Katy Janda on green leases
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The document discusses the challenges of implementing energy efficiency and 'green' leasing practices in the retail sector, identifying it as a 'wicked problem' due to its complexity and diverse market segments. It highlights the need for collaboration between landlords and tenants to create effective green leases that address environmental issues and suggests that while green leases are often symbolic, they provide a platform for negotiation and cooperation. It calls for further research into the effectiveness and impacts of sustainable leasing practices.
Katy Janda on green leases
- 1. CK IWWORKING with Infrastructure Creation of Knowledge and Energy strategy Development http://www.energy.ox.ac.uk/wicked/ A WICKED approach to better building performance: leasing in an energy context Katy Janda, Environmental Change Institute, Oxford University WICKED Co-Investigator and Research Director IEA Task 24 Behavior Workshop Swedish Energy Agency 21 March 2016
- 2. W I CK ED http://www.energy.ox.ac.uk/wicked/ Common claims about energy efficiency…
- 4. W I CK ED http://www.energy.ox.ac.uk/wicked/ WICKED’s perspective: It isn’t easy being “green” A ‘wicked’ problem (Rittel & Webber 1973) is: Complex and interdependent Difficult to solve (may be difficult to recognize) Addressing one aspect of a wicked problem may reveal (or create) other problems Energy use is a WICKED sociotechnical problem: The retail sector is diverse and complex. One size will not fit all. Technological solutions must fit organisational characteristics Top-Down Analytics of the Data Rich Learning from the Middle-Out Bottom-Up: Enriching the ‘Data Poor’
- 5. W I CK ED http://www.energy.ox.ac.uk/wicked/ 14 July 2015 The WICKED challenge: what new information and tools can help different segments of the retail sector develop proactive energy strategies? Infrastructure Technical Organisational Legal Creation of Knowledge Energy strategy Development Working with…
- 6. W I CK ED http://www.energy.ox.ac.uk/wicked/ WICKED time frame July 2014-16, partners 14 July 2015 In advanced discussion:
- 7. W I CK ED http://www.energy.ox.ac.uk/wicked/ One size solution will not fit all. What about 6 sizes…? 14 July 2015 WICKED Market segments Owner occupiers Landlords Tenants Data Rich AMR + energy managers Type A Type B Type C Data Poor Manual meters, no energy managers Type D Type E Type F Leased Space Best practice leasing
- 8. W I CK ED http://www.energy.ox.ac.uk/wicked/ ‘Greener’ leasing practices: why? 14 July 2015 Traditional Leases: problematic environmental practices ‘Split incentives’ $ Landlord invests in plant, equipment, building fabric; tenants pay energy costs My energy bills My building landlord tenant
- 9. W I CK ED http://www.energy.ox.ac.uk/wicked/ ‘Greener’ leasing practices: why? 14 July 2015 Traditional Leases: problematic environmental practices ‘Split incentives’ $ Adversarial relationship: ‘utility maximising’ Rent is too expensive Need to increase rent! landlordtenant
- 10. W I CK ED http://www.energy.ox.ac.uk/wicked/ ‘Greener’ leasing practices: why? 14 July 2015 Traditional Leases: problematic environmental practices ‘Split incentives’ Adversarial relationship Ignore environmental issues
- 11. W I CK ED http://www.energy.ox.ac.uk/wicked/ ‘Greener’ leasing practices: why? 14 July 2015 Traditional Leases: problematic environmental practices Greener Leases: environmental preservation and opportunity ‘Split incentives’ ‘’Green improvement” clauses: example, tenant allowed to upgrade and reap savings benefit; shared costs Adversarial relationship Working together: duty to co-operate in relation to energy management and sustainability Ignore environmental issues Data- sharing Maintain energy ratings
- 12. W I CK ED http://www.energy.ox.ac.uk/wicked/ 14 July 2015 Janda, K. B., S. Bright, J. Patrick, S. Wilkinson, & T. Dixon. 2016. "The evolution of green leases: towards inter-organizational environmental governance." Building Research & Information. DOI: 10.1080/09613218.2016.1142811..
- 13. W I CK ED http://www.energy.ox.ac.uk/wicked/ M&S 800 stores in UK + 400 overseas Governed by “Plan A” sustainability objectives Announced “green lease” policy in 2013 70 MOUs with existing “Better Building Partnership” landlords Learning from the Middle-Out 14 July 2015 CGreen Leases for multi-national retailer (data rich tenant)
- 14. W I CK ED http://www.energy.ox.ac.uk/wicked/ Findings 1: What a green lease is and does… Model green clauses promoted by UK and Sydney ‘Better Buildings Partnership’ (BBP) industry groups contain: Varying levels of ambition, specificity and enforceability Only the Sydney BBP has a model green clause enabling the landlord to recover the cost of environmental improvements through service charges Adopted green clauses in the UK and Australia: Tend to be broad and unenforceable Include very general commitments: to improve environmental performance to cooperate (e.g., share data about environmental performance) 14 July 2015
- 15. W I CK ED http://www.energy.ox.ac.uk/wicked/ Findings 2: Who tends to use green leases? WHO? Across the UK and Australia, green leases are used by large powerful organisations. Generally led by landlords, particularly BBP members Exceptions: The Australian government requires green leases for its offices Marks & Spencer (M&S) is implementing a green lease & MoU policy across its the UK properties WHERE? More prevalent in the office sector than in the retail sector More prevalent in prime properties than in sub-prime properties 14 July 2015
- 16. W I CK ED http://www.energy.ox.ac.uk/wicked/ Findings 3: Green leases have more symbolic value than material impact Lease clauses, including green ones, appear to have little relevance to day-to- day operations Early adopters suggest the negotiation process provides a platform for discussion and cooperation 14 July 2015Janda, K. B., S. Bright, J. Patrick, S. Wilkinson, & T. Dixon. 2016. "The evolution of green leases: towards inter-organizational environmental governance." Building Research & Information. DOI: 10.1080/09613218.2016.1142811.
- 17. W I CK ED http://www.energy.ox.ac.uk/wicked/ Conclusions and Next steps 14 July 2015 Room for voluntary improvement Tenant Business as Usual Capacity to Improve Landlord Business as Usual Capacity to Improve X Tenant Leads landlord (e.g, M&S) Landlord leads (?) tenant Green leases (co-evolution of improvement)
- 18. W I CK ED http://www.energy.ox.ac.uk/wicked/ Thoughts for further research 14 July 2015 My core business My building Building performance landlord tenant [email protected] http://www.energy.ox.ac.uk/wicked/
Editor's Notes
- #10: Relationship is regarded as one of distrust, each side is cost conscious and tenants are suspicious that landlords simply want to make money out of them
- #11: Even the performance of a green building can be damaged by tenant fit out and practices that do not have to, eg, maintain existing energy efficiency rating