katy janda on green leases

CK EDIWWORKING withInfrastructure 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 UniversityWICKED Co-Investigator and Research Director

IEA Task 24 Behavior WorkshopSwedish Energy Agency

21 March 2016

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Common claims about energy efficiency…

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Voltage Optimisation

EPCsMEES

ESOS

Behaviour Change

Staff Engagement

FITs

Demand response

LED lights

Quick wins

PVsRate negotiation

DECsBEMS

Feedback Better billing

Green Leases

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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

Learningfrom the

Middle-Out

Bottom-Up: Enriching the

‘Data Poor’

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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

OrganisationalLegal

Creationof

KnowledgeEnergystrategy

Development

Working with…

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WICKED time frame July 2014-16, partners

14 July 2015

In advanced discussion:

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One size solution will not fit all. What about 6 sizes…?

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WICKEDMarket segments

Owner occupiers Landlords Tenants

Data RichAMR + energy

managers

Type A

Type B

Type C

Data PoorManual meters, no energy managers

Type D

TypeE

TypeF

Leased Space

Best practice leasing

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‘Greener’ leasing practices: why?

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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

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14 July 2015

Traditional Leases: problematic environmental practices‘Split incentives’ $Adversarial relationship: ‘utility maximising’

Rent is too expensive

Need to increase rent!

landlordtenant

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14 July 2015

Traditional Leases: problematic environmental practices‘Split incentives’Adversarial relationshipIgnore environmental issues

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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

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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..

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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

Learningfrom the

Middle-Out

14 July 2015

CGreen Leases for multi-national retailer (data rich tenant)

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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

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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

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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.

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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

XTenant Leads

landlord (e.g, M&S)

Landlord leads (?)

tenant

Green leases(co-evolution of improvement)

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Thoughts for further research

14 July 2015

My core business

My building

Building performance

landlord

tenant

[email protected]://www.energy.ox.ac.uk/wicked/

mailto:[email protected]

katy janda on green leases

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