GUIDANCE NOTE No.

46

Sustainability for
the Retail Sector
Prepared by Ashley Bateson, HOARE LEA

NOVEMBER 2005

These guidance notes have been prepared by the BCSC to raise Contents:
awareness of the key environmental sustainability issues affecting
Introduction to the Sustainable
the retail sector.
Development 1

The note provides a brief overview of this increasingly important Drivers for Change 1
aspect of retail development and management. A list of web links
Procurement Considerations 2
and references are provided at the end of this document for further
reading. Environmental Assessments 3

Design Issues 4
1.INTRODUCTION TO SUSTAINABLE DEVELOPMENT
Operational Issues 5
Sustainable development considers the economic, social and environmental aspects of
an activity. These considerations are effectively the three pillars of sustainability. Useful Web Links 6
Sustainable development has been defined by Bruntland, chair of the UN
Useful Reference Documents 6
Commission on Environmental Development in 1987, as “development that meets
the needs of the present without compromising the ability of future generations
to meet their own needs”. This holistic and long-term view of sustainability can be CIRCULATION
translated into practical guidance in the following ways: 1
● Use natural resources prudently. 2
● Limit environmental impact at all phases Environment 3
of a buildings life.
4
● Promote social equity, participation,
health and well-being. 5

● Consider the full economic outcome of 6

an operation or investment, including 7
Society Economy
implications for maintenance and on-
8
going resource demands.
Sustainable Development 9
● Maximise ecological value of the site.
10
It should be noted that the environmental aspects of sustainability are the focus of
this document.
This Guidance Note has been prepared
on the best advice available at the time
2. DRIVERS FOR CHANGE of going to press. The note should
always be read in conjunction with local
Business is facing pressure to manage its environmental impact from a wide range
procedures.
of sources, including investors, lobby groups and the general public. Increasingly
For further information about BCSC,
though this pressure is being translated into legislation and regulations that set please contact us at
minimum standards of performance, this continual and increasingly rapid change in 1 Queen Anne’s Gate, Westminster,
the Regulatory Framework is adding to business risk. In essence environmental probity London SW1H 9BT.
Tel: 020 7222 1122
is no longer an option but an integral part of business. Fax: 020 7222 4440
Email: info@bcsc.org.uk
Various drivers for change can be highlighted: Web Site: www.bcsc.org.uk

