Some interesting key developments that are impacting commercial property in the UK

Adam Taylor, expert in nature-based solutions - edenseven, explains more: Nature-Based Solutions can deliver multiple benefits in single locations, delivering greater impact for people, planet, and profit, and moving ESG from being just another cost to a competitive advantage. Today in the ESG space companies are expected to measure and manage their greenhouse gas emissions and water consumption, impacts on biodiversity, air, and water quality, and how their activities affect not only their staff but the communities they operate within. As a result, many companies now measure their impacts, and some employ companies to mitigate or offset their residual effects; however, this outsourcing approach is often costly and inefficient; with each residual effect mitigated or offset separately, uncertainty about the delivery or impact of the work, and delivery in other regions of the world meaning wider benefits are missed. The business case for nature-based solutions: These costs and inefficiencies can be overcome however by mitigating and offsetting multiple residual effects at once by delivering Nature-Based Solutions on company land and buildings, or within the communities they serve. For example, creation or restoration of local grasslands, woodlands or wetlands would deliver carbon and biodiversity credits, water nutrient and air quality improvements, and reduced flood, drought, and wildfire risks in the areas where your company operates and your staff and customers live. Delivering these multiple impacts removes the costs of awarding and managing multiple contracts with different companies, whilst the schemes localness provides certainty of delivery and impact, and wider benefits including new local partnerships, provision of accessible natural greenspace improving staff and community health and wellbeing, and an enhanced corporate image and reputation. With ESG moving rapidly to the top of the social and political agenda the breadth and depth of ESG related disclosures that are required will only grow, so now is the best time to consider how you can deliver these more efficiently and impactfully through Nature-Based Solutions, positioning yourselves as a market leader and making this a key strand of your competitive advantage. Key steps businesses should take: Step 1: Evaluation of the measurement and management of environmental and social impacts Review of strategies, targets, costs, and impacts of existing approaches to measuring, addressing, and reporting on environmental and social impacts, including gathering stakeholder insights, and reviewing available resources, capabilities, assets, to identify where Nature-Based Solutions could be delivered. Step 2: Exploration of Nature-Based Solution delivery options Identification and assessment of Nature-Based Solution locations that deliver against company needs, including delivery and maintenance costs, partnership opportunities and appetite, and the potential for additional company benefits. Step 3: Delivery of Nature-Based Solutions Engage ESG team, local community, partners and contractors in detailed design and delivery of Nature-Based Solutions, develop and implement maintenance, monitoring, and governance protocols, collate and communicate lessons learnt, celebrate successes. How edenseven can help: edenseven is a sustainability consultancy with an award-winning track record helping businesses design and deliver data-driven sustainability strategies. With experts covering a wide range of sustainability subjects, from biodiversity & nature-based solutions, to electric vehicle fleet solutions, power purchase agreements (PPA), low carbon technologies, building optimisation, supply chain management, and end-to-end business transformation, we have experienced experts ready to help with any of your sustainability needs. With over 15 years' delivering nature-based solutions, Adam’s experience cuts across the public, private and third sectors having delivered time and again place-based solutions that increase profit whilst benefiting people and planet; the triple bottom line. To find out more, send us a message

26/03/2024 – edenseven is excited to announce that they have, within a consortium led by Peterborough City Council (PCC), been awarded a £2.75m grant by Innovate UK, part of a total £3.2m project, to boost the local authority’s ability to achieve net zero. This success is testament to PCC’s ambition to deliver a Net Zero City, the essential role that local authorities play in delivering carbon reductions nationwide, and the goal shared by edenseven and the rest of the consortium to support this journey. Working alongside edenseven and PCC, this consortium includes Cambridgeshire County Council, Nordic Energy, Energy Systems Catapult, and PECT. The shared aim of this team is to deliver ‘Peterborough Accelerated Net Zero (PANZ)’ over the next 18 months. This venture is designed to encourage healthier living, reduce costs, and develop a sustainable green skills market. Peterborough was one of the first cities in the UK to adopt a Local Area Energy Plan, which considered the current and future energy demands of heating, electricity, and transport, and laid out its pathway to reach Net Zero. PANZ will pioneer an approach to build on this Local Area Energy Plan, tailoring solutions to the needs of community and place. The project will support the Council in selecting projects that deliver on both carbon reduction and the Council’s many other aspirations for the city. It will encourage financial bundling of projects to create portfolios that can attract private investment, including district heating, and it will enable the Council to track the progress and impact of city-scale projects, making sure investment is directed toward the biggest environmental, social, demographic, and economic impact. edenseven aims to transform the way Local Authorities navigate the complex transition to Net Zero by developing an intuitive, tailor-made, carbon accounting and management platform that can provide a complete view of city-wide emissions and decarbonisation plans. It will give the Council a clear understanding of its current position against Net Zero targets, create insight to identify areas where action is required, and uses the reporting functionality to measure progress. Pete Nisbet, Managing Partner for edenseven, said: “In these pivotal years for decarbonisation in the UK, edenseven is thrilled to be collaborating with Peterborough City Council and the consortium on their Net Zero strategy. We recognise the critical role local authorities play in decarbonising the UK economy and are delighted to partner with forward-looking councils such as Peterborough and Cambridgeshire. This partnership creates a cross functional team equipped to deliver immediate actions for the local economy, as well as supporting the efficient future management of Net Zero projects. It marks the inception of a unique partnership across the public. private and third sectors and showcases our commitment to pioneering sustainable solutions that create social impact.” For more information about the Innovate UK funding, visit Innovate UK invests over £25m in net zero projects – UKRI About edenseven edenseven is a sustainability consultancy and technology provider that uses data and market experience to enable companies and their supply chains to play their part in tackling climate change while achieving sustainable growth. edenseven uses the combined power of data, advanced analytics, and pragmatic project management to help companies baseline their status, identify improvement opportunities in the short, medium, and long terms, and plan and implement those opportunities. For more information, visit our website: www.edenseven.co.uk

