In response to the Minimum Energy Efficiency Standard regulations in 2015 (MEES), the sustainability team developed a management strategy to assess portfolio risk.
The aims were not limited to risk assessment and included identifying opportunities for improved environmental performance through energy efficiency, reduced operating costs, reduced emissions and enhanced property value.
A key challenge for meeting these aims was accessing reliable data – cost-effectively and at scale – to inform investment decisions.
The REIT used arbn estates to create an Asset Register for energy data and provide a risk assessment.
Building models (xml data files) were accessed from Energy Assessors and directly from the Landmark website and bulk uploaded to the platform for analysis. Asset data and lease expiry dates were also bulk uploaded for each fund.
Using lease expiry, geography, existing EPC rating and re-simulated EPC rating, properties were classified as being at immediate risk, potential medium-term risk, potential hidden risk and no apparent risk.
The EPC Audit tool was used to determine which properties required an updated EPC. A high proportion did not require an updated EPC due to the data available in the building model being of a sufficient standard for analysis in the platform. This saved the considerable time and cost of instructing updated EPC assessments.
From this, properties with suitably up to date EPCs were prioritised for either preliminary scoping or options appraisal.
For selected priority buildings selected, the arbn consult tool was used to simulate up to 6 costed energy improvement strategies for each building. An Asset Energy Report was generated including a comparison of compliance routes with description of improvement measures, cost of implementation, the expected energy savings, expected CO2 reduction, discounted payback and impact on the EPC rating.
This informed decision-making for retrofit works to bring properties out of risk.
Outcome & Benefits
Deployment of technology to analyse asset data at scale enabled :-
- Cost-effective risk analysis of portfolio.
- Prioritisation of at-risk properties for further investigation and action.
- Selection of properties for options appraisal.
- Informed investment decisions on the most appropriate compliance route.
- Enhanced portfolio resilience.
- Contribution to reporting on emissions reduction targets as part of Responsible Property Investment (RPI) strategy.