in Purpose Built Student Accommodation

Environmental Impact of Student Housing: The environmental impact of student housing is significant, with the sector grappling with issues like high carbon emissions, substantial energy consumption, and extensive waste generation. Student tenants play a crucial role in promoting sustainability by adopting eco-conscious practices and supporting sustainable housing initiatives. Here’s a closer look at the key challenges:

Energy Consumption and Carbon Emissions: Student accommodations typically have high energy demands due to the need for heating, cooling, and lighting, compounded by the use of electronic devices and appliances by residents. This contributes to substantial carbon emissions, posing a significant challenge in aligning with the UK’s net-zero targets.

Air Quality: Indoor air quality is another pressing concern. The concentration of pollutants indoors can be higher than outdoors, and poor air quality can affect the health and well-being of students. Ensuring proper ventilation and using low-emission materials are critical steps towards improving indoor air quality.

Waste Management: The volume of waste generated in student accommodations is considerable, often including food waste, packaging, and disposable items. Effective waste management strategies are essential to minimize the environmental impact and promote recycling and waste reduction practices among students.

Water Conservation: Water usage in student housing can be excessive, driven by daily necessities and lifestyle choices. Implementing water-saving technologies and encouraging mindful water use are vital in reducing the environmental impact of these facilities.

Affordable and Sustainable Housing: Balancing affordability with sustainability is a key challenge. While there is a growing demand for green buildings, the cost of sustainable construction and the potential for higher rents can make it difficult to provide affordable student housing that also meets environmental standards.

sustainable interiors for a Purpose Built Student Accommodation building (a.i. generated image by biofilico)

Overcoming Sustainability Challenges in Purpose Built student accommodation

ESG Regulations and Governance in PBSA

The integration of Environmental, Social, and Governance (ESG) principles is becoming increasingly important in the student housing market. Driven by government mandates and market dynamics, ESG considerations are shaping the way developers, property managers, and tenants approach sustainability.

Regulatory Landscape: The UK government has implemented various regulations aimed at promoting sustainability in the real estate sector. These include building performance standards, energy efficiency requirements, and incentives for the use of renewable energy. Staying compliant with these regulations is crucial for PBSA developers and operators.

Market Dynamics: Beyond regulatory requirements, there is a growing market-driven push towards sustainability. Students and their families are increasingly prioritizing environmentally friendly living spaces, and universities are incorporating sustainability into their campus planning and housing strategies. This shift is creating a competitive edge for PBSA providers who can demonstrate strong ESG credentials.

Adapting to Evolving Expectations: To meet the demands of eco-conscious students, PBSA providers must integrate ESG considerations into every aspect of their operations. This includes designing and constructing energy-efficient buildings, implementing sustainable management practices, and engaging with residents on sustainability issues.

Innovative Solutions for Sustainable Student Housing

To address these challenges and seize the opportunities for sustainable development, the PBSA sector is exploring a range of innovative solutions:

Eco-Friendly Design and Construction: Sustainable student housing schemes begin with the design and construction phase. Incorporating green building principles, such as using sustainable materials, optimizing natural light, and ensuring efficient energy use, can significantly reduce the environmental impact of new developments.

Energy Efficiency: Implementing energy-efficient technologies and practices is critical in reducing the carbon footprint of student accommodations. This can include the use of smart thermostats, energy-efficient lighting, and renewable energy sources like solar panels. Retrofitting existing buildings with these technologies can also play a significant role in improving sustainability.

Waste Reduction: Reducing waste and promoting recycling are essential components of sustainable student housing. This can be achieved through measures such as providing comprehensive recycling facilities, encouraging the use of reusable items, and implementing waste reduction programs.

Sustainable Materials: The choice of materials used in construction and furnishing has a major impact on the sustainability of student housing. Opting for materials with low environmental impact, such as recycled or locally sourced materials, can help reduce the overall carbon footprint.

AI and Smart Technologies: The use of AI and smart technologies offers new possibilities for enhancing the sustainability of student accommodations. Smart building systems can optimize energy use, monitor air quality, and manage water consumption more efficiently. AI-driven solutions can also improve the management and maintenance of facilities, leading to more sustainable operations.

Environmental Stewardship and Accountability: Adopting policies that prioritize environmental stewardship and transparency is essential for PBSA providers. This includes setting measurable sustainability goals, regularly reporting on progress, and engaging with stakeholders on environmental issues.

Detailed Analysis and Implementation Strategies

Now that we've outlined the challenges and opportunities, let’s delve deeper into the practical strategies and innovations that can drive sustainability in student accommodation. This section focuses on how developers and operators can implement sustainable practices effectively.

Practical Strategies for Purpose Built Student Accommodation Developers and Operators

Design and Construction

Passive Design Principles: Passive design strategies, such as orienting buildings to maximize natural light and ventilation, can significantly reduce energy use. Incorporating features like green roofs and walls can enhance insulation and provide natural cooling, reducing the need for air conditioning.

Sustainable Construction Practices: Emphasizing sustainable construction practices, such as using recycled materials and minimizing waste during construction, can lower the environmental impact. Prefabricated construction methods can also reduce waste and improve efficiency.

BREEAM and LEED Certification: Adhering to building certification standards like BREEAM (Building Research Establishment Environmental Assessment Method) or LEED (Leadership in Energy and Environmental Design) can help ensure that new developments meet high sustainability standards.

Energy Management as part of an environmental sustainability strategy

Renewable Energy Integration: Incorporating renewable energy sources, such as solar panels or wind turbines, into the energy mix of student accommodations can significantly reduce reliance on fossil fuels and lower carbon emissions.

Energy Monitoring and Management: Implementing smart energy management systems that monitor and optimize energy use can help identify inefficiencies and reduce consumption. These systems can also provide valuable data for continuous improvement.

Incentives for Energy Efficiency: Offering incentives for energy-efficient behavior, such as reduced rent or utility costs for low energy use, can encourage students to adopt more sustainable habits.

Water Conservation

Low-Flow Fixtures: Installing low-flow fixtures, such as showerheads and faucets, can reduce water use without compromising functionality. Dual-flush toilets can also help save water.

Rainwater Harvesting: Implementing rainwater harvesting systems can provide a sustainable source of water for non-potable uses, such as irrigation and toilet flushing.

Greywater Recycling: Recycling greywater from sinks and showers for reuse in flushing toilets and irrigation can further reduce water consumption.

Waste Management

Comprehensive Recycling Programs: Providing accessible and well-labeled recycling facilities encourages students to separate their waste and reduces the amount of waste sent to landfill.

Composting Initiatives: Introducing composting programs for food waste can reduce the volume of waste and provide valuable compost for landscaping or community gardens.

Education and Engagement: Educating students about waste reduction and recycling through campaigns and workshops can foster a culture of sustainability.

Embracing Technological Innovations in Student accommodation

Smart Building Technologies

IoT Integration: The Internet of Things (IoT) enables the integration of various building systems, allowing for real-time monitoring and control. This can enhance energy efficiency, improve maintenance, and provide a more comfortable living environment.

Smart Thermostats and Lighting: Installing smart thermostats and lighting systems that adjust based on occupancy and natural light levels can reduce energy use and enhance comfort.

Building Management Systems (BMS): Advanced BMS can optimize the operation of building systems, such as heating, ventilation, and air conditioning (HVAC), to improve efficiency and reduce energy consumption.

AI and Data Analytics

Predictive Maintenance: AI can analyze data from building systems to predict maintenance needs before issues arise, reducing downtime and improving operational efficiency.

Energy Optimization: AI algorithms can analyze energy use patterns and suggest optimizations to reduce consumption and costs.

Resident Engagement: AI-driven platforms can provide personalized recommendations to residents on how to reduce their energy and water use, enhancing their engagement with sustainability initiatives.

sustainable interiors for a Purpose Built Student Accommodation building (a.i. generated image by biofilico)

The Role of Stakeholders in Student accommodation

Developers and Investors

Sustainable Investment Criteria: Investors are increasingly prioritizing sustainability in their decision-making. Developers who can demonstrate strong ESG performance are more likely to attract investment.

Long-Term Value Creation: Sustainable buildings tend to have lower operating costs, higher occupancy rates, and increased property values, creating long-term value for developers and investors.

Universities and Educational Institutions

Partnerships with PBSA Providers: Universities can partner with PBSA providers to ensure that student accommodations align with their sustainability goals and provide a high-quality living environment for students.

Sustainability in Campus Planning: Integrating sustainability into campus planning, including the design and operation of student accommodations, supports the broader educational mission and enhances the institution’s reputation.

Students and Residents

Active Participation: Students play a crucial role in the sustainability of their accommodations. Engaging them in sustainability initiatives and encouraging responsible behavior can significantly impact overall performance.

Feedback and Improvement: Providing channels for students to give feedback on sustainability practices can help identify areas for improvement and foster a sense of ownership and responsibility.

Conclusion on student accommodation - sustainability professionals opinion

The journey towards sustainable student accommodation in the UK is complex but essential. By addressing the environmental challenges and leveraging innovative solutions, the PBSA sector can make significant strides towards a more sustainable future.

This guide highlights the critical role that developers, operators, and students play in this transformation and underscores the importance of a collaborative approach to achieving sustainability goals.

As we move forward, it is imperative that the sector continues to prioritize environmental stewardship, adopt best practices, and embrace new technologies.

At Biofilico, we are committed to supporting this transition and helping create a greener, more sustainable future for student housing. Explore more about our initiatives and how we can support your sustainability journey at Biofilico.

References:

1. Student Housing Sustainability Challenges

2. PBSA and ESG Integration

3. Innovations in Sustainable Construction

4. AI in Smart Buildings

Fusion Group: Leading the Way in Sustainable and Wellbeing-Focused Student Accommodation

With a commitment to creating environments that are not only eco-friendly but also nurturing and supportive for students, Fusion Group has positioned itself at the forefront of the PBSA sector.

Their approach integrates cutting-edge sustainability practices with a deep focus on the well-being of their residents, setting new standards in the industry.

Commitment to Sustainability in student accommodation

Fusion Group’s dedication to sustainability is evident in every aspect of their operations, from the design and construction of their buildings to their day-to-day management practices. Here’s how Fusion Group is leading the charge towards a greener future:

1. Sustainable Design and Construction: Fusion Group employs sustainable design principles that minimize environmental impact while enhancing the living experience for students. Their buildings are constructed using materials that are sustainably sourced and have a low environmental footprint. By incorporating features such as green roofs, solar panels, and efficient building envelopes, Fusion Group ensures that their properties are designed to reduce energy consumption and carbon emissions from the outset.

2. Energy Efficiency and Renewable Energy: A key component of Fusion Group’s sustainability strategy is the focus on energy efficiency and the use of renewable energy. Their properties are equipped with advanced energy management systems that optimize the use of heating, cooling, and lighting, significantly reducing energy consumption. By integrating renewable energy sources, like solar panels, they are able to lower carbon emissions and operational costs, demonstrating their commitment to reducing the environmental impact of their buildings.

3. Water Conservation and Waste Reduction: Water conservation is a critical area where Fusion Group excels. Their accommodations feature water-efficient fixtures and systems that reduce overall water use. Additionally, Fusion Group implements comprehensive waste management programs that encourage recycling and minimize waste generation. These initiatives not only lower the environmental impact but also educate and engage students in sustainable practices.

Fostering Student Well-Being in Purpose built student accommodation pbsa

Fusion Group’s approach to student accommodation goes beyond environmental sustainability. They place a significant emphasis on the well-being and holistic development of their residents.

Recognizing that the student experience is about more than just a place to live, Fusion Group creates spaces that support the mental, physical, and social health of students.

1. Healthy Living Environments: Their properties are designed with the well-being of students in mind, offering plenty of natural light, good ventilation, and access to green spaces. Fusion Group understands the importance of indoor air quality and employs technologies and materials that minimize pollutants and promote a healthy living environment.

2. Community and Social Well-Being: Fusion Group fosters a strong sense of community within their developments. They provide communal areas and amenities that encourage social interaction and collaboration, essential components of a supportive student community. From well-equipped study spaces to social lounges and fitness centers, Fusion Group’s accommodations are designed to enhance the student experience and foster a sense of belonging.

3. Support Services and Programs: Understanding the pressures of student life, Fusion Group offers a range of support services and programs aimed at promoting mental and emotional well-being. These include wellness workshops, counseling services, and activities that encourage a balanced lifestyle. By providing these resources, Fusion Group helps students navigate the challenges of academic life and thrive in their personal development.

ESG Initiatives and Ethical Practices

Fusion Group’s commitment to Environmental, Social, and Governance (ESG) principles is integral to their business strategy. They recognize that sustainable development must go hand-in-hand with ethical governance and social responsibility.

1. Ethical Governance: Fusion Group adheres to stringent governance standards that ensure transparency, accountability, and ethical behavior across all levels of their organization. Their decision-making processes are aligned with their commitment to sustainability and social responsibility, ensuring that they operate with integrity and in the best interests of their stakeholders.

2. Social Responsibility: Beyond their immediate business operations, Fusion Group is dedicated to making a positive impact on the broader community. They engage in initiatives that support local communities and contribute to social causes, reflecting their commitment to being a responsible corporate citizen.

3. Stakeholder Engagement: Fusion Group actively involves all stakeholders, including students, staff, and partners, in their ESG initiatives. By fostering open communication and collaboration, they ensure that their sustainability and well-being goals are shared and supported across the board.

Conclusion

Fusion Group exemplifies how PBSA providers can lead the way in integrating sustainability and student well-being into their operations. Their holistic approach, which combines environmental stewardship with a deep commitment to the welfare of their residents, sets a benchmark for the industry.

As they continue to innovate and evolve, Fusion Group remains a trailblazer in creating student accommodations that are not only sustainable but also nurturing and enriching environments for the next generation.

What are Serviced Apartments or Aparthotels and how are they engaging with sustainability and ESG?

native aparthotels

In the rapidly evolving landscape of hospitality, serviced apartments, also known as aparthotels, have emerged as a preferred choice for travelers seeking a blend of comfort, flexibility, and value.

As these accommodations grow in popularity, their engagement with sustainability and Environmental, Social, and Governance (ESG) principles becomes increasingly significant. Climate change, as a critical aspect of environmental sustainability, impacts the earth and its people, emphasizing the need for urgent action.

This article explores what serviced apartments are, their benefits, types, and amenities, and how they are incorporating sustainable practices to meet the demands of conscientious travelers and stakeholders.

Definition and Benefits

What Are Serviced Apartments and how do they integrate sustainable development concepts?

Serviced apartments, or aparthotels, are fully furnished apartments available for short-term or long-term stays. They combine the convenience of hotel services with the comfort and space of a home, making them an attractive option for a variety of guests, including business travelers, families, and those seeking temporary accommodation during relocations or extended stays.

Key Characteristics:

• Flexibility: Guests can choose their length of stay, from a few nights to several months, with flexible terms that often include daily, weekly, or monthly rates.

• Amenities: They come equipped with home-like amenities, such as kitchens, laundry facilities, and living areas, providing a 'home-away-from-home' experience.

• Service Options: Many serviced apartments offer housekeeping, concierge, and maintenance services, enhancing convenience and comfort.

Benefits of Serviced Apartments

Serviced apartments offer several advantages over traditional hotels, making them a compelling choice for many travelers.

1. Flexibility in Stay and Amenities: Unlike traditional hotels, which typically cater to shorter stays, serviced apartments can accommodate both short and long-term guests. This flexibility extends to the amenities provided, allowing guests to select the level of service that best suits their needs, from self-catering to full-service options.

2. Cost-Effectiveness: Serviced apartments often provide better value for money, especially for extended stays. The ability to cook meals and do laundry can significantly reduce travel expenses. Additionally, the cost per square foot is usually lower compared to traditional hotel rooms, offering more space at a comparable or lower price.

3. Space and Comfort: With separate living, sleeping, and dining areas, serviced apartments offer more space and a greater sense of comfort than typical hotel rooms. This setup is ideal for families, groups, or anyone needing more room to work, relax, or entertain.

Types of Serviced Apartments

Serviced apartments come in various configurations to meet the diverse needs of travelers. The range typically includes studio, one-bedroom, and two-bedroom apartments, each catering to different preferences and group sizes.

Studio Apartments

Studio apartments are compact, single-room units that integrate living, sleeping, and dining areas into one multifunctional space. They are perfect for solo travelers or couples seeking a cozy and efficient accommodation option.

One-Bedroom Apartments

One-bedroom apartments provide a separate bedroom and living area, offering more privacy and space than studio apartments. These are well-suited for individuals or couples who prefer a more spacious environment or need a dedicated workspace.

Two-Bedroom Apartments

Two-bedroom apartments cater to families, groups, or guests requiring additional space. They feature separate bedrooms and often multiple bathrooms, providing ample room for everyone to enjoy their stay comfortably.

Serviced Apartment Amenities

A defining feature of serviced apartments is the range of amenities they offer, designed to make stays convenient and enjoyable. These amenities typically include kitchen and laundry facilities, as well as recreational services.

Kitchen and Laundry Facilities

One of the main attractions of serviced apartments is the availability of fully equipped kitchens and laundry facilities, which enable guests to maintain their routines and lifestyles while traveling.

Fully Equipped Kitchens:

• Self-Catering: Guests can prepare their meals, catering to dietary preferences and saving on dining costs.

• Appliances: Kitchens typically include modern appliances such as refrigerators, stovetops, microwaves, and dishwashers, along with utensils and cookware.

Laundry Facilities:

• In-Unit Laundry: Many serviced apartments offer in-unit washing machines and dryers, allowing guests to manage their laundry conveniently.

• Shared Laundry Rooms: Some properties provide shared laundry facilities, which are still more convenient and cost-effective than outsourcing laundry services.

Recreational Facilities and Services

Serviced apartments often feature a range of recreational amenities to enhance the guest experience, making them an appealing choice for extended stays.

Entertainment and Connectivity:

• Free WiFi: High-speed internet access is typically included, supporting both leisure activities and work needs.

• Smart TVs and Entertainment Systems: Apartments may be equipped with smart TVs, sound systems, and streaming services for in-room entertainment.

Fitness and Recreation:

• Fitness Centers: Many properties include access to on-site fitness centers, helping guests maintain their exercise routines.

• Swimming Pools and Leisure Areas: Some serviced apartments feature swimming pools, lounge areas, and gardens, providing spaces for relaxation and recreation.

Sustainable Serviced Apartments

As sustainability becomes a priority for both travelers and the hospitality industry, serviced apartments are increasingly adopting eco-friendly practices.

These efforts not only reduce environmental impact but also align with the values of a growing segment of eco-conscious consumers. ESG and sustainability are closely related, as they both emphasize the interconnectedness and mutual influence between environmental, social, and governance factors and sustainable development.

An ESG framework is often used for reporting and evaluating sustainability-related disclosure of listed companies for investors.

ESG stands for environmental, social, and governance, comprising three main topic areas that companies are expected to report on.

Governance standards and responsibilities within a company, including executive pay, are crucial for assessing company leadership in the context of ESG criteria for potential investments.

Sustainable development is defined as meeting the needs of the present without compromising the ability of future generations to meet their own needs.

Incorporating and rewarding activities with positive effects on the environment and society is essential for ESG investing's impact on society and the environment.

Waste management programs in serviced apartments aim to reduce waste by minimizing the amount of materials used and lowering the overall amount of waste produced.

Governance practices also include shareholder rights, which are part of the ESG framework alongside environmental and social criteria.

Supply chain sustainability is important for ethical business practices, emphasizing labor standards, health and safety, and the environmental and human impacts of products.

Sustainable development aims to meet human development goals while enabling natural systems to provide the necessary resources.

Environmental Sustainability and Greenhouse Gas Emissions

Reducing greenhouse gas emissions and minimizing environmental impact are central goals for many serviced apartments engaging with sustainability.

1. Energy Efficiency and Renewable Energy:

   • Energy-Efficient Systems: Implementing energy-efficient heating, ventilation, and air conditioning (HVAC) systems, as well as using LED lighting, helps reduce energy consumption.

   • Renewable Energy Sources: Some properties invest in renewable energy sources, such as solar panels or wind turbines, to power their operations sustainably.

2. Waste Reduction and Recycling:

   • Waste Management Programs: Effective waste management programs, including recycling and composting, help minimize waste sent to landfills.

   • Single-Use Plastic Reduction: Many serviced apartments have initiatives to eliminate single-use plastics, offering alternatives like reusable or biodegradable options.

3. Water Conservation:

   • Water-Efficient Fixtures: Installing low-flow faucets, showerheads, and toilets reduces water usage without compromising guest comfort.

   • Greywater Recycling: Some properties employ greywater recycling systems to reuse water from showers and sinks for irrigation or flushing toilets.

Room2 Hammersmith aparthotel

Sustainable Interior Design

Sustainable interior design practices are integral to creating eco-friendly serviced apartments. These practices focus on using environmentally responsible materials and incorporating biophilic design elements that connect occupants with nature.

1. Eco-Friendly Materials:

   • Sustainable Sourcing: Using materials that are sustainably sourced, such as FSC-certified wood or recycled metal, reduces the environmental footprint of the building and its interiors.

   • Low VOC Products: Selecting paints, adhesives, and finishes with low volatile organic compound (VOC) emissions improves indoor air quality.

2. Biophilic Design:

   • Natural Elements: Incorporating natural elements like plants, natural light, and water features enhances the connection to nature and promotes well-being.

   • Indoor Green Spaces: Features such as green walls and indoor gardens bring greenery into the living space, contributing to a healthier and more relaxing environment.

3. Healthy Materials:

   • Non-Toxic Finishes: Using non-toxic finishes and materials prevents harmful chemicals from entering the indoor environment, ensuring the health and safety of guests.

   • Sustainable Furniture: Furniture made from recycled or sustainably sourced materials supports eco-friendly design principles and reduces waste.

Wellness Strategies in Aparthotels

Wellness is becoming a significant focus in serviced apartments, with properties incorporating features that promote health and well-being.

1. Fitness and Recreation Facilities:

   • On-Site Gyms: Many serviced apartments include fitness centers equipped with modern exercise equipment, encouraging guests to maintain their fitness routines.

   • Recreational Areas: Amenities such as swimming pools, yoga studios, and outdoor spaces provide opportunities for relaxation and physical activity.

2. Purified Water Systems:

   • Clean Drinking Water: Installing water purification systems ensures access to clean, safe drinking water, supporting guests' health and reducing the need for bottled water.

   • Filtered Showers: Some properties offer filtered showerheads to remove chlorine and other contaminants, enhancing the bathing experience and promoting skin health.

3. Enhanced Sleep Environments:

   • Quality Bedding: Providing high-quality mattresses and linens promotes restful sleep, which is essential for overall well-being.

   • Soundproofing: Effective soundproofing in rooms minimizes noise pollution, creating a tranquil environment conducive to relaxation and sleep.

Choosing a Serviced Apartment

When selecting a serviced apartment, several factors should be considered to ensure a comfortable and sustainable stay. These include location, accessibility, and the property's commitment to social and environmental responsibility.

Location and Accessibility

1. Proximity to Transportation and Attractions:

   • Public Transportation: Choosing a serviced apartment close to public transportation options reduces reliance on private vehicles and supports sustainable travel.

   • Local Attractions: Proximity to business centers, cultural sites, and recreational areas enhances convenience and enjoyment for guests.

2. Accessibility Features:

   • Disability Access: Properties with features such as ramps, wide doorways, and accessible bathrooms accommodate guests with disabilities, promoting inclusivity.

   • Elderly-Friendly Design: Design elements like handrails, non-slip surfaces, and easy-to-navigate layouts ensure safety and comfort for older guests.

Considering Future Generations and Local Communities

1. Social Equity and Community Support:

   • Local Sourcing: Prioritizing local suppliers and businesses supports the community and reduces transportation-related emissions.

   • Community Engagement: Participating in local initiatives and offering employment opportunities to local residents fosters positive community relationships.

2. Embracing ESG Factors:

   • Environmental Responsibility: Commitment to environmental stewardship includes reducing carbon emissions, minimizing waste, and conserving resources.

   • Social Responsibility: Addressing social factors involves ensuring fair treatment of employees, supporting local communities, and providing safe and inclusive environments for guests.

   • Governance Practices: Good governance includes transparency in operations, ethical business practices, and accountability in decision-making processes.

3. Positive Impact on Environment and Society:

   • Sustainable Practices: Engaging in sustainable practices not only reduces the environmental footprint but also meets the expectations of eco-conscious travelers.

   • Long-Term Vision: Emphasizing long-term sustainability over short-term gains demonstrates a commitment to the well-being of future generations and the planet.

Beyond Aparthotels: Leading the Way in Sustainable and ESG-Focused Hospitality

In the competitive landscape of serviced apartments and aparthotels, Beyond Aparthotels stands out as a pioneer in integrating sustainability and Environmental, Social, and Governance (ESG) principles into its operations.

Based in the UK, this brand has made a significant impact by redefining luxury hospitality through a commitment to eco-friendly practices, social responsibility, and ethical governance.

Here’s a closer look at how Beyond Aparthotels is leading the way in sustainable and ESG-focused hospitality.

Commitment to Sustainability

1. Eco-Friendly Design and Construction: Beyond Aparthotels takes sustainability seriously from the ground up. Their properties are designed with eco-friendly architecture that incorporates energy-efficient systems, sustainable building materials, and innovative technologies to minimize environmental impact. The use of reclaimed wood, recycled metal, and low-VOC finishes not only enhances the aesthetic appeal but also ensures that the interiors are free from harmful chemicals, contributing to healthier living spaces.

2. Renewable Energy and Energy Efficiency: A key feature of Beyond Aparthotels is their investment in renewable energy sources. Many of their properties are equipped with solar panels and energy-efficient HVAC systems, significantly reducing their carbon footprint. Smart energy management systems are implemented to optimize energy usage, and LED lighting is standard throughout their buildings, ensuring lower energy consumption without compromising on quality.

3. Waste Reduction and Recycling Programs: Beyond Aparthotels is dedicated to minimizing waste through comprehensive recycling programs and waste reduction strategies. Guests are encouraged to participate in these initiatives, with clearly marked recycling bins and informative guides on sustainable practices. The brand also actively works to reduce single-use plastics by providing alternatives such as reusable containers and biodegradable packaging for toiletries and amenities.

ESG: A Holistic Approach to Hospitality

1. Social Responsibility and Community Engagement: At the heart of Beyond Aparthotels’ ESG strategy is a commitment to social responsibility. The brand supports local communities by sourcing goods and services from local suppliers, fostering economic growth and reducing transportation-related emissions. They also engage in community outreach programs, offering employment opportunities to local residents and partnering with charities to support social causes.

2. Promoting Inclusivity and Diversity: Beyond Aparthotels champions inclusivity and diversity within their workforce and in their services. They ensure that their properties are accessible to guests with disabilities, incorporating features such as ramps, wide doorways, and accessible bathrooms. Their hiring practices emphasize diversity, and they provide training programs to support the development of their employees, promoting a culture of equality and respect.

3. Ethical Governance and Transparency: Transparency and ethical governance are foundational to Beyond Aparthotels’ operations. The brand adheres to high standards of corporate governance, ensuring that their business practices are fair, accountable, and aligned with their sustainability and social goals. Regular audits and sustainability reporting are conducted to maintain transparency and demonstrate their commitment to responsible business practices.