The problem Buildings are responsible for approximately 17% of UK emissions and 59% of UK electricity consumption. Worryingly, both carbon emissions and energy use associated with buildings continue to increase due to increased demand for heating, ventilation, and air conditioning (HVAC) and further construction. Moreover, approximately 80% of buildings that will exist in 2050 have already been built. Therefore, achieving Net Zero by 2050 requires rapid retrofitting of the existing building stock with energy-efficient technologies. The Climate Change Committee have stated that “rates of improvement in energy efficiency continue to be well below the necessary level”. What if I lease my buildings? If you lease your buildings, you may be wondering how any of this is relevant to you. Well, leasing inefficient buildings impacts your energy costs and your carbon footprint. This means that whether you own or lease your buildings, failing to address the problem means that your business is losing money and may struggle with reputational damage and compliance with climate regulation in the future. The solutions Fortunately, many options are available to improve the efficiency of your buildings and reduce carbon emissions. They include insulation, LED lighting, smart building management systems (BMS), air and ground source heat pumps, and efficient HVAC systems. Additionally, ensuring your buildings are run off renewable energy sources by installing wind energy or solar PV onsite will reduce your carbon footprint and your exposure to volatile energy markets. If onsite renewables are not possible, a power purchase agreement (PPA) can provide the benefits of renewable energy without the need to install it yourself. The exact solution will depend on a thorough assessment of your business to highlight the areas where the greatest impact can be achieved. To find out how edenseven can help you reduce your building emissions and get your business on track for Net Zero, send us a message.

What is it? The International Financial Reporting Standards (IFRS) announced two international sustainability standards in 2023, IFRS S1 & S2. IFRS S1 is for sustainability-related financial disclosures and IFRS S2 is for climate-related disclosures. The two standards are designed to be applied together. The standards fully incorporate the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD). This means that organisations that comply with the requirements of IFRS S1 and S2 will also be meeting the requirements of TCFD. The standards are voluntary unless adopted into national legislation. The UK is strongly considering adopting the standards into the UK Sustainability Disclosure Standards (UK SDS), currently being developed and due to be announced in July 2024. Who does it apply to?

edenseven are following trends in the renewable energy sector closely, as decarbonising the energy sector is vital for ensuring a sustainable future and achieving Net Zero. Considering the recent DESNZ quarterly update of the renewable energy planning database, we have produced a consolidated summary of projects in the United Kingdom that have received planning permission. We will continue to release updates each quarter. INSIGHT In the last 12 months, the UK approved the second-highest number of Solar PV projects in the past 14 years, with over 3,500 MW of energy capacity to be delivered. This marks the second-highest capacity in 14 years. The UK has granted permission for over 9,000 MW of energy capacity from solar, onshore, and offshore wind projects in the past 12 months, marking the third-highest capacity for any 12-month period in the last 14 years. While the average energy capacity (MW) of the solar PV projects granted planning permission in the UK remained the same as the previous 12 months and onshore wind decreased by 6%, the average energy capacity of offshore wind projects granted planning permission has significantly increased compared to the last 12-month period but remains considerably below its peak.

In August 2024, wind energy was the main source of Britain’s electricity generation, providing 32% of the energy mix, its highest contribution for August in the previous four years. Conversely, gas decreased by 18% compared to August 2023, supplying 17% of the mix, roughly half that of wind and its lowest contribution for August in the last four years. Nuclear outpaced gas, delivering 18% of Britain’s electricity mix, up 3% from August 2023 and the highest contribution from nuclear for any month since June 2022. Biomass saw a 3% increase compared with August 2023, delivering 7% of the electricity mix. Solar, hydro, imports, and storage each contributed 1% more than in August 2023, delivering 8%, 2%, 14%, and 2%. Contributions from coal decreased by 1% compared to August 2023, making up less than 1% of the mix. Of the electricity generated in August 2024, 60% came from renewable zero-carbon sources, up 13% compared to August last year and the highest zero-carbon contribution since at least 2020. The carbon intensity for Britain’s electricity generation for August 2024, at 83gCO₂/kWh, is 48% lower than for August 2023 and the lowest for any one month since at least 2020. The rolling 12-month average carbon intensity remains significantly lower than the previous 12-month period at 126gCO₂/kWh. The rolling 12-month average proportion of electricity delivered by zero-carbon sources is the highest of the previous four years at 52%, 3% higher than the previous 12-month period. Increasing the electricity generation from renewable sources can help achieve our net-zero ambitions, ensure energy security, and decrease reliance on imports.

