Sustainability and Futureproofing

This month is Earth Month, with Earth Day falling on the 22nd of April. To mark the occasion, this month’s article is about sustainability and futureproofing your commercial property and business.

 

The UK Government has committed to reaching net zero by 2050. What does this mean for strategic decision making? And what can you do as a business or commercial property owner today to improve your sustainability and futureproofing?

 

As sustainability legislation grows tighter and the demand for sustainable buildings increases, those who do not adapt risk falling behind. Sustainability is more than just a buzzword; it’s a business strategy. Efficient, regenerative spaces are becoming the benchmark and will be shaping how we design, lease and invest in property in the coming years. It’s never too late to think about sustainability and start futureproofing your assets and businesses.

 

MEES

The current Minimum Energy Efficiency Standards (MEES) that commercial properties need to meet is an EPC (Energy Performance Certificate) of ‘E’. From 2030, this will be raised to an EPC rating of ‘B’. This shift is already affecting lease negotiations, investment plans, and tenant expectations. Forward-thinking landlords will be reviewing their portfolios now, not just to avoid compliance issues and penalties, but to position their buildings as long-term assets. Inaction today could lead to costly retrofit scrambles later, or even stranded assets that can’t legally be leased.

Looking Beyond Energy Performance Standards

EPCs have become a key part of owning commercial property, but their limitations are becoming clearer with time. Their limited scope means that thinking beyond the EPC is crucial to stay ahead. Especially as the regulations get tighter. With the Government’s goal of raising the minimum EPC rating of commercial properties to ‘B’ by 2030, landlords and developers will need to shift their focus to sustainability from the get-go to avoid being caught out with an ‘unlettable’ commercial property.

Improving ESG Scores

ESG (Environment Social Governance) is a framework used to assess a business’ impact on the environment and society, as well as its transparency in governance, auditing and operations. While ESG scoring isn’t standardised and may differ between rating agencies, the trend is clear. Companies and developers are being expected to improve their ESG scores to remain competitive.

Even if your business isn’t looking for investment, a high ESG score will improve your reputation, attract customers and employees, and help lower running costs in the long term. A high ESG score could also be crucial for securing investment in the future.

Low-Cost, High Impact Sustainability and Futureproofing Measures

• Retrofitting Lighting
• Improving Insulation
• Switching to a smart meter or Green Energy Provider
• Addressing Waste Management Policies for SMEs
• Creating an adaptable and flexible workspace

How we can help you futureproof

JS Reakes can provide professional advice to help your strategic decision making. Going beyond compliance, we help our clients see the strategic value of sustainability. We can assist with how compliance and strategic intervention can affect the value or saleability of your property.

Investing in sustainability today will lead to a stronger portfolio tomorrow. Not only will you be aligning the net zero goal, but you’ll likely see an increase in your property value, higher tenant satisfaction, and a reduction in legal and compliance risk. Whether you’re a landlord, developer, or SME, the right guidance now can give you a competitive edge for years to come.

Thinking of selling your business, need a valuation, or some professional advice?
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