News

The City of Westminster has recently  launched a partial review of their adopted City Plan 2019-2040^[1]  which introduces a new policy that prioritises retrofitting over new construction. 

Policy 43 – ‘Retrofit First’ aims to support the city’s goal of net-zero by 2040. Envision has reviewed the draft policy, including the supporting Topic Paper ‘Retrofit first and reducing embodied carbon’ ^[2] which supports the consultation, and draws conclusions on this new policy and its implication on development within Westminster. 

“We will not reach net zero without a significant shift in how we view development.

That is why we are introducing one of the nation’s first retrofit policies, promoting sustainable growth by encouraging commercial and residential buildings to be refurbished to the latest standards rather than demolished and replaced with new ones. The policy supports the great work the real estate industry has done to understand how to repurpose buildings to be eco-friendly and attractive to investors, office-workers and people looking for a new home.”

Quote from Cllr Geoff Barraclough, Cabinet Member for Planning & Economic Development

Key Points of the Retrofit First Policy

• Prioritising Retrofitting over Demolition:

Policy 43 requires developers to thoroughly explore retrofitting options before considering demolition. This aims to reduce the environmental impact that would otherwise occur from new developments, by conserving resources and lowering whole life carbon emissions. 

The Policy requires applicants to prepare a mandatory ‘Retrofit Plan’ which must accompany the Sustainable Design Statement for all applications which create new floorspace and/or proposals which involve extensive works to retrofit existing buildings. The retrofit plan should summarise how the retrofit policy has been complied with, including the justification of the following policy points: 

1. The proposed development will deliver public benefits which could not be delivered through a suitably comparable retrofit option; and
2. The whole-lifetime carbon of a new building would be less or similar to a suitably comparable retrofit option; or
3. The proposed development has bespoke operational requirements which could not be provided through the repurposing, adaptation and/or extension of the existing building(s); or
4. It is demonstrated that a retrofitting option is not possible or achievable due to structural constraints, demonstrated through an independently verified structural engineers report.

• Setting Embodied Carbon Targets:

The policy itself prioritises retrofit but still has requirements for new developments where retrofit isn’t possible (and this has been thoroughly justified). As such, a mandatory whole life-cycle carbon assessment along with embodied carbon targets have been introduced for new developments involving total substantial demolition of a building which has more than a single storey. This follows the GLA’s approach of undertaking a Whole Life-cycle Carbon Assessment (WLCA), however the topic paper ^[2] that supports the consultation on this policy, highlighted some of the weaknesses with the GLA’s embodied carbon targets, specifically when it comes to retrofits. 

The topic paper highlights that the average embodied carbon of new build in Westminster is around 700 kgCO₂e/m², which is significantly less than the London Plan Guidance (LPG) benchmarks of 900 kgCO₂e/m² and is nearing the LPG aspirational target of 600 kgCO₂e/m². It also calls out that these targets may not actually align with the pathway to net-zero by 2040 – as is Westminster’s target. 

The paper provides recommendations to set more ambitious embodied carbon targets, which align with the council’s carbon reduction pathway identified by the Tyndall Centre in 2023. The actual targets that have been included in the Policy have instead opted to align with the LETI banding, which are widely recognised benchmarks within the industry. These targets are currently only proposed for upfront carbon, which covers emissions up to practical completion of the project. Depending on project size and typology, the Policy sets an absolute minimum rating of “B” (non-residential & residential below 18m) or “D” (residential above 18m) with “A” or “C” respectively being encouraged as targets. 

Unfortunately these targets do not seem to be ambitious enough to align with the Net-Zero by 2030 pathway, as identified within the topic paper, but are at least more ambitious than the LPG benchmarks. 

• Encouraging Recycling and Reuse:

Where demolition is unavoidable, the policy emphasises that maximising the recycling and reuse of materials to minimise environmental impact. This supports broader goals of reducing waste and promoting a circular economy. Policy 43 includes a requirement for applicants to submit a Circular Economy Statement including a pre-redevelopment audit and pre-demolition audit, which demonstrates how materials will be reused and repurposed. This aligns the City of Westminster’s plan further with the GLA, however this policy could be enhanced further by establishing a reuse target for a specified percentage of demolition waste. 

Based on our experience, setting a target of approximately 10% for direct reuse of demolition materials (either on-site or off-site) is a practical starting point. This target could be gradually increased over time and would help boost the availability of materials in the second-hand market, which would further promote a circular economy.

