Green issues

BedZED Eco-community development, Beddington, Surrey, England

Sustainability – the property industry must take the lead

We have now reached the ‘tipping point’ in the sustainability agenda, which is gaining ground with astonishing speed. Global warming and a raft of new legislation are changing attitudes but have we really seen the light, or are we just jumping on the bandwagon?

Al Gore’s compelling documentary,‘An Inconvenient Truth’ helped get the message home.We are in danger of environmental conference overload with ‘Think’ and Adrian Wyatt’s brain-child,‘Building a Low Carbon World’ in the space of one week. From being considered radical, sustainability is now accepted not just as mainstream, but as the issue of our time – not a green whim that will go away. Buy into the green agenda or not, developers have no choice but to take notice since sustainability is key if you want to obtain planning consent.The redraft of the London Plan has accelerated the position, setting new standards for on-site renewable energy. Ken Livingstone, who aims to make London a world leader in low carbon development, freely admits that getting renewable energy right will take priority over affordable housing.

Quintain, a leader of the sustainability revolution, has teamed up with Bioregional, (33% owned by World Wildlife Fund) who follow the one planet philosophy. If we continue to live wastefully in the UK, we will need three planets to sustain us (and if we all lived like the United Arab Emirates we would need 13.8 planets – Just look at the extensive development in Dubai!). Eco projects such as BedZED show where real energy savings come from – not from expensive technology but from car clubs and recycling. Food miles are major contributors to carbon footprints, so an allotment to grow food saves more energy than solar panels, which can take more energy to produce than they will ever save. Energy savings are destroyed by driving to the supermarket to buy out-of-season produce.The disquieting conclusion is that it’s not just about technology but real lifestyle change.

Landlords can only go so far without occupier cooperation – even the most sustainably built building can be used unsustainably. Environmental factors are becoming increasingly important to occupiers. GVA Grimley recently reported that sustainable office buildings give investors greater returns by facilitating tenant retention. This is good news, but will lower operating costs really translate into a higher rent for more sustainable buildings? Property Council of Australia CEO, Peter Verwer, believes that occupiers will not pay more for environmentally friendly buildings and it is more likely that poorer quality buildings will be downgraded. In embracing the green agenda, M&S CEO Stuart Rose recognises it is ‘better to lead than get dragged along by inappropriate legislation’.They have enlisted the British Research Establishment to advise on their store refurbishments and pledged to send no waste to landfill by 2012. Green measures include recycling vinyl flooring offcuts into traffic cones!

Here is a perfect opportunity for the property industry to take the lead, providing solutions that do not have an impact on the environment. Prime mover advantage goes to Quintain for pioneering serrastone, a new low carbon building material from recycled rice husks.The Property Industry Alliance is spearheading attempts to persuade government that new guidelines should not be limited to new build.With only 2% of buildings replaced each year, little improvement will be achieved without including existing stock. It is not helpful that there are six separate government departments driving the sustainability agenda!

Whether you care about the environment or not, the simple fact is that our resources are finite and we as an industry must take the lead in changing attitudes and lifestyle in order to conserve these resources for future generations.

Susan Freeman
Real Estate Partner
susan.freeman@mishcon.com

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