Enhancing Guest Experience with Sustainable and ESG Practices

1. Green Living Spaces: Beyond Aparthotels offers guests an immersive eco-friendly experience. Their apartments feature biophilic design elements such as green walls and indoor plants, creating a connection with nature and promoting well-being. Natural materials and sustainable furnishings contribute to a serene and comfortable living environment, aligning with the brand’s commitment to health and sustainability.

2. Wellness Amenities: Understanding the importance of wellness, Beyond Aparthotels provides amenities that enhance the physical and mental well-being of their guests. Fitness centers, yoga rooms, and purified water systems are standard in their properties, along with initiatives such as providing bikes for guests to encourage eco-friendly transportation and promote a healthy lifestyle.

3. Convenient Locations with Reduced Carbon Footprint: Strategically located near public transportation and major attractions, Beyond Aparthotels enables guests to explore their surroundings with ease while minimizing their carbon footprint. This thoughtful approach not only adds convenience for guests but also aligns with the brand’s commitment to reducing environmental impact.

Conclusion

Beyond Aparthotels exemplifies how luxury, sustainability, and social responsibility can coexist in the hospitality industry. Their unwavering dedication to eco-friendly practices, community support, and ethical governance sets a high standard for serviced apartments and aparthotels. By choosing to stay at Beyond Aparthotels, guests are not only enjoying premium accommodations but also contributing to a sustainable and socially responsible future.

Conclusion

Serviced apartments, or aparthotels, offer a unique blend of flexibility, comfort, and convenience, making them an attractive option for a wide range of travelers.

As the demand for sustainable and socially responsible accommodations grows, these properties are increasingly integrating sustainability and ESG principles into their operations.

By adopting eco-friendly practices, supporting local communities, and focusing on the well-being of their guests, serviced apartments are not only meeting the needs of today’s travelers but also contributing positively to the future of the hospitality industry.

Whether you are planning a short trip or an extended stay, choosing a serviced apartment that prioritizes sustainability and social responsibility can provide a fulfilling and impactful travel experience.

ESG and Sustainability initiatives in UK aparthotel brands

beyond aparthotels sustainable wellness UK

Seeking a sustainable stay without compromising on comfort? Aparthotel options offer the privacy and amenities of an apartment with the services of a hotel. Discover how UK aparthotels are championing eco-friendly practices that benefit both you and the planet.

Key Takeaways

• UK aparthotels are embracing ESG strategies by integrating sustainable architecture, renewable energy, and low-impact operations to balance profitability and positive societal impact while fostering sustainable wellness with non-toxic materials and health-centric amenities.

• Eco-friendly practices in modern aparthotels extend to energy-efficient designs and initiatives like double-insulated windows, using 100% renewable energy, and empowering guests to make sustainable choices during their stays to reduce ecological footprints.

• Aparthotels contribute to local community success by hiring local employees, partnering with independent suppliers, supporting charity efforts, and enhancing guests’ health with wellness amenities like gyms, yoga studios, and eco-friendly dining options.

ESG strategy in UK aparthotels - well beyond just hotel rooms

In the realm of UK aparthotels, the ESG (Environmental, Social, and Governance) strategy is not just a set of checkboxes but a comprehensive approach to managing risks and opportunities that could impact long-term shareholder interests and societal well-being. These pillars, deeply rooted in the UN’s Sustainable Development Goals, guide aparthotels in setting annual measurable objectives that strive for a balance between profitability and positive impact.

The commitment to social responsibility, echoed through these initiatives, reflects a belief that ethical business practices and shareholder growth are parallel paths rather than divergent ones.

environmental sustainability in aparthotels - fa more than your average hotel room

Aparthotels are increasingly focusing on reducing their carbon footprint. Some ways they are doing this include:

• Integrating sustainable architecture, such as buildings fashioned from repurposed shipping containers

• Harnessing renewable energy through solar panels

• Using heat recovery systems to repurpose air conditioning excess into hot water systems

• Using low energy and LED lighting

These efforts help make these properties more eco-friendly and contribute to reducing their average room emissions of 12.53kg CO2e.

In a move that marries direct consumer action with environmental stewardship, aparthotels like those partnering with Trees For Cities, pledge to plant a tree for every time customers book direct through their websites, thus embedding sustainability into the very act of reservation.

Room2 Hometels sustainable aparthotels UK

sustainable wellness in aparthotel brands UK

Encapsulating the essence of sustainable wellness, aparthotel brands in the UK are pioneering spaces with non-toxic materials and health-centric amenities. Beyond Aparthotels, for example, has taken a stance to create healthy, intelligent, and low-impact hospitality environments that cater to both corporate and leisure guests. Their commitment to carbon neutrality, zero waste, and chemical-free operations ensures that guests enjoy low toxicity spaces, reducing the environmental impact beyond the communities they serve.

This holistic approach to wellness goes beyond the physical space, encompassing partnerships with companies like Enhabit to build energy-efficient apartments, and a procurement policy that favors eco suppliers, such as the interior design company with strong sustainable ethics.

A Home Away from Home - not just a comfortable bed

The allure of aparthotels lies in their ability to replicate the comfort and convenience of a home environment, with guest reviews frequently praising the clean, comfortable beds as a positive aspect of the stay. This makes them an ideal choice for extended stays and business travelers. With amenities that surpass those of an average hotel room, guests can enjoy all the comforts of home with the added benefit of hotel-grade services, such as fully equipped kitchens and air-conditioned rooms with independent temperature control.

Business travelers find the best deals at serviced apartments in the city centre, particularly valuing their great location with close proximity to client offices and the train station, which reduces commute times and enhances productivity during relocation or prolonged business engagements in this prime location.

Sustainable Stays: Eco-Friendly Practices in Modern Aparthotels

Stepping into a modern aparthotel, one finds a haven of eco-friendly practices that extend well beyond the surface aesthetics. Some of these practices include:

• Double-insulated windows

• Low energy appliances

• Efficient heating and cooling solutions

• Eco flow air systems

• Underfloor heating

• Sensor lighting

• Key card activated electricity supply

• A commitment to 100% renewable energy from sustainable providers

These practices demonstrate a strong push for energy efficiency and sustainability.

These measures, together with the diligent separation and recycling of waste, spotlight an industry that is not merely accommodating guests but is actively preserving the environment for future generations.

ESG in aparthotel brands UK

Building a Greener Future - vicinity to a train station helps but that's not enough!

The blueprint for building a greener future is manifest in the sustainable interiors and eco-conscious designs of UK aparthotels. From refurbished spaces that give new life to recycled materials to energy-efficient lighting that brightens rooms with a reduced carbon footprint, these properties are tangible examples of sustainability in action.

The pursuit of environmental compliance is more than a trend, with properties like the Bankside aparthotel achieving an ‘Excellent’ BREEAM rating, underscoring a commitment to environmental, social, and economic sustainability.

With features such as energy use control, support for electric vehicles, and the sourcing of 100% renewable electricity, aparthotels are anchoring their operations in practices that benefit not just today’s traveler but tomorrow’s world.

Conscious Choices for Guests

Aparthotels empower guests to make conscious, eco-friendly choices throughout their stay. From the moment they step into their hotel rooms, visitors are surrounded by sustainable amenities like a comfortable bed with pillows filled with recycled material and biodegradable coffee capsules.

The integration of green energy sources for everyday use, from charging devices to powering entertainment systems, reflects a commitment to responsible consumption and a reduced ecological footprint.

This emphasis on sustainability extends to local exploration, with aparthotels providing information on nearby attractions within walking distance, encouraging guests to enjoy the area’s offerings while minimizing their carbon emissions.

Local Love: Aparthotels Supporting Communities and Economies

The influence of aparthotels stretches beyond their immediate premises, reaching into the heart of the communities they inhabit. By hiring local employees, aparthotels help to keep wealth circulating within the community, bolstering the local economy.

Partnerships with independent suppliers and active engagement with local businesses further solidify the role of aparthotels as economic catalysts, creating a symbiotic relationship that benefits both the properties and the regions they serve.

Boosting the Local Scene

Aparthotels often become cultural hotspots by fostering collaborations that boost the local scene. Initiatives such as pop-up bakeries or coffee shops in the lobby not only provide guests with unique experiences but also contribute to a thriving local commerce. Collaborations with local artisans, craftsmen, and designers enable aparthotels to offer authentic local experiences, from art classes to bespoke products that showcase the community’s talent.

By actively promoting local businesses on their platforms, aparthotels not only drive customer engagement but also play a key role in the economic prosperity of local vendors and service providers.

aparthotels UK sustainability ESG green building

Community and Charity Partnerships

The commitment of aparthotels to the community is further exemplified by their involvement in charity partnerships. Engaging in activities that range from financial contributions to encouraging employee volunteering and fundraising, aparthotels demonstrate their dedication to societal well-being.

By supporting local sports teams, planting trees, and hosting events for local business groups, aparthotels forge deep connections with the community, reinforcing their brand reputation and trust within the local regions.

Health and Wellness Amenities: Prioritizing Your Wellbeing

Prioritizing the health and well-being of their guests, aparthotels offer a diverse array of wellness services. From massages to tailored therapies, these establishments are dedicated to providing a holistic experience that caters to physical and mental rejuvenation. Beyond Aparthotels, in particular, has set a benchmark by providing spaces that nurture relaxation, nourishment, and physical fitness, with facilities such as:

• gyms

• yoga studios

• swimming pools

• spa and wellness centers

These facilities, including extra beds and wi fi, enhance the wellness quotient of the stay.

Fitness and Relaxation Facilities

For guests keen on maintaining their fitness regimens, aparthotels offer the convenience of on-site gym and fitness centers, ensuring that travel does not disrupt their exercise routines. Beyond the gym, swimming pools and communal areas serve as serene spaces where guests can relax and unwind, providing the perfect antidote to the day’s stresses.

Nourishing Body and Mind

Aparthotels extend their commitment to well-being through:

• Eco-friendly and health-conscious dining options that cater to all dietary needs

• The use of chemical-free cleaning processes for towels and bedding

• The provision of organic product options

These contribute to a low-toxicity living environment that supports the health of guests.

Summary

The journey through the world of UK aparthotels reveals a sector that is not only adapting to the demands of modern travel but is pioneering the path to sustainability. From their ESG strategies aligned with global objectives to the embrace of local community engagement, these properties exemplify a commitment to a future where hospitality and environmental stewardship go hand in hand. As guests continue to seek out accommodations that align with their values, UK aparthotels stand as beacons of sustainable luxury, offering experiences that enrich both the traveler and the world they explore.

Frequently Asked Questions

How do aparthotels support local economies?

Aparthotels support local economies by hiring local employees, engaging with independent suppliers, and collaborating with local businesses, artisans, and designers. This boosts the local economy and creates a sense of community.

What are the key environmental initiatives undertaken by UK aparthotels?

UK aparthotels have implemented key environmental initiatives such as energy-efficient design, waste management, renewable energy use, and eco-friendly practices like recycling and water consumption reduction. This reflects their commitment to sustainability and environmental responsibility.

Can staying at an aparthotel contribute to sustainability?

Staying at an aparthotel can contribute to sustainability by integrating practices such as the use of low energy appliances, renewable energy, and promoting local attractions within walking distance. It's a great way to support eco-friendly accommodations during your travels.

How do aparthotels ensure the wellness of their guests?

Aparthotels ensure the wellness of their guests by providing massages, tailored therapies, fitness facilities, eco-friendly dining options, and chemical-free cleaning processes. This helps guests maintain a healthy and comfortable stay.

What makes aparthotels a good choice for extended stays and business travelers?

Aparthotels are a great choice for extended stays and business travelers because they offer a comfortable, home-like environment with fully equipped kitchens and convenient proximity to client offices or business centers, enhancing productivity and convenience.

Green Building Barcelona: Best Sustainable and Healthy Office Interiors — Biofilico Wellness Interiors

entegra office building barcelona

The six best green and healthy office real estate developments in Barcelona are all located in the PobleNou district. This ex-industrial area, the avant-garde centre of the city, is rapidly evolving into the hub for sustainable construction.

Barcelona is a model for sustainable urban development through its implementation of superblocks and sustainable architecture, creating pedestrian-friendly spaces, reducing traffic congestion, and improving air quality.

Each one of the buildings reviewed, is built with its own ESG approach and priorities such as energy efficiency or environmental and public health first, often achieving renowned certifications like LEED and WELL.

The office developments covered below are:

• Badajoz 97

• Entegra building

• Green Business District

• T3 Diagonal Mar

• Wittywood

• Lumen Offices

what is a sustainable office interior?

A sustainable office is part of the broader concept of sustainable architecture, which encompasses eco-friendly and energy-efficient workspaces designed to reduce the carbon footprint and promote sustainability.

The concept of sustainable office interior design has gained popularity in recent years, especially in the real estate industry, as businesses are increasingly becoming aware of the impact of their operations on the environment.

Sustainable office interiors are designed to conserve energy, minimize waste, and use environmentally friendly materials throughout the space.

what is sustainable office interior design in sustainable architecture?

The design of a sustainable office interior includes various sustainable practices such as natural lighting, energy-efficient systems, and the use of sustainable materials. These features encompass energy-efficient lighting systems, water-saving plumbing fixtures, and HVAC systems that consume less energy. The use of sustainable materials such as recycled wood, bamboo, and other renewable resources is also a key aspect of sustainable office interiors.

The workplace design should also incorporate green spaces, such as plants and green walls, which not only enhance the aesthetic appeal of the workspace but also contribute to air purification.

benefits of sustainable office interiors with energy efficiency

Sustainable office interiors have several benefits, including reduced energy costs, improved indoor air quality, increased employee productivity, and enhanced brand reputation.

These benefits are driving more businesses to adopt sustainable office interiors as part of their corporate social responsibility initiatives.

what is a healthy office interior with natural light?

A healthy office interior is an essential aspect of any modern workplace focused on improving the mental and physical wellbeing of employees. The interior design of an office can have a significant impact on employee health, meaning an office space will affect their productivity, creativity, and to some extent overall job satisfaction.

On this basis, a healthy workplace should be designed with the aim of creating a comfortable and stimulating work environment that supports the physical and mental health and emotional needs of employees while they are in the office building - how they deal with their home office environment is a subject for another blog post!

how to create a healthy office?

The interior design of an office should provide ample natural light, fresh air, and comfortable temperature levels to promote a healthy environment. The use of natural materials, such as wood and stone, can create a soothing atmosphere that reduces stress and anxiety levels.

Additionally, incorporating plants into the office decor can improve indoor air quality, promote health, and create a calming effect on employees.

Ergonomic furniture is a crucial aspect of a more healthy office design and interior. Chairs, desks, and other office furniture should be adjustable to accommodate different body types and promote good posture. This can help prevent back pain, neck pain, and other musculoskeletal issues that can arise from prolonged sitting.

The color scheme of an office interior can also impact employee wellbeing. Bright, bold colors can be energizing, while muted tones can be calming. It is important to strike a balance between these two extremes to encourage employees and create an environment that is both stimulating and relaxing.

In conclusion, a healthy office interior is essential for promoting the wellbeing of employees. The design should prioritize natural light, fresh air, and comfortable temperature levels, incorporate natural materials and plants, feature ergonomic furniture, and use a color scheme that balances stimulation and relaxation.

By creating a comfortable, productive and stimulating work environment, employers can improve employee productivity, creativity, and job satisfaction.

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green business district, barcelona

Green Business District healthy office development Barcelona

The Green Business District is a 15,507 sqm project developed by Glenwell Group that offers a sustainable balance between life and work. The four office buildings comprising the complex are connected through an extensive natural environment that highly improves the quality of life of those working in the District.

This innovative complex designed by the architectural firm BCA offers a unique combination of historical heritage and highly innovative contemporary buildings, as the existing modernist architecture is beautifully restored and included as part of the project.

The different buildings are harmoniously merged together into one stimulating environment through the natural landscapes.

The interiors are designed as state-of-the-art flexible office spaces ready to meet the unique needs of each of their users. Still, despite the versatility, each space provides thermal and acoustic comfort as well as the highest standards of quality, sustainability and health. The use of innovative air conditioning systems, such as free-cooling units and sensor-regulated systems, achieves energy efficiency and reduces CO2 emissions.

The different biophilic and environmental design features have contributed to acquiring a LEED Platinum Certificate and a WELL Gold Certificate.

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entegra office building barcelona

Entegra sustainable office building Barcelona

Entegra is an eight-story, sustainable office building of 4,138 sqm designed by the architectural studio Batlleiroig and developed by Urban Input. The singular look of its facade is granted by a charred wood cladding as the project enhances a connection with nature.

The offices aim to enhance the well-being of the users by providing space to breathe. Each storey offers a spacious open floor plan interior that expands into a large wooden deck offering a  limitless perception.

The expansion provided by this experience, as well as the presence of vegetation, inspires the users to take a breath and rest which positively influences their physical and mental health and well-being.

The different sustainability features included in the Entegra design contribute to the LEED Gold Certification. Additionally, the application of different bioclimatic strategies such as thorough insulation and smart automated natural ventilation highly reduces the energy demand.

This energy efficiency is supported by a solar power installation, including photovoltaic solar panels, enabling it to achieve a near Net Zero Energy Building (NZEB).

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Wittywood, Barcelona

Wittywood sustainable office design Barcelona

This 3,600 sqm project developed by Colonial is the first Spanish office building built entirely of wood. Betarq, the architecture studio in charge of Wittywood‘s design, chose to raise this construction with a wooden structure as a solution to lower its environmental impact as well as to contribute to a healthier work environment.

Using wood as a construction material reduces the carbon footprint by as much as 50% but also provides a good thermal resistance which helps improve the energy efficiency of the building. Additionally, the project produces its own renewable energy with solar panels, cutting down the energy demand considerably.

Such green building strategies contributed to obtaining a LEED Platinum Certification, though given the commitment to prioritise the user’s well-being, Wittywood has obtained a Well Platinum Certification as well.

The interior spaces are thought to create a natural work environment and offer spacious open floor plan designs, finished with prime natural materials and floor-to-ceiling windows to maximise daylight indoors.

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Badajoz 97, Barcelona

Badajoz 97 real estate development Barcelona

As part of the 2019 Urban Improvement Plan, this 14,000 sqm building developed by Conren Tramway and designed by Batlleiroig architects harmoniously integrates past and future.

Located in a rapidly evolving neighbourhood, Badajoz 97 embraces its industrial heritage with a black ceramic facade while opting for a highly innovative structural solution that enables modern-looking large open floor indoor spaces.

This sense of openness is enhanced by the addition of a wide terrace at the end of every floor. These exterior spaces are designed as gardens and aim to enhance the connection to nature, contributing to a healthier environment with improved air quality.

The different strategies utilised to improve the well-being of the users have granted this building a WELL Certification.

https://www.batlleiroig.com/es/projectes/oficines-badajoz-97-a-barcelona/

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Edifico Lumen, Barcelona

Lumen Offices office real estate Barcelona

The presence of extensive vegetation contributes to the environment as well as promoting biodiversity and helps maintain stable temperature and humidity levels.

Other sustainable strategies such as passive design features and the installation of photovoltaic panels help reduce the energy demand and grant the building with a LEED Gold Certificate.

This unique office building is conceived out of the sustainable idea of repurposing an existing structure. Designed by Batlleiroig and developed by Heptaprim-Odiseus, the Lumen Offices maintains an early 90's garage structure and turns it into an example of sustainability and efficiency. 

Aimed to improve the well-being of its users, this office building enhances an indoor-outdoor relationship and uses different biophilic strategies to integrate nature into its design.

The terraces and exterior spaces are essential to this project as having been designed as gardens, contribute to an improved air quality.  

The broad extension of plants surrounding the building provides a filter protecting the direct, hot sun rays from overheating the interiors.

As a result, vegetation helps maintain a temperature of comfort cutting down energy consumption. The energy efficiency of the Lummen Offices is further supported as it produces its own renewable energy with photovoltaic panels.

https://edificiolumen.com/equipo/

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T3 Diagonal Mar, BArcelona

T3 Diagonal Mar green and healthy offices Barcelona

This innovative project developed by Hines and Hendersons Park is designed to meet the highest standards of sustainability and well-being. A combination of wood, vegetation and avant-garde technologies has led the team behind this building to receive three distinguished certifications: LEED Platinum, WELL and WiredScore.

Designed by Batlleiroig this 3,610 sqm project is divided into four open floor plan stories. With the intention and focus of providing a healthy building, the interiors are finished with warm wood, equipped with ventilation systems, and flooded with natural light.

The floor-to-ceiling windows and terraces contribute as well to creating an indoor-outdoor transparency offering a sense of connection to the city. 

To increase productivity and minimise energy consumption T3 Office building is designed using passive strategies. Yet, the self-production of solar energy and the usage of the latest industrialised systems contribute to a reduced energy demand.

future-proof real estate with the smart building collective

wellbeing & sustainability in real estate & hospitality podcast

Welcome to episode 063 of the Green & Healthy Places podcast in which we discuss the themes of wellbeing and sustainability in real estate and hospitality.

In this episode we’re in Amsterdam talking to Nicholas White, Co-Founder and Managing Partner of the Smart Building Collective, a smart building and pro-tech business with its own certification framework focused on leveraging technology to measure how a real estate asset is performing. 

It covers key metrics such as the building usage, its performance, the building environment, health and safety, user behavior and connectivity.

We discuss how a smart tech is at the heart of both sustainable green buildings and healthy buildings nowadays, as well as playing a role in real estate ESG strategies. We also look at some of the more innovative real estate developments that he’s been a part of recently that give a sense of where the industry might be going in the future.

https://smartbuildingcollective.com/

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Matt

Nicholas, thanks for joining us on the show. Amazing to have you here. You're dialing in from Amsterdam where you’re based?

Nicholas

Yes, I am. Thanks for having me.

Matt

Listen, why don't we start with a bit of background to give the genesis of what you do with the Smart Building Collective. How did the whole thing start?

Nicholas

I personally came from the corporate sector doing large scale IT transformation projects, we were attacking these from the human perspective, really change management, trying to help people maximize the usage of of tech, and getting the most out of it. And what was always quite disheartening was the corporates would kind of roll over their people in that process, which was was quite painful to watch.

I thought there needs to be a better way, there needs to be a more engaging way, a healthier way to do these kinds of transformation programs.

So I left the corporate sector, and I teamed up with a woman by the name of Elizabeth Nelson, and she was doing research into burnout and human performance. I came more from the practical side of working with leadership teams and working in corporate space to make things better.

impact of the built environment on physical and mental health

Then we got this amazing opportunity with CBRE to do a research study on the impact of the built environment on people.

They built a ‘living lab’, the cost was probably about 250,000 euros to build then they started changing all of the things in the office environment, from the plants to the food, air and light over the course of 10 months.

They would do cognitive tests on people to see what the impact was. So the results were amazing. And then when we left, Elizabeth was asked to do it again, with booking.com. And we did a huge research study here in Amsterdam, that dictated their new headquarter plans, which was really quite cool.

Same thing happened, you know, it took a long time to build, expensive and the research results were amazing. The Living Lab collapsed after the research study was done, which looking back is completely logical that that happened.

Then we did it a third time, this time for GSK in the UK - GlaxoSmithKline. After that it was, okay, is there not a better way to do this? Where is there a standard? And this was around 2018 -2019. Where is there a standard that we can just plug into and do research more effectively, more efficiently and more collectively.

Developing a smart building standard for real estate

We came across the smart readiness indicator, which was the EU's approach to a smart standard but for the rest, nothing else existed. So we started to think about doing it ourselves. And that's kind of what we did. And we launched in 2020 The smart buildings certification.

green buildings, healthy buildings and smart buildings - whats the difference?

Matt

Okay, so let's go a level deeper, because I think a lot of people will have heard perhaps the term a green building, which is essentially a building that's designed to minimize its environmental impact, so externally oriented while a healthy building is a terminology more oriented internally thinking about the impact the building has on its occupants.

You just used the term smart building, it's in your brand. It's in your name to the core of what you do. So how does a smart building fit into that spectrum of green buildings on one side and healthy buildings on the other?

smart tech in buildings for real time management efficiencies

Nicholas

For us, you know, smart building is about technology, it's the digitization of real estate, it's an enabler. It's nothing more than that it shouldn't be a goal in itself to make a smart building, it's about the results that we're trying to achieve with that asset, and then working back to think about, okay, how can we make that more efficient and easier to do and more real time.

So it isn't essentially a tech component on both sides - on the healthy building scene, if you're not measuring it and monitoring it in the long term, you can't effectively justify the upfront investment that you put in, you need to keep an eye on what's happening.

You have sustainability, you have health and wellbeing in real estate. But there's also efficiency gains through the management and maintenance of your asset, creating a better user experience, which isn't just about the health of occupants, it's also about human performance and culture and community and building a way for people to connect with each other. And with the asset, you also have kind of new business models that are emerging from the enablement that tech provides.

I think we all have heard the pressure that the commercial real estate is under with the changing of work, flexible working and so on, with a smart building we have the ability to see what's working versus what's not working, I think you're in a much better position to make rational decisions as an owner or developer.

the smart building framework

You've created essentially your own framework that gives some structure to how you think about smart buildings. I think that's such an important piece of of how you communicate your position and the your, let's say, view of the real estate industry.

So it's clearly at the core of what you're about, perhaps you could just give us a quick overview of those component parts that make up your framework.

Nicholas

Yeah, sure. So the smart building certification, where we always are saying is founded in research, and practice, and we're constantly optimizing it with our community, we actually made a change from the smart building certification to the smart building Collective, we did that last year in August. And the reason for that is that as we were certifying buildings, we see that not a single one of them is similar. They're all completely different.

So the certification really is being informed by the collective, the smartest buildings we find and the smartest solutions we find are informing the benchmark and constantly changing it. So in a way, you can start to think about it as a bit of a web 3.0 approach to certification in the sense that it is dynamic, and it is moving and and we're learning as we go.

But in essence, the certification that we have created, starts with the results, right? Like what are we actually trying to do with these assets? And then works back to the technology of how do we get to that result. And that result is broken into a number of different modules within the certification.

Smart building usage data, performance and indoor environment

So the first module is building usage, you know, how does one have kind of overview and control over how the assets are being utilized - from occupancy, to how amenities are being used, these types of things.

What kind of technology do you have in place to understand how your asset is being used, the next module is building performance, then you can really think about your sustainability aspects, your energy consumption, your water consumption, how the asset is actually performing against the goals and against the promise.

We have a module on building environment, which is thinking more about your health and well being. And it's really about your indoor environment being sound, light, indoor air quality, these types of things.

How do we use technology to make sure that the environment is healthy and in state for people to use it in a good way. We also have a module on safety and security, of course, which is both physical security, but also digital security. As you put more smart building more technology into a building, we need to keep it safe, we need to keep the cybersecurity at the forefront. But it's also about physical security and Disaster Mitigation.

The last module is user behavior and collaboration. So how can people find each other? How can they interact with the building? How does community get created?

