Congratulations to Alison Manning on achieving her certification as a Fitwel Ambassador for Bannon. Joining the movement towards healthier, more sustainable spaces. Fitwel, a leading certification system promotes wellness in buildings and communities, fostering environments that enhance health and productivity. Alison is committed to applying this newfound knowledge in her role to contribute to creating a more sustainable environment.

The United Nations (UN) annual climate change conference, also known as the ‘Conference of the Parties’ or ‘COP’, brings together world leaders, ministers, and negotiators to agree on how to address climate change.

Since 1995, almost every member nation on Earth has come together in a different country each year, except for 2020.

The UN describes the COP as “the supreme decision-making body” of the United Nations Framework Convention on Climate Change (UNFCCC). It includes representatives of all the countries that are signatories, known as parties, to the UNFCCC. During each COP, the parties review the progress towards the overall goal of the UNFCCC: to tackle climate change.

The negotiating parties include governments that have signed the UN Framework Convention on Climate Change (UNFCCC), the Kyoto Protocol and/or the Paris Agreement. The COPs are also attended by thousands of representatives from civil society, the private sector, international organisations, and the media.

Why is this conference called COP28?

COP28 stands for the 28th Conference of the Parties to the United Nations Framework Convention on Climate Change

Where will COP28 be hosted?

The COP is hosted by a different country each year. COP28 will be hosted by the United Arab Emirates (UAE) and will take place between 30 November–12 December 2023 in Dubai.

Why is COP28 important?

It is hoped COP28 will help keep alive the goal of limiting long-term global temperature rises to 1.5C. This was agreed by nearly 200 countries in Paris in 2015. The 1.5C target is crucial to avoid the most damaging impacts of climate change, according to the UN’s climate body, the Intergovernmental Panel on Climate Change (IPCC).

Long-term warming currently stands at about 1.1C or 1.2C compared with pre-industrial times – the period before humans started burning fossil fuels at scale. However, the world is on track for about 2.5C of warming by 2100 even with current pledges to tackle emissions. The window for keeping the 1.5C limit in reach “rapidly narrowing”, the UN says.

UN Secretary-General Antonio Guterres called for the COP28 talks and agendas to close the climate ambition gap. He also stated that “Leaders can’t kick the can any further. We’re out of road,” condemning a “failure of leadership, a betrayal of the vulnerable, and a massive, missed opportunity. As the reality of climate chaos pounds communities around the world – with ever fiercer floods, fires, and droughts – the chasm between need and action is more menacing than ever.”

What are the key issues to watch at COP28?

• COP28 is important for several reasons, not least because it marks the conclusion of the first Global Stocktake (GST), the main mechanism through which progress under the Paris Agreement is assessed.
• Getting the loss and damage fund (established at COP27) up and running and agreeing on a framework for the Paris Agreement’s Global Goal on Adaptation (GGA).
• Other issues that are likely to receive much attention, and which may be reflected across several negotiating streams, include energy transition and food systems transformation.
• Discussions and negotiations on climate finance.

For more information on COP28

www.evia.ie

https://unfccc.int/

https://news.un.org/en/story/2023/11/1143567

 

The European Union has taken a significant step towards promoting sustainability by introducing the EU Taxonomy Regulation. This ground-breaking initiative aims to provide a standardized framework for identifying environmentally sustainable economic activities. This article explores the EU Taxonomy, its significance, and the implications it holds for businesses and investors.

What is the EU Taxonomy?

The EU Taxonomy is a system that categorizes environmentally sustainable economic activities, offering clear and consistent guidance for sustainable investments. It helps investors and businesses align their financial choices with environmental goals and encompasses various sectors like energy, real estate, and agriculture.

Key Components of the EU Taxonomy

The Taxonomy focuses on six environmental objectives:

• climate change mitigation
• climate change adaptation
• sustainable use and protection of water and marine resources
• transition to a circular economy
• pollution prevention
• control and protection of healthy ecosystems

Each objective is accompanied by specific criteria that economic activities must meet to be classified as environmentally sustainable.

One of the core principles of the EU Taxonomy is the Do No Significant Harm principle, which ensures that an economic activity must not cause significant harm to any of the environmental objectives. This means that businesses seeking to be classified as environmentally sustainable must meet stringent criteria to avoid adverse impacts on the environment

Companies are required to disclose the extent to which their activities align with the Taxonomy’s criteria in their financial reporting. This transparency allows investors to make informed decisions about their investments based on environmental considerations.