• Balancing Sustainability with Heritage Preservation:

Westminster’s rich architectural heritage is taken into account, with the policy supporting the retrofitting of historic buildings. This includes integrating modern energy-efficient technologies like heat pumps, insulation, and solar panels while preserving the historical and architectural integrity of these structures.

Conclusion

Overall, the City of Westminster’s new “Retrofit First” policy represents a step forward in the current guidance, and further aligns with their commitment to sustainable development and net-zero by 2040.  Although there are areas for improvement, such as establishing specific reuse targets for demolition waste and more ambitious embodied carbon targets, the  policy is a significant step forward for sustainable development in Westminster.

Envision provide expert advice in the life cycle assessment of buildings, including whole life carbon and circularity assessments. We are able to support developments within the City of Westminster by providing ‘Retrofit Plans’ alongside pre redevelopment audits and Circular Economy Statements, to support alignment with the emerging policy. 

ENDs

[1] https://westminster.moderngov.co.uk/documents/s59268/Appendix%201.pdf

[2] https://www.westminster.gov.uk/media/document/retrofit-first-topic-paper 

Introduction:
Envision has recently been working with Bizspace, who provide flexible workspace client facilities for let across the UK. This initiative is focussed on improvement of the EPCs within their portfolio to a minimum rating ‘B’ and spans multiple locations across the UK. Our commitment to energy efficiency and environmental responsibility is shown in the enhancements made to office spaces, industrial storage units, retail outlets, and workshop spaces We have incorporated cost analysis and levels of inconvenience to tenants within these assessments in conjunction with our partners on this project, Total Project Integration (TPI) Ltd.

Site Overview:
The BizSpace EPC Improvements project involves a diverse portfolio of locations, each presenting unique challenges and opportunities. Despite the variance in site uses, age and condition our dedicated team of energy experts navigated the details of each building to optimise energy consumption and increase the Energy Performance Certificate (EPC) rating.

Scope of Work:
The primary goal of the work is to improve the EPC rating of each location to a ‘B rating.’ The scope of work included a comprehensive EPC analysis, featuring site surveys, energy modelling, and thermal modelling analysis using Designbuilder. This approach was applied across all locations, ensuring a consistent and effective strategy.

Execution:
Site surveys provided real-world data, energy modelling allowed for scenario simulations, and thermal modelling analysis pinpointed specific areas for improvement. This harmonious blend of technology and hands-on expertise was needed to ensure the success of our planned interventions.

Tailored Solutions:
Recognising the unique characteristics of each location, our team implemented bespoke energy improvement measures. From the office spaces in Manchester to the commercial workshops in Hebburn, our tailored approach maximised the operational carbon impact of the energy performance interventions, achieving optimal results for each unit.
These initial proposals will be followed up with a more detailed concept design which will allow TPI to approach contractors for competitive tenders and achieve the most cost effective solution for Bizspace.

Cost Analysis:
Understanding the financial considerations of our clients, a thorough cost analysis was conducted in conjunction with TPI. This is not only involved estimating the capital costs of improvements but strategically evaluating potential cost reductions. The result is a roadmap for sustainable and cost-effective EPC improvements across all BizSpace locations.

Significance and Impact:
The BizSpace EPC Improvements project is not merely a collection of isolated efforts but a cohesive initiative between the Envision team, TPI and most importantly our client Bizspace, contributing to the UK’s net-zero targets. By enhancing the EPCs of multiple locations, BizSpace plays a crucial role in the nation’s engagement against global warming and climate change. Envision’s work with BizSpace exemplifies our dedication to creating a built environment that aligns with sustainable practices and supports our efforts toward a greener future.

Conclusion:
Envision’s BizSpace EPC Improvements project stands as a huge effort in transforming diverse portfolios into energy-efficient occupied spaces across the UK. Our dedicated and passionate energy experts efforts expect to leave a mark on the built environment.
Should you or your client have any EPC or energy improvement targets for your building or portfolio you can get in touch with our Director of Energy and MEP Engineering Ciaran Dorrity for more details.

What is MEES?

Non-Domestic Energy Performance Certificates (EPCs) serve as a good starting point in understanding a commercial building’s energy efficiency. Unlike domestic EPCs, the rating is based on the estimated carbon emissions of the building and is given a rating from A+ to G, with A+ being the most efficient and G being the least efficient.

A Non-Domestic EPC has been a requirement for the marketing of a commercial property since 2008 and each EPC is valid for 10 years. However, in recent years the UK government has acknowledged the built environment as a major contributor to Greenhous Gas (GHG) emissions and has aimed to improve the quality and energy efficiency of the worst performing privately rented houses and buildings through the introduction of MEES.