Integrative design in smart buildings

And then all of those modules are actually brought together by a module we call integrative design, which is how can we actually with the least amount of technology, maximize the value in the results and all of those different areas? Instead of having a technology for each piece? How can we make sure that the technology becomes an aspect that adds value to all those different areas?

governance and real estate esg in smart buildings

One of the things that really sets us apart is we have a huge emphasis on governance, process, access to data, do the right people have access to the data to do something with it? And is the organization structured in a way that actually can do it? Because I think, you know, a smart building without actually using that data is you could argue, is that smart?

Matt

Perhaps for anyone who's not aware of some of the intricacies of how that works, then you're effectively looking at the facilities management, the building management company that's looking after the building, we're talking a fairly large scale, say mixed use or office development on behalf of the tenant or on behalf of effectively behind that the investor? Or is it the tenant themselves who has some role and wants access to that needs to be involved.

Nicholas

Well, you know, ideally, it's a communal effort, the whole idea is to break down silos and to be working together, to forge better relationships between the owner, property manager, tenants and all the different suppliers that are in there. I think where the industry is, right now, which is challenging is that all of those things are being done in silo, every single one of those different stakeholders is dealing with their piece of the puzzle, which in the end, makes it quite a quite challenging.

Ideally the stakeholder map would be doing this together. But what we see in practice is that it's coming from different perspectives, like we will do a certification for a tenant that is interested in understanding what their building is capable of doing for them from a tenant perspective, and they can use it to then work with the landlord to say, ‘hey, from my ESG perspective, I need to have better energy consumption or at least better insight into my energy consumption’, these types of things.

We also do it from a building owner perspective that says, ‘Hey, I've laid in an incredible tech stack for my potential tenants and my property managers. How can we help them?’ So with with your certification level, and with your communication and your training, how can I improve it? How can I make it better?

real estate ESG and the role of smart technology in buildings

Matt

It's tapping into this rising tide around awareness of ESG. I see it coming from above in terms of pension funds and investment groups coming in, then applying pressure on the investors or the building owners, but also from below, sometimes from the employees themselves, and oftentimes from tenants of the building.

Nicholas

Yeah, and you know, where we're at right now is just meeting people where they are, right, like, we have some of the most, you know, the smartest developers in the world, who, on one side, want to help tell the world that they've created something really spectacular, and something really special.

At the other side, they want to say, Okay, where are my holes? Where are my gaps? What am I not thinking about yet, so that I can, you know, push push the envelope for, for this development, or my next development? And then you have people who are like, well, what is smart? Like, how do I even how do I even start?

How do I even where do I begin, and that was one of the main reasons we pivoted to the smart building Collective is that, you know, we're not here to say, this is how you build a smart building, the collective is informing this certification, and then there's a ton of people in this community that are there to help, you know, from all different walks of life, but different culture different, you know, views, different ways of supporting, and so you can find the solution when you when you're looking for it.

size and scale in smart building certification projects

What is the minimum size that you're noticing in the market, in terms of buildings, and developers coming to you with an interest in in going deeper into this, you know, oftentimes, you might see smaller developers, smaller building owners, smaller tenants who have increasingly aware of this ESG angle and want to get into it, and then look at the breadth of a big healthy building certification such as WELL for example and just even to go for one or two elements of that looks like a big undertaking. We don't have the manpower, we don't have the budget? How does smart fit in? Is there a bespoke approach that one can adopt, as you say, just to kind of get started? Or is it all or nothing? And therefore, is it a certain size of building that makes more sense?

Nicholas

No, it's definitely not all or nothing, it's, start, wherever you are, start small, start getting a little bit more control in different areas. And, and, you know, what's so exciting about the benchmark system that we've created is, is that it's, it's moving, you know, it's rolling, but it's also applicable to whichever asset class whatever size, you know, whatever type of property in whatever country, because what we what we are doing is actually starting to build some benchmarks, right.

So if you are a building of 5000 square meters, which is, you know, not that big. Let's compare you to other 5000 square meter buildings. And we get the we get the question, you know, should I have a user wrap? Well, it depends, you know, it depends on the context that depends on what you're trying to do. It depends on the value cases you're after, what are you trying to accomplish with your property. And in that sense, you should really be compared to like minded buildings, and not to, you know, all of them.

Smart app technology in building management

So a user app would then be a smartphone integrated user face where you can see what's going on around you in the building in terms of key data points and metrics, from air quality to light usage and electricity usage. Is that essentially what it does?

Nicholas

Yeah, they come in all different shapes and sizes. A lot of user apps focus on the community aspects of a building, you know, what kind of workshops are happening today? What kind of events? What run happening this afternoon with a group of people. Some of them go beyond the building itself and connect you to the community in the smart city space, you know, what's going on in the neighborhood. But you also see them as being utilitarian where they start to become the key to doors or the light switches.

To get the utilization up of those apps, you start with the utility piece, if you can't open the door without it, then you're going to start using that app. And then growing into that community aspect, we also see the app becoming kind of the financial backbone of the building that it manages everything from room booking to amenity usage.

So sky's the limit as to what you can do with that functionality. That's a big one.

peer reviewed smart building certification and accredited professionals

And around the the actual smart building certification process itself and your accredited professionals or your “APs"“, how does that network function?

Nicholas

Our certification comes from the world of academics. So when you research and you write a publishable paper, it always gets peer reviewed. A scientific paper doesn't get published in the market until it's been peer reviewed. So we thought, you know, Shouldn't that be how we assess buildings? So we built a peer review model, where you have independent assessors who are looking at this building, and those assessors come from different cultures different, you know, parts of the world, and they look at your building. And then what we have in the certification process is we have quantitative data, and we have qualitative data. The quantitative data is very much based on, you know, do you have the technology?

Do you have the functionality, the coverage, you know, is it there, and that's quite black or white, right? It's either there or it's not there. The qualitative data is much more the grays that are going on in buildings, right? It's like your governance structure. How are you organizing yourself as a building, your integrative design?

You know, how did you decide to build your smart building? Did you use a one massive supplier for the whole tech stack? That's, you know, really been around for 30-40 years? Or did you use a bunch of startups and scale ups and have them work? Together? Right? There's no kind of wrong answer there.

You just make different decisions for different reason. And so there's definitely a qualitative piece that needs to be taken into consideration of a this is what we see in buildings, this is the pros, this is the cons. Maybe this is something you should think about, you know, moving forward.

And that peer review model has been hugely successful in the sense that these assessors get to, you know, assess buildings all around the world, and they get to see the different cultures and the different ways that they're built. And it's become a really, really incredible community of people who not only are working together daily to find good solutions for their own work, but but also helping inform the collective to improve this certification improve what we do.

Matt

Is there a particular building or case study that you've been involved in that could be representative of where things are going or where things are at today in terms of smart building excellence?

a leading example of a smart building

Nicholas

One that we just certified that is amazing is the Hausmann’s Hus in Oslo. It's a family office that built this incredible building from an altruistic perspective, they said, it's not about building a smart building, it's about building the best building we possibly can. And it just happens to be digital.

They created these smart grids throughout the building, which allows them to configure the building any way that they want, for however big or small a tenant would be, and give that space its own smart infrastructure, its own energy metering, its own light metering, completely self contained. A traditional building will take the energy of the building and divide it by the amount of square meters, and send a bill to the tenant based on that calculation.

This is a completely more sophisticated way to do it. And then it's just the most beautiful high quality building. They also have open, transparent contracts with their suppliers, where they say, we're gonna guarantee you your margin, but we're going to discuss the cost. And they originally thought that the budget of the smart building was going to be significantly higher, because of all this smart tech but by managing it in an open and transparent way with their suppliers, they've actually been able to create a building that's the same cost, which I think is something we all need to learn from. It makes good business sense.

Matt

Where do you see your growth over the next three to five years?

Nicholas

I think part of our role is that we need to get these success stories and these stories out. We need to write these cases, and we need to make them quantified, and share how impact is being made. I think we're gonna get to this point of - what is the right level of technology for buildings, and what's too far? The emergence of having buildings be larger than themselves, I guess, being part of a community and not just stand alone.

buildings become part of a community

We’ll also see that with co-working spaces and you know, community spaces, these kinds of things. I think that's going to be a huge component in the future. We just certified a building in in Finland that has its own geothermal energy plant that they built under the building. And it is now feeding the energy to the entire grid around that building. There's something to be said about being a global citizen with your project!

I have the strong belief that out of challenging times, which the commercial real estate is definitely in right now, comes some incredible opportunities. And I think the emergence of cultural, experiential type places, is emerging. I'll be very curious to see how that evolves as it becomes a completely different asset class, not a museum, not a concert hall, not an office or a hotel but something new.

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FURTHE READING:

• World Green Building Council Health Wellbeing Framework

OPO wellness content for hotels and real estate developments

wellness tech content for office workplaces, hotels, resorts and real estate developments with Chris Connors of OPO

Welcome to episode 062 of the Green & Healthy Place podcast in which we discuss the themes of wellbeing and sustainability in real estate and hospitality today.

In this episode I’m in Ibiza talking to Chris Connors, Founder and Creative Director of OPO, a wellness tech studio applying the principles of mindfulness to daily life via psycho-acoustics, neuro-aesthetics and awareness practices. 

Belfast-born Chris is a psychotherapist, leadership coach and master in zen meditation. He has previously created projects for the likes of Prada, LVMH, Nike, Aesop, Kering and Net a Porter. 

Amongst other things, we discuss everything from their nature-based mindfulness portals scattered around various mixed-used developments in London, their multi-sensory recharge room in a coworking office and the meditative moments they create during the guest journey for luxury resorts and hotels.

https://www.opo.world/

https://www.instagram.com/opo.app/?hl=en

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FULL TRANSCRIPTION

Matt Morley

I wanted to start with context around what you saw as the initial opportunity for creating a wellness technology business working with mixed-use real estate, office and hotel brands. There's a lot of movement in the ‘well tech’ space right now but clearly, you felt there was a combination of talent, skill and potentially funding on your side to go fill that gap?

Chris Connors

I've been in this in the world of mindfulness for 23 years now. I started training in Japan with many different monasteries and monks. I spent many months on retreat there, and started to really understand deeply what was going on.

You might hear from my accent, I actually come from Belfast, in Northern Ireland, and grew up in a very adverse place, and found that meditation had a strong impact on my mental health. At that time, of course, I didn't have any science to support anything that was going on, it was a very intuitive experience. So at that point, I realised what a strong benefit it was having for me.

Fast forward into I guess, 2014 - 2015 when I started to see this emerging trend coming, the work that I had been doing, which actually had been very secretive, or discreet - back then people didn't talk about things like mindfulness and sound healing. And these kinds of words, were certainly banished to far away places.

Meditation in daily life

I started to create a little website called on modern consciousness which caught the eye of a lot of experts. And it was really about how you could bring meditation into daily life through design or objects or spaces. And in that early time, I there was a realisation that people were starting to warm more and more to this work. I was teaching it a lot. I noticed a lot of the younger generation doing research on meditation, as were some of the great scientific institutes like in Harvard, and places like that, which were doing a lot of tests and trials.

mindfulness apps for wellbeing

So for me, that was the early spot, that there was going to be a a really big movement in this field. And then I started to see some apps come through very early days, mindfulness apps. And lo and behold, Headspace and apps like Calm started to really push out into the world.

They’ve taken a huge area of the market, I wanted to look at how we could create something with OPO that wasn't just about learning to do this work, but it more about the applied aspects, how can things like meditation come into daily life? And what would that mean from a daily habitual point of view, or spaces that you might interact with, or behaviours that you might have? And we've been building it now for the past five years.

Matt Morley

Did you have a business to business strategy as a way to distinguish from, say, the Headspaces of the world that have gone heavily down the B2C route and the mass market?

Mind training for business communities

Chris Connors

It' a mixed view of that really, I've been a coach and a leadership coach for many businesses primarily in the luxury and design, through that, of course, I started to see the ailments of organisations and organisational behaviour and was very interested in what I could do to help from a coaching perspective, but then of course from a learning and development perspective, and I saw OPO could really help with those functions.

The way we've approached it as a business is that we are working to build blocks through the B2B model. Our end goal is that anyone in the consumer or Public domain can use OPO and we want our business communities to support us as a social enterprise to create more urban wide ‘portals’, which I'm sure we'll talk about, and initiatives that reach to a much wider public. And that's really our game. But we want to work through the channels of b2b business communities.

Mindful locations at mixed-use real estate developments

Matt Morley

Okay, so I've had the OPO app on my phone now for a month and a half, the ‘portals’ seem to be in some way connected to places, geographies, but at the same time I don't need to be in that specific location in order to access the content.

So how do your portals fit into the overall context of the business? And then how is it that you ended up working with mixed use real estate developers like Kings Cross and Greenwich Peninsula in London to develop those portals?

Chris Connors

The portals came from our first projects, which actually were spaces. We have created two spaces in central London, one was in Shoreditch, and the other one was in Kings Cross in Coal Drops Yard, which is the big King's Cross development, we worked with Argent, who are, of course, fantastic developers, very visionary.

We made two very interesting spaces that attracted a lot of attention in terms of what we were offering, they were automated spaces, people could go in and have 15-20 minute experiences.

I kind of wanted to find out, what could we do that would not just be an indoor thing. What could we do for people during summer, or during the outdoor times, where you could really wander around the city, and stop at these portals and have some kind of experience equivalent to what we were having indoors at these spaces.

promoting mindful moments in urban real estate developments

A blended experience actually creates the portal itself. And it's a very simple experience, in the end,, the app will guide you to a park bench, or a river view, or some space in the city and beyond. But once you're there, the app will unlock a guided mindful practice based on the view that you have.

I guide you with exact view of things that are in front of you. And that presencing experience gives a very optimal neurological, quite phenomenal experience for our system, and floods us with different hormonal inputs.

The portals for me have been an absolutely brilliant guide for us, we want to plant as many as we can around as many cities. And we're finding as people use them, they're getting those true stillness moments in the noise, which is actually the real core aspect of what Meditation.

It's not just about getting calm and being away from everything. It's actually about, how can I be in it, and be completely with it, but also find a deeper stillness and connection at the same time, which is a very urban experience, of course.

Matt Morley

And so if I may ask, is that a commercial relationship, then if there's another developer or a location a place or a hotel that may want to develop or likes the idea of having one of the portals, they would contract you to make one?

blending wellbeing and wayfinding with OPO ‘portals’

Chris Connors

The portals are basically a combination of you might call it wellbeing and wayfinding. The wayfinding aspect is really helpful. Of course, for developers, they want people to dwell and sit and enjoy their spaces. And OPO was a perfect instrument to do that.

We've done that along The Tide, which is the Highline of London at Greenwich Peninsula, we built our portals all the way along the walking area, so people could dwell and enjoy certain views. They really create this much more multi dimensional experience of the space itself. And of course, for a developer, that's always good news. And you're also building in some good wellbeing mandates as well.

wellness tech in a hotel or resort guest experience

Matt Morley

A lot of the times when I'm working with a hotel or resort group, I'm more focused on the physical spaces that we're able to create. But i always need to have a clear idea of how they're going to be used by guests.

Hotel guests are only going to stay a few days most likely, so there’s less opportunity for repeated exposure, repeated moments of connection, typically how does OPO integrate into a luxury hotel or resort brand’s customer journey on that basis?

Chris Connors

Well, we started with the room first, we realised that there's an opportunity to bring more 360 wellness into the hotel or resort bedroom itself. That's typically where people spend a lot of their time. We've built content that people can upload through a QR code on screen from reception, where we're building menus that are really helping people while they're in the room.

So especially things like sleep, stress, anxiety… we’re also working with quite a few really good hotels around sound and relaxation treatments, for example. Also we build portals. We can do things like reception sending their guests off for a sunrise guided meditation in the morning, and the app will take you to the rocks and sit with the sunrise and they guide you with that moment, all the way from your room.

We also do a sonic postcard, which is something that the hotel can send to guests prior to their stay to help them along the way, whether it's a song journey for transport to the destination, or after their stay for example. The whole idea is to help extend a brand’s connection with guests and extending the guest journey with mindful content.

how to use QR codes for mindful moment prompts in resorts and hotels

Matt Morley

The idea of having subtle QR codes dotted around a building strikes me as an interesting intervention. Does that require the guest to have an app installed on their phone? Or is the QR code itself the access to the content?

Chris Connors

Yeah, we make web content. We have different content, private content for them that's not on the app itself. We do have a private area on our app for our partners that their guests can use the app on the private area. But the whole point with QR or any form of technology is that it’s web content, there's no signing in required. A lot of hotels are trying to develop their own app so we want to stay as flexible as possible with them.

opportunities for mindfulness content in residential developments and office workspaces

Matt Morley

When you're working with a residential or an office workplace client, I'm sure you're able to consider a more medium term relationship, where something could be used repeatedly. And as we all know, it is the repetition of these acts that cumulatively starts to have a real impact on mental wellbeing, anxiety, mood and so on.

The workplace wellness space seems to be especially interesting for OPO, what are you up to in that space?

workplace wellness tech for mental wellbeing

Chris Connors

The office is a very different place after the pandemic, businesses are desperate to find ways to help people, retain people and also ensure that they are taking care of their people from a healthy building perspective. From OPO’s point of view, we're really focused on what you've just been saying, if someone is repeatedly using a space, then repetition can create a habit and habit formation is a big part of what we offer for our business partners.

We're very focused on the strong development of science around circadian biology. And that's become a big part for us. You know, OPO is very much about our natural self and the natural world around us. We have a 24 hour clock that basically guides everything we do.

We're working now with a global brand called Davines, maybe you're aware of the global beauty brand, we've just run a wonderful first step initiative for them called Unplug about showing how our brain does not operate in a homogeneous state the whole way through the day.

Our focus is how can we help create specific points along the journey of your day, which actually helps balance or restore brain state and brain health for mental wellbeing benefits, in order to really optimise your productivity, but also to help align to your circadian rhythm.

biophilic design and bringing the outside world in to the office workplace

Matt Morley

Do you mostly deal in sound-based interventions or is there a component of sound plus visuals in some cases?

Chris Connors

We’re talking to a few businesses who really want to look at the design of their office and how daily habits and habit change can actually affect design, because it's never really been thought through. That's basically the habit of the office, you know, desk and coffee.

But currently, the way we offer it is it's more audio and helping people with specific habits through the day that involve physical, mental and emotional tasks. But a lot of that is about being outdoors. It's about focus light in the eyes, different aspects that involve nature really as the big player here for supporting the office space.

office meditation room design london

Matt Morley

So I saw the office meditation room that you created with The Office Group in London, UK, it just struck me as interesting concept, tell us about that?

Chris Connors

We worked with the architects Universal Design Studio, really brilliant architectural practice, on design from scratch of that space. So it was very much about bringing down certain stimuli, and then upping others through different kinds of sensory elevations and depravations.

We created a circadian soundtrack. So there was a track that would be playing in there, which basically looked at how sound maps to your circadian biology. So when you went in, there would be a certain kind of stimulation that would be beneficial for your brain at that particular time of day combined with a colour therapy light, which was working on certain activations of the eyes, and very much around what certain colours do at certain times of the day as well, that was all moving and changing.

office recharge rooms and quiet rooms

Matt Morley

I've done a few office recharge rooms or ‘quiet rooms’ for corporate office environments, often full of biophilia. And the question always comes up around how active or passive should it be? Should there be an element of content? Or is it in fact about disconnecting and having no screens at all? Often, we end up removing any screens, I think now the content has got to the point where the availability of such high quality wellness content makes me confident in saying, look, I think we can design a space that includes a feature screen connected to an app such as OPO.

The practical reality is that creating an environment for mindfulness is not enough, most people are going to need guidance to get there.

Chris Connors

And that's the issue The Office Group had before we upgraded their quiet room concept, they were doing little contemplation rooms but people were just using them for eating for or whatever but now if you go into this restorative room in Notting Hill, you take your shoes off, then you follow guidance in order to experience the full journey.

wellness content for different audiences - coliving, coworking, hotels

Matt Morley

How do you adapt your wellness content for different audiences and contexts? I wonder how much is epeat content versus how much is adapted to the specifics of each brand or location?

Chris Connors

In a hotel, we're really looking at ‘elevation’, helping people relax, and go deeper but in a quick and simple way. Whereas, of course, in the office space, we're working with people and their behaviours over repeat visits so there's a different kind of programming required.

What we are advocating is to find some sort of sense of self and being present. In that moment, it doesn't matter if you've got 10 minutes or 10 years. The essence of our work is about that.

social enterprises - giving back to the community as an esg strategy

Matt Morley

You mentioned a little earlier on the idea of a social enterprise and your societal angle. I was interested to understand a bit more about that as obviously a decision you took up front as a business.

Chris Connors

I really wanted to create some kind of circularity in my business, it wasn't just looking at upward trajectories and curves on that level, it's important, of course, the business can grow and flourish. I had always felt that this work is not only about the wellness industry, my work is a service as well. And as part of that service, I wish that it can access as many people as possible.

As part of our social enterprise, we wish to create more and more of these accessible meditation places and spaces for people in and around the city. And actually, our vision for that is ambitious - our dream is to work with mayors of cities, or, you know, the smart city concepts, where we can plug our portals in and actually drive demand in a much bigger way for people to access them. And that fulfils our social mission.

Matt Morley

It's giving back but in a sense without asking anything in return, it's your purely giving, you often don't know who those people are, I guess unless there's sort of some interconnection, or the sort of the geo locator or what have you. But effectively, you've never you never see them.

Chris Connors

We ask all of our real estate and hotel partners to help co-fund those with us. So we have a fund that we always bring into our model to help create more and more portals, it's a bit like tree planting.

https://www.opo.world/

https://www.instagram.com/opo.app/?hl=en

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Further reading

Sustainable hotel brands in the UK

best examples of independent sustainable hotels UK — biofilico wellness interiors

A review of some of the most sustainable independently owned hotels in the UK focusing on these sustainable concepts:

• energy efficiency & renewable energy

• local sourcing & responsible supply chains

• eco-friendly products & materials

• enhanced biodiversity & biophilic design

• waste reduction & recycling

• circular economy principles

• health & wellness

• ethical business practices

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The Scarlet Hotel - a sustainable hotel concept UK

eco sanctuary hotel

Located on the cliffs of Cornwall, the 37-key Scarlet is an eco sanctuary that overlooks the Atlantic, offering guests a chance to reconnect with a natural lifestyle.

circular design hotel

The building was constructed using Circular Economy principles, meaning reclaimed materials that can be reused or recycled at their end of life, such as the wooden frame, copper cladding and aluminium roof structure.

hotel energy efficiency

Rather than air conditioning, natural ventilation strategies are used to cool the interiors in summer, rooftops are lined with sea thrift to stimulate biodiversity and electricity is from 100% renewable sources.

Low-energy LED lights with motion sensors reduce unnecessary energy expenditure, the indoor pool is heated by a solar system, heating is courtesy of a biomass boiler and grey or waste water is collected from showers and baths to flush the toilets.

sustainable hotel waste management

Bathroom amenities are sourced from local artisans, the wasteful packaging of an in-room tea tray is done away with in favor of room service upon request and each room booking includes a £5 donation to Surfers Against Sewage to help protect the British coastline (a cause that Biofilico also supports).

sustainable hotel food menu

There is a tangible sense of authenticity to this hotel’s commitment to the environment. So it’s no surprise to find a food concept that is based around seasonal ingredients, sustainable seafood and wines, slow-aged steaks.. it aligns perfectly with the overall stance on sustainability here.

sustainable hotel wellness

In terms of wellbeing, there is an eco spa inspired by Ayurvedic treatments with an outdoor natural reed pool, a clifftop wooden sauna, a meditation space and endless ‘blue nature’ views of the Atlantic.

Spa therapies happen in lantern-lit tented spaces, concluding in a cocoon pod for a moment of contemplative relaxation. Mind-body wellness classes on offer include various forms of yoga and tai chi; with surfing available out front when the waves are doing their thing!

https://www.scarlethotel.co.uk/

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The Green House Hotel - a sustainable hotel UK

sustainable hotel certifications

Billed as the greenest hotel in the UK, The Green House knew where it was headed right from the start and was able to line itself up for BREEAM green building accreditation as well as integrating an ISO 14001 compliant environmental management system and joining the Considerate Hoteliers association. In other words, they meant business from Day 1!

sustainable hotel renewable energy

This boutique hotel of just 32-rooms harnesses the power of the sun to heat its water, reduces energy consumption with energy-efficient lighting throughout, EV charging points, and generates electricity onsite via a Combined Heat and Power (What is CHP?) unit. The thermal envelope of the building was improved with additional cavity wall insulation, roofing insulation, double glazing windows, and high-performance window seals to prevent heat loss / cool air drafts.

sustainable hotel supply chain

Their procurement policy and approach to materials use is impressively considered, from local craftsmen making their furniture from storm-felled timber, to naturally fire retardant (chemical-free) wool carpets in the bedrooms, FSC certified wallpaper made using vegetable inks and eco-friendly, metal-free mattresses.

sustainable hotel waste policy

Waste oil from the kitchen is made into biofuel, coffee beans and food waste are composted for use in gardens, and coffee grounds are repurposed to grow mushrooms, showcasing a commitment to reducing waste and sustainable practices. The restaurant menu is based around seasonal, local, and organic ingredients while alcohol is locally sourced from around the UK.

sustainable hotel operations

Sustainable hotel operations focus around aligning staff behind the environmental policy with ongoing training and rewards for new ideas, recycled toilet roll, eco cleaning products that are free from toxic substances, pesticide free landscaping and a comprehensive waste management system that starts with the procurement process - by asking questions before purchasing products, they team are able to reduce the amount of waste sent to landfill.

The Green House Hotel's sustainable operations contribute to the global effort towards responsible tourism.

https://www.thegreenhousehotel.co.uk/environment/

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Saorsa 1875 - a sustainable vegan hotel concept in scotland

a vegan hotel concept

This 11-room property in Pitlochry, Scotland was established in 2018 in a building constructed in 1875 and set out to become the UK's first 100% vegan hotel, “designed for vegans, vegetarians and the plant-curious” to be precise.

Interiors play off a bohemian, eclectic vibe with individually styled rooms created more of a home from home atmosphere than a formal chain hotel.

Toiletries, cleaning products and furnishings are 100% vegan, avoiding leathers and. animal-testing in particular.

The food menu is completely plant-based focusing on not just local and seasonal but foraged ingredients too, combined with craft beers and a wine list ‘inspired by the region'.

an ethical. hotel with values

As a business they are aligned with the Good Business Charter (see the small business version here) meaning they are assessed for paying staff a real. living wage fair hours and contracts, employee wellbeing and representation, diversity and inclusion, environmental responsibility, paying fair tax, commitment to customers, ethical. sourcing and prompt payment.

https://saorsahotel.com/

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Whatley Manor a sustainable cotswolds hotel

Whatley Manor in the Cotswolds has pledged to reduce its carbon footprint and reach Net Zero carbon emissions by 2028, equating to a reduction of 90% from their 2019 data, as well as Net Zero emissions from their supply chain by 2035. Commitments made publicly in this way help to keep a business on track and increase accountability, so are to be commended. These efforts contribute to a more sustainable future by supporting eco-friendly practices and initiatives.

sustainable hotel accreditations awards

Set amongst 12-acres of gardens, the hotel has a Bronze certification from Earthcheck, has a Green Michelin star for sustainable gastronomy in its renowned dining room, and regularly picks up awards as one of the UK’s most eco-friendly luxury hotels.

sustainable hotel energy efficiency

The hotel. runs on 100% renewable energy and removed gas from its kitchens to cook on induction heat only (more. efficient), a new Boiler Management System helps with optimum energy efficiency for heating and hot water needs, LED lighting uses 75% less energy than. the previous lighting set-up and six EV charging stations are offered to guests in the parking area.

sustainable hotel guest rooms

Eliminating single-use plastic is now an established first step for most environmentally conscious hotels, at least in the front of house operations - doing so in the kitchens is far more of a challenge. As part of their eco-friendly practices to reduce waste and promote sustainability, Whatley Manor only change bed linens and towels upon request, have opted for ceramic amenity bottles, compostable coffee pods, in-room recycling bins, digital newspapers for guest use and reusable water bottles.