Significance for Businesses:

Businesses that follow the EU Taxonomy can tap into a growing pool of sustainable finance opportunities, like green bonds and loans that are gaining popularity with investors. Compliance with the Taxonomy can help businesses secure funding from these sources. Moreover, adhering to Taxonomy standards showcases a commitment to environmental sustainability, boosting their reputation and attracting socially responsible investors and customers. It also helps businesses identify and minimize environmental risks, reducing their exposure to regulatory and operational challenges in a world that places a high value on sustainability.

Significance for Investors

Investors can make smarter choices by checking a company’s sustainability disclosures through the Taxonomy. This allows them to match their portfolios with their environmental, social, and governance objectives. Investing in Taxonomy-compliant companies can lower the risk tied to environmental issues and changing regulations. It also helps investors steer clear of investments that might become obsolete as the world moves toward a greener economy.

 

The EU Taxonomy is a crucial step in promoting environmental sustainability in finance and real estate. It offers a consistent way to identify eco-friendly activities, benefiting businesses and investors. As sustainability becomes more important, the Taxonomy will play a key role in changing how we invest and allocate capital, ultimately helping the environment. Using this framework can bring financial benefits and help create a more sustainable and resilient future for everyone.

 

Author:               Cillian O’Reilly, Surveyor, Sustainability Manager, Bannon

Date:                  14th September 2023

 

As we begin World Green Building Week, Bannon is proud to launch its 2022 ESG Report. Through numerous initiatives, Bannon far exceeded its ESG goals, achieving a carbon footprint reduction of 34%. Bannon looks forward to working with Owners, Occupiers and all interested parties in the real estate sector to curate a more sustainable future.

To view the full report, please click here.

Environmental, Sustainable & Governance (ESG) requirements for buildings are becoming of increasing importance to both investors and occupiers for buildings. There is no doubt that ESG will become an increasingly prevalent element within the commercial real estate (CRE)  landscape, becoming an important driver of asset value. This means current owners will be facing important considerations. How do you attract good quality occupiers, achieve strong rents and ensure a competitive market of buyers for your asset at exit. ESG-led objectives are becoming increasingly commonplace in investment and fund criteria for institutional real estate owners. As these owners are significant sources of capital in CRE markets a likely result will be a somewhat forced divestment from ‘brown’ assets (non-ESG compliant assets) and a channelling of capital towards ‘green’ (ESG compliant) assets. 

The market is not balanced, green assets in Ireland are typically buildings constructed or extensively refurbished after the 2014 Building Regulations came into play. We estimate that the green market comprises less than 15% of Dublin’s office stock, with the majority of this space located in Dublin 2 and Sandyford, the prime office locations. With multiple players competing for a limited supply of stock and available capital being funnelled into this small sector an expectation is prices will be driven up by competitive bidding in both the investor and occupier markets. The net effect of these events will be an increase in asset value through growth income complimented by strong occupier covenants and yield compression. 

By contrast, we expect a shift in the brown asset market. Company mandates or client requirements will oblige some occupiers to occupy green buildings, seeing the demand for brown space shrink and the market becoming increasingly oversupplied. The pressures resulting from falling demand and increased void costs, will create a lower rent environment. An exit of institutional grade investors will see the demand drop for these buildings with ESG rules preventing purchase. The remaining investors will have to consider the cost and value associated with bringing an asset into the green market. While the market for this in prime locations may be viable, there are greater challenges for suburban/out of centre locations where the end rental value that can be achieved may not support viability of refurbishment. 

Rescuing these potentially stranded buildings represents an opportunity for investors and developers and Bannon working with our sustainability business Evia are available to provide technical insights to ESG building upgrades. Feel free to reach out to discuss. 

 

Author:                 George Colyer, Surveyor, Bannon 

Date:                     9th June 2023

 

A Green Lease is a commercial lease, containing additional clauses that the building must be occupied, operated and managed in an environmentally sustainable manner. The concept of a Green Lease was first developed in Australia where its use has been mandatory since 2006 in all government-owned and occupied buildings. In France, Green Lease legislation has been mandatory since 2013. Globally, 42% of investors have Green Lease clauses in place with an additional 37% looking to adopt them by 2025. On the occupational side, 34% of occupiers are currently committed to Green Leases.

Green Lease clauses can range from ‘light green’ to ‘dark green’ depending on the nature of the property, and energy performance certifications. The essential elements of a Green Lease include:

• Agreement by Owner and Occupier not to do anything which would adversely affect the Building Energy Rating of the building. Any works to be carried out including fit-outs are carried out to a measurable standard such as BREEAM or LEED.
• Separate digital metering for utilities and central services so that Owner and Occupier can measure all outputs and agree to share respective data.
• Participation in a building management committee as a means of education and communication between the various Occupiers in the building with the Owner on the management of the building.
• Collaborative approach in relation to disputes on green issues and that those be dealt with by way of mediation.