The Minimum Energy Efficiency Standards (MEES) was first introduced in 2015 by the Energy Efficiency (Private Rented Property) (England and Wales) Regulations 2015 with the aim of ensuring commercial properties meet minimum energy efficiency levels to help the UK meet its 2050 Net Zero pledge. As of April 2018 it became unlawful for landlords of buildings within the scope of MEES Regulations to renew existing or grant new tenancies if the building has less than the minimum EPC rating of E. This has recently been changed in April 2023, meaning landlords can no longer continue to let any building which have an EPC rating less than E.

Future Projections 

Since the introduction of MEES it has always been anticipated that the bar will be raised. In the energy white paper Powering our Net Zero Future (2020), the government confirmed that the future trajectory of MEES in relation to commercial property will mean an EPC rating of B will be required by 2030, where cost effective.

This requirement is expected to be phased in with an interim milestone of an EPC rating of C by 2027. Although it is important to recognise that this proposal, which was subject to consultation by the Government in 2021, is still not adopted. At the time of the consultation, it was anticipated that the government would publish responses in late 2021 with a view to amend regulations which are due to come into force on 1 April 2025. To date no government responses have been published, raising doubts about whether it will be realistic to impose an interim milestone for 2027.

Should this be adopted, it will be a requirement that landlords must provide a valid EPC with the correct rating as of April 2027 and 2030 respectively, or face penalties. This expected trajectory of changes to the regulations means landlords will now have to future proof their buildings against this. This will either have to be done during a new building’s design stages or through retrofit measures in existing properties. The uncertainty is leaving many in the industry confused as to whether these standards should be applicable, and what impact this should have in negotiations on property transactions. 

Why MEES and EPCs Ratings Matter

Environmental Impact – The introduction of MEES and the required higher EPC ratings helps reduce a buildings carbon emissions by improving its energy efficiency. More efficient buildings will produce less GHG (through reduced electricity and gas consumption) and help combat climate change and its connected environmental impacts. According to Savills 2021 research article ‘Operational Carbon – a focus on energy efficiency’, in equivalent sized dwellings each EPC rating climbed represents around a 30-40% reduction in CO₂ emissions per year on a diminishing scale.

ESG Requirements – Investors are demanding high EPC ratings as part of their ESG requirements. High EPCs align with EU Taxonomy and are supported in ESG disclosures, such as the Global Real Estate Sustainability Benchmark (GRESB). Also, by ensuring higher EPC ratings it can enhance the long-term sustainability of a property portfolio and meet stakeholder expectations, whilst complying with emerging MEES regulations and avoid stranding risk.

Enhanced Property Value – Higher EPC ratings can enhance the value of properties. This is due to a higher EPC rating correlates with the building being more energy efficient, resulting in reduced operational costs. Energy efficient buildings are more attractive to potential buyers or tenants and an increase form a G rating to an A rating could increase the property value by up to 14% (MoneySuperMarket, 2022)

How can Envision Help?

There are practical ways in which EPC ratings can be improved including the adoption of efficient lighting, more efficient electrically – led heating systems; the addition or replacement of better performing insulation, use of renewable energy sources and more efficient ventilation. Ensuring non-domestic buildings operate as efficiently as possible and improve their carbon footprints is critical in assisting the UK’s net-zero targets. Envision offers property owners technical guidance on the most efficient and cost-effective ways to improve their buildings EPC ratings. We regularly carry out surveys of existing buildings and provide EPC improvement studies across a range of building types, providing a tailored solution that best aligns with our clients ambitions.

We politely request that recruitment agencies do not contact us regarding this position.
We are currently seeking a Senior Sustainability Consultant to work within our sustainability team, based in our office in central Oxford (with flexibility to work remotely 2 days a week and opportunities to work from our London office when needed). The position is an immediate start.

The Company

Envision is a leading sustainability and energy consultancy that provides specialist support towards sustainability within the built environment. Unlike many sustainability consultancies that have developed as a ‘support service’ to larger practices, Envision specialises in providing end-to-end support to its real estate clients. We pride ourselves on fostering a flexible, creative and fun working environment.

We work with a diverse group of clients, ranging from leading private and publicly listed development companies, real estate funds, institutional investors, hospital trusts, universities, and national infrastructure providers. Our support tracks the lifecycle of these projects, where we ultimately help to deliver our client’s visions by working alongside contractors.