‘reuse recycle repair' in a sustainable hotel

Not ones to do things by halves, Whatley Manor established their own on-site recycling centre with a glass crusher as part of their commitment to sustainable practices. All food waste is segregated and turned into compost whenever possible, while general waste was reduced by 30% after benchmarking took place in 2019.

nature, organic and biodiversity at a sustainable hotel

Organically grown fruit and vegetables dominate in the hotel kitchen, with a kitchen garden and on-site greenhouses, four beehives, minimal pesticide use, planting schemes to encourage biodiverse natural habits for insects and birds, bio char is used to enhance the soil and organic manure serves as fertilizer. These sustainable initiatives significantly reduce the hotel's environmental impact.

https://www.whatleymanor.com/sustainability-2021/

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What is Circular Economy in regenerative Real Estate?

How do we define circular economy?

The built environment is one of many man-made systems that typically operates as a linear process - it involves the extraction, use of, and eventual disposal of resources.

Sustainability experts describe this as an unnatural model as it accumulates immense amounts of waste and contributes to the negative impacts of the built environment on our planet.

This is in contrast to nature itself, a closed loop system that does not produce any waste.

For example, it has been found that 25-30% of the waste generated in the EU comes from manufacturing and construction waste, and 10% of global CO2 emissions come from steel and cement production (Acharya). 

This makes steel and cement as the two main building raw materials to watch when it comes to reducing embodied carbon in a new construction and a transition towards more circular economy aims and alternative business models that consider economic growth in the context of a company’s greenhouse gas emissions and social impact, for example.

The circular economy real estate response

A circular economy perspective applied to a high-waste and high-growth system like the built environment can have meaningful impacts for all stakeholders involved through waste reduction and increased value of assets.

The overall goal of a circular economy approach to real estate is to manage the components of the built environment by keeping them in the loop, rather than producing waste for landfill, this means materials and products retain some of their intrinsic value for longer (Acharya). 

3 Principles of Circular Economy: The Ellen Macarthur Foundation

The Ellen Macarthur Foundation is a leader in this realm, promoting the ideas and concepts around the circular economy, aiming to create an economic system that is better for both people and planet.

The foundation has designated three main principles of a circular economy that are considered the backbone of the concept:

1. eliminate waste and pollution

2. circulate products and materials

3. regenerate nature (Circular)

eliminate waste in circular economy real estate

The first principle, to eliminate waste and pollution works to override the current “take-make-waste” system that our economy recklessly deploys without much concern for future generations. The waste that is produced from the built environment commonly ends up in landfills and those resources are lost, depleting our global stores.

In order to instate this first principle in real estate particularly therefore, buildings must first be designed to reduce and eliminate waste at all stages of their lifecycle, while shifting from a linear system to a circular economy system using circular design products.

This includes strategies such as applying life cycle assessments to understand materials at end of life, and choosing materials and products that can be reused, repaired, remanufactured, and recycled (Circular). 

See our dedicated HEALTHY MATERIALS page here.

circulate products and materials in circular economy real estate

The second principle, to keep products and materials in the loop, focuses on keeping them in use in the highest value form for as long as possible. This retains the value and usability of those materials while reducing extraction of additional natural resources from the planet.

Such products and materials can be kept in circulation through reuse, repair, remanufacturing, or recycling. In addition, biodegradable materials that often naturally decompose can be cycled back into the earth and circulated into the biological cycle.

To promote this strategy, designers should consider the ability for a product or material to be integrated into a cycle at end of life. For example, if wooden furniture was designed with biodegradable glues and paints rather than materials such as screws, they could be entirely biodegradable and more easily circulated (Circular). 

regenerating nature in circular economy real estate

The third and final principle, to regenerate nature, is implemented through the conversion to a circular economy and the promotion of natural processes and cycles.

Through this principle, the extraction of resources should be shifted to their regeneration, which will in turn provide more space for nature as less land is required to source virgin materials.

This can be implemented within the built environment through careful material selection and use. If we shift the priority to not only doing less harm to the environment but improving it, nature can be regenerated through the incorporation of a circular economy and principles (Circular).

Building-Level Circular Economy

The circular economy can be applied at a building level through the consideration of its entire ecosystem and lifecycle. The principles can be implemented in the design, sourcing, construction, operations, renewal, disassembly, and repurposing processes. The goal is to integrate all building phases with one another and plan for a closed loop cycle from the onset of design (Ellen)

The design process should include operation and performance strategies and incorporate energy-efficient approaches. Modularity and adaptability should be a focus and can include strategies such as selecting efficient resources that are easily reusable, durable, and flexible. Construction can aid in efficiencies through strategies such as modular building or off-site construction to reduce waste production (Ellen).

In the in-use phase, buildings should incorporate self-sufficient methods to mimic a living system, such as water capture and reuse systems, or a net positive solar production and storage system. We can look to natural systems for a guide, and whenever possible buildings should utilize and create self-fulfilling cycles (Ellen).

End of life is often the most forgotten yet one of the most important factors of a circular economy. Buildings must be designed for longevity, which can come in the form of durability, flexibility, or adaptability. Structures should have the capability to easily shift to another use if the initial use is no longer desired through disassembly and reconfiguration or shifted off-site for another use.

The goal at end of life is to maintain all building products and materials at their highest value possible through reuse. If this is not possible, as with the case of many organic materials, they can biodegrade back into the earth and close the loop, giving back to the earth from which they were extracted (Ellen).

Cradle to Cradle Certification in real estate

The Cradle to Cradle Certified Product Standard is a global standard that recognizes products and materials that are circular, responsibly made, and healthy. This standard is a great starting point for material decision-making as it provides materials that align with circular economy goals. 

The certified materials have been proven to be safe for both humans and the environment, and at end of life are guaranteed available for reuse without further pollution or contamination. When selecting materials, searching for this certification is a great indicator for a smart choice. 

In addition, as recommended by the Cradle to Cradle website, Materiom is an open source platform that provides locally-sourced biological material “recipes”. 

Integration with Sustainable Building Certification Systems

Sustainable building certification standards such as LEED, BREEAM, WELL, and the Living Building Challenge (LBC) encourage the use of circular economy concepts and products throughout a building’s design process.

These certification systems can provide guidance and direction for project teams looking for ways to implement circular economy principles into their real estate developments. 

Each of the various standards encourage the use of water retention / reuse and rainwater management, forming closed-loop water cycles within buildings. 

In particular LEED, BREEAM, and the LBC mention the importance of producing and using renewable energy and the incorporation of passive design, encouraging circular building design through self-sufficient energy strategies, whenever possible - most obviously in new build real estate construction.

In addition, each of these standards has a focus on choosing sustainable building materials that provide transparency and reduce waste opportunities at end of life.

Finally, each standard requires waste reduction and management throughout the design process and through smart material sourcing. 

The LBC also contains the “Place” Petal, whose goal is to encourage ecological regeneration, connecting to the third principle of the circular economy as outlined above.

The WELL standard also touches some circular economy approaches through the mention of hazardous waste management and reduction, material transparency, and carbon disclosures and reduction. 

Examples of Circular Design in Real Estate

There are many buildings in existence that utilize circular design principles. As highlighted by the Ellen Macarthur foundation, examples such as Villa Welpeloo (above) designed by Superuse Studios and Arup’s circular building pilot project (see video earlier in this article) both provide inspiration.

The Villa Welpeloo project focused on building locally with salvaged materials, highlighting the impacts of reusing resources that would otherwise become waste. Within the project, Superuse was able to include 60% locally recovered materials, which is now a strategy utilized in 90% of the company’s projects (Ellen).

In Arup’s circular building pilot project, they focused on creating a building that could easily be disassembled and re-fabricated if needed, designing for adaptability, and using the structure as a functioning material bank.

In addition, each material was carefully selected with a transparency and health focus instated from the beginning. Using BIM technology, the project team tagged each material with information on its properties and reuse capabilities to make collaboration across disciplines easier and to ensure the incorporation of the circular design principles (Ellen). 

References

Acharya, Devni, et al. 2018, From Principles to Practices: First Steps towards a Circular Built Environment , Arup, The Ellen Macarthur Foundation, 3XN GXN. Accessed 9 June 2022. 

“Circular Economy Introduction.” Ellen MacArthur Foundation, https://ellenmacarthurfoundation.org/topics/circular-economy-introduction/overview  

Ellen Macarthur Foundation, 2019, Circular Economy in Cities. Accessed 9 June 2022. 

Zimmann, Rainer, et al. ARUP, The Circular Economy in the Built Environment. 

BREEAM Standard 

LEED Standard

Living Building Challenge

WELL v2 Standard

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Further Reading

• Posts In Real Estate

• Real Estate ESG Frameworks

• Sustainable Real Estate In Urban Regeneration With Jonny Friedman

• A Guide To Green Building Certification & Healthy Building Certification

• Posts Tagged Green Buildings

• Healthy Building & Wellbeing Real Estate Consultants

• Circular Design With Soma Studio Milano

• Biophilic Design Consultant

• What Is A Healthy Building Material?

• Healthy Buildings Vs Sick Building Syndrome

• Waste Management In Green & Healthy Buildings & Interiors

• Sustainable Building Data - 2050 Materials

• Building Wellness & Sustainability With Evalore Spain

• Healthy Materials With Matter Of Stuff

• Best Examples Of Biophilic Commercial Developments

• Sustainable Boutique Hotel Brands UK

• Healthy Materials In Sustainable Interiors

• Marine-Based Circular Economy Materials

• Sustainable Textiles & Fruit-Based Bio Fabrics

• Best Examples Of Biophilic Design In Learning Environments

• Examples Of Biophilic Design Interiors Cannabis Retail Stores

• Sustainable Hotel Resort Standards, Certifications And Ecolabels

Sustainability in Last Mile Logistics Real Estate

What is Sustainability in Last Mile Logistics?

Last mile logistics refers to the last step in a delivery process, describing the process of sorting and transportation to the doorstep of the client from a nearby warehouse or storage facility.

This delivery process is in high demand post-pandemic due to the boom in e-commerce purchases during lockdowns, making this an ideal time to assess the opportunity for integrating sustainability policies and green building strategies into the sector as a whole.  

Who delivers a sustainability strategy in last mile logistics?

The various businesses that invest in, construct, and operate the distribution centers as well as the transportation process are all key players in optimizing last mile logistics sustainability. 

A business model that includes real estate Environmental, Social, and Governance (ESG) goals not only upholds a company’s civic duty but also appeals to investors with a preference for sustainable investments.

Transportation is of course a central piece within last mile logistics, and therefore must be closely monitored and optimized to reduce carbon emissions associated with the process however sustainability policies at the construction, fit-out and operations level of these distribution and storage centers should also be factored into a comprehensive sustainability strategy - as we shall see, this can often require a degree of inter-company collaboration (see Prologis as an example of this).

environment in ESG in last mile logistics real estate

From a business model perspective, a real estate ESG strategy is essential to encourage sustainability throughout a last mile logistics enterprise. In addition, investors are often motivated when ESG is integrated into a company’s values and mission statement.

The environmental focus within a last mile logistics ESG strategy can include the storage and distribution centers as well as the transportation related environmental impacts.

Commonly, last mile delivery services make use of a hub and spoke model, referring to the warehouses and distribution centers as the hubs, and the last mile delivery as the spoke of this system.

Therefore, it essential to reduce resource use and emissions associated with the construction of these facilities upfront as well as the subsequent transportation process once operational.

Measurabl is a useful software tool that can help encourage data collection and organization within a company’s ESG strategy. 

social in esg last mile logistics real estate

Social goals tend to be more universal across industry sectors as they focus on employee wellness, inclusivity, diversity, and social impact.

Within last mile logistics in particular, factors such as working hours and the optimization of driving routes should be considered to align company goals of fast deliveries to respectful working hours and employee wellness.

Online software tools such as the Brightest Platform are helpful for outlining and monitoring social performance goals within an organization. 

governance in esg last mile logistics real estate

The governance element of an ESG strategy acts as the overarching management body for a company and focuses on increased transparency and integrity.

The documentation and reporting of ESG goals, associated company risks (including climate risks), data privacy, and codes of conduct will all be included in a governance plan.

To help with the organization and monitoring of governance related ESG goals, Workiva is a useful online tool. 

Building-Level Sustainability in Last Mile Logistics

Although transportation is an essential sustainability consideration in the last mile logistic system (see below), the distribution facilities themselves should be designed to optimize carbon footprint early on.

Strategies such as intentional location choices, energy efficiency, water and waste reduction, and sustainable material use are all essential factors in a building’s carbon footprint; we address each of these in turn below.

Location in Last Mile Logistics Real Estate

The location of a distribution facility is one of the most important building factors and is also directly linked to transportation emissions - in this sense, the hub and spoke model has sustainability baked into it from the beginning as ‘spoke’ locations close to city centres help decrease overall travel times and emissions.

Facility sites can also be shared across different companies to pool resources and therefore decrease resource use. In addition, due to the generally large size of distribution centers, it is important when possible, to choose pre-developed or brownfield sites to reduce land use change impacts (“Elements”).

Energy efficiency in Last Mile Logistics Real Estate

Energy efficiency measures in warehouse and storage facilities are largely similar to other building types.

Lighting efficiency can be improved through LED bulbs and the inclusion of sensor and dimming capabilities.

Facilities that require refrigeration for storage should implement more efficient cooling technologies or utilize renewables to power them to avoid excess energy demand.

In addition, efficient machinery and lifts should be incorporated as the transferring of products is common practice and can be a large source of energy use in these facilities. 

On the exterior, the building envelope could incorporate green or cool roof technologies to lower heating demands and energy loads.

Finally, renewables such as wind or solar energy should be used whenever possible to provide a source of green electricity.

Water efficiency in Last Mile Logistics Real Estate

Water efficiency measures should be considered in both interior and exterior aspects of last mile logistics distribution centers. 

In the interior, low-flow water fixtures should be used in all sinks, plumbing, and restroom fixtures to reduce overall use. In addition, features such as dual flush toilets can be used to reduce water demand.

On the exterior, any landscaping used should be regulated by using low-water irrigation strategies. An approach known as xeriscaping incorporates local flora to reduce the need for watering and maintenance.

In addition, in wetter climates, strategies such as rainwater harvesting or capture systems can be used to collect water and divert it to other non-potable water uses on site. 

Waste management in last mile logistics real estate

Waste should be considered in all phases of the last mile logistics building cycle, as ideally all materials that go into a project can be recycled and used again, closing the loop as part of a Circular Economy. Although a perfect closed loop is hard to achieve, the mindset should be used throughout all waste-related decisions.

Waste should be diverted from the landfill whenever possible, and for the case of last-mile logistic facilities, we will focus on the construction and operations phases. 

In the construction phase, there are massive waste reduction opportunities, as a plethora of material is being brought on site and erected each day.

It is essential to avoid the damaging of materials whenever possible to reduce redundancy, and clearly labeled recycle and disposal bins should be placed on site to track and sort waste when it is produced.

Going back even further, when designing distribution facilities, strategies such as modular construction should be employed to further reduce waste throughout the manufacturing and building processes. 

Once occupied, last mile logistic facilities can implement waste reduction strategies through operations and maintenance.

Efficient, sustainable packaging for products should be implemented, and recycling and organic waste bins should be placed throughout the site to encourage employees to divert waste from the landfills. 

Green & Healthy Materials in Last Mile Logistics Real Estate

Both the exterior shell and the interior fit-out materials should be carefully selected for distribution and storage centers.

To increase project sustainability, building materials should be chosen based on factors such as durability, organic content levels, recyclability, and origin location. 

Life Cycle Assessments (LCAs) should be completed whenever possible to compare the sustainability traits of each material.

Characteristics such as bio-based materials or materials with high recycled content tend to have lower impacts throughout their life cycle. In addition, sourcing locally is a great way to reduce impacts as transportation emissions are greatly diminished. 

Durability and resiliency are equally as important, although their impacts may not be as apparent until later in a building’s life.

Replacement and repair costs are inevitable as a building ages, and choosing materials that last the test of time and are resilient to natural disasters eliminate emissions and costs associated with excessive repairs. 

Sustainable Transportation in Last Mile Logistics

Transportation is one of the most important, if not the most important factor within the last mile logistics system. Accounting for 27% of global greenhouse gas emissions, transportation is an essential aspect of reducing industry’s carbon emissions.

Within urban centers, delivery vehicles have been documented to account for over half of certain emissions, although they compromise a small fraction of total traffic vehicles. Including more eco-friendly last mile delivery strategies can improve both company sustainability and brand image (Lawton).

In addition, the rise in online shopping and the demand for delivery has skyrocketed from the start of the pandemic. Customers expecting and requesting rapid shipping times increases transportation emissions, making last mile deliveries even more detrimental to the environment.

A group of MIT researchers found that fast shipping increases carbon emissions by as much as 15% and bumps up costs as much as 68% (Lawton).

To combat transportation related emissions in last mile delivery schemes, strategies such as more efficient vehicles, routing, alternative pick-up locations, packaging, and loading can all be beneficial. The use of electric vehicles, or other means of transportation such as bicycles, drones, or even robots can be utilized to reduce emissions.

In addition, finding optimized routes for deliveries can increase efficiency and reduce miles driven, therefore lowering both costs and emissions. UPS Transport, for example, has implemented an “On-Road Integrated and Navigation” (ORION) program, that uses an algorithm to find the best route.

This technology has been found to save them around 10 million gallons of fuel and $400 million per year (Kaplan). Finally, the incorporation of centralized pick-up locations for clients can increase delivery efficiency and reduce emissions. 

Some of the often more overlooked upstream strategies related to transportation are equally important considerations for last mile logistic companies. Packaging goods more efficiently using smaller boxes in more functional shapes can allow for denser packing into trucks, and therefore decrease the number of trips needed (Lawton).

Finally, incorporating a streamlined schedule and timing for delivery vehicles to arrive at distribution sites can reduce idle time and therefore reduce excess emissions. 

Examples of sustainability in last mile logistics real estate

There are several companies connected to the last mile logistics space that have introduced sustainable strategies into their ESG business models and building sites.

Prologis, stands out from the crown as an ideal case study. This San Francisco based real estate investment trust invests in warehouses and has a strong sustainability focus, as explained in their 2020 Sustainability Report. 

They place a large emphasis on sustainable buildings and sustainable building certifications, notably using LEED as the goal for all new developed buildings.

Within their projects, as standard they implement strategies such as solar panels, cool roofs, LED lighting with motion-sensors to reduce power usage while capturing data on how the space is used, recycling collection areas, xeriscaping, and local material procurement. They also provide electric vehicle charging stations on site to encourage the use of electric vehicles.

Innovations in the pipeline at Prologis include low carbon building materials to reduce the embodied carbon footprints of carbon-intensive materials and circular building design to incorporate recycled / recyclable materials that can be disassembled at end-of-life and repurposed.

Their PARKlife concept goes even further by improving services and facilities for their staff via security, gaming areas, employee gyms, walking trails and greenery.

Green building and healthy building certifications for last mile logistics real estate

Prologis have a goal of 100% sustainably certified buildings across their global portfolio, as of year end 2020 they had 171 million sq ft of sustainably certified space with LEED, BREEAM, WELL, CASBEE, DGNB and HQE.

Their Datteln, Germany facility was the first logistics facility in Germany and the second in the EU to achieve WELL Building Standard certification.

Sources

“Elements of a Sustainable Warehouse.” Prologis, 13 July 2021, https://www.prologis.com/what-we-do/resources/elements-of-a-sustainable-warehouse. 

Kaplan, Deborah Abrams. “Ups and Amazon: A Tale of 2 Last-Mile Sustainability Strategies.” Supply Chain Dive, 15 Jan. 2019, https://www.supplychaindive.com/news/last-mile-sustainability-strategies-ups-amazon-disclosure/546005/. 

Lawton, George. “10 Strategies for More Sustainable Last-Mile Delivery.” SearchERP, TechTarget, 13 Aug. 2021, https://www.techtarget.com/searcherp/feature/10-strategies-for-more-sustainable-last-mile-delivery. 

Self Storage Sustainability: Real Estate ESG — Wellness Design Consultants

Sustainability in Self-Storage Real Estate

Within the real estate industry as a whole, the self storage industry has a relatively low environmental impact due to lower than average energy, water, and waste usage, as well as fewer people spending prolonged periods of time on site on a regular basis.

That said, there remain opportunities for forward-thinking self-storage real estate funds and development companies with an eye on ESG sustainability targets to ensure they are doing everything possible to reduce the negative environmental impacts associated with their building portfolio.

These sustainability efforts can be executed physically through self-storage building construction and interior fit-outs as well as the business’s ongoing operations; that can then be combined with a more strategic, corporate level Environmental, Social, and Governance (ESG) piece to complete the picture.

Sustainable Self-Storage Building Strategies

Self-storage spaces take a more nuts-and-bolts sustainability approach in comparison to some of the more occupant heavy building industries.

Nonetheless, a number of strategies from the worlds of waste, water, energy, and materials can still be applied here to help reduce environmental impact.

Waste efficiency in sustainable self-storage real estate

Waste can be reduced and managed most effectively in both the construction phase and in-use phase of self-storage buildings, no matter what their previous sustainability credentials.

Overall, the goal is to divert as much waste from landfill as possible throughout all phases of the building cycle.

During construction, it is important to reduce the damage of materials or products whenever possible to avoid excess waste.

In addition, a site waste management plan should be employed to ensure proper disposal techniques and awareness of waste when it is produced.

Building strategies that produce less waste such as modular construction can also be deployed to reduce overall waste production in the manufacturing and building processes.

In the in-use phase, self-storage facilities should offer recycled packaging materials whenever possible to encourage sustainable client habits.

In addition, there should be recycling facilities available on-site, and whenever possible, paper use should be eliminated through the use of technology in all client relations.

Water in sustainable self-storage real estate

Water efficiencies and reductions should be included in both landscaping and internal plumbing design.

In the interior, self-storage facilities tend to have minimal water use, with maybe one or two bathrooms on-site.

Although this is a relatively low impact, it is important to install low-flow fixtures and efficient plumbing in all bathrooms to reduce water use.

On the exterior and within landscaping, strategies such as xeriscaping should be implemented to reduce the amount of water necessary to upkeep the flora on-site.

In addition to lowering irrigation needs, water runoff controls and stormwater retention schemes should be incorporated when possible.

Energy in sustainable self-storage real estate

Similarly to real estate water efficiency strategies, energy efficiency should be considered both in and outside of the self-storage buildings from a real estate sustainability perspective.

On the interior, the use of efficient LED bulbs and sensor-based lighting tactics should be integrated.

In addition, HVAC systems should be optimized for efficiency to avoid unnecessary temperature control and excess heating or cooling.

On the exterior, strategies such as the implementation of renewable energy sources, most commonly rooftop or even building facade solar panels, can be very effective.

In addition, strategies such as installing green (landscaped) or white roofs can reduce energy demands as they increase cooling / reduce the urban heat island effect.

Sustainable Materials in self-storage real estate

From a real estate ESG point of view, construction and fit-out materials in a self-storage building should ideally be selected by origin location, resiliency, and recyclability to increase project sustainability.

From a holistic perspective, life cycle assessments (LCAs) and/or leveraging 3rd party certifications such as Cradle2Cradle, Declare, EPDs and HPDs, will help to determine which materials are the most sustainable for each project.

Local materials are desirable as they reduce transportation emissions, and materials that are bio-based, rapidly renewable, and contain a high recycled content tend to be the most sustainable options.

In addition, materials that are durable and have high structural resilience are beneficial as they will last longer and therefore avoid emissions and costs associated with replacements. Decisions such as what kind of flooring should be installed should be considered carefully with sustainability factors kept in mind.

ESG Corporate Strategy in self-storage real estate

From a more corporate level, real estate ESG strategies should be implemented to ensure sustainability proliferates in all aspects of a self-storage business model.

Environmental efforts should be focused on managing a company’s environmental responsibility. This includes an overall goal of conserving resources and energy and reducing waste.

To monitor these objectives, companies should utilize data collection, LCAs and impact assessments, and incorporate company-wide climate initiatives. To aid in these endeavors, companies can utilize online ESG management software tools such as Measurbl.

Social objectives focus on the employees and the social impact that a company has. The aim should be to create a safe, healthy, diverse workspace that allows employees to do the best work for customers.

To achieve these goals, companies should provide career development and training opportunities, a health and safety strategy, social engagement within the community, and even provide affordable sustainable housing opportunities for workers.

As with other ESG management strategies, various online software tools such as the Brightest Platform can be utilized to aid in social performance.

Governance strategies aim to increase company transparency and integrity through effective management plans.

Creating policies to better monitor a company such as codes of conduct, data privacy regulations, and documenting ESG goals are all beneficial. In addition, risks associated with the business should be understood, including climate risks.

Governance is essentially the oversight of all systems within a company, so it therefore can help to set guidelines, and organize and report data to increase and promote a transparent, ethical company. Online tools such as Workiva can be used to help ESG tracking and reporting.

Sustainable Building Certifications for self-storage real estate

As self-storage companies are searching for ways to improve sustainability throughout their buildings and business, implementing green building certifications can help grasp these goals.

Sustainability focused standards such as LEED and BREEAM for example, can provide specific building strategies to improve sustainability.

If a certification is desired, project teams should outline goals and align with the desired standard(s) from the onset. If certification is not the end goal, the standards can still provide valuable information and can act as guides towards greater environmental sustainability.

Examples of sustainable self-storage real estate

There are several self-storage companies that have implemented numerous sustainability strategies within their businesses. Learning from other ESG reports can provide information about precedents and guidance on what is possible within the sector.

For example, in Public Storage’s most recent sustainability report, they mention their future-thinking goals of carbon, water, waste and energy reductions. Already, they have implemented strategies such as LED lighting, solar power generation, low-water-use landscaping, battery energy storage, and high structural resilience.

In addition, Life Storage has integrated cool roofs in all of their projects, as well as using LED lighting, efficient HVAC systems, a waste management policy, and low-water irrigation systems. Their ESG report highlights these building-level environmental initiatives as well as their company-level sustainability achievements and goals.

The Importance of Sustainability in Self-Storage Facilities

Sustainability is a crucial aspect of self-storage facilities, offering a dual benefit of environmental conservation and enhanced business reputation. Self-storage facilities, like any other real estate, have a significant environmental impact. By adopting sustainable practices, these facilities can substantially reduce their carbon footprint, contributing to a healthier planet.

