Base ~ How to do business in the 21st century ~ 16-17 March 2010
ProLogis
Business carbon management and strategy: implications of CRC and DEC legislation
Session time slot
  • Session TU2 | Tuesday 16 March | 11:45-12:30
Synopsis
The theme of this session is the “sustainability risk” that lies ahead for owners of commercial property assets in a market likely to become energy sensitised. To date the Energy Performance Certificate (EPC) and Display Energy Certificate (DEC) have been widely viewed as pointless bureaucracy, however there are financial drivers in the offing which may change this perception.

Despite the recession, in October 2009 the cost of Brent crude oil reached a two-year high at a time when many commentators would have expected the opposite to be happening. It seems therefore quite likely that in a global recovery, with energy needs expanding again, supply costs will head in only one direction.

Add to this, the introduction of the Carbon Reduction Commitment Energy Efficiency Scheme (CRC) with, initially, large public and private organisations having to buy Carbon Allowances to reflect their emissions – and this combined effect will bring energy costs under the spotlight. Following the initial three year phase of CRC, it seems a common view that the threshold is likely to lowered - thus significantly widening this impact.

With awareness of energy costs growing, a purchaser or potential tenant looking at a building may well begin to take account of the capital letter on the EPC asset rating being provided by the vendor. A shrewd negotiator will not be slow to use this as a lever on the asking price.

Thus if the property market becomes energy sensitised, owners and investors are likely to find themselves exposed to the threat of “sustainability risk” which in the future may have an impact on exit strategies.

Those attending this session can expect to take away a broad high level view of how to start formulating and implementing a buildings carbon reduction strategy and an introduction to the new Davis Langdon “Carbon Assessor” software.
Themes
  • Carbon management
  • Energy efficiency
  • Sustainable buildings
  • Sustainable business
  • Sustainable policy
Mr David Rees
Partner
Davis Langdon
Biography
David Rees is a partner in the Banking, Tax & Finance team of Davis Langdon’s specialist services group, where his core skill has been in advising on tax reliefs for commercial property.

Over the past four years, he has taken a wide role in developing the firm’s energy performance services over and more recently in evolving their approach to the Carbon Reduction Commitment (CRC).

He is currently the lead partner in Davis Langdon’s new “Carbon Assessor” energy data software for CRC compliance and strategy which has been jointly developed with leading energy software specialists - Integrated Environmental Solutions.
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