We bring together a range of technical disciplines to advance sustainability throughout the built environment, from investment, to planning, right through to build-out with an ‘end-to-end’ sustainability approach, unique for a company of our size. Envision’s services include the provision of a full range of sustainability deliverables, employing energy consultants, specialist life-cycle assessors, building services engineers, licensed BREEAM Assessors and Accredited Professionals, WELL Accredited Professionals and licensed NABERs Assessors. We take a pro-active approach to projects and support development projects with close and tailored support. Our pragmatic and hands-on approach means that we are retained by some of the largest UK property funds, publicly listed developers and property agents as well as leading construction contractors.

We are actively engaged in some of the industry leading bodies developing pioneering approaches to net-zero, including the UK Net-Zero Building Standard and UK Green Building Council task groups.

The Role

This is an excellent opportunity for an experienced sustainability consultant looking to take the next step in their career. You will join our growing team to work on a diverse range of projects in the UK and internationally, with responsibility for delivering your own projects and working with the team across both the Oxford and London offices. The role will focus on the delivery of BREEAM; from feasibility work and planning support through to certification. In addition, depending on your technical background, the role will offer wider opportunities, e.g. energy modelling, LCA, sustainability & energy statement and Net-Zero strategies.

Working closely with colleagues of various disciplines across both offices, you will take the lead on BREEAM and sustainability projects – developing concepts, reports and presenting to clients. You will ensure the successful delivery of innovative sustainable and low-carbon design solutions to quality standards and deadlines. You will receive continual support from more senior members of staff, along with access to our in-house training programme allowing you to continue your professional development.

This role will enable you to have an impact across a variety of sectors in the built environment, with the opportunity for greater levels of responsibility and autonomy. This is a pivotal role within our growing company, and we are looking for someone with the right skills and experience to champion BREEAM and wider sustainability within Envision.

About You

Educated to degree level in the field of sustainability and environmental science, you will have gained significant demonstrable experience in a sustainability consultancy role within the built environment. The successful candidate should be highly motivated, possess excellent communication skills and look to develop their ongoing professional qualifications.

Essential Requirements:

• 3-5 years’ experience in a similar sustainability role (although applications from exceptional
  candidates with less experience will also be considered).
• Experience of working on BREEAM assessments through to certification, with BREEAM
  Assessor and/or BREEAM AP qualification.
• Good communication/presentation skills and excellent report writing skills.
• Understanding of client requirements/project objectives.
• Good knowledge of the sustainability related statutory legislation, standards, and drivers in
  the construction industry.
• Hold a full UK driving licence.

Preferential:

• Knowledge and experience of applying one or more of the following:
  • Life Cycle Assessment methodologies.
  • Home Quality Mark.
  • WELL/FitWel assessments.
  • Part L & Dynamic Simulation Modelling.
  • Energy & Sustainability statements in support of planning

Benefits: Company health insurance and pension, social events, flexible working.
Contract: Permanent.
Location: One St Aldates, Oxford, OX1 1DE

How to Apply

Please send your CV and a short description of your career expectations, any relevant experience and pertinent information about yourself by mail to Envision, 8-9 Stephen Mews, Fitzrovia, London, W1T 1AF or by email to joinus@envisioneco.com

March 2024

The UK Green Building Council (UKGBC) has unveiled a comprehensive framework for the measurement and reporting for the retrofit of commercial buildings. This framework is designed to furnish businesses with a standardised methodology to prioritise the retrofit of existing assets to net zero, while ensuring they have long-term strategies in place that maximise co-benefits and minimise unintended consequences. Thereby supporting the nation’s commitment to achieving net-zero targets.

Retrofitting is the process of upgrading or modifying existing structures. This can be done to improve energy efficiency and reduce carbon emissions through operational energy performance as measured using an EPC, whilst accounting for whole life carbon emissions, and projected returns on investment. The benefits of retrofitting extend beyond immediate energy savings to the owner/occupier, and can accommodate advancements in health, wellbeing and social value.

Through this report, UKGBC shows the importance of retrofitting office buildings to achieve a 59% reduction in energy consumption within this sector by 2050 to meet UK net zero targets. This methodology is highlighted in the three options below, which offer tangible benefits in terms of cost savings, environmental responsibility, and improved working conditions, making it an important choice for building owners and businesses alike.

Optimisation – BMS upgrade / health check. • Reduce tenant equipment loads.