Moreover, sustainable self-storage facilities can attract eco-conscious customers who prioritize environmental responsibility. This not only helps in differentiating the facility from competitors but also builds a loyal customer base that values sustainability. Implementing sustainable practices can lead to cost savings through improved energy efficiency and reduced waste management expenses.

By embracing sustainability, self-storage facilities can contribute to a more sustainable future. Reducing their environmental impact not only benefits the planet but also positions the facility as a forward-thinking, responsible business in the eyes of consumers.

Sustainable Design and Operations

Sustainable design and operations are essential for self storage facilities aiming to minimize their environmental impact. Incorporating sustainable building materials, such as recycled steel and eco-friendly insulation, can significantly reduce waste and conserve natural resources. These materials not only support environmental goals but also enhance the durability and efficiency of the building.

Energy-efficient design principles, such as maximizing natural lighting and using high-quality insulation, can help reduce energy consumption and lower energy costs. Additionally, self storage facilities can implement renewable energy sources, such as solar panels, to further reduce their reliance on non-renewable energy sources and decrease their overall environmental impact.

Sustainable operations practices, such as reducing paper usage through digital administration and providing recycling facilities on-site, also contribute to a more sustainable future. By integrating these sustainable practices, self storage facilities can operate more efficiently and responsibly.

Energy Efficiency in Self Storage

Energy efficiency is a critical aspect of self storage facilities, playing a significant role in reducing energy consumption and lowering operational costs. One effective strategy is the implementation of energy-efficient LED lighting, which not only reduces energy usage but also improves lighting quality and longevity.

Energy-efficient HVAC systems are another crucial component, helping to maintain optimal indoor air quality while minimizing energy consumption. Additionally, using energy-efficient appliances and equipment throughout the facility can further reduce energy usage and operational costs.

By adopting these energy-efficient practices, self storage facilities can significantly reduce their carbon footprint. This not only contributes to a more sustainable future but also enhances the facility’s reputation as an environmentally responsible business.

Reducing Waste Through Efficient Space Management

Self storage helps improve the efficiency of storage space in a business setting. The increase in the number of apartments and businesses in town is likely to help reduce building construction. Similarly, it could enable businesses with good stock management as it would allow for a storage facility for all of their items to be organized. It would also reduce problems resulting in overproduction.

Climate-Controlled Storage

Using climate-controlled storage is essential for protecting your belongings from extreme temperatures, humidity, and weather fluctuations. This type of storage ensures that delicate items such as electronics, furniture, artwork, and important documents are shielded from moisture, mould, and potential damage. With consistent temperature and humidity levels, climate-controlled units reduce the risk of warping, cracking, or other types of degradation, offering long-term protection for valuable or sensitive items. This method is ideal for anyone seeking reliable preservation in varying environmental conditions.

Community Engagement and Outreach

Community engagement and outreach are essential for self storage facilities to promote sustainability and environmental awareness. Partnering with local environmental organizations and community groups can help amplify sustainability efforts and foster a sense of community involvement.

Hosting educational events and workshops is an effective way to raise awareness about the importance of sustainability and environmental conservation. These events can provide valuable information and resources to the community, encouraging more sustainable practices.

Participating in community clean-up events and tree-planting campaigns further demonstrates a commitment to environmental conservation. By engaging with the community in these meaningful ways, self storage facilities can promote sustainability and contribute to a more sustainable future.

Sustainable Materials and Practices

Sustainable materials and practices are essential for self storage facilities aiming to reduce their environmental impact. Using sustainable building materials, such as recycled steel and eco-friendly insulation, helps conserve natural resources and reduce waste. These materials are not only environmentally friendly but also enhance the durability and efficiency of the building.

Eco-friendly packing materials, such as biodegradable boxes and recycled bubble wrap, can also help reduce waste and conserve natural resources. Encouraging customers to use these materials promotes sustainable habits and reduces the overall environmental impact of the facility.

Implementing sustainable practices, such as reducing paper usage through digital administration and providing recycling facilities on-site, further supports environmental goals. By using sustainable materials and practices, self storage facilities can significantly reduce their environmental impact and contribute to a more sustainable future.

Promoting Recycling and Reuse Efforts

It helps to reuse the materials in the environment to help you live the most sustainable life possible. Self-storaged goods are useful for future use rather than thrown out because you have to locate a suitable storage area. Many self-storage companies hold donations or recycling events, with some self-storing units serving as drop offs. Our Bicester shop was able to drop off a Bicester babybank when they ran a HomeSchool Equipment Appeal.

Green Building Design

Install environmentally conscious building techniques based on sustainable materials may reduce environmental impacts and appeal to an edifying clientele. Green buildings reduce energy use and reduce their carbon footprint. Energy efficiency designs, including the use of daylighting and insulation, offer a range of cost savings. In addition to reducing operational costs, these solutions contribute towards a green footprint.

Extra Space self-storage real estate REIT with sustainable practices

Extra Space are a US brand recognised by GRESB as No.1 for their ESG efforts that include an energy efficiency strategy with LED or T-8 lighting systems, a solar program maximizing the use of rooftops for clean energy production, and a focus on recycled materials in their boxes and packing supplies. Their storage units are designed with energy-efficient technology and sustainable features, such as eco-friendly pest control and renewable energy sources, to enhance environmental impact. Additionally, they have a paper-use reduction plan prioritising digital administration procedures, efficient plumbing devices, and irrigation systems combined with xeriscaping to limit water demand. For more information on their Social Policy, see the annual report here.

https://www.extraspace.com/self-storage/sustainability/

contact us to discuss your self-storage ESG and sustainability project.

Embodied Carbon in sustainable Real Estate ESG

What is Embodied Carbon in Sustainable Real Estate Developments?

In the context of sustainable buildings and interiors, embodied carbon is essentially a question of materials.

Unlike ‘operational carbon’ or indeed ‘building energy efficiency’, embodied carbon accounts for the cumulative impact of building materials from extraction all the way through to construction; including transportation, manufacturing, and installation. 

The embodied carbon of a given material is therefore the amount of carbon emissions involved in first producing it and ultimately deploying it in a construction project.

Embodied carbon impacts from building and infrastructure projects have been estimated to account for 23% of global carbon emissions (McConnell, Mithun). 

In general terms, we can say that operational energy use has improved considerably as a result of sustainable green building principles, yet embodied carbon has lagged behind, remaining relatively constant over time despite the efforts of real estate sustainability consultants! 

Due to the negative impacts of embodied carbon, and its inherent relationship with sustainable material procurement policies, it is an area of particular interest for sustainable building and interior consultants, such as ourselves.

How to reduce embodied carbon in sustainable real estate development?

The bulk of the opportunities come in the early phases (pre-design and design) of a real estate development project as a small number of construction material choices will carry massive weight in the final embodied carbon status of the building. 

For this reason, project teams need to align behind sustainability objectives early on if they want to avoid playing catch-up.

Taking a step back further, developing a Sustainability Plan with objectives and priorities as early as possible, even doing so in broad principles for the development company as a whole in order to have an initial blueprint to apply as each new development deals comes online.

How to determine embodied carbon in building materials?

Completing Life Cycle Assessments (LCAs) is the main strategy to determine embodied carbon for materials or projects. Embodied carbon can be reduced by limiting material use, choosing low-carbon solutions, decreasing transportation related emissions, and reusing and recycling materials whenever possible.

Reduce Material Use in Sustainable Real Estate Development

An important strategy to reduce a real estate development project’s embodied carbon is to optimize and reduce overall material use. Sounds simple, perhaps deceptively so.

One major way to do this is to identify opportunities to use or repurpose existing buildings rather than demolishing or developing Greenfield sites. 

Real estate projects designed with adaptive reuse in mind effectively plan ahead for this eventuality, baking in flexibility for future owners or developers to facilitate the process of repurposing old buildings or structures. 

Demolition and construction is by comparison extremely carbon intensive, as it requires both material disposal and the extraction of new resources.

In addition, looking for efficiencies in the volume of certain structural materials used in a redevelopment or construction project will also diminish embodied carbon. 

For example, research has shown that on average, the quantity of structural steel used in buildings can be up to two times the necessary amount from an engineering perspective, greatly increasing embodied carbon (Isaac). 

Ensuring that material use is optimized and using stronger, more efficient materials will mean less volume overall.

In addition, the use of more efficient building strategies such as modular construction reduces waste and increases the sustainability of the project. 

Other sustainable design decisions such as reducing the need for / specification of finish materials in favor of simply leaving certain elements of the building structure exposed also decreases overall material use, lowering a project’s embodied carbon and helping it achieve its sustainability objectives whilst also adding an appealing aesthetic dimension. 

Summary - Material Optimization and Reduction Strategies

• Use and repurpose existing buildings

• Optimize structural framing by volume and materiality

• Reduce material volume through efficient design choices

• Implement modular construction methodologies

Using Low-Carbon Materials in Sustainable Real Estate Development

In any sustainable development project, it is likely that there will need to be some integration of new materials. Materials should therefore be selected based on the lowest feasible embodied carbon impact, commonly determined through the completion of LCAs. 

LCAs consider the amount of carbon (and often other emissions) required to take a material through its entire lifecycle—from extraction all the way through to disposal. These analyses are invaluable to compare a project’s material options and the associated embodied carbon. 

Whenever possible, select sustainable materials that have been manufactured using comparatively less energy or using renewable energy. Options with high recycled content, those that are bio-based and rapidly renewable will also help achieve sustainability targets, especially if they can also be reused at their end of life (McConnell, Greenbuild). 

Healthy building materials such as cross-laminated timber (CLT), bamboo, cork, hemp, straw, sheep wool, and even mycelium are bio-based, carbon-sequestering options that can greatly reduce a project’s embodied carbon as part of a real estate sustainability strategy for example (“Whole Building”).

In addition, when choosing materials, it is important to consider their durability, specifically when calculated alongside local climate and weather patterns. It is essential to understand how different materials react to heat or moisture, for example, to make smart choices that will stand the test of time and not need replacing within a few years. 

The more durable the material in the specific climatic conditions of the project location the less materials will be needed in future for upkeep and replacement, therefore reducing the risk of provoking additional resource extraction later on (“Whole Building”).

Sustainable interiors and embodied carbon

Most embodied carbon reduction efforts have been focused on significant structural elements such as concrete or steel, which require energy intensive processes and are often used in large quantities. 

However, as substitutes such as CLT become more accessible, consideration for the embodied carbon of a sustainable interior also becomes more relevant. 

Common interior finish materials such as acoustic ceilings, gypsum wall boards, and nylon carpeting can have a considerable impact on a project’s embodied carbon if not assessed from a sustainability perspective as early on as possible in order to account for any budgetary adjustments they might require (McConnell, Mithun). 

Summary: Low-carbon sustainable building and interiors material strategies

• Reduce fossil fuel energy required for extraction and manufacturing

• Choose those that contain high recycled content

• Bio-based and carbon sequestering resources

• Prioritize rapidly renewable materials

• Consider climate-specific durability of materials

Reducing Transportation Emissions in Sustainable Buildings and Interiors

When considering a material’s embodied carbon and its life cycle, transportation emissions can also have a considerable impact meaning we need to look into material supply chains, aim to source locally or regionally, carefully plan construction material deliveries to limit wastage, and choose low-emission transport options whenever possible. 

Local sustainable materials 

Select materials that are produced from a low carbon system, both through their manufacturing and transportation. The use of local, sustainable materials will greatly reduce transportation distances and emissions, so it is important to understand what is available within an acceptable radius of your project (“Whole Building”).

Sustainable Transportation of materials

In addition, by reducing the number of site deliveries through close coordination of  manufacturing and construction timelines we avoid the delivery of materials at inefficient times that in turn can cause damage and unnecessary waste. 

Efficient alignment of transportation with project timelines in this way is an essential step to reduce the embodied carbon of a building project (Best Practice).

Finally, whenever possible choose transport options that create the lowest carbon emissions, such as train or barge, when available (“Whole Building”).

Low-Carbon Sustainable Building Transportation Strategies

• Choose materials with a low-carbon supply chain

• Source locally

• Coordinate transport with project timelines

• Utilize low-carbon transportation options

Reuse & Recycle Materials

The implementation of salvaged, reused, and recycled materials greatly reduces embodied carbon as it eliminates the need to extract and manufacture new resources. Salvaged materials only involve emissions related to transportation and refabrication, greatly cutting a sustainable building’s overall embodied carbon (“Salvaged Materials”). 

Hand-in-hand with the use of salvaged materials comes deconstruction, the process of carefully disassembling a building to save its materials rather than the more common demolition strategy. Examples of easily salvageable materials include brick and wood, as well as steel and precast concrete (“Salvaged Materials”).

If materials cannot be salvaged, choose options that contain high recycled content. Paper, plastic, and glass products are increasingly common in building materials and provide greener options for projects aiming to lower their embodied carbon. 

Sustainable Building Material Reuse Strategies

• Salvage materials from previous builds

• Implement deconstruction

• Utilize materials with high recycled content

Helpful Embodied Carbon Tools 

With all of these strategies, it is imperative to first set project carbon goals. As with all sustainable building projects, the use of benchmarking is essential to determine what has been done before and what is plausible for any given project. Within each development, stakeholders involved in the design and construction process will benefit of how their role can positive (or negatively) impact the embodied carbon of the project (“Whole Building”). 

Early on in the design process, various tools can be used by team members to determine the potential carbon outputs. For example, the programs Revit and Tally can work together to store information about material quantities and qualities to pre-form LCAs and determine the carbon impacts of building materials. Tally currently contains more structural, heavy material data but is moving towards containing more interior material information such as for furniture and casework. 

When considering which materials to utilize, look for those with Environmental Product Declarations (EPDs) - effectively a way of communicating information on a material’s environmental impact. This information can be found online in places such as the EPD library. In addition, the Carbon Smart Materials Palette provides information on high and low impact materials over their life cycles. 

Finally, there are several free carbon calculators that can be used to compare material options. EC3 is one of the most common in the industry, allowing users to compare construction materials and review material EPDs.

Pathfinder meanwhile is a carbon calculator that focuses more on landscaping elements, even including estimates for natural features such as trees and greenery.  

How to Reach Embodied Carbon Goals for a sustainable building

• Set embodied carbon goals early on in the design timeline

• Ensure collaboration across project team, aligned behind sustainable building interior strategies

• Incorporate design and LCA tools (Revit and Tally) to track data on embodied carbon in materials

• Use online resources or consultants to identify low-carbon material solutions

• Use online carbon calculators for complete transparency

Sources

“ Best Practice Guide to Improving Waste Management on Construction Sites.” Resource Efficient Scotland, Scotland. 

Isaac, Philip, and Jonny Hawkshaw. Elsevier, 2020, Scaling Low-Carbon Construction Materials, thestructuralengineer.org. Accessed 5 May 2022. 

McConnell, Claire, et al. “A Year of Embodied Carbon.” Mithun, 5 Nov. 2021, https://mithun.com/2021/11/05/a-year-of-embodied-carbon/  

McConnell, Claire. “Greenbuild.” Greenbuild, Greenbuild International Conference & Expo, 22 Sept. 2021, https://informaconnect.com/greenbuild/agenda-2021/ Accessed 5 May 2022. 

“Salvaged Materials.” SE2050, SE 2050, https://se2050.org/resources-overview/strategies/salvaged-materials/  

“Whole Building Approaches to Emissions Reductions.” Carbon Smart Materials Palette, Architecture 2030 - Enfold WordPress , https://materialspalette.org/whole-building/

Waste Management in Green & Healthy Buildings & Interiors

Waste Management 

Around half of the world’s raw materials go into construction, and a third of the world’s waste is produced through the industry (Miller), making waste reduction and waste management a crucial contributor to reducing landfill and keeping materials in use (ref: the circular economy).

Due to the sheer scale of this impact, strategies of material use reduction, reuse, and recycling are key in all phases of a building project, from the design and pre-construction phase, into construction, in-use and operations phases, as well as the end-of-life phase.

In addition, considering the entire life cycle of raw material extraction, production, and waste is key for an Environmental, Social, and Governance (ESG) real estate strategy. 

The main goals in order of importance for each of these phases would first be to reduce the total amount of waste produced, then to reuse materials that would otherwise be considered waste, and finally to implement waste disposal management through strategies such as recycling, when necessary.

Various strategies can be implemented to reach these goals depending on the building’s phase of life. 

Design & Pre-construction Phase

The design phase is often overlooked when considering waste management, although it has great potential to affect the production of waste throughout the life cycle of the building.

The way a building is designed is the most important factor for how it will function and change in the future. Designing for adaptability, efficient material use, and including recycling opportunities are all key strategies that have the potential to reduce waste production further along the life cycle. 

When considering the life cycle of a building, one way to extend its useful life is to design for adaptability. This means that if the use of the building changes, the structure can be more easily shifted towards another use, therefore avoiding the demolition and reconstruction process, and reducing opportunities for waste production.

For example, a London construction for the 2012 Olympics was designed so that after the games, the used buildings were redesigned for affordable local homes, greatly reducing waste production (Miller). 

In addition, the amount and type of materials used should be considered in the design phase to avoid excess waste created at end of life. Attention to different construction possibilities and the recyclability of materials have the potential to reduce initial material use and increase opportunities for reuse.

This therefore reduces waste production throughout the life cycle of the building. Essentially, the design phase should be used for planning and accounting for all waste-producing activities throughout the building’s life cycle and include management strategies to reduce this waste. 

Construction Phase

In conjunction with the design phase, the construction phase has the potential to reduce large amounts of waste if properly managed. Construction projects should always aim to reduce waste production, and when that is not possible, find was to reuse materials on site and recycle any materials that cannot be used.

A site waste management plan should be employed to monitor all construction activities and optimize waste reductions and reuse opportunities (Best Practice).

Firstly, construction that occurs off-site such as modular construction can be employed, which removes a lot of potential waste problems. In a more controlled environment, modular construction allows for better management of waste, decreases material use, and increases disposal and recycling opportunities.

Off-site construction in general provides greater control, and avoidance of onsite disorganization or weather issues that can lead to material damage. 

On any construction site, the delivery of materials at improper times can cause excess waste. To reduce material deliveries and damages, it is beneficial to bring materials on site ‘just-in-time’ to better align with construction project stages.

This strategy avoids excess materials and opportunities for material damage, which will create unusable materials and therefore create additional waste. Planning the timing of material deliveries and spaces to store materials when not in use is very important in the construction phase of a building (Best Practice).

In addition, when on the construction site it is important to designate areas where waste should be collected when produced and to consider where to place recycling bins or other waste containers on site to make them easily accessible for workers so that waste is properly collected and sorted.

Towards the end of the construction phase, as green building consultants we aim to ensure the proper segregation of materials and designate those that can be reused or recycled in other projects. In addition, to ensure optimized waste management, the training of workers and staff on the construction site is essential. (Best Practice).

In Use / Operations Phase

The in-use phase of the building is an equally important phase for monitoring and reducing waste production. After encouraging building occupants and those operating within a space to reduce waste sent to the landfill, it is essential that there is ample space to provide the segregation and storage of waste when it is accumulated within the building.

Equally, we advise the tracking of waste produced within the building and compare it to benchmarks to ensure that appropriate amounts are diverted from landfills.

To encourage building occupants to produce less waste, strategies such as using signage and providing products that create minimal to no waste are beneficial. Clear signage that encourages the segregation of waste in bins will encourage occupants to participate in recycling practices.

If, for example, the building contains a cafeteria or dining space, food and drink should be made available with minimal or recyclable materials, to reduce waste after use. 

Storage for recycling should be easily accessible to building occupants and include options for paper, glass, plastics, and metals. In addition, composting opportunities should be provided as well as disposal locations for waste such as batteries and other electronics (LEED).

These locations should be easily visible and clearly marked to encourage building occupant use. Once collected on site, it is essential that there are processes in place that bring the segregated waste off site to facilities if not available on site (BREEAM). 

In the design phase, it is important to consider the potential volume of waste produced within the building based on project type and traffic.

The number of bins available should equate to predicted daily and weekly waste production amounts. In the use phase, it is important to monitor and report the amount of waste produced regularly, to ensure the appropriate amount of storage and collection containers (BREEAM).

Also, with waste production and benchmarking information, decisions about the amount of management needed for collecting, storing, and transporting waste off-site can be clarified.

Overall, the goal of waste management in the use phase of a building is to divert as much waste as possible from the landfill.

This is first done through the encouragement of behavioral change to reduce waste production from the occupant side, and then provide locations to sort and recycle waste when produced. When the waste is collected and stored by trained staff, it should be measured to optimize building waste organization and to analyze for further reduction opportunities. 

End of Life Phase

Closely connected to the design and construction phases of the building, the end-of-life phase has the potential to greatly reduce the amount of waste produced from the construction industry. If the building was constructed with adaptability in the design phase, then at end of life, the demolition process is not completely necessary. Also, what is taken apart at end of life should be recycled, reused, or salvaged for another use whenever possible to reduce waste in landfills.

Ideally, the life of the building is extended as much as possible and there is not a need to demolish a structure once it's built. When possible, the building should be refurbished for an alternative use or extended horizontally or vertically if needed, to avoid the need of starting over (BREEAM). If the building can be renovated instead of torn down, the waste produced is immensely reduced.

When demolition is the outcome, salvaging and recycling any material possible is essential to optimize waste reduction. Ideally a closed loop recycling process is utilized, meaning that materials used within the building can be recycled and remanufactured into the same or similar product for another building or project.

In some cases, materials can even be reused on site for a new application in the new construction when applicable. Finally, there are options to return materials to the original supplier to recycle, reuse, and recover the materials.

In the demolition process a term known as deconstruction can be utilized to further salvage materials from the building site and significantly reduce waste production.

Deconstruction involves the process of carefully dismantling a building rather than demolishing it without care, which greatly increases the potential for material reuse and reduces waste from landfills (Sustainable).

Management / ESG Compilation Phase

From an ESG perspective, waste management and reduction are an essential part of a building’s useful life. When considering the whole life cycle of a building, there are numerous opportunities to create large impacts on waste reductions, and therefore the environmental impacts of a project.

It is essential to consider waste in every phase of a project and include plans and management goals from the initiation of a build.

From the environmental side of the real estate ESG strategy, aka the “E” part of ESG, waste cannot be overlooked. Ideally a building or project contributes to the concept of a circular economy through the lens of waste.

Although a fully closed loop is difficult to achieve with any man-made building or system, considering ways to close the material loop and therefore eliminate waste is a key mindset. 

The reduction of raw material extraction and waste production through strategies such as thoughtful design, smart construction strategies, proper management of waste in the in-use phase, as well as reducing waste at the end of a building’s life are essential.

A project’s waste management plan and ESG strategy go hand in hand – both essential to reducing the environmental impact of the built environment, a duty of those of us operating within the building industry. 

Effective waste management is crucial in the construction industry. Around half of the world’s raw materials go into construction projects, and the industry produces a third of the world’s waste (Miller). This highlights the importance of waste reduction and management in minimizing landfill use and maintaining material circulation within the circular economy. Inefficient waste management can have significant financial and environmental implications.

The Role of Construction Companies

Construction companies play a vital role in waste management by:

• Engaging resource management companies

• Obtaining quotations for construction waste

• Collaborating with waste management stakeholders to promote sustainable waste disposal practices

On-Site Waste Management

Proper construction waste management on construction sites involves:

• Designating areas for waste collection and recycling

• Implementing strategies for reducing, reusing, and recycling materials

• Minimizing hazardous waste generation

Lifecycle Waste Management Strategies

Strategies for material use reduction, reuse, and recycling are key in all phases of a building project:

1. Design and Pre-Construction Phase

2. Construction Phase

3. In-Use and Operations Phase

4. End-of-Life Phase

Implementing these strategies effectively helps significantly reduce waste throughout the lifecycle of a building.

Environmental, Social, and Governance (ESG) Considerations

Considering the entire lifecycle of raw material extraction, production, and waste is essential for an ESG real estate strategy. Managing organic waste is also crucial as it impacts green building concepts and helps mitigate environmental issues like methane generation.

Waste Management Goals and Priorities

The main goals in order of importance for each phase of a building’s lifecycle are:

1. Reduce the total amount of waste produced

2. Reuse materials that would otherwise be considered waste

3. Recycle materials when necessary

Sustainable Building Practices

Various strategies can be implemented depending on the building’s phase of life. Emphasizing resource efficiency and the use of sustainable materials in green building projects is critical. Sustainable building practices ensure environmentally responsible and resource-efficient processes throughout the building’s lifecycle.

Importance of Reducing Energy Consumption

Reducing energy consumption is also a vital part of holistic and sustainable waste management practices. This includes using energy-efficient processes and materials to minimize the environmental impact of construction projects.

Modular Construction and Material Reuse

Adopting modular construction can significantly reduce waste and improve efficiency. This approach, along with reusing materials, supports sustainable building practices and reduces the negative impacts of traditional construction methods.

Effective waste management in the construction industry is essential for promoting sustainability and reducing environmental impact. By implementing strategies for waste reduction, reuse, and recycling, construction companies can contribute to healthier interior designs and greener building practices.

Sources

“ Best Practice Guide to Improving Waste Management on Construction Sites.” Resource Efficient Scotland, Scotland. 

Miller, Norman. “The Industry Creating a Third of the World's Waste.” BBC Future, BBC, https://www.bbc.com/future/article/20211215-the-buildings-made-from-rubbish. 

“Sustainable Management of Construction and Demolition Materials.” EPA, Environmental Protection Agency, https://www.epa.gov/smm/sustainable-management-construction-and-demolition-materials. 

BREEAM Certification System

LEED Certification System

a guide to real estate ESG management software

Real estate Environmental, Social and Governance (ESG) reporting is becoming the norm for real estate developers and funds as societal pressure combines with investor pressure from above to nudge the industry towards a Triple Bottom Line position.

As real estate ESG consultants annual reporting is an obligatory piece of the puzzle, although it should be seen as a way to summarize and review the work done, rather than it becoming the focus of the work - a subtle but important difference!

Much of ESG is now about producing quality data and management of that data is fundamental, no longer can a spreadsheet do this job for us effectively, especially not for real estate portfolios with multiple, fully operational buildings. By setting up the necessary software early on in the ESG journey, a real estate developer sets themselves up for success in properly capturing, managing, and eventually disclosing ESG data.

ESG software helps us to track, visualize and monitor progress in real time throughout the year and then to transparently communicate to customers and investors the sustainability work delivered at the end of the year too. This process of collecting and analyzing data on an ongoing basis ensures alignment with the appropriate policies and ESG frameworks.

Depending on a real estate developer’s specific requirements, it can be difficult to find one single piece of ESG software that does everything we need, so here is a review of the major players right now.

Greenstone - ESG

Greenstone is a sustainability reporting software that enables organizations to more easily manage their ESG data and ESG reports. It’s primarily about data collection and data management, allowing the ESG team or external ESG Consultants to focus more on reporting, analysis and decision-making. Greenstone’s software and support services include modules concerning the environment, frameworks, and health and safety.

The Greenstone Environment module helps process environmental data, track consumption and carbon emissions, and manage and communicate this data.