Guidance notes prepared and issued

(a) International Drivers by BCSC are intended as an aide
As signatory to the Kyoto Protocol the UK Government has made a commitment memoire to good practice in the design,
construction and management of
to reduce the emission of gases that are implicated in causing global warming. As a shopping centres. They do not obviate
result the UK has agreed to reduce greenhouse emissions (predominantly carbon the need for specific and individual
dioxide) by 12% by 2010, compared to 1990 levels. In order to prepare a pathway for research.
©BCSC 2005
a lower carbon economy the Government has established the UK Climate Change
1
Sustainability for fhe Retail Sector
Programme. A significant proportion of the projected carbon
reduction has already occurred as a result of changes in fuel types
used for power generation and heating (the ‘dash for gas’) and the
shift from a manufacturing economy to a service economy.
UK government’s long term policy is to reduce carbon emissions
by 60% by 2050, as declared in the Energy White Paper.
Significant improvements in building design energy efficiency, the
adoption of new building technology and of low carbon and renewable
energy sources will be necessary to meet the carbon reduction targets.
The retail sector, together with the hospitality industry, has been
identified by the Carbon Trust as having the greatest potential
for reduction.
The Carbon Trust acts as the Government agency responsible
for supporting businesses wishing to reduce carbon emissions,
providing advice on how to establish appropriate policies and how
to set up carbon reduction strategies.
In addition to the Kyoto commitment there are various directives
from the European Commission affecting the procurement and
operation of buildings. The Energy Performance of Buildings
Directive – implemented in the UK through part L of the Building
Regulations will require all buildings greater than 1000m2 that are
built, sold or let will have to have an energy certificate showing the
theoretical and the measured energy use. For the first time ever
building energy performance will be transparent and will provide the
market with a clear differentiator by which to compare buildings.
It will enable the cost of operating a building to be identified
unambiguously and will inevitably be used in property appraisals.
Other European Directives relating to the sorting of waste,
treatment of waste, restriction of hazardous substances in electrical
and electronic equipment and the promotion of renewable energy
sources have been or are being incorporated into UK law and are
impacting on everyday retail business.
(b) UK Regulations
Developers, designers and investors in the retail industry should
be aware of current and forthcoming legislation affecting the
construction and the operation of buildings. Most of this is
accessible via the Office of the Deputy Prime Minister website:
www.odpm.gov.uk.
Increasingly legislation and fiscal measures are aimed at reducing
environmental impact. Recent measures have included the
introduction of the aggregates levy, landfill taxes and the climate
change levy (effectively a carbon tax on fuel).
The 2005 revision to Part L of the Building Regulations in England
and Wales describes a methodology for predicting building energy
use and a conversion method to calculate the resultant carbon
dioxide emissions for a building. The Part L requirement sets a
limit to the level of anticipated carbon dioxide emissions. Investors,
quantity surveyors and project managers should be aware that
improved energy performance will inevitably put pressure on
construction budgets.
Part L will be reviewed every 5 years and it is likely that at each
review the carbon emission targets will be made more onerous.
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(c) Corporate Social Responsibility
Corporate social responsibility (CSR) is about exceeding minimum
standards of corporate behaviour.
CSR is increasingly becoming a core aspect of business strategy,
especially amongst the larger players, where CSR policies can be
given a prominent position in annual account reports.
In 2002/2003 132 of the 250 FTSE250 reported their performance in at
least one area of CSR; a significant increase over the previous year.
Investors have demonstrated their desire to invest in companies
with good CSR policies as recorded through investment in
companies listed in indicies such as the FTSE4Good. Time will tell
whether such companies out perform those outside the index.
A part of CSR commitment is environmental responsibility. This
is regularly manifested as a statement to reduce energy use of
property portfolios or the setting of specific environmental/social
benchmarks. Some retailers are already taking the lead by declaring
trends in their environmental performance on their web-sites.
(d) Customer demands and rising consumer expectations
As customers become more informed about sustainable
development they will tend to become more conscientious about
what and where they buy products and services. A report by
the Co-operative Bank and the New Economics Foundation in
2002 found that 52% of consumers have boycotted a product
or service for ethical reasons and two-thirds report they never
return to the product once it has been associated with unethical
practice. Retailers should expect higher environmental and social
responsibility demands from customers in the future.
An example of greater customer awareness of environmental
responsibility is the increasing demand for ‘A’ rated white goods,
which also shows that ‘environmental labelling’ can work as an
effective product differentiator.
Behaving in an environmentally responsible way should therefore
also be viewed as a way of managing brand value and business risk.
3. PROCUREMENT CONSIDERATIONS
The most cost effective way to achieve environmental