Light Retrofit – Pump motor replacement •Lighting controls •Low energy lighting

Deep Retrofit – Roof insulation •Building airtightness •Wall insulation •Window replacement • Decarbonisation of heat (ASHP) •ASHP for DHW

Figure 1. UKGBC finds significant opportunities being missed to retrofit commercial buildings | UKGBC

Significant reductions in operational energy use are possible through both optimisation and light retrofit (26% and 15% respectively or 37% combined), which generally include the most cost and carbon-effective retrofit measures. Optimisation and light retrofit can be landlord or tenant-led, and success depends on effective collaboration between all stakeholders. Deep retrofit is generally required to achieve significant cuts in operational energy use (60-65%), involving more substantial upgrades to a property. 

Importance of retrofitting in the built environment 

The UKGBC’s framework provides valuable insights for asset-owning businesses or individuals concerned about understanding the physical risks of climate change. It creates awareness for building owners and stakeholders who may not be fully aware of the benefits of retrofitting, or the potential funding opportunities available to support this. Average retrofit projects being carried out at this time are not reaching the reductions in operational energy performance required to meet top-down sectoral net zero targets. Efforts need to be redoubled and ambitions raised, to ensure the decarbonisation potential of future retrofit opportunities are realised. 

Large commercial building stakeholders possess the potential to lead by example in implementing retrofit strategies, to improve energy efficiency and contribute to the reduction in energy consumption within the office sector. Addressing these challenges will require a holistic approach, involving collaboration between government bodies, industry stakeholders, and guidance frameworks such as this UKGBC one, to create an environment where  retrofitting office buildings is at the forefront of businesses. 

Key considerations for our clients

The UKGBC’s framework highlights the importance of long term optimisation because it will change the way we use our offices, as building performance is balanced with employees’ health and wellbeing, shifts in flexible working, and alternative approaches to how, when, and where we work. Collaboration across all stakeholders is key to ensure all parties are invested in a net zero focused outcome, and that any unintended consequences of workplace shifts are fully considered. It represents a strategic investment, yielding financial savings, environmental advantages, and enhanced overall building performance, as delineated in the ten proposed strategies:

1. Efficiency: Installation of modern technologies to reduce energy consumption and operational costs.
2. Environmental Impact: Lowering carbon emissions and minimising the ecological footprint.
3. Cost Savings: Long-term energy and operational cost savings.
4. Compliance with Regulations: Ensuring adherence to evolving environmental regulations and building codes.
5. Improved Comfort and Productivity: Enhancing indoor environments for occupants, positively impacting well-being and productivity.
6. Increased Property Value: Conforming to evolving standards to avoid penalties and legal issues.
7. Adaptation to Changing Needs: Reconfiguring spaces to accommodate evolving requirements and technologies.
8. Technological Integration: Incorporating smart building technologies for enhanced operational efficiency.
9. Long-Term Sustainability: Integrating sustainable practices for enduring building management.
10. Government Incentives: Availing incentives and subsidies to offset initial costs and promote sustainable practices

How can Envision help? 

Retrofitting office buildings is imperative for addressing energy efficiency, carbon emissions and the evolving needs of businesses. Envision offers asset-owning businesses guidance in assessing and measuring the physical risks of climate change by establishing Net-Zero Pathways and Strategies, Asset Decarbonisation Plans, EPC Improvement Studies, BREEAM-In-Use benchmarking  and Life Cycle Assessments, all of which support portfolio level disclosures such as GRESB Our services align with the reporting requirements set forth by the UKGBC framework, empowering clients to make informed decisions for the future.

Phoebe Charnley

Launching our new ‘Healthy Buildings Guide’

The onset of the coronavirus pandemic and the subsequent move back to office working has placed a spotlight on the importance of healthy buildings. Companies are increasingly prioritising spaces with credentials that support the well-being of employees. Sustainable development, meeting present needs without compromising the future, aligns with the broader concept of well-being – providing mental and emotional, social, and physical resources to face current and future challenges.

To guide us through these challenges, Envision has developed a comprehensive Healthy Building Guide. The guide defines the three pillars of healthy building design as physical health, social health and mental & emotional health, and how these should be explored holistically with the aim of designing and delivering more people-centred and health-enhancing places.

The guide also includes a useful comparative matrix of various Healthy Building accreditations prevalent in the UK market, as well as exploring how these align with established green building certifications like BREEAM.

Crucially, the guide emphasises the integration of healthy building principles across the building’s life cycle, and recognises the synergy between sustainable practices and the wider environmental, social, and governance (ESG) framework. Amidst the myriad sustainability and healthy building jargons prevalent in the market, Envision grounds these concepts in real-world design solutions.

Read our Healthy Buildings Guide.