The Greenstone Frameworks module ensures that clients meet the requirements of various reporting frameworks such as CDP, SASB, GRI Standards, TCFD, UNGC, and the UN’s Sustainable Development Goals.

The Greenstone Health and Safety module helps organizations to collect and analyze  incident data and manage reporting (Greenstone). 

https://www.greenstoneplus.com/

Sustain.Life – Environment

Sustain.Life focuses specifically on ways to track, reduce, and manage carbon emissions and footprint. Additionally, the platform aligns this process with current certifications and standards to prepare for third-party assessments. The software aims to simplify the collection and management of data in one place, facilitating collaboration in the process.

Sustain.Life first aids in the measurement of greenhouse gas emissions, then provides step-by-step guides for emission reduction strategies, and finally provides ways to offset unavoidable emissions. The carbon footprint is calculated through Sustain.Life’s carbon calculator using scope 1, 2, and 3 emissions, meaning it considers all levels of a business’s emission behaviors.

Once the footprint is calculated, the software provides a sustainability plan based on the organizations budget, time, and climate impact. Finally, there are offset opportunities provided on the platform, allowing users to offset emissions from building users on an automatic monthly basis (“Sustainability”). 

https://www.sustain.life/

Brightest - Social 

Brightest, another big player in ESG, Social Impact and Sustainability software, aims to increase efficiency in collecting, managing, and reporting data. Its particular USP however is around the social impact component, at least for now.

Brightest helps organizations collect data on environmental accounting assets, supply chain, energy and resources, and employees, teams and departments through stakeholder surveys, utility and invoice analyses, and life cycle analyses.

Once collected, data can be transferred to the Brightest ESG and sustainability dashboard. There, emission targets are tracked, carbon accounting is regulated, social impact and community characteristics are noted, and action plans are recommended based on the available data. As data accumulates the software can then start to aid further with reporting and disclosure.

https://www.brightest.io/

Workiva - Governance

Workiva’s platform enables a simpler ESG reporting process through data management, the provision of reporting templates, and a single location for policy management. This software helps answer the ESG reporting questions of: who needs to be involved, what data should be included, and how can it be consolidated efficiently?

Workiva provides a platform to store data, create custom data sets and calculations, and format that data for reporting. Much of this process is automated. In addition, the platform allows for easier collaboration through simplified task management and progress tracking.

A master index of policies makes it easy to track and manage content for policies, standards, and other ESG guidelines. This allows ESG teams to keep all relevant ESG policies and documents in a single location.

https://www.workiva.com/solutions/esg-reporting

Measurabl – Real Estate ESG

Measurabl is arguably the most widely recognized ESG data management software in commercial real estate right now. The tool was designed specifically for real estate and is entirely data driven. It automates and consolidates much of the ESG processes, including ways to set targets, track performance, use benchmarks, and create reports. 

This platform helps measure data such as electricity, water, fuel, and waste usage as well as tracking sustainability targets. In addition, it helps users manage social and governance documents, and keep track of green building certifications and annual reporting frameworks.

https://www.measurabl.com/

Sources

Brightest. “Simplify Social Impact, Sustainability and ESG.” Brightest, https://www.brightest.io/  

“ESG Reporting.” Workiva, https://www.workiva.com/solutions/esg-reporting  

Greenstone. “Sustainability, Supply Chain and ESG Software Solutions.” Greenstone, https://www.greenstoneplus.com/

“Real Estate ESG.” Measurabl, 12 Apr. 2022, https://www.measurabl.com/

“Sustainability Management Software.” Sustain.Life – Sustainability Management Software, https://www.sustain.life/  

https://gresb.com/nl-en/

real estate ESG frameworks

real estate esg / sustainability / sustainable real estate / green buildings

why does real estate esg matter?

The real estate industry is one of the largest in the world. Alone, it consumes around 40% of the world’s energy consumption, accounts for about a third of CO2 emissions, meaning a cohesive and coordinated approach to sustainability amongst developers is of urgent importance to the future of our planet’s health.  

esg data for real estate investors

Environmental, Social, and Governance (ESG) factors are increasingly being applied across the real estate sector to enhance the ethical and sustainable characteristics of companies. Real estate ESG data helps measure and benchmark the sustainability of a real estate development company, providing investors with a greater degree of transparency.

how to create a sustainable real estate plan

Initially it may be difficult to narrow down a company’s specific objectives as the ESG standards available offer a conspicuously broad range of guidance and suggestions, however not all elements apply to all companies operating in the real estate sector.

It is helpful to first outline what a real estate developer may already be doing in terms of sustainable real estate, taking stock of any inherent sustainability credentials baked into its business model for example, such as modular construction (green building), downtown regeneration (social impact) or wellness real estate (healthy buildings).

To help us break down and prioritize these goals while aligning with industry best standards, a range of established frameworks are available for real estate ESG consultants to build upon. 

The UN’s Sustainable Development Goals, created in 2015, serve as a useful backdrop towards achieving desired impacts within any sector, this is the big picture, the view from 10,000 feet up - we should all work towards at least some of these “SDGs”!

In addition, ESG standards and tools such as SASB, the Task Force on Climate Related Disclosures (TFCD), Climate Disclosure Project (CDP), Net Zero Carbon Buildings Commitment and Global Reporting Initiative (GRI) all help guide real estate developers towards meeting their sustainable real estate goals, minimizing their environmental impact, maximizing their positive impact on human health and wellbeing, while also increasing transparency for investors. 

ESG Disclosure & Transparency Benefits

The desire for real estate sustainability transparency within companies has increased as investors consider long-term success factors such as green building certifications, ethical business practices and a concern for building occupant wellbeing, community and giving back.  

Firstly, sustainability disclosures can provide a better risk assessment and help to evaluate climate-related threats for the business in question, its suppliers and competitors. This can also provide insight to better evaluate risk over various timelines within the business (see “TCFD”). 

Secondly, transparency can provide valuable information for the company to track and benchmark progress, both for internal and competitive industry goals. If real estate ESG objectives are met successfully, disclosures can improve a company’s image and investor interest through positive performance ( see “CDP”).

These factors can aid clients and investors into making better informed decisions and increase a sense of trust between investors and the business in question. Including non-financial analyses and goals (Triple Bottom Line thinking) in a real estate development business today will not only improve ESG alignment today but ensure further opportunities in the future by not falling behind real estate industry best practices.

UN Sustainable Development Goals in real estate esg plans

There are seventeen UN Sustainable Development Goals, together attempting to encompass and provide a guide to alleviate the greatest sustainability problems our world faces. These targets include a wide range—some being more relevant than others to ESG goals within the real estate industry.

For example, from an environmental standpoint, goals such as Goal 11: Sustainable Cities and Communities, Goal 12: Responsible Consumption and Production, Goal 13: Climate Action, and Goal 15: Life on Land may all be applicable to the real estate sector. These goals encompass strategies such as making resilient and safe communities, encouraging sustainable consumption and production, combatting climate change, and protecting and restoring native habitats (“The 17 Goals”). 

Other goals can surely be applied within the ESG framework and can serve as a helpful guide and starting point for a business. For example, Goal 3: Good Health and Well-Being can be heavily impacted by the real estate sector and could fall within the social aspect of ESG strategy. 

It can be difficult to imagine applying these overarching goals to a specific sector such real estate, or more so to an individual business, but they can be used as a guide. Due to the large impact of the real estate sector on global emissions and sustainability, there is a lot of room for impact. 

https://sdgs.un.org/goals

SASB in real estate esg strategy

SASB is a non-profit organization that provides standards to aid businesses in disclosing sustainability accounting information to its investors and the public.

Sustainability accounting evaluates a company’s performance through an ESG lens, meaning that it considers non-financial capital in addition to the financial, creating a more holistic view of a company’s achievements and future trajectories (SUSTAINABILITY).

SASB has developed ESG standards in eleven sectors, encompassing 77 different industries. The standards vary by sector based on the potential risks and sustainability opportunities (SASB). The topics are decided based on what is relevant for more than half of the industries within a sector and are suggestions for what information should be disclosed (SUSTAINABILITY).

Real Estate Owners, Developers and Investment Trusts has its own set of ESG recommendations within SASB. The identified material issues include energy and water management from an environmental perspective, and from a business and innovation lens, the management of the tenants’ sustainability impacts and climate change adaptation (SUSTAINABILITY).

Through the incorporation of SASB standards, companies can diverge from traditional financial reporting methods and provide a more holistic view of their ESG performance, helping them align more closely with ESG investor expectations. 

https://www.sasb.org

Task Force on Climate Related Disclosures (TCFD) in real estate esg strategy

Similar to SASB, the Task Force on Climate Related Disclosures (TCFD) aims to broaden traditional financial reporting, in this case to include climate-related information and financial risks.

The TCFD helps companies provide information about the risks and opportunities associated with their business as it relates to climate change, meaning investors can access a more comprehensive picture of a business, providing a more accurate disclosure of the company’s valuation and assets (“TCFD”).

As a voluntary process, the TCFD does not impose specific methodologies but rather provides recommendations for a company to follow. In this way, companies and investors can note climate related management approaches that are being used, and how they align with the TCFD’s suggested disclosures (“TCFD”).

The TCFD contains four core elements; governance, strategy, risk management and metrics and targets, which are supported by eleven recommended disclosures. These suggestions aim to increase investor and company understanding of how finances are affected by climate-related risks, which in the future will allow for more knowledgeable and beneficial investment and company growth (“TCFD”).

Within the real estate sector, the use of TCFD more than doubled in 2020 from the combined usage from 2017-2019 (https://www.wtwco.com/en-US/Insights/2021/01/tcfd-adoption-in-the-real-estate-sector ).

With the Covid-19 pandemic, greater scrutiny has been placed on the environmental impact of companies, especially within the real estate sector and its potential to help “build back better” (“TCFD”).

Disclosures related to climate are increasingly relevant within the ESG real estate realm due to its considerable impact on our climate.

https://www.fsb-tcfd.org/

CDP in real estate esg plans

CDP is a global non-profit that runs an environmental impact disclosure system for investors, companies, cities, and regions.

It was the first program created that used investor leverage to influence the rate of environmental disclosures from companies. Over time, CDP has formed a massive dataset from its users, creating a base for smart environmental decision making and a platform to track global progress (“CDP”).

Companies who disclose through CDP will find ways to mitigate their impacts on climate change and manage their environmental risks. In addition, this information will be made available to customers, investors, and the market, adding to CDP’s data and helping progress the real estate sector towards a more sustainable future (“CDP”).

After reporting and disclosing through CDP, each company is given a benchmark score based on the annual reporting trends. This score is used to incentivize companies to further improve their environmental impacts and increase disclosure.

In addition to general questions asked in the CDP questionnaire, there are sector specific inquiries that contribute to a company’s score. This scoring system allows companies within the same sector to be more easily compared and can provide important benchmarks (“CDP”).

As mentioned above, disclosure is the key first step towards increasing environmental awareness and improvement. CDP was the first standard created for corporate environmental reporting and is a helpful objective measure of how companies are performing environmentally, and therefore a useful tool to help align a real estate company with its ESG goals (“CDP”).

https://www.cdp.net/en

Net Zero Carbon Buildings Commitment in real estate esg plans

The Net Zero Carbon Buildings Commitment (the Commitment) is a more specific framework that aligns closely with the built environment and real estate sector in particular.

Born out of a collaboration between the World Green Building Council and GRESB, the Commitment encourages the decarbonization of the built environment, removes implementation barriers, and motivates execution by others. 

Compliance with this commitment requires that by 2030, existing buildings reduce their energy consumption and new developments are constructed to contain extreme efficiency (“The Net Zero”). 

The Commitment incorporates the whole life cycle of a building, including both embodied and operational carbon in its analyses. Due to this inclusive outlook (note - embodied carbon….), collaboration across sectors and a strategy that focuses on transparency and circularity is essential to make it work (“The Net Zero”).

The goal of this collaboration is to facilitate the formation of sector leadership and to accelerate the market towards a carbon-free future. Those that commit to the framework are required to measure, assess, and disclose performance annually and publicly, providing information on energy demand, operational and whole life carbon emissions, as well as portfolio data. With the disclosure of this information, transparency is increased, and the data can be used to inform improvements and benchmarking opportunities (“The Net Zero”).

According to the CEO of the World Green Building Council, “the Commitment provides a framework for real estate organizations to take action towards net zero carbon portfolios”, therefore providing a valuable pathway towards achieving a company’s ESG goals (“The Net Zero”).

https://www.worldgbc.org/thecommitment

GRI in real estate esg reporting

The Global Reporting Initiative (GRI) is the leading global framework for sustainability reporting. Once a company’s goals are outlined and their impacts are quantified, the GRI Standards provide a guide and common language to report those impacts (“Setting the Agenda”).

Essentially, the GRI Standards provides a framework by which to structure a company’s sustainability and ESG reports, providing a high level of transparency, clarity, and comprehensiveness (“Reporting”).

The GRI standards include both the Universal Standards, which are applicable to all organizations, and the new Sector Standards, which can provide more sector-specific reporting guidelines.

In the case of real estate development companies, there is a specific ‘Construction and Real Estate Sector’ which lists topics and disclosures that are the most likely to be material within that sector.

The GRI standards require disclosures associated with depletion of natural resources, deterioration of natural ecosystems, waste, as well as impacts on social wellbeing and community impacts. 

Coupled with other available tools and standards, the GRI standards can provide a clear way for companies to report and understand their impacts on the environment and economy. This can help companies increase transparency and alignment with their ESG goals. 

https://www.globalreporting.org/

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Sources

“The 17 Goals | Sustainable Development.” United Nations, United Nations, https://sdgs.un.org/goals . 

 “TCFD for Real Assets Investors.” PRI, 27 Apr. 2021, https://www.unpri.org/infrastructure-and-other-real-assets/tcfd-for-real-assets-investors/7495.article . 

“CDP Homepage.” CDP, https://www.cdp.net/en  

GRI Reporting https://www.globalreporting.org/

“The Net Zero Carbon Buildings Commitment.” World Green Building Council, https://www.worldgbc.org/thecommitment . 

“Reporting.” Home, https://www.powercorporationcsr.com/en/responsible-management/reporting/ . 

SASB, 30 Mar. 2022, https://www.sasb.org/ . 

“SDGs: Answering the Big Questions for the Real Estate Industry – What, Where, Why and How?” GRESB, https://gresb.com/nl-en/2020/01/24/sdgs-answering-the-big-questions-for-the-real-estate-industry-%E2%80%93-what-where-why-and-how/ . 

“Setting the Agenda for the Future.” GRI - Home, https://www.globalreporting.org/ . 

SUSTAINABILITY, Shubha Mohunta DIRECTOR OF. “SASB 101 for Real Estate Owners, Developers and Investment Trusts.” Verdani, Verdani-Partners, 1 Mar. 2018, https://www.verdani.com/single-post/sasb-101-for-real-estate-owners-developers-and-investment-trusts . 

“TCFD.” Task Force on Climate-Related Financial Disclosures, https://www.fsb-tcfd.org/ . 

Sustainable real estate in urban regeneration with Jonny Friedman

urban regeneration / south africa / city opportunity fund / jonny friedman / healthy buildings / esg / sustainable real estate / social equity / green & healthy places podcast

Sustainable real estate south africa

A conversation with Jonny Friedman, Executive Chairman of the newly launched City Opportunity Fund. 

In the 1980s and ‘90s Jonny invested in over 100 buildings in the Brighton area in the UK and another 20 buildings in Hoxton and Shoreditch in London, playing an instrumental role in the urban regeneration of both places. 

Today he leads a team of over 120 people under the Urban Lime developments name focused primarily on Cape Town and Durban in South Africa. He has over R2 billion invested in real estate in Cape Town and Durban so far.

We discuss topics such as activations in the public realm, tactical urbanism, apartheid’s influence on urban geography in downtown areas in South Africa, what he calls ‘catalytic developments’ and the incremental gains from creating momentum in placemaking strategies, public-private partnerships in changing the identity of entire urban districts, as well as ESG and sustainability in the South African context.

conversation highlights:

Where I've seen successful urban regeneration projects work extremely well is when you take a deep understanding of that original space and the people within it and use that as your starting point to build upon. That is going to be completely unique in every single situation - no two separate buildings, areas, districts or neighborhoods are the same.

So you can in fact be catalysts for change by making small changes - tactical urbanism is a lot about that type of strategy where you make a series of minor changes here and there. These quickly add up to a lot more than the sum of their parts and make districts quite exciting.

Apartheid was all about creating safe spaces by massive walls, dividing up areas physically in terms of distance, but also in terms of the way in which they were built.

https://urbanlime.co.za/

https://fourthspace.co.za

https://www.cityopportunity.co.za/

Matt Morley: Johnny, one of the concepts that really leaps out from the work you've done in the past has been around this idea of creating democratic spaces that have been re-energized and given new relevance within a city context, how do you see the key drivers of success for you?

Jonny Friedman

Hi, Matt. Look, I think the first thing to say is that a very important part of this is thinking deeply and widely about who's already there, what's there already, in terms of community, neighborhood, and the various parties living / working there, and also what the history is, what the culture is, and how to really take what is there and build upon that. How to make that relevant and better and repurposed in such a way that it works for the people that are there ready, so that it starts to develop interest and excitement for others to come and join in.

Creating momentum in real estate placemaking strategies

This then creates a sort of momentum around itself. But it's not a sense of gentrification or total change, where you from top down impose change upon a particular area or district or city. It's really about working with what's unique and special about that already. How to work with that as your starting point. And I think in a way, that's a sort of bottom up approach, as opposed to a top down approach.

Where I've seen successful urban regeneration projects work extremely well is when you take a deep understanding of that original space and the people within it and use that as your starting point to build upon. That is going to be completely unique in every single situation - no two separate buildings, areas, districts or neighborhoods are the same.

There's not a cut and paste approach that works, what you do in one city won't work in another city, what you do in one area where work in another area, you have to understand the uniqueness of it in, in every sense culturally, historically, and really get underneath it. And when one's able to do that, then it is organic.

It's not something again, which is imposed, I'm not really into master planning, in the sense of really planning out every single building every single aspect of a particular area, what I like to do is set frameworks and have a direction of travel, that allow it to happen organically.

Matt Morley

In the past, you've done both buying up smaller units, for example, at the top end of Bree Street in Cape Town, but you've also done far larger buildings, in terms of how what you've just described relates to piecing individual elements together versus going in with with one large building that can almost be an individual catalyst. How do you see the opportunities and challenges there in terms of scale? Like how does that connect with that concept of democratizing spaces within the city?

The role of scale in district-level placemaking

Jonny Friedman

Scale is important. But it's not the only thing that counts. Look, where it gets very exciting is when you can work at scale, when you can see whole areas, and you're buying buildings, you're looking very carefully at the relationship between the buildings, both private space and public space, and you start integrating that together.

The ‘democratization’ that you're talking about in terms of what I bought, is the opening up of the space so that it's usable and available and doesn't have barriers to entry and people can appreciate and use it at different levels. I think the best spaces are like that, where they they can be appreciated in multiple different ways and barriers to entry are cut down. There's an opening up for us between the private and the public.

Where you're using individual buildings as a catalyst for change for whole areas. I think that can happen. And we've had successful examples of that happening. But I think it needs to be in the context of thinking about spaces more generally, and how the public spaces again interact with that building. And again, making it appropriate.

Tactical urbanism in real estate development

So you can in fact be catalysts for change by making small changes - tactical urbanism is a lot about that type of strategy where you make a series of minor changes here and there. These quickly add up to a lot more than the sum of their parts and make districts quite exciting.

A lot of mistakes are in town planning space and made by the idea that activations and development needs to be very substantial to make change but a lot of substantial and meaningful changes can be made in small ways, clever ways, ways that don't involve huge budgets.

Individual buildings, as long as there is a sense of where the area is, where it's come from, who's there, who are the stakeholders, and it's done in an appropriate way, I think it can make a big impact, it's like you’re putting a huge dollop of confidence when area, you're putting something that really sparks up an area, it can become a catalyst, to attract other, different and interesting things.

Activation of the public realm

Matt Morley

I think perhaps the term that we've been skirting around is activation of the public realm, isn't it about creating valuable, useful, accessible public spaces that everyone can use. You did that in the UK, then at some point, you really doubled down on developing in South Africa, particularly in Cape Town and Durban. So you have two perspectives, in a way the UK and later in your career, with SA in terms of public realm, and also more generally, in terms of where the priorities lie locally. What are the particularities of SA when you're looking at urban regeneration projects?

Urban regeneration in the UK vs South Africa

Jonny Friedman

Well, I think they are, of course, because they're, you know, the histories of the of the two countries are so, so very different. And the architecture and the geo geographical layout of South Africa, has been so influenced by its unique history.

Going back a couple of 100 years, but, you know, in particular, of course, the the history around apartheid and separation of areas by you know, identifying records and the, the geographical implications of apartheid were huge. And, of course, also the fear that was surrounding apartheid, both during it and after it. And the way in which that influenced architecture and and town planning and urban design was massive.

Apartheid was all about creating safe spaces by massive walls, dividing up areas physically in terms of distance, but also in terms of the way in which they were built.

Creating office parks, which you had massive security around and residential, gated communities in suburban areas, again, where the walls were the key issue.

So it was a tremendous amount about, about keeping people out and not using public spaces. So a lot about what we've done it at urban life and our philosophies about breaking those walls down about opening up private spaces with public spaces, about inviting people in and creating spaces which which are saved by the fact they're used, that they're, they're vibrant, they're exciting and, and breaking down those perceptions around security around cities being fearful space with the street as a fearful space, and breaking those types of perceptions down and opening up the city as an exciting vibrant and, and, as you say, democratic space.

So huge differences between between two were of course, you know living in London and growing up in London and walking the streets and being part of that city and the excitement of being able to enjoy public spaces. Then in South Africa, it's very much you know, you get in your car, you go from point A to point B you know exactly where you're heading and you you park your car at point B, you do whatever you're doing at point B and then you go back to back in your car and back to point A and very often that those points are home and shopping center or home and office.

Developing destinations in real estate development

Where we found we can really make a huge difference in this country is about turning that around and turning areas into destinations in themselves. So we're not just going to this restaurant or this office and parking, we're actually saying we're going to this area and we're going to walk I mean these things for obviously for Londoners you know that's it's almost obvious but here in South Africa there are so few high streets where there's so few public urban spaces to enjoy and walk and see and be, you know, and have the surprise of what's around the corner and have multiple things to, to look at and interact with and do all in sort of one area, something which has not really happened outside of very controlled areas, like shopping center environments.

So that's where we try to make a difference and try to introduce South Africans. So the excitement about what's you know, urban centers can feel like what what the street feels like, how does the coffee shop and enjoy the hustle bustle of city life, which has been so missing, both during the apartheid era and and posted around the particular history of South Africa.

So I think there's a lot of opportunity here, just kind of letting people experience what we're so used to in Europe, we take it for granted that you can walk around the city and enjoy the streets and enjoy street life and be constantly surprised by what might be available or what the only shops opened up or coffee shops available.

What are all of those types of things, which we sort of take almost for granted, is not available here, or was it was only just becoming available in multiple different ways or so even where they've done good sort of urban regeneration projects, what South African developers at a lockdown usually done is they've created sort of like a little oasis, and they put a wall around it.

That what they've called urban regeneration, because that mindset, the mentality is all about safety, security, and keeping restricting people coming into spaces. In fact, the opposite of what you're talking about in terms of democratization of spaces, it's almost even though the urban regeneration ideas and spaces, they don't get quite get this concept of opening them up and making them exciting and, and spaces in their own right, where people can move freely between public and private spaces and between different private spaces. So it's actually very exciting developing here, because a you can do it at scale. And scale is important as previously discussed. But I think it's almost like introducing a new way of living, and excitement around what the city equals and what it can be.

Democratized urban spaces for social equity

And that's what I found very, very fulfilling. And when people find it, they love it. And in fact, particularly young people, I think, you know, creating great urban democratized type of spaces, is extremely, it's something that young people almost kind of need. And if you don't provide it within a city, they'll go elsewhere. And they'll go to cities, which do provide it.

So it's been very exciting working here, because we've been able to do it at scale. And we've also been able to sort of bring a different mindset to it, and started to introduce people to what in Europe, we sort of take almost for granted that what what has been very much prohibited here, either, you know, actually, or in terms of perception being people can see the CD spaces too, as too dangerous somehow.

And I feel like over the last 20 years, I've been working here, we've moved the mindset on that in a lot of areas. You mentioned a few, but we've worked in probably 25 Different areas across the country. And all of the areas One of the things that they have in common is that they're about opening up, they're about connecting public private spaces, they're about the feeling of being able to be in a space and be able to engage with excitement of what city life, let's say like at its best can be.

Matt Morley

And to achieve that, are you finding free consider say that, say a district level or a cluster based strategy where in a sense, you start to spread out and create, as you mentioned, sort of a street level neighborhood. That's really something quite innovative for sa but perhaps something we might take almost for granted in in Europe, does that require greater public private collaboration? Or is it something that a private developers such as urban lime can pretty much roll out themselves how much how much partnership is involved in that with the city planning?

Public - private partnerships in real estate development

Jonny Friedman

The more partnership there is, the better. Where the schemes work best is where the public and private work hand in hand together. And almost by their nature, they have to have a good symbiotic relationship with the with the cities and with the owners of the public spaces.

So what can also happen is that as a private developer, you can sort of be the catalyst for that as well. So even if you haven't got a willing pond to start with, you can start showing them how the public and private realm can start interact.

And what's interesting is that we've had such you know, public of engagements, where, when the cities and when neighborhoods and when you know, the the stakeholders start to see change, we found that they got more and more engaged, and that it goes beyond talking actually into reality. And when they start to see it, there's a momentum builds.

In fact, momentum in what we do is extremely important, getting things done, and doing stuff, we were talking earlier about small interventions. Small interventions are hugely important because they develop confidence, they develop confidence, and then people see are starting to see change, it's time to feel change.

So actually just making smaller small interventions, where people are starting to experience the sort of things that we were talking about earlier, the excitement of city life, the interact with other people, the best of what cities and districts neighborhoods can be, once they start to feel that, then it has it starts to grow momentum itself.

And then of course, others start coming in as well. It's not just due to i, we never look to be the the only private. In fact, if we were the only people developing privately, we've kind of not hit, we've missed the target in a way.

Becoming a catalyst for change via real estate

But we want to be as a catalyst for change, once people start seeing it happening, it gets to a sort of a tipping point, where you know, we could actually do nothing more and come back in five years time, and the area would be very substantially better than it is now. Because it's come to a sort of a tipping point where all the owners of the buildings start seeing potential, they want to spend money on maintenance, they want to think about the right 10s Instead of just, you know, any tenant, and it becomes a positive becomes a positive catalytic spiral.

And very much the municipalities and the local councils and other stakeholders get on board that enthusiasm, if you create it, once I see one of our roles is as kind of momentum builders. So it's a it's yes, you can do catalytic developments. But also, you can do a lot of small interventions here and there. And out of that comes a momentum, and it starts developing a life of itself. And then all stakeholders very much obviously key stakeholders are the municipalities, but other stakeholders as well get involved and projects take on a life of their own.