In July 2024, the primary source of electricity in Britain was gas, accounting for approximately a quarter of the energy mix (24%), which is 6% less than for July in the previous year. Wind power saw an 8% decrease from its contributions in July 2023, contributing 21% of the mix; however, its proportion was higher than in July 2021 and 2022. Conversely, solar energy increased by 2% in July 2024 compared to July 2023, contributing 9% of the energy mix, marking its highest share for July in the past four years. Imports of electricity significantly increased compared to July 2023, accounting for around one-fifth of the electricity mix, which is 7% higher than the previous year. Additionally, contributions from biomass increased by 2% over July 2023, making up 7% of the mix. Both nuclear and coal saw a 1% increase in their respective proportions of Britain's electricity mix compared to July 2023, with nuclear reaching its highest level for July in past four years at 16%, and coal contributing 1% to the mix.  Contributions from hydro and storage remained consistent with July 2023, each delivering 1% of Britain’s electricity mix. Zero-carbon sources accounted for less than half of the electricity generation in July 2024 (47%), which is 5% lower than the previous year. However, this marks the second-highest proportion of renewables delivered in July in the last four years. The carbon intensity of Britain's electricity generation in July 2024 was 114gCO₂/kWh, which is 20% lower than in July 2023 and the lowest for July in the past four years. It is important to note that the increased reliance on imports likely influenced this figure. The rolling 12-month average carbon intensity remains significantly lower than the previous 12-month period at 133gCO₂/kWh. The rolling 12-month average proportion of electricity delivered by zero-carbon sources is the highest of the last four years at 51%, which is 3% higher than the previous 12-month period. Increasing electricity generation from renewable sources can help achieve our Net-Zero ambitions, ensure energy security, and decrease reliance on imports.

In June 2024, wind energy was the main source of electricity in Britain, accounting for a quarter of the mix, 6% more than in June 203. Gas contributions fell significantly, accounting for 20% of the mix, approximately half of what gas contributed in June a year earlier (37%) and its lowest contribution for any month so far in 2024. Solar energy increased by 1% in June 2024 compared with June 2023, contributing 10% of the electricity mix, delivering its second highest proportion of Britain’s electricity mix in the previous four years. The share of imports and biomass in Britain's electricity mix increased by 6% and 3% respectively compared to June 2023, reaching 19% and 6%. This marks the highest proportion of imports in Britain's electricity mix since at least 2020. Nuclear, hydro, storage and coal contributions remained consistent with June 2023, with nuclear contributing 17%, hydro and storage each accounting for 1% and coal accounting for <1% of the electricity mix, respectively. Over half (52%) of the electricity generation in June 2024 came from zero-carbon sources, representing a 5% increase from June 2023 and the highest proportion delivered from zero-carbon sources for June in the previous four years. The carbon intensity for June 2024 fell below 100gCO₂/kWh, was the second lowest for any month in the previous four years and 40% lower than for June 2023. The rolling 12-month average from July 2023 to June 2024 remains substantially lower than the previous three 12-month periods, at 135 gCO₂/kWh, 22% lower than the 12-month period prior. Increasing the electricity generation from renewable sources can help achieve our Net-Zero ambitions, ensure energy security, and decrease reliance on imports.

In May 2024, gas was the main source of electricity in Britain, accounting for a quarter of the mix. Despite this, gas contributed 9% less to the electricity mix than in May 2023 and the lowest contribution for May in the last four years. Wind energy contributed 19% to the electricity mix in May 2024, a 1% decrease from May 2023. This was its second-lowest contribution for May in the previous four years. Solar energy also decreased by 1% in May 2024 compared with May 2023, contributing 8% of the energy mix. The share of imports and biomass in Britain's electricity mix increased by 1% and 4% respectively compared to May 2023, reaching 19% and 7%. This marks the highest proportion of imports in Britain's electricity mix for the month of May since at least 2020. Nuclear power's contribution also increased by 2% compared to May 2023, making up 17% of the electricity mix. The contributions from hydro, storage and coal remained unchanged from May 2023, with hydro and storage each accounting for 1%, and coal contributing <1% to Britain’s electricity mix. Almost half (45%) of the electricity generation in May 2024 came from zero-carbon sources, representing a 1% increase from May 2023. However, this was lower than in May 2022 (50%). Despite this, the rolling 12-month average from June 2023 to May 2024 remains substantially lower than the previous three 12-month periods, at 141 gCO₂/kWh, approximately a fifth lower (19%) than the 12-month period prior. Increasing the electricity generation from renewable sources can help achieve our Net-Zero ambitions, ensure energy security, and decrease reliance on imports.