At 99 Gresham Street, a multi-occupied London office building, Legal & General Property

engaged with occupiers to pilot a new approach to improving environmental performance.
This has cut annual energy costs by £69,510 and reduced CO
2
emissions by 530 tonnes.
Single Building Retrofit
CASE STUDY: LEGAL & GENERAL
“As a multi-let office owner we are
always being told that sustainable
operation is too difficult. The experience
we have had at 99 Gresham Street
overcomes those barriers and
shows how sustainable management
can appeal to occupiers both on
financial and corporate social
responsibility grounds.”
Pippa Burchett, Head of Technical Services
at Legal & General Property
Situation
Legal & General Property has a strong
and long-term commitment to sustainability,
adopting or investing in pioneering solutions.
Across its multi-occupied offce portfolio, the
company faces the challenge that, whilst it owns
the buildings and controls how common parts
operate, it is occupiers who consume and
control much of the energy. Legal & General
Property can therefore only achieve signifcant
reductions in whole building consumption by
working in partnership with occupiers.
Since 2007, the company has been piloting
a new approach at 99 Gresham Street in the
City of London, working in partnership with all
seven occupiers and its managing agent.
Legal & General Property carried out a thorough
environmental audit and gained agreement from
all occupiers for capital expenditure via the
service charge on improvement measures.
The company is now applying the best practices
from this pilot project at other properties.
Actions
Energy
Legal & General Property carried out
a thorough environmental audit and
developed a detailed action plan to
improve performance.
Initiatives included:
• Chiller system and air conditioning:
Modifying the control strategy to improve the
effciency of the main air-conditioning plant;
introducing foor isolation valves for air
conditioning pipework, so that air conditioning
can be supplied to the foors where it is
needed at any given time, rather than across
the whole building.
• Building Management System (BMS):
Replacing fan-coil unit controllers with
newer energy effcient controllers;
upgrading main building plant outstations and
installing BMS optimisers on each foor to
enable the system to monitor and modify
performance from historical analysis.
Since this project began, occupiers have
also become more proactive about driving
improvements, for instance requesting
that security personnel visit their areas to
ensure that all lighting has been turned off
out-of-hours.
Waste
Since 2006, Legal & General Property has also
introduced a series of measures to reduce waste
to landfll at 99 Gresham Street.
Initiatives include:
• Purchasing a cardboard baler and additional
waste containers for plastic, drink cans,
glass and toner cartridges. Since May 2011,
cardboard has been collected and processed
at no cost
• Communicating with occupiers on waste
management, outlining changes to facilities
and explaining how these should be used
• Encouraging occupiers’ staff and contractors
to segregate waste at source
• Since June 2011, all non-recyclable,
compacted waste has been sent for
incineration at an off-site Combined Heat
and Power (CHP) plant, with zero waste
to landfll
• Working with occupiers and contractors
to encourage suppliers to remove and
recycle their own packaging.
Legal & General Property is now rolling out the
measures introduced at 99 Gresham Street
across its multi-occupied London offce portfolio,
starting with the 18 highest energy users.
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Challenges
Occupier engagement
Financial responsibility
Attitude change
Members of the Legal & General Property team met with occupiers to outline the
company’s aspirations for improving the building, at the same time as highlighting that
cost reductions were a key driver for the work. They have now developed strong
relationships, and representatives from Legal & General Property meet with occupiers
each month to discuss ongoing performance and improvement opportunities.
Developing a robust business case with accurate energy data was key to the success
of the project. There was open and honest dialogue around the likely return on
investment of a range of initiatives. All occupiers agreed to fund the capital expenditure
via the service charge for the installation of foor isolation valves, main building plant
outstations and BMS optimisers.
This is being overcome through ongoing, open communication with occupiers. Each
situation is different and requires an individual approach to bring people along.
How to achieve buy-in from all the occupiers
at 99 Gresham Street for improvements at the
property level, in addition to their own individual
environmental improvement schemes?
How to gain agreement on the way occupiers
would fund improvement measures and beneft
from energy cost savings?
How to change attitudes, for instance overcoming
the perception that the air conditioning system has a
problem when there is no mechanical noise as the
temperature is comfortable without artifcial cooling?
Achievements Benefts
In 2010, compared to its 2008 baseline,
99 Gresham Street achieved:
• 16% less energy use, saving over
1 million kWh and cutting CO
2
emissions
by 530 tonnes
• 41% less water use, saving 3.6 million
litres of water
• 23% less waste generated, saving
34 tonnes of waste
• 24% recycling, up from 18%, diverting
28 tonnes from landfll.
Financials
Overview
• Capital investment: £95,000
for the BMS upgrade
• 2010 energy savings: £69,510
• 2010 water savings: £2,000
• Payback period: less than two years.
The initial investment was funded through the
service charges paid by occupiers. The service
charge account includes a ‘pot’ for energy
effciency initiatives, which is generated by
payments received from occupiers for using
the air conditioning system out-of-hours.
A Better Buildings Partnership case study from: Legal & General Property
For more information contact: Pippa Burchett
pippa.burchett@lgim.co.uk | +44 (0) 20 3124 2733 | www.lgim.co.uk/property