City Opportunity Fund - ESG real estate

Matt Morley

Fascinating and in a way that leads into then, where you look to be changing gear, in a sense with the launch of the city Opportunity Fund, upcoming in June of this year, clearly different scale, but still, in a way, tapping into that same level of detailed insight and the knowledge that you have that have particularly in a city, Cape Town and Durban. So what is your what's the aim there? What's the big goal with that new fund that looks to be? Yeah, in a sense, taking urban regeneration to another level in SA right.

Jonny Friedman

The City Opportunity Fund is actually taking the skill sets and our experience that we've developed, you know, in the three cities that we've worked in on on two continents. And really distilling that and I would say one does still that one comes down to the real skills that we have is how do we take areas or buildings that have become inappropriate in terms of us have gone out of fashion that no longer had relevance in some way. And we've adapted them in an organic way which is, which doesn't feel like it's a top down approach, which is a bottom up approach, which we talked about which is organic, which is incremental, but at the same time radically transforms areas and buildings and at the moment, those that skill set couldn't be more relevant because in the postcode environment, you know, through changes in technology, but which have now been enhanced heavily by the experience we've all been through over the last couple of years.

The impact of COVID on mixed-use real estate development

It's left a huge amount of real estate, not only in the in the city centres, but throughout the whole of South Africa. And in fact, globally. It's made its left a huge amount of commercial real estate, in some ways irrelevant under purpose or needs to be repurposed reinvented resort through for this post COVID modern world, people essentially are not working from offices in the way that they that they used to.

And people are essentially not buying from shops in the way that they used to. And whilst this this trend has been in place for quite a while in terms of flexible working, and in terms of online retail, these are trends which are already well established before COVID. They've been hugely accelerated by COVID. And you know the way in which we work and the way in which we which we shop and the way in which we live and the way in which we socialize and the way in which we think about our homes.

And the way we we think of ourselves and each other has radically transformed. And what it's done is it's had a tremendous impact on the way in which we use buildings, the way which we think about buildings. The how we're going to be using buildings going forward, there's a massive shift, which needs to be taken to account from there, because there's a huge blend up between the virtual world and the real world. And how does one integrate the virtual experience with the bricks and mortar experience?

So it's in that slot in the slot in this lot of how does one repurpose rethink reinvent real estate, given these massive social technology, massive changes that are that have been happening and are happening and are accelerating at a tremendous pace? And how it's impacting really every aspect of our lives?

And where does real estate fit into that? And what is and how does one adapt these types of buildings, headquarters, office buildings, for instance, shopping centers, high streets, business, travel has totally changed.

Almost every aspect of the commercial, real estate and leisure businesses have changed very fundamentally. And it's the reinvention and the rethinking of how does one adapt those two buildings which are, which are relevant, and that's what the city Opportunity Fund has at the very heart of it.

And the proposition is, is that we come up with a set of sort of broad solutions in multiple different categories, as to how we can in, in general terms deal with some of these fundamental issues that have that have changed, and a lot of real estate will never be the same again, because things are fundamentally changed.

So the city Opportunity Fund is a fund where we're injecting close to 2 billion rands of our own assets into the fund. But we're also working with major partners who are going to be injecting real estate, which fits into that category, which are buildings which, or groups of buildings, which need rethinking, repurposing, reinventing which which are no longer relevant they currently are. And, of course, the solutions. To what to that problem? How does one deal with real estate in the postcode environment, it's not cookie cutter,

there's not a cut and paste solution to it. And again, the solutions will have to be crafted on a bespoke basis. And and that is where that is where our sweet spot is. And that that is what the city Opportunity Fund is about is it comes out of a team that's got 30 years experience in, in looking at areas that have gone out of fashion that at buildings, which no longer fit for purpose, and being able to adapt them and change them and get underneath the pot with underneath the issue, finding the most relevant and most appropriate solution for a particular area building district or city. And it's that which will be encapsulated within the city Opportunity Fund.

Student housing and affordable housing

Matt Morley

Within that context, then the student housing and affordable housing sector, so what is the opportunity there? So if you've got a 1960s building that's really sort of past its its sell by date, but yet has potential? How can a student housing concept or how would you adapt the student housing concept to fit into that space? Because there's there's surely opportunities there and that sector, right?

Jonny Friedman

Well, there are a lot of buildings that fit into that category in the industry. Some of them are more appropriate for retrofit into student social housing and others. And of course, it depends upon exactly where the demand is. But in both the sectors that you that you brought up there they they are, you know that one of the solutions, in effect, or student housing and social housing are two of the solutions that we are looking very carefully at in terms of a much wider and much wider issue.

But they certainly in South Africa are areas where there's a large amount of demand, there's government backing for him. And there's a real opportunity in retrofitting old office buildings, certain old office buildings into spaces of that nature. And again, we would look at a project like that, like we look at any and we think, Well, what is the very best, the very, very best in asset class here?

How can we do this in the very best way? And we would work off a wish list and look and think well, what is it what does the ultimate student student housing look like? And we would literally run through and think about that. And the same with social housing and create best in best in class types of buildings and areas.

Again, I like in that space linking buildings, I like thinking about the public spaces. I like thinking about how it feels to be not only in public space, but how it feels to be within the building. I think a lot of the issues around the way in which buildings are used healthy spaces, creating green spaces, spaces, which are, which are feel good to be and we almost was everything we we do we look at we take a sort of a living room approach.

How does it How does it feel to be in the space? We think about you know, if we're actually in that space? How does it feel to be in there feel like, like a vibrant, healthy democratic space, something's inviting, we would look at student housing exactly that way as, as in a in our class. So best in class is critical.

Defining a concept for mixed-use real estate development

How does it feel how to build it interact? How to public speak, how does the public space work? What we don't like is huge concourses whose huge concrete concourse is, which are kind of almost made for architects rather than for people, you know, they kind of make the building look good, and make the building look grand or whatever. But we're interested in is how does it feel? How does it feel to be in the space?

How do we get a best best in class feeling? What's most appropriate? What's there? How do we think about modern technology? And how do we integrate that? How do we use the changes in the way in which we're living so radically?

And how do we integrate those into these buildings to make them make not only relevant now, but also relevant in 10 years time? So we thinking very hard about that the interaction between technology and real estate, the interaction between the virtual world and real world? And, and going back to basic principles? How does it feel? How does it feel to be in a space? What do you need?

So what are the needs of the people who inhabit that spaces? It's this type of thinking, we that I think sort of sets us apart. And within the city Opportunity Fund, it's we're going to be saved, we're going to be having those types of conversations and those that type of thinking, going through everything we do.

So whether it's a high street, or whether it's a social housing project, or whether it's a student city we're looking at, or whether we're looking at a neighborhood scheme, or whether we're looking at how does one reinvent the office space, the modern world what's required? Now? The thinking is starts there, who's there to start with?

How do we build on that? What's the most efficient, most exciting way to use the building? How does it feel to be in it? How do we interact with the technologies that are available? How do we blend the experience between the version the real, it's, it's this is the approach we're sort of taking, it's not a traditional development. And you can give you probably, I think, throughout the chat we've had we've not actually used the word developer, we don't really consider ourselves developers sort of a more around placemaking, more around reinvention, almost inventors or re inventors of space, not developers of space.

So it's a different it's a different approach. It's a different way of thinking. And it's very people centered used word democratization, so very people centered, how does it feel? Very critical. How does it feel? What's the use? How does it interact with, with the with everything else we do? How does it fit in?

Real estate ESG - Environmental, Social, Governance

Matt Morley

You touched on a couple of things there the idea of there being a component of health and well being and also to some extent, considering green themes and sustainability. We've spoken a lot about the social side. So the big hot topic at the moment clearly is ESG real estate.

So environmental, social, and governance within the sort of the macro perspective that you have from your position today. Do you see sa as being perhaps ahead or behind in any of those three is ESG real estate having that kind of impact on the real estate development market? In sa that it is having in the US and in Europe? Or do you think there's a little lag between the two in that sense, and therefore perhaps an opportunity for the fund to do something different?

Jonny Friedman

Definitely, definitely an opportunity. Look in IT environment where there's a tremendous amount of poverty in South Africa, there's a huge unemployment rate, especially in youth unemployment rate is at epidemic proportions. There's so in that environment in that context, yes, in various different areas that you're talking about has been somewhat left behind. And, and it mustn't be and we're where we look at buildings.

Health and wellness in real estate

We would take the best in class we would be looking at following best standards and looking at the way they're doing it abroad trying wherever possible to emulate it. And integrating wellness and healthy building type strategies, both in terms of the internal inside the buildings, but also externally and how to bring the two together, set right up at our, you know, high up on our list of priorities. And I think wellness generally, is a key growth area.

Wellness, in terms of the way in which we use buildings to wellness is kind of wellness as a sort of general concept is integrated into almost all of our projects in one form or another. Obviously, it's come out of COVID COVID has given us all a time of reflection around these issues, what's important to us wellness in the in the more general form as has been right up there with the conversation of the last couple of years.

How and the importance of taking care of oneself living in health environments, and so on and so forth is is critical for for South Africa as it is for for all other countries. Where it's not left behind is obviously around in terms of poverty and social needs, which are which really different level to many first world countries.

Matt Morley

It's incredibly valuable insight that you share with us today. Thank you for your time. I really appreciate it. If people want to learn more about urban life and about the new fund that you're launching this summer how can they connect and follow along?

Jonny Friedman

Well, they can go onto our website, the urban lime, urban lime.co dot set A or on to the city Opportunity Fund website, which is also up so contact us or or get in touch. Anyway, it's been a pleasure to talk to you about.

https://urbanlime.co.za/ 

https://fourthspace.co.za

https://www.cityopportunity.co.za/

Energy efficiency in green buildings to reduce energy waste

what is energy efficient architecture? Read on to discover these green building approaches examples

Energy consumption in green buildings and energy solutions to reduce energy consumption

Improve energy performance for a more sustainable future

Buildings and the real estate industry in general contribute around 30% of total global energy consumption, making them a vital consideration in the push for a green energy transition away from fossil fuel dependency.

Energy efficient buildings are, like electric and eventually hydrogen-powered cars, a necessary step for the future of our planet, not least due to the ongoing process of urbanization which will see an estimated 70% of the world’s population living in cities by 2050 (Bratman). 

Green buildings new construction

Key factors to consider in building energy efficiency include building orientation and its footprint but there we step into the realm of site planning and selection, architecture and engineering. Beyond new construction then, how can we as green building consultants help in the refurbishment of our existing buildings - a fundamentally more energy efficient and sustainable approach? 

Green buildings refurbishment

Overarching strategies in a refurb project include reducing energy demand, increasing source efficiency, and tracking the live energy use of the building. Together these provide the building blocks of energy efficient refurbished buildings. The ideal goal of course being net zero or net positive buildings.

Specifically, demand can be reduced through strategies such as passive design and green roofs. Energy source efficiency can involve implementing energy efficient lighting, efficient HVAC (air con ventilation) and elevator systems, as well as renewable energy production on site via solar panels on the roof, for example. 

energy efficient building solutions

With the incorporation of some or all of these energy reducing green building strategies, there is then a requirement for ongoing tracking and monitoring of progress in energy efficiency so that facilities management have a real time picture of the energy consumption patterns in the building.

Demand Reduction in green buildings

Demand reduction in sustainable green buildings involves strategies that reduce the upfront energy needs, lowering the amount of energy consumed and paving the way towards greater energy efficiency overall. Passive design as well as the implementation of green and cool roofs are several strategies to reduce energy demand. 

Passive Design in sustainable buildings - energy saving in construction

Passive design is a concept in which the sustainable building design works with local climate conditions to reduce the need for energy use.  Passive design includes strategies such as daylighting, natural ventilation, and passive heating, which all can reduce energy demand. This is all done in the building modeling phase of a new construction project.

The use of daylighting through windows, skylights and other openings can reduce the need for electrical lights. In addition, in hotter months, the use of daylighting can reduce cooling loads, as on average it produces less heat per unit of illumination than electric lights.

Natural ventilation utilizes outdoor air and winds to bring fresh air into a building. This can help regulate indoor air quality and appease the need for mechanical ventilation, as well as increasing thermal comfort through passive cooling. Most commonly, natural ventilation can be incorporated through the installation of operable windows. This strategy is dependent on the quality of the outdoor air available in the site in question, a factor that can vary by hour, day and season.

energy efficient buildings examples

In addition, solar energy can be used to reduce the need of heating, for example, direct solar gain - which provides places where the sun can enter a space directly - can help to heat a living area.

If paired with thermal mass structures, the sun can heat a mass such as a wall throughout the day and release this heat throughout the evening - a common strategy in traditional buildings in the Middle-East for example.

Green Roofs & Cool Roofs in Sustainable Buildings

Roofs are often an untapped resource in buildings, when in reality they have a lot of potential for energy demand reduction. Roofs are subject to the highest amount of solar irradiance across the entire building envelope (Costanzo).

Cool roofs utilize highly reflective coating such as white paint to increase reflectivity, while green roofs use vegetation as a cover to increase cooling capabilities of a building (Costanzo). 

Although there are pros and cons to green roofs and cool roofs, both reduce building cooling demand (Costanzo). Cool roofs have been found to lower the temperatures of roofs more than green roofs, but green roofs provide some insulation in cooler seasons. 

Green roofs provide additional benefits such as air purification and biophilia benefits if made accessible to building occupants. However, due to the maintenance factor of greenery, cool roofs are an easier practice to implement in terms of initial investment. 

Energy Efficiency Lighting  in Sustainable Buildings

A low hanging fruit of energy efficiency is to incorporate energy efficient lights such as LED bulbs. Generally, this is a very cheap intervention that can provide considerable energy savings. 

Such bulbs consume more than three times less than the energy used by fluorescents and less than a seventh of the energy used by incandescent bulbs. In addition, LEDs provide a higher lumen output, which increases safety and sight, they also have a much longer life span (Taddonio)

In addition to lighting replacements, other strategies such as motion sensors, dimmers and timers can be used to reduce energy and maintenance costs. Hallway lighting can be adjusted based on the time of day and natural light presence.

Desk and office lighting can be adjusted based on hours worked in office and dimmed or turned off when not necessary (“Managing”). These strategies can be very effective at reducing energy consumption, especially when combined.  

Efficient Machinery

Once demand reduction strategies have been implemented, the next step is to make sure that the appliances and machinery that are functioning within the building are as efficient as possible and are consuming less energy. For example, the HVAC systems, elevators, and other machinery within the building. 

HVAC systems generally run on a clock depending on the building use type. For example, an apartment building may need to be run on a 24-hour cycle, while an office building HVAC system can be shut off at night when no one is in the workplace to avoid excess energy use.

energy efficiency solutions

In addition, the systems themselves should be chosen based on those that are designed to consume less energy when in use. Various space types align better with different HVAC systems, so proper planning is required to make the most informed decisions. 

In addition to HVAC systems, other machinery such as elevators tend to be large energy consumers in buildings. It is important to install energy efficient lifts and elevators to avoid excess energy use. 

To aid with the decision-making process, there are various standards and resources. For example, the U.S. Environmental Protection Agency’s Energy Star Program designates energy-efficient appliances that contain more high performing systems (“The Science”).

Renewable Energy Production in Green Buildings

In addition to incorporating energy efficient appliances and fixtures, the use of renewable energy and the potential to produce it onsite is a very effective green building strategy. Solar is the most common and easily applied renewable energy source on a building site. 

Panels are commonly placed on roofs and should be angled to best receive the sun, which varies depending on location and building orientation. However, newer technologies are providing ways that solar technology can be incorporated into facades, for example. 

When making sustainable solar energy decisions, it is important to consider location and feasibility of potential solar gain, as well as if there is enough area to install enough panels to provide an ample energy source - at the very least, a green building project team should consider wiring in the cables for future installation of solar panels on the roof during the refurb or construction process, even if funds are not immediately available to purchase them. 

Benchmarking, Tracking and Monitoring green building energy

Once a green building energy efficiency plan has been implemented, there is a need for building energy use monitors to track ongoing performance. Several third-party organizations such as ASHRAE, ANSI, and IESNA provide baselines; for example, ASHRAE 90.1-2010 is the energy efficiency standard. 

After a baseline is set and goals are made, a process known as commissioning is implemented. This process, as described in the LEED green building standard is the “process of verifying and documenting that a building/all of its systems are planned, designed, operated and maintained to meet the owners project requirements” (LEED).

This concept encourages projects to continue to operate according to the initial goals and monitor energy consumption to maintain desired efficiency levels.

The installation of sub-meters and automated building controls allow building operation managers to track energy costs and usage by area, as well as aiding the control of building wide energy use.

Building Energy Management Systems (BEMS) are common systems that are used for monitoring and controlling building energy use.

Net + Energy in Green Buildings as a way to go beyond merely saving energy

The ultimate goal for us as sustainability consultants in real estate is to create Net Positive Energy buildings, meaning that more energy is created on site from renewable sources than is consumed by the building—therefore giving back rather than taking from energy sources.

In other words, going further than efforts to merely save energy or improve energy efficiency and reduce energy consumption in residential buildings, for example. Here we look to go much further than that.

Net Zero Energy buildings, a relatively more attainable yet nonetheless challenging goal, produce the same amount of energy on site as they consume, avoiding energy resource depletion with energy efficient equipment and so on.

To achieve that requires systems thinking, looking at a building in a joined-up manner, exploring how distinct elements of the system can work together to make a more efficient whole.

Sustainable Building, energy conservation and carbon emissions Sources used in this article

Bratman, Gregory, and Gretchen Daily. The Benefits of Nature Experience: Improved Affect and Cognition. Tech. Vol. 138. Stanford: n.p., 2015. Landscape and Urban Planning. Stanford University Libraries. Web. 24 Oct. 2016. 

“Building Energy Management Systems Bems.” Building Energy Management Systems BEMS - Designing Buildings, 27 Oct. 2021, https://www.designingbuildings.co.uk/wiki/Building_energy_management_systems_BEMS. 

Costanzo, V., et al. “Energy Savings in Buildings or UHI Mitigation? Comparison between Green Roofs and Cool Roofs.” Energy and Buildings, Elsevier, 12 May 2015, www.sciencedirect.com/science/article/pii/S0378778815003527. 

 “Managing Energy Costs in Hospitals.” 2010.

O’Malley, Christopher, et al. “Urban Heat Island (UHI) Mitigating Strategies: A Case- Based Comparative Analysis.” Sustainable Cities and Society, Elsevier, 14 June 2015, www.sciencedirect.com/science/article/pii/S2210670715000657. 

Taddonio, Kristen. “Energy-Efficient Hospital Lighting Strategies Pay Off Quickly.” BUILDING TECHNOLOGIES PROGRAM, July 2011, commercialbuildings.energy.gov/hospital. 

“THE SCIENCE BEHIND HEALTHY HOMES: 25 FACTORS THAT IMPACT YOUR HOME.” Delos, 2020. 

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Further Reading

• The Secrets Of A Healthy Building

• Sustainable Green Building Water Use

• The Best New Green & Healthy Office Buildings In Barcelona, Spain

• The Role Of Rooftops In Healthy Sustainable Building Designs

• Sustainable Office Space - Make Your Office More Eco-Friendly

• Organic Building Materials And Their Benefits

• Introducing The World Green Building Council Health & Wellbeing Framework

• the secrets of a healthy building: ‍9 essential principles for optimal wellness and sustainability

• What Is Circular Economy In Regenerative Real Estate?

• Top Five Real Estate Developers Using Biophilia For Sustainability & Wellbeing

ESG Social Equity in Real Estate Development South Africa

social equity / urban regeneration / student accommodation / real estate development / ESG / our future cities

Welcome to episode 44 of the Green & Healthy Places podcast in which we explore the themes of wellbeing and sustainability in real estate. This time around we have more of an ESG social equity focus as we're talking to Rashiq Fataar, the Founding Director of Our Future Cities in South Africa. 

Rashiq works across disciplines, engaging with city planners, designers, researchers and anthropologists in the quest for promoting more sustainable and inclusive cities not just in South Africa where they are based, but increasingly around the African continent as a whole.

Our conversation covers the weight of South Africa's history of top-down oppression and how that impacted urban development during apartheid, the kind of tactical urban intervention that can turn a handful of parking bays into a parklet, the challenges of developing enough affordable housing, how concerns over safety can be baked into new precinct development plans from the start, examples of successful downtown regeneration in Durban by developers Urban Lime, and the student accommodation opportunity in neglected 1960s era buildings in central Cape Town and Durban in particular.

Social equity is one of the key components of a real estate ESG strategy covering Environmental, Social and Governance.

Rashiq is erudite, determined and fighting on the front line of city development so here he is.

Conversation highlights

we are only 25-26 years into a democratic society here in SA, which is very young, in terms of having these basic rights and freedoms, what we've inherited is an urban project which stems from economic, social and cultural injustice

if you took an aerial view of Cape Town city center, you took an aerial view of Johannesburg, Durban, they're not dense enough in terms of residential population to to be 24/7, walkable, vibrant spaces where restaurants, cafes, schools, and other services start to respond to that demand.

‘walkability’ - not just about having pavements But about sufficient levels of activity, enough destinations and of course decent lighting to make it safe - even the most well landscaped route won’t be used here at night if it's not safe.

Contact info

• Our Future Cities

• Rashiq Fataar / LinkedIn

• Urban Lime SA

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Citylift Foreshore Freeways, Cape Town, Our Future Cities

Full transcription follows:

MM: Rashiq, thanks for being with us on the show today. Great to you have great to have you as a guest.

I thought we could start with an initial introduction to the context in which you're working there in South Africa and the government's policy of black economic empowerment and how that's influencing the work you do around urban regeneration and development.

RF: Thanks, Matt. Great to be here. That's a very large question. But I suppose I'll start by giving some context.

I think in most parts of the world, they've obviously been difficult histories, whether it's Colombia or, or in the years, but Africa is a very particular history where I would say that, over about two to 300 years, there's been top down planning and oppression based on race, in particular, what we call persons of color, or black, African or colored in the South African context.

And so, whereas many cities and towns have developed gradually, and, you know, despite inequality or despite racism in South Africa, it is quite a scientific planning approach, so that all parts of urban life and City Living for the longest time was based on the ideal that the white population deserve space and ownership of land, and a good quality of life. And that everyone else needed to be far away, have less rights and have their movement and and who they marry where they live managed.

Introducing ESG social equity in real estate post-apartheid

According to the sort of ideal of separate development called apartheid, but ultimately that seeped into every aspect of life from the bus you used to the museums you could access to whether your culture could be expressed, or you could even protest.

And so I think that's the point to start with that we are only 25-26 years into a democratic society here in SA, which is very young, in terms of having these basic rights and freedoms, what we've inherited is an urban project which stems from economic, social and cultural injustice, on so many levels of people's psyche, and urban environment.

MM: Thank you for that intro. It's such an interesting topic. And so crucial, I think, for those of us working in this space, where, perhaps, certainly in Europe, that such things are almost taken for granted, that that shouldn't be the case. And yet, there are clearly examples for say, in the south of the US, for example, where similar things happening not that long ago.

And so today, in terms of a positive promotion as a way to rebalance that status quo as a way to empower and provide greater sense of social equity, like, how can your role, how can our future cities, as a business contribute to that and up to now, how have you been going about contributing to that that sort of generational transformation whereby cities are able to find a greater form of social equity for all groups, no matter what race they are coming from?

RF: Yeah, I think we've, we've always taken a quite a sort of pragmatic approach. The first is, you know, collaboration and cooperation with all sectors, so government, businesses, nonprofits, communities, individuals, which is quite difficult to suppose. I think there's the perception that to be on the side of, of people and communities and, and their prosperity, you have to be against government, and you have to be against business. And there are times that we are and we do advocate very clearly, and as an independent group, we do so. That's the first thing, I think it's sort of creative, but messy, tumultuous, and sometimes productive relationships, which are not perfect processes.

And then second, I think is just small steps to a better future. What can we do in the next year or two? Whether it's that's a tactical urbanism, can we take two parking bays away, provide free Wi Fi and a place to sit for those who can't afford coffee shops on high streets? Or can we study the culture in a particular neighborhood of migrants so that the public spaces start to reflect how they trade, how they live, and how they move around spaces? And in that particular case in the in the Bellville Town Center, which is about 20 kilometers from the Centre of Cape Town. Its priority people from across across the African diaspora, so Somalia, Ethiopia and so forth living there safely and in societies that are evolving.

So I think those two are quite key - finding ways to cooperate and taking small steps, be it policy or physical spaces, or getting conversations going, for example, in the affordable housing space.

inclusionary housing model, Our Future Cities, Cape Town

Affordable housing and ESG social equity in real estate

One of the biggest challenges we found, when we joined that field, through a conference we hosted was that developers had never sat in a room with nonprofits and government working in the affordable housing space.

So if you think of London, which has quite an established set of rules and guidelines around affordable housing, in South Africa, despite having some of the highest income inequality in the world, if not the highest in Cape Town and Johannesburg, they haven't sat around a table really to say, how do we make this policy work? What are the requirements and what is possible? So it's in its various sort of layers, I suppose that we do our work.

ESG Social equity in the public realm

MM: Okay, so I pick up on a couple of things, let's just dip back into the public realm discussion, because I think that's a really interesting piece there around how you, in a sense, give even a small slice of the city. And I presume we're talking about sort of downtown urban centers, back to those who perhaps as you say, I'm not in a position to spend the equivalent of 10 US dollars on a milky sweet coffee in a Starbucks equivalent, right. And so you're trying to create these small interventions now is that is that about bringing greenery back into the to the city is that about? Public furniture and safety are one of the main concerns and the drivers, when you're looking at an intervention like that?

RF: I think there's the ambition of the dream. And that is, you know, large amounts of affordable housing for lots of different incomes and groups, in or near the city center, you know, so lots of supply of housing, which, takes a long time, and it's been particularly slow in African inner cities, I think, for political reasons for lack of expertise.

That's the prize, the densities of Spain or elsewhere are based on lots of people living close together, and having quality spaces. So that's the prize. But I think the second, what you touched on was, is how do we provide a positive lived experience based on how somebody occupied space or how, or their sort of mobility needs, and the way we think about it is, as much as possible to have empathy and to understand the lived experience of that person.

So while somebody working close to where I am today, close to Parliament, or the original government buildings in Cape Town, might need community park, of course, where they live, they're probably traveling an hour and a half in the morning, if not more to their place of work, spending about eight to 9 hours, and then traveling another hour and a half, two hours. So for us, safety needs to be incorporated into all aspects.So you know, it's really important that public transport interchanges with our public spaces are clean, well managed wallets, you know, have free Wi Fi, it's really important that we understand that when somebody arrives in the center, it might be the norm for people in London to walk the last two miles of Africa, it's required you're not going to pay for another trip to go you know, two or three kilometers further.

So, safety of streets safe crossings. For example, outside our central train station, you know, some of the crossings which I think a traffic lanes are about sort of maximum 45 seconds. So we do advocate for long crossing times for for people walk walking around or doing the sort of last mile or two trip and then of course when they're at work apart from their work environment which which is somewhat out of our hands in some cases, the plazas, the squares, the gardens, the parks, that could probably encapsulate somebody's entire public space experience for the day.