performance improvement is to integrate it into decision making
as early as possible.
Site Selection
When selecting a site the following issues should be considered
from a sustainability perspective:
● Developing a ‘brownfield’ site (i.e. a site that has previously been
developed) will ensure that the land already has a low ecological
value, so the net impact on natural habitats is unlikely to be negative.
Indeed, it may be possible, with careful landscaping and advice from
an ecologist to increase biodiversity. The introduction of planted
areas and green roofs is also likely to be seen in a positive light by
planners, staff and the public.
● Refurbishment and adaptation of an existing building should be
considered as an alternative to new development. The demand
for construction materials and the impact of site preparations
on the local environment will be significantly less for a
refurbishment project.
Sustainability for fhe Retail Sector
● Close proximity to public transport facilities is advantageous
from an environmental and social perspective. Buses, trains
and trams etc. are much more energy efficient and often more
accessible than private car use. Where parking facilities are
constrained and opportunities for public transport are limited
car sharing clubs and car pools can be considered for staff.
Cycle facilities including storage and showers should also be
considered for both visitors and staff.
Building Form
Form, orientation and envelope design can have a significant
influence on comfort, energy demand and carbon emissions.
Large areas of south, east and west facing glazing are likely to have
high cooling loads in the summer. External shading, adjustable
blinds and filtered glass would be measures to limit the problems of
large areas of glazing.
Another building layout consideration is that deep spaces, whilst
efficient from a heat loss/gain perspective, may not allow adequate
penetration of natural light to staff and customers inside the
building. Roof lights and atria can help mitigate the lack of daylight
penetration to deep buildings.
Planning Submissions
Increasingly local authorities are looking for issues of sustainable
development to be addressed in project planning proposals. Planning
submissions containing a sustainability statement describing positive
sustainable attributes (such as approach to energy efficiency and a
commitment to specific environmental benchmarks) will have a better
chance of satisfying planners and reducing delay in approval.
Local authority and regional planning guidance may make reference
to renewable energy targets or other environmental objectives that
should be investigated prior to planning submissions.
Setting Design and Operational Targets
Good practice in the procurement and operation of retail premises
should include setting environmental sustainability objectives/
targets. These should ideally relate to benchmarks. Many large
developers and contractors have environmental policies that
influence how they manage their business.
A design brief should consider particular design targets to focus
the project team. This could be a commitment to achieve a specific
environmental assessment rating, e.g. a BREEAM rating of very
good (see below) or setting benchmarks for energy use, water use,
waste reduction and selection of materials etc.
A range of sustainability benchmarks, or Key Performance
Indicators (KPIs), is available from the government sponsored web
site: www.constructingexcellence.org.
4 ENVIRONMENTAL ASSESSMENTS
Overview
The most widely recognised environmental assessment method
in the UK is the one developed by BRE called the BRE
Environmental Assessment Method (BREEAM). This was
originally developed for offices but has now been adapted for the
retail sector. The process is based on a scoring system which results
in a BREEAM rating of fail, pass, good, very good or excellent.
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There are four types of assessment available for retail buildings:
● Design and Procurement – this is undertaken to establish
the performance of a building being designed. The assessment
entails approximately 120 questions relating to environmental
performance of the proposed retail building and the associated
construction process.
● Management and Operation – this is undertaken once a
building has been occupied and the management systems are
in place. The purpose of this assessment is to ensure that the
building systems are being used to their optimum efficiency
and to demonstrate continual improvement.
● Post Construction Assessment Design and Procurement
– reviews the BREEAM rating achieved after practical
completion of the building (RIBA Stage L).
● Fit-Out Assessment – used to assess a tenant or owner
occupier fit-out of an existing retail unit / building.
Topics Covered By Breeam Retail Assessments
The BREEAM design and procurement assessment is divided
into a number of environmental topics, each encompassing a set
of environmental performance criteria that should be satisfied in
order to gain credits. Some credits will be easier to incorporate and
less costly to implement than others. It is recommended that to get
the best value from an assessment an initial meeting be arranged
between the assessor and the project team to identify quick wins
and understand what design options will improve the overall rating.
The BREEAM Retail assessment topics are summarised below for
information.
BREEAM Retail Topic Issues covered
Management Construction process, commissioning and
handover.
Health and Wellbeing Working light levels; access to daylight;
views out; control of legionella risk;
acoustic standards
Energy use Fabric performance; general and external
lighting efficiency; metering facilities;
heating plant specification; specification of
controls
Transport issues Proximity of public transport modes and
local amenities, existence of a travel plan,
cycle storage facilities