For both Owners and Occupiers, a Green Lease encourages a relationship of collaboration and meets corporate social responsibility objectives.

What are the benefits of a Green Lease?

For the Owner

• Property investment is maintained in accordance with environmentally sustainable design.
• The building is more attractive to both Occupiers and Investors.
• Costs of maintaining the asset are minimised.
• With increased awareness and focus on sustainability by investors and occupiers, better sustainability credentials may impact a building’s marketability and value. Improved environmental credentials will attract the increasing number of Occupiers that focus on meeting their and their stakeholders’ ESG requirements. This creates a competitive market advantage over alternative properties which do not meet the same standards.
• Green Leases will assist Owners to meet existing and future environmental regulations.

For the Occupier

• Reduced operating costs in the occupation of an energy-efficient building for things such as electricity, HVAC and water.
• Owners may offer incentives to Occupiers who exceed energy efficiency targets.
• Studies have shown links between environmentally sustainable workplaces and increased employee productivity and satisfaction.
• Occupying a green building can form part of a Occupier’s ESG requirements, which in turn can appeal to employees and help an Occupier to recruit and retain the best talent. For retail Occupiers, green stores can appeal to the environmentally conscious consumer

Green leasing provides an effective framework for both Owners and Occupiers to work together to achieve a common objective and comply with future legislative requirements. A sustainable building with lower running costs is more marketable for Owners and more cost-effective for Occupiers to occupy. Given the evolving nature of Green Leases, it is prudent to take legal and professional advice before entering such leases to ensure that the provisions are suitable for your organisation.

If you want to discuss the sustainability dynamics of the Irish Commercial property market further contact the Consultancy Team @ Bannon.

 

Author:                 Cillian O’Reilly, Surveyor, Sustainability Manager, Bannon 

Date:                     11th April 2023

 

“The ship has reached the shore,” United Nations conference president Rena Lee announced after a marathon final day of talks between negotiators from more than 100 countries.

Ocean ecosystems keep our planet in balance by producing nearly half of the earth’s oxygen and absorbing much of its carbon dioxide but they are under threat from pollution, exploitation and global warming. After 15 years of negotiations, the UN High Seas Treaty which will help to protect vast swathes of the planet’s oceans was agreed in New York on Saturday. The high seas, or the parts of the ocean that are not territorial waters, do not technically belong to anyone and account for 60% of the earths oceans. Only a mere 1% of the high seas are currently protected. The treaty places 30% of the world’s land and sea under protection by the end of 2030, a target known as “30 by 30”.

The next step for the treaty is signing by UN member states and formal adoption after which countries will have to look at practically how these measures would be implemented and managed. This phase may take some time, however, the agreement of the High Seas Treaty is a major milestone as we look towards a greener future.

Very positive news from the Department of Transport with the publication of Ireland’s first EV Charging Infrastructure Strategy 2022-2025.

We have been swamped with noise around EV charging over the last number of years. Bannon has installed charging units at a number of retail centres across the country, with more in the pipeline. Whilst there is clearly a need nationwide for a charging infrastructure to accompany the push to electrify the national fleet, the planning and installation of this infrastructure needs to be informed by the rational analysis of reliable data.

At Bannon we have access to an enormous database of nationwide data about how people use cars to access shopping destinations and where they come from, with over 100 million customer visits generated by the portfolio annually. This data can be used to establish which retail schemes need more charging points to satisfy their customer requirements, which schemes can be used as charging stop over points for people on longer journeys and which journeys could be redirected to public transport, cycling or walking. Using data to ensure that resources are deployed where they will be of most benefit is at the core of sustainability.

The Department of Transport is inviting input on the draft strategy to be sent to evinfrastructure@transport.gov.ie

Electric Vehicle Charging Infrastructure Strategy 2022-2025 PDF

Urban Transportation Hubs. A snazzy name for a car park or a way of rethinking how we move about our cities and towns?

There is an opportunity to reimagine the role of car parks. Giving over space within the facilities to accommodate secure bike parking, charging stations for electric bikes and scooters, dedicated spaces for car share schemes and a range of EV charging options for those that need rapid charging, to the owner who just needs a slow charge overnight can turn these buildings into true transport hubs.

They can form a central part of a transport interchange where customers pivot from one form of transport to another pre-booking their required option on a dedicated app. Arrive on your bike, park it securely for the day and take out pre-booked EV charge appropriately to make a trip to Galway. Arrive on a shared scooter and rent out an electric bike.

Reusing and refocussing existing infrastructure intelligently is ultimately the key to sustainability, why not start with car parks?

Blog post written by Cillian O’Reilly, our Sustainability Manager. You can contact Cillian by email on coreilly@bannon.ie