It might be possible for myself to go to Sea Point which is just near the ocean and go for a walk or run off to work but for somebody else's traveling two hours back home, and and do two Politics and other reasons possibly living in a dangerous neighborhood, it's unlikely that at 7pm, at night in the dark, they're going to go to a local park to enjoy this sort of public space experience. So our city centers do matter. And where people are for the majority of the time influences their health, from safety, to shaded areas of respite.

Church Square, Urban Lime, Our Future Cities, Cape Town

Nature and wellbeing in urban downtowns

MM: You're essentially integrating elements of nature, nature exposure, bringing nature back into the city of social equity, and a wellbeing aspect, I think with with what you're describing there. So it makes complete sense, the affordable housing piece, just to give us the context on that in terms of how that relates to geography. Or do you see an opportunity in terms of downtown regeneration in terms of bringing affordable housing, in collaboration with developers back into say, the downtown of Joburg or Durban? Or is it essentially a project that's inevitably going to be limited to the peripheries of the city? And therefore that mobility question is locked in place for the foreseeable future? Or is it a combination of both?

Urban development policies and ESG social equity

RF: It's certainly a combination of both. Unfortunately, some of the the policies of the early 90s of the Mandela era government meant that where land was cheap cities built housing, and they were often poor quality, and quite far away. So we've actually had a perpetuation of apartheid style planning, because land was, you know, further away with cheaper, large open pieces, governments generally delivering substandard housing.

I think there are a few myths about in a, in a city center or city center housing. And the first is that there's no financial case, when in reality, there is a massive demand from various income groups. And we're not talking about free housing or housing, that is for those of no income we're talking about. I think, in the UK, it's called essential service workers, key workers.

So we're looking at sort of full spectrum of people whose lives could gain time and gain so much more by living in or closer to their place of work. And then secondly, you know, some of these centers at night are quite dead, you know, so they don't have the residential density. So if you took an aerial view of Cape Town city center, you took an aerial view of Johannesburg, Durban, they're not dense enough in terms of residential population to to be 24/7, walkable, vibrant spaces where restaurants, cafes, schools, and other services start to respond to that demand.

Student accommodation and ESG social equity

I think there's, there's a financial case, but there's also just a social case for bringing back people into the center. And I think we've started to see that, especially with the student population, there are that almost sort of these overnight conversions of inner city office buildings. I think there are four or five and Cape Town currently underway of converting buildings to accommodate students and students are one group of the affordable housing group who need accommodation at certain prices, which the market couldn't, couldn't provide. So I think everything from baristas, to nurses to police, men and women, there's a massive demand the financial case, and and again, it reduces the carbon emissions of people's travel and of course, just, you know, sort of pure spatial justice in terms of people being excluded from the past. Yeah.

Sustainable precincts and ESG social equity

MM: Let's loop back round onto the student accommodation piece, because there's more in that… But it seems like in a sense, what we're talking about is the creation of of sustainable precincts, right? Because you're saying it can't just be a residential piece that comes in because then if there isn't also the public space, the public realm interventions, and there are also ground level retail and street lighting and the sense of community etc. So other examples that you're seeing in SA at the moment around developments of precinct level where a developer in a public private partnership perhaps is able to come in and almost take over a small area of the city rather than just one building? Is that a viable solution? And is it happening yet? And if not, then, what's the workaround?

The role of precincts in urban regeneration

RF: Yes, precincts and districts are the way to go. I think you need a focus area of change and you need to demonstrate change. I think. I was recently again near the The Civic Center of government building in Cape Town and it's a very windy part of the city and it's got a bus station and the the Civic Center, which is where the city's local government is housed. And just across the road is a private development with a massive open restaurants landscaped garden. That is Sheltered is wind and it was amazing to me how two different blocks one delivered entirely by the private sector. And one, the government volume by the public sector had completely different experiences. The one was harsh, windy, modernist, unprotected and sheltered and had no retail. The other had all of these things had spaces for people to sit to to buy lunch, or, or people who brought their lunch, it was sheltered when protected. It had embedded sort of principles of good landscaping and using rainwater.

Precincts are important because it essentially is private sector needing to drive change. And to do so often you need scale, from a financial perspective, from a viability perspective. And you sort of hope the public sector comes along, because I think there's this idea, at least in South Africa, that public sector must alone drive the change. And I think that example, you know, with two buildings, really adjacent to each other shows you how you could treat people correctly and provide them with open welcoming spaces. Without it officially being a public led project. And this, these, both these spaces are you know, within the sort of biggest transport interchange and in the city within, you know, two minute walk. And, and so I think our precincts are great to demonstrate change to stitch buildings together.

Crime rates and urban development

And look for Africa has one of the highest crime rates in the world, I think it's important to think about each and every block, how do you make it safer for women and girls to move through a particular background to move from one block to the next. And I think having two or three vibrance precincts with with, you know, active street frontages, and then having nothing for two blocks is quite, we call them crocodile zones. So you really want precincts to work at scale, so that there is enough enough activity over large parts of the city.

Walkability and ESG social equity

That was linked into the way that we've defined ‘walkability’ - not just about having pavements But about sufficient levels of activity, enough destinations and of course decent lighting to make it safe - even the most well landscaped route won’t be used here at night if it's not safe. So precincts are essential. And I think it's that mesh of public private that people are uncomfortable with. But it really is the sort of the driving factor, we can start to see change, which actually includes the majority of people.

Student accommodation as social housing

So you mentioned the student accommodation piece, and it's a sector that's currently going through a process of what can only be described reinvention, at least in the US and Europe. I mean, there's there's so much to use an overused term disruption in the market going on. But I'm seeing a lot of innovation. And I wanted to just ask whether in terms of those mixed use developers going into previously less desirable districts in downtown areas, for example, like, Are they are they leading with student accommodation? are they leading with affordable housing and building in retail and street level activities? Is that typically the mix? Who's what are the what's the first entry point into that urban regeneration process?

RF: I think it's different I think, because Africa and cities located on Durban and Johannesburg don't have proper affordable housing, affordable accommodation, affordable housing policies, which require a certain percentage, it's unlikely that in the short term, that's going to be what's leading. And that's very unfortunate, because we've lost, let's say, 25 years of that, of any sort of privately delivered units in that space.

Urban regeneration in Durban, South Africa

What we're seeing is I suppose if we look at the work of Urban Lime and the city of Durban for example, what they found was that there was massive demand from small and micro businesses, but no inner city buildings, which provided for this smaller space needs.

So in one building, I think it's called Pioneer Place, empty for years. Each floor was compartmentalized into into sort of smaller units for musicians and tailors and seamstresses, and the entire building within a year was was fully occupied. And I think the same, you know, in parts of Cape Town where we see be in secret office buildings, you know, with Windows and views of the harbour and the ocean and, and the mountain are, again, almost within a year or two being converted into student accommodation just because of the massive demand.

So I think they'll always be, they'll always be response based on what people need and what the demand is. And I think in Durban, you could only really rent a massive floor plate in an office building. And so but there was a demand for from businesses. And in Cape Town and other places, there's a huge demand for well located student housing, because of the proximity of academic institutions and colleges.

Unfortunately, due to the lack of policy, we've seen that in areas that need regeneration, often it's, it's, there's either a lack of response or lack of investment, or there's a lack of incentive to develop students or affordable housing, or in cases where there is development, it's really speaking to the upper middle income micro units, when bid units. And again, that's just because that's the market that can afford that project without any subsidies or support from the government.

So we're, we're also seeing in some cases, industrial areas slightly changing, they're sort of more slightly more design and art firms moving in. But I think like various parts of the world, you know, the East End of London, that's generally how it happens, and quite slowly until the sort of glass tower start arriving. So I think it's in this case, it's really up to the public sector to, to earmark land available for social and affordable housing, to get those sites off the ground.

And to have, you know, a broader sector of the population benefit from the change, I think, as much as we don't like change, there are so many case studies around the world with the edges of cities, the semi industrial areas, the areas within five to 10 minutes of the center of the city changing, you know, the industrial areas are no longer needed in particular places, I think you will see even now, for example, you know, offices are no longer needed in particular places. So there's always going to be an evolution, it just about whether a public benefit is embedded into that. And whether it's, you know, topologies, and councils can be proactive, and in making sure that as that change happens, the public benefits over two or three decades.

Urban planning in social equity

MM: So at the city planning and legislation level, are there currently, incentives or even enough pressure being placed on on the private developers to incorporate elements of either an enhanced public realm or some element of social housing, which is something that we see a lot of in, in Europe, for example, you might expect to find that in South Africa, but sounds like perhaps at the moment that perhaps isn't happening or isn't happening at a at a sort of uniform level across the board?

No, it's not happening. I think firstly, as I mentioned earlier, the word cooperation, I think, in a, in a maturing or a young democracy, I suppose like, if you could think of the US or more developed societies, cooperation, lobbying, negotiating, it's, it's pretty much part of the culture, you know that you'll come to the table with 10 items, but you'll probably both only agree on six is Africa, we haven't quite gotten there, it seems to be all or nothing. And then, of course, with the absence of policy or incentives, the market simply won't respond. And I think we've, we've we've missed the we've missed the mark when it comes to public infrastructure as well.

So if a building can't include or meet all the requirements, then there could be alternative so I think it's called Section 16, or section 16 policy in the UK, where you need to or require to contribute to build the the nearest subway station, or to provide the station or to maintain a park and I think with those sort of new relationships, you simply have to start and and and I think given the pressure on local government budgets here, unfortunately, there'll be forced into that space, which will require that deals be made to ensure that let's say a new developer maintains a park over 20 years or develops spaces above the transport hub, but operates and maintains the transport have over 20 years.

So these these relationships now might seem complicated or outside of policy, but I think like we've seen with the water crisis in Cape Town with pandemic, the future often arrives. And we only seem to be responding because I can show you that the the current model of local governments here, which relies on property taxes, as a main revenue source, it's not really a viable approach. So I think, I think for the best, they'll be forced into partnerships, like the ones you've mentioned.

Challenges and opportunity in real estate social equity

MM: It strikes me that there is, as so often with, with South Africa, this complex mix of historical ties and the weight of past events on the present, and the struggle to liberate society in some way from that, and to sort of reinvent, but at the same time, on the flip side, there's just amazing opportunities. And every time I'm back there, you can see glimmers of hope of, of just fantastic work being done by visionary developers, perhaps not at the scale that you might like, but I think it's worth pointing that out, right?

I mean, it's like, I know, there's a lot that isn't working, but at the same time, as you go down there with with the right vision, and you can see what's going on, in some corners, and they might be, you know, the exceptions to the rule, rather than the standard of the norm. There are still there's just so much that can be done, I think we need to balance the two, right, because it must be so frustrating to be doing what you're doing and to be facing an uphill struggle. But at the same time that there is surely this sense of amazing opportunity, right and and ways to really have a tangible impact, not just on individual lives, but effectively on the future. Layout and, and livability of the cities that you're you're working in, right.

RF: Absolutely, I think the base of our work is also which I might have failed to mention is that, you know, if we get this right in, let's say, Cape Town, or Durban, it's really an exceptional quality of life. For the for the, for the majority, the weather is great. First of all, if you think of a city, like Durban, between their World Cup Stadium and the center, there are huge plots of land publicly owned, which would essentially give, you know, 1020 50,000 people, social housing, within five minutes walk on the beach fund, you know, sort of 345 Kilometer promenade, so we're not talking about simply giving people that access, we're talking about probably one of the highest qualities of life that could be delivered.

If you think about Cape Town, if we can improve people's travel time by just 3040 minutes, they'd have to go to bed at time to walk on the beach to go for a hike. So I think that's really the opportunity is that if you can start to provide a city for everyone, both in terms of housing and transport, they will have better access more time to be in some of the best places in the world, really. And I think that's why it's important to to frame the opportunity that way.

The cost of living is reasonable. The the amount of immunities that are available at no cost are numerous. The amount of parks and nature reserves that you could use without you know, without buying anything is incredible. So I think this is why we pushing so hard for these changes is just the I would say it's you know, it's if you give people more time and of course, a better way of living and improve their economic situation, they arguably are living in one of the best places they could.

MM: What have you got going on at the moment? What is the next 12 months or so look like for for your team and our future cities?

RF: At the moment, we are we are actually looking into the student accommodation space. We're looking into, into forming better connections across Africa. So expanding the kinds of work and projects we're having in the next few months looking more than a sort of Pan African level. And then yeah, we're continuing a lot of our research on, you know, we were inspired, for example, one tiny project were inspired by London's colorful crossings, you know, how do you raise awareness around community safety, and I think London delivered about 18 of those art inspired pedestrian crossings.

So we're trying to sort of ramp up that project and get through the red Tech with the city on that. And, and the yellow is something that is closer to my arches. We're looking at a 2014 horizon, infrastructure and spaces and what the city might need in the longer term, but Yeah, watch the space and they're always at any one point. 10 or 15 projects, and I should probably organize my thoughts better to to sort of, to present the punchier ones.

MM: Good on you that it's meaningful work that you're doing. I think that's that's the key message. So it's an if people want to reach out to you follow along, see what projects you do have coming over the next few months, and what's the best way for them to connect?

Yeah, so they could follow our future cities on Instagram, Facebook, Twitter, and then they could even just connect with me on my personal LinkedIn as well.

What is active travel as a healthy building strategy?

Image courtesy of Active Score case study / Castlemead

Healthy buildings and active travel

The active travel concept is now well established within the healthy buildings movement. Essentially it’s about supporting micro-mobility, and the facilities that such forms of transport to and from a building require from a landlord or developer.

Micro-mobility includes jogging, cycling (be it on a standard, folding, or baby carrier bike) and e-scooters.

Supporting this active travel concept as a sustainability minded real estate developer equates to increasing the quality and range of on-site facilities available for active commuters as a way to encourage them away from private vehicle use or public transport.

All of this feeds neatly into additional green building and healthy building certifications but may require additional expertise beyond that offered by an architectural studio in order to truly future-proof a building in anticipation of further growth in active commuting - that is where ActiveScore and their community of ActiveScore Accredited Professionals can help.

See our 9-point guide to healthy buildings here.

how does active travel relate to real estate ‘esg’?

Environmental, Social & Governance strategies for a real estate asset are now a fundamental part of any forward thinking developer’s plans. By promoting active travel to/from a building, there are tangible reductions in CO2 emissions as less people rely on their own vehicles or public transport to travel to and from work.

By taking action to deliberately foster a community of active commuters, opportunities are created for social bonding and interaction, especially important in an era when working from home has become a viable alternative option to office life.

The health and wellbeing benefits, both physical and mental, are obvious - getting to work on foot, by bike or even on an e-scooter is simply a more positive experience in many ways than taking a busy tube or bus, even sitting in rush hour traffic.

Finally, the Governance piece involves a landlord / building management team taking responsibility for communicating the services and facilities they have available to all occupants, both new and existing, by leveraging a smart building app for example.

What is Active Score for Active Travel?

Based on the principle that a building’s health and wellbeing facilities are a strong driver of desirability for a potential tenant, and their workforce, the Active Score Certification offers a set of standards that help landlords, leasing agents and indeed prospective tenants know what a specific building offers by way of active travel facilities.

The certification is broken down by 70% infrastructure, 20% occupier engagement services and 10% future proofing. Benchmarks are taken against the WELL Building Standard, BREEAM and a local borough’s planning guidance.

In the first instance, a lack of basic facilities such as showers, parking and lockers can prevent cyclists, runners or those with an e-scooter from making their own way to work, thereby placing extra pressure on the roads, specifically in the form of public transport and car usage.

The impact of Covid has in fact meant a boom in the use of such micro-mobility options, so this is a particularly interesting time for commercial real estate developers to be dialling up on their active travel facilities in an office or mixed-use building, for example.

Occupier engagement services meanwhile can include bike repair on-site, cycle training, creating a cycling club and so on.

What is Active Travel Score?

Active Travel Score was set up by James Nash in the UK, we interviewed him for our Green & Healthy Places podcast here. He’s a serial entrepreneur in the cycling sector and the man driving the company today. A number of different ‘scores’ are on offer, from the basic 'Certified to Silver, Gold, Platinum and Platinum 100.

In 2021 they certified 85 buildings in eight countries. Amongst them was 100 Bishopsgate, a 181m high building in central London developed by Brookfield Properties. It received a perfect Platinum 100 score thanks to its dedicated Active Commuter Park (ACP) and extensive occupant facilities making it arguably THE reference point for healthy buildings and active travel in the UK today.

Adopting ActiveScore equates to engaging with them in one of three ways. Firstly, a basic level building certification for a minimum period of two years. This includes recommendations on how to improve the assets’ overall active travel friendliness, including infrastructure and soft measures, to ultimately make it a more healthy building

A second option includes all of the above with the addition of a consultation with an ActiveScore surveyor - including advice on the building’s existing plans and product specification.

Finally, the team can take a more proactive, design-lead approach by providing detailed drawings of active travel facilities, active travel product specification and advice on look and feel of the active travel area. In other words, they do the leg work for you, whilst also ensuring the building is maximized for wellbeing credits in WELL, BREEAM, etc. in the relevant active travel credit categories.

What is an ActiveScore Accredited Professional?

We recently completed the process of becoming an ActiveScore Accredited Professional and found it to build very much on such green building and healthy building certification standards as WELL and FITWEL, as well as LEED and BREEAM, so having prior knowledge of some or all of these is a considerable advantage. You will hit the ground running in other words, rather than coming at this subject completely fresh.

As an ActiveScore AP one is responsible for marking a project for its active mobility credentials, topics include the number and variety of bike and e-scooter parking spaces, security measures in place to protect them, the extent of the shower facilities and related services, community building efforts around active commuting amongst building occupants, the look and feel of such parking areas as well as their location, ease of access, and so on.

ESG strategy - real estate development fund

how to create a real estate esg plan for real estate developers and investment funds

PHASE 1 / REAL ESTATE SUSTAINABILITY INVESTOR PACK (SIP)

Objective - Deliver an investor pack detailing the company’s existing sustainability credentials, how the business will limit its environmental impact going forward and promote human health both internally in its factories and in its modular properties.

This phase is about capacity building and setting a baseline for the work to follow in Phases 2 and 3. It is both a snapshot of the business’s existing sustainability credentials and a statement of intent for what is to come.

Key activities -

• Internal stakeholder soundings: over the first two weeks we will e-meet with relevant stakeholders within the company to take stock of the current sustainability context and evaluate opportunities for future strategies, this will also lead into building the supply chain map

• Environmental decision making: creation of a Sustainability task force, appointment of a senior Sustainability decision maker and consideration for personnel Sustainability incentives to foster a company culture of sustainability

• Environmental policy development: a strategic document that outlines your environmental principles, priorities and objectives over the short (Phase 2), medium (Phase 3) and long-term. To align with GRESB best practices this SIP will consider the following: biodiversity, climate change, energy consumption, Greenhouse Gas Emissions, Indoor Environmental Quality (IEQ), material sourcing, pollution prevention, renewable energy, resilience, sustainable procurement, water consumption, waste management, the sustainable workplace and other CSR activities. 

• Making the sustainability case for this particular business model: a robust business case for why this particular business model comes with distinct sustainability credentials, as well as what metrics can be used to quantify the future impact and value created by the company in this regard. 

• Sustainable supply chain material map: a blueprint for further due diligence and opportunities to introduce sustainable building materials while maintaining existing quality / price expectations, including LifeCycle Assessment (raw material production, transportation, in-use, end of life). The resource will include a material map, proposed supplier compliance standards aligned to industry frameworks, identification of supplier engagement opportunities to enhance environmental and social impact. A map of raw material suppliers’ GHG emissions estimates (Scope 3 emissions = value chain impact). NB: this work will be further refined in Phase 2.

• Product design enhancements: having reviewed your current modular product, we will make an initial set of recommendations for alignment with sustainability best practices, e.g. USGBC LEED Multifamily

• Environmental baseline & capacity building: establish a baseline for measurement once the company is operational (factory and construction site), building the capacity and processes for capturing the environmental impact in Phase 2.

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PHASE 2 / REAL ESTATE SUSTAINABILITY PLAN ROLL-OUT 



Objective - Implement and iterate the environmental policy laid out in Phase 1, establishing the company’s environmental responsibility program to conserve natural resources and reduce waste while promoting planetary and human health at each stage of the design, manufacturing and construction cycle. Begin initial tracking of operations.

KPIs - Carbon footprint reduction; embodied carbon reduction; energy reduction; water reduction; waste reduction; renewable energy use (?), sustainable supply chain enhancements, product design enhancements

Key activities -

• Stakeholder engagement: Connect with facilities management, architecture, design and MEP teams, construction team, external suppliers

• Energy, water and waste efficiency: Ongoing data collection, this would include office metering, factory metering and construction site metering, as applicable during this 6-month phase, leading to efficiency measures in line with USGBC LEED green building guidelines

• Carbon footprint & embodied carbon: Map Scope 1 and 2 emissions for the manufacturing facility energy / water / waste consumption once operational, review machinery efficiency certifications, then implement an initial range of embodied carbon reduction measures (focused on the dominant construction materials in the case of embodied carbon), evaluate carbon offset options for other emissions. Identification & tracking of GHG (Scope 1 & 2) operations via energy bills, property, transportation fuel, machinery/equipment

• Sustainable Supply Chain Materials: Life Cycle Assessments of materials with greatest impact, research into alternative building materials; evolution of a sourcing and procurement plan that prioritizes proximity and minimal environmental impact (with due consideration for quality and price expectations) - please note there is the opportunity to build upon this Environmental-oriented work with additional Social / human wellbeing and Governance / policy criteria here (for example in an eventual Phase 3, if appropriate) 

• Product design enhancements: Ongoing proposals for environmentally-friendly design features in line with USGBC LEED guidelines that will enhance the sustainability credentials of MLS and each of its development projects

• Sustainability management software: In the second half of Phase 2, there may be sufficient data pulling through each month to warrant a sustainable data management software subscription, initially we plan to manually collate GHG data, for ongoing data management efficiency however we would recommend evaluating / testing a software solution such as Planetly or Sustain.Life, for this allow approx. US$1k per month

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environmental policy in esg real estate

Objective - effectively managing the company’s environmental responsibility, conserving resources and reducing waste while continuing to deliver the highest-quality sustainable products to customers 

KPIs - carbon footprint reduction; embodied carbon reduction;; energy / water / waste reduction; renewable energy use; # of homes built with a certified HERS® Index Score; % of installed water fixtures certified to WaterSense® specifications; # of homes delivered certified to a third-party multi-attribute green building standard

Key activities 

• Data collection: GHG emissions inventory; energy / water / waste management; 

• Life Cycle Assessment: Sourcing of building Materials 

• Environmental impact assessment / ecological impacts 

• Sustainability initiatives: Energy / water / waste reduction; carbon footprint & embodied carbon reduction; materials selection; product design ; climate change mitigation 

• Environmental policy development 

• Certifications: WGBC Net Zero Carbon Buildings Commitment, USGBC LEED Commercial Building Operations & Maintenance (costed separately)

• ESG management software / resources - Measurbl (approx. US $17k per annum) ; emissions calculations, certification support, target setting, reporting aligned to Task Force on Climate Related Financial Disclosures / TCFD, GRESB, Carbon Disclosure Project / CDP 

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social policy in esg real estate

Objective - creating a diverse, inclusive and safe workplace that empowers employees to deliver the best results for our customers. Increasing access to high-quality, affordable sustainable homes . Leveraging the company’s talent and resources to support social impact and community development work. 

KPIs - workforce demographics, Total recordable incident rate (TRIR) and fatality rate, employee satisfaction, $ invested in social impact, # of volunteer hours, # of beneficiaries of social impact work, # of homes sold to qualified low-income customers, average # of training hours completed, # of employees trained  

Key activities 

• Human capital management strategy - Diversity, Equity & Inclusion,  talent acquisition, career development & training, employee engagement & recognition 

• Health & safety strategy - education, training and auditing, including Indoor Environmental Quality (IEQ)

• Social impact strategy - partner selection, impact measurement, employee volunteering, corporate giving,  examples: partnership with Habitat for Humanity provide products + employee volunteering; special financing for low-income qualified customers 

• Employee engagement survey 

• Stakeholder engagement - materiality assessments, impact assessments, stakeholder consultations and discussions 

• Building Certifications -  e.g. WELL / FITWEL / RESET AIR (each costed separately)

• ESG management software - e.g.Brightest Platform - impact measurement, stakeholder engagement, volunteering, supply chain environmental management (approx. Us $6k per annum)

governance policy in esg real estate

Objective -  promoting the highest standards of transparency, integrity, and trustworthiness while maintaining a culture of ethics

KPIs - # of employees trained on ethics, # of security breaches, total diverse supplier spend, total hours of training provided to suppliers 

Key activities 

• Policy development - corporate governance guidelines, code of conduct, supplier code of conduct, data privacy and security, procurement strategy 

• Enterprise risk management program - include climate risk associated with the business 

• Responsible supply chain management program - supplier conduct, ESG requirements, supplier diversity, auditing, sustainable material sourcing 

• Compliance training and monitoring 

• Data privacy and cybersecurity - customer data protection 

• Reporting to stakeholders - annual report, ESG report (GRI US$6k, SASB, TCFD-aligned), GRESB benchmarking (costed separately)

• ESG management software - Workiva for compliance reporting and policies (US $1k / annum per user)
  
  

ESG Community - supporting Social Enterprises

ESG - procuring from local social enterprises

boutique real estate esg

For our real estate development fund client in London we implemented a comprehensive series of social enterprise partnerships as part of a community outreach program, many of these changes also have a positive impact on creating a healthy office whilst creating goodwill amongst employees and financially supporting those in need, both directly and indirectly.

Handwash and soaps come from The Soap Co, manufacturers based in East London of vegan, cruelty free, natural and certified plastic-free products that also create jobs for the blind (hence the subtle use of braille in their branding), disabled or otherwise disadvantaged.

These products are of high quality, have minimalist packaging so look perfectly at home in corporate work environment, whilst still subtly communicating their social purpose. A perfect balance between form and function.

ESG plan - ethical coffee supplier for the office kitchen

Fairtrade, organic coffee is supplied by Cafedirect, an award-winning B Corp business owned and led by smallholder farmers via seven supporting partnerships in Peru and Africa.

Cafedirect were the first to become Fairtrade certified back in 1994 and have developed home compostable packaging solutions. A London Fields-based social enterprise we were proud to support.

ESG plan - ethical water supplier for meeting rooms

Mineral Water is now supplied by BELU that give 100% of net profits to WATERAID to support the provision of clean water and hygienic toilets to disadvantaged communities around the world. BELU are also carbon neutral, use 100% recyclable packaging, lightweight ethical glass that is 35% lighter than normal and use recycled plastic bottles.

ESG plan - ethical office fruit supplies

Office fruit boxes are supplied by Fruitful in Croydon, in biodegradable packaging - a company devoted to making healthier workplaces, donating any food waste to local food charities such as zoos and nurseries, as well as planting one tree in Africa for every box delivered.

ESG plan - ethical office stationery supplier

EthStat is an ethical stationery cooperative that gives away 100% of its profits to charity and has developed an ethical, environmental supply chain of everyday office products. They are fully carbon neutral and have banned the use of all single use plastics in the business. We were pleased to support them with a regular office supply purchases.

Contact us to discuss how we can help you implement an ethical procurement plan for your business.