Water use Efficiency of water appliances, water use
for irrigation and use of reclaimed water
Waste and Resources Use of reclaimed structure, specification of
low embodied energy building products,
use of sustainable timber, recycling facilities
Land Use and Ecology Reuse of land, change in ecological value,
long term impact on biodiversity
Sustainability for fhe Retail Sector
5. DESIGN ISSUES
Centralised Versus Decentralised Building Services
Buildings procured for a single tenant/occupant can have relatively
straightforward and simply managed heating, ventilation and air
conditioning (HVAC) systems. However, for multi-tenanted retail
developments there can be a range of centralised or decentralised
HVAC options. One approach is for the landlord to only manage
the HVAC services for the common areas, whilst the retail tenants
are responsible for installations for comfort control in their own
spaces. Typically, adequate riser ducts, service corridors and plant
areas should be provided to allow tenants to install their own
installations. This is the decentralised HVAC approach. From
a sustainability perspective the decentralised approach limits
opportunities for best environmental practice.
A centralised HVAC servicing strategy can facilitate a greater range
of low energy and environmentally benign techniques. Essentially
the benefit of a centralised strategy is that the landlord can provide
a building with distinct heating, distinct cooling, or a common
distribution system, that can be fed from a central plant and based
on low carbon energy sources.
Low carbon energy systems include:
● Condensing gas-fired boilers (electric heating should be
avoided because it will have a relatively high carbon emission
factor).
● Combined heat and power plant (CHP) to provide heat and
power generation on-site, with a possible link to absorption
chillers for cooling.
● Ground source heat pumps that takes energy from the ground
below or adjacent to the building.
Furthermore, renewable energy sources (i.e. zero carbon sources)
can be considered as part of a centralised energy supply strategy:
● solar water heating panels
● biomass boilers for heating (using wood chips or wood pellets)
● photovoltaic modules (PVs) for electricity generation
● wind turbines (subject to site suitability)
Each of these technologies should be reviewed at an early stage
with consultants to assess feasibility, covering the following issues:
● capital and operational cost implications
● environmental benefits (essentially the reduction in project
carbon emissions)
● building integration and planning implications
● management implications, i.e. who will be responsible for
operating and maintaining the system?
Evaluation of low carbon and zero carbon energy sources may
well become a necessary requirement for planning as more local
authorities stipulate particular targets (The Mayor of London’s
Energy Strategy already requires large developments to establish
energy strategy statements and target 10% of energy consumption
to be sourced from renewable energy).
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Catering And Refrigeration
Catering and refrigeration activities raise particular environmental
issues due to the nature of heating and cooling respectively.
Catering facilities should be designed and managed to be energy
efficient, have suitable ventilation without exhausts causing a
nuisance and be regularly maintained to optimise performance and
reduce fire risks.
Traditional refrigerants, which are the liquids/gases used in the
refrigeration process to provide cooling, are controlled substances
because they can have a significant global warming impact
potential and/or ozone depletion potential when released to the
environment.
Environmentally damaging refrigerants include HCFC
(hydrochlorofluorocarbons) and HFCs (hydrofluorocarbons).
Designers, contractors and operators should be aware of the
current regulations controlling the use of HCFCs and HFCs and
the standards established to minimise risks of leakage. Clients/
investors should be aware that there are plans to extend the phasing
out of certain refrigerants. The use of CFCs (chloroflurocarbons)
is already been forbidden by the Montreal Protocol.
Construction Materials
The procurement of construction materials can have a significant
impact on the environment in a number of ways including:
● depletion of natural resources
● degradation of local environment
● emission of pollution resulting from resource extraction/
treatment
● generation of waste arising from the extraction process
● demand for energy during the extraction, treatment and
transport of materials to site (the total amount of energy used
during these activities is sometimes known as the ‘embodied
energy’ of a material)
In order to reduce the environmental impact of construction
and fit-out work, opportunities to re-use and recycle materials
and equipment should be considered. In the case of procuring
new materials the BRE Green Guide to Specification
provides useful guidance on the selection of materials.
It rates a range of standard building elements according to
overall environmental impact.
ENVEST is a software tool produced by the BRE that
simplifies the complex process of designing and evaluating
environmentally sustainable buildings. By inputting the
building design (height, window area, number of storeys etc.)
and material choices (elements comprising the external wall,
roof covering, internal partitions etc.), ENVEST identifies
and informs the team of those elements that have the greatest
influence on the building’s environmental impact. As a
result alternative materials can be selected and the impact of
these decisions can be identified. In addition, ENVEST also
compares the environmental impact of various heating and
cooling strategies. This tool adds value to the design process
and by examining the whole life performance of a building’s
