This article is the first in a three-part series covering the panel discussions from Sustainable Energy First’s Pathway to Target Zero event. Later articles will explore insights on decarbonising transport and tackling Scope 3 emissions across the supply chain.
Building management today means balancing tougher carbon regulations with the commercial realities of retrofit – all while meeting the expectations of investors, tenants, and building users. To unpack these challenges, Sustainable Energy First partnered with the Greater Manchester Chamber of Commerce for a Sustainably Speaking event focused on the Pathway to Target Zero. The session united leaders from across the net zero supply chain to share practical insights, collaborative ideas, and proven strategies for cutting emissions in real terms.
Among the day’s discussions, the property panel tackled some of the big questions around decarbonising the built environment. Chaired by Joanna Watchman, Managing Director of Content Coms, the panel brought together David Mead of JLL, Martyn Stanway of Spire Healthcare, and Puja Balachander of UpGreen.
Navigating compliance, conflict, and communication
How do you balance stakeholder pressures and prepare portfolios for tougher energy standards? David Mead, Property and Asset Manager at JLL, hears this question frequently in the management of hundreds of offices, retail parks, and industrial estates across the UK. Often, he says, it’s better to stay ahead of the curve than to fall behind: “Our clients are finding some of their tired assets don’t hit the threshold. When the leases come up for renewal, they can’t renew it. They’re not legally allowed to until they refurbish.”
For privately rented commercial properties, the Minimum Energy Efficiency Standards (MEES) dictate that buildings must have an Energy Performance Certificate (EPC) of C or higher by 2028, with further restrictions coming into play at a later date to be confirmed by the government. The current minimum legal EPC rating for commercial properties in England and Wales is E.
But compliance is only part of the picture. “Clients want low-carbon buildings,” Mead said, “but they also want them to be attractive destinations for people to work and shop in.” So, buildings must balance efficiency with comfort.
To meet both goals, Mead suggests an approach that combines early action, targeted refurbishment, and clear communication. Staying ahead of regulation allows owners to plan investment before it becomes a crisis, and refurbishing tired assets not only improves energy performance but also boosts tenant retention and long-term value.
Turning carbon reduction into cost reduction across healthcare estates
Energy efficient buildings can also be cost-efficient buildings says Martyn Stanway, Senior Regional Engineering Manager at Spire Healthcare. Stanway oversees 38 hospitals plus 40 smaller buildings across the UK, most of which are “24-hour buildings that come with their own set of challenges,” such as ensuring return-on-investment when it comes to energy.
Recently, Spire delivered a project worth £8 million in solar panel retrofits across their estate. As a result, the systems are producing roughly 15% of the hospital’s energy resource across the year, making this project beneficial from a financial perspective as well as an environmental one.
“For us, it’s easy to sell a project like solar or BMS (building management systems) because I can show the CFO exactly how much it costs and that we’ll have the money back in four and a half years,” Stanway says.
“So, it’s huge from a financial perspective but also from a carbon reduction perspective as well.”
Low-hanging fruit: Making retrofits viable for landlords
And what about the upfront costs of investing in retrofits? Not all projects need to break the bank. Puja Balachander, CEO of UpGreen, focuses on how measuring valuation impact and identifying which upgrades add the most value to a property at the most efficient cost.
Investment doesn’t need to be high to see useful, short-term returns – if you know which project to look at. Balachander shares a project she did for a client whereby their first means of action was installing smart plugs in the building, which resulted in a costs savings of 20%. Often, she says, measures such as these are overlooked simply because they may not lead to a direct improvement of a building’s EPC rating. Instead, building managers often look to insulation, air source heat pumps, LED lighting, and solar.
“So, I think when we say low-hanging fruit,” shares Balachander, “it’s really about just planning and sequencing those works effectively so that you’re using your money most effectively through the journey. And that’s what we help our clients with.”
In previous years, Balachander says, “there was no real imperative to do it. The commercial signals weren’t strong enough. But now, progress is moving us forward and other initiatives like net zero standards are gaining real traction.”
Continue the conversation on Earth Day.
Our next Sustainably Speaking: Target Zero event takes place on Wednesday 22 April in London. Designed to help decision-makers progress their organisation’s net zero goals, the event includes expert panel discussions, group fireside sessions and a chance to connect with clean technology partners.
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For more insight into how you can cut costs and reduce carbon emissions in your own building, get in touch with Sustainable Energy First via the form below.