Sustainability for fhe Retail Sector
design it can graphically demonstrate the environmental
credentials of different design solutions.
It should also be appreciated that materials and services that are
selected for robustness, low maintenance and adaptability are
likely to have a longer useful life and will tend to reduce the need
for refurbishment and upgrades in the long term. Durability and
longevity are therefore inherent features of a sustainable design and
procurement strategy.
6. OPERATIONAL ISSUES
Lease Arrangements
Landlords can use the lease agreement to influence good practice
amongst tenants and enable sustainability targets to be achieved for
the premise as a whole.
Lease conditions can cover social issues such as health & safety and
access as well as environmental aspects such as the sorting of waste,
use of water and energy management. Lease conditions should be
clearly communicated and discussed, in particular where onerous
methods of management are proposed. Reference to penalties for
failure to comply should be established.
In cases where tenants are entitled to install heating, ventilation
and air conditioning equipment there should be a clear onus on
the tenant to notify details of installation to the landlord and
document the service routes. In this way the landlord should be
fully informed of the potential impact on building energy use and
future building adaptability.
Service Charges And Facilities Management
Premises that are designed and managed with efficiency in mind
will have lower operating costs.
Good environmental design, good energy management, efficient
cleaning regimes and planned preventative maintenance all play a
crucial role in achieving sustainable business development – both
in terms of reducing environmental impact and sustaining good
tenant relations/retention.
Where possible, metering of services such as electricity, heating
and chilled water (where provided by the landlord) should be
considered for individual departments/tenants to encourage
efficient energy use. It is generally considered that the provision
of metering tends to reduce resource use by around 15%, due to
better housekeeping measures implemented by end-users.
Facilities management arrangements should consider incorporating
energy consumption targets into the contractual key performance
indicator targets.
Every property should have an energy manager that is responsible
for implementing an energy management policy. This should
include monitoring energy performance against targets, guiding
users in the efficient use of facilities, optimising control regimes
and managing investments in energy efficiency measures.
Water Economy
Reducing demand for water will help reduce utility costs and
reduce environmental impact (arising from water abstraction,
5
distribution and reservoir construction). In retail premises the
following water efficiency measures can be implemented:
● Provide maximum 6 litres flush WCs throughout (the legal
maximum flushing volume for all new WCs). Preferably a dual
flush 4/6 litre WCs.
● Provide urinal flush controls or consider waterless urinals in
male toilet facilities.
● Provide aerator or spray taps for wash hand basins with push
button (self-closing) or infrared sensor activated controls.
● Consider feasibility of rainwater collection and re-use for
landscape irrigation or cleaning water.
● Install a sanitary supply shut off to WC blocks.
Waste Management
Approximately 85% of waste is sent to landfill disposal in the UK,
compared to 45% in France, 25% in Germany and 15% in the
Netherlands (source: EU statistics). To reduce pressure on landfill
sites and reduce demand on resources, recycling facilities should be
provided. In public areas recycling points should be considered for
the three common waste fractions: aluminium cans, glass bottles
and paper (for newspapers etc). In back-of-house areas additional
sorting facilities should be considered for cardboard (with
appropriate provision of compactors to reduce large volumes of
cardboard packaging), plastics and organic collection for catering
facilities and food outlets, which can be composted off-site.
Waste management procedures should be clearly communicated to
all tenants/users and storage space provisions clearly labelled.
For a recycling policy to be truly effective however, a market demand
should also be established for procuring recycled products. Examples
include the procurement of office paper or packaging based on
recycled pulp or plastic furniture made from recycled polymers.
A recent regulatory driver for change is the European Directive
on Waste Electrical and Electronic Equipment (WEEE) which will
require suppliers to be responsible for taking back and recycling
electrical and electronic equipment. Consumers will be able take
their equipment back to suppliers, free of charge, for this purpose.
This will put additional pressure on outlets to have sufficient space
allocated for collection of returned equipment.
Noise And Air Quality
Providing a good indoor air quality environment is important
for the health and comfort of both staff and customers. This
can be facilitated by restrictions on smoking (which is now the
norm anyway), provision of adequate outdoor air change rates,
positioning of fresh air intakes in good air quality locations and
control of chemical emissions from materials such as paints,
fixtures and fittings (volatile organic compounds).
Noise nuisance should be minimised for building users and
surrounding neighbours since noise nuisance can affect perceptions
of well being. Control measures include the design and installation
of quiet building services, internal absorption in noisy areas and
screening of back-of-house areas. Advice should be sought from an
acoustics specialist in the design of new buildings or to advise on
noise nuisances in existing buildings.
Sustainability for fhe Retail Sector

Sustainable Procurement materials/products that are known to be hazardous or suspected

To promote the sustainable procurement of materials and products of being hazardous to health but also the positive promotion
during the life of a building an environmental purchasing policy of procuring recycled materials and the establishment of ethical
should be considered. This should not only identify avoidance of criteria where appropriate.

USEFUL WEB LINKS

www.sustainable-development.gov.uk The official government web site on sustainable development.

www.ogc.gov.uk Office of Government Commerce.

www.constructingexcellence.org.uk The Constructing Excellence programme includes guidance on good practice and key
performance indicators.

www.csr.gov.uk Advice on Corporate Social Responsibility.

www.thecarbontrust.co.uk The Carbon Trust provides advice on how to establish a carbon management programme

www.odpm.gov.uk The Office of the Deputy Prime Minister publishes national planning policy guidance and
building regulation advice for England and Wales.

www.scotland.gov.uk Covers building regulations relevant to Scotland.

www.breeam.org – www.breeam.org Official website for the BREEAM environmental assessment method.

www.bre.co.uk Building Research Establishment, offers advice and tools for assessing environmental impact.

www.bcsc.org.uk Website for the BCSC, includes a range of good practice guides and technical papers
relevant to retail sector.

www.brc.org.uk British Retail Consortium, click on policies and then environment.

www.iema.net Institute of Environmental Management and Assessment.

www.netregs.gov.uk/netregs/ The Environment Agency provides a clear guide to environmental legislation.

www.dti.gov.uk/construction/sustain/ Sustainable construction advice from the DTI.

www.eca.gov.uk Government site detailing tax incentives to invest in low carbon technology and water
efficient equipment.

www.defra.gov.uk Includes a wide range of information on environmental topics.

www.wasteonline.org.uk Waste reduction and recycling advice.

USEFUL REFERENCE DOCUMENTS

Sustainable Retail Premises: An Environmental Guide to Design, Refurbishment and Management of Retail Premises, J. Prior (BRE),
Construction Research Communications ,1999

Sustainable Construction: An Introduction, Constructing Excellence, 2004

The Green Guide to Specification, 3rd Edition, Jane Anderson (BRE) and David Shires, Blackwell Publishing, 2002

Energy Efficiency in Buildings (CIBSE ‘F’ Guide), CIBSE, 2004

Environmental Handbooks for Building and Civil Engineering Projects, CIRIA, 2000

BCSC 1 Queen Anne’s Gate Westminster London SW1H 9BT Tel: 020 7222 1122 Fax: 020 7222 4440
E-mail: info@bcsc.org.uk Web: www.bcsc.org.uk