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UK Commercial Property Sustainability Regulations

Jun 20, 2024

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

  • Minimum Energy Efficiency Standards (MEES): From 2023 commercial properties in England and Wales require a minimum EPC rating of ‘E’, moving to ‘C’ in 2027, and ‘B’ in 2030. Approximately 80% of UK commercial property is below EPC ‘B’, highlighting a huge vulnerability for landlords and companies using their premises. Fines for non-compliance include up to £150,000 per non-compliant letting and reputational repercussions.



  • Retrofitting is essential: Approximately 80% of UK buildings that will exist in 2050 have already been constructed. This means the existing building stock requires rapid retrofitting to ensure energy efficiency and alignment with Net Zero by 2050. Retrofitting measures include insulation, efficient HVAC systems, installing heat-pumps, intelligent building management systems (BMS), LEDs, water & waste reduction measures, and installing renewable energy.



  • Green leases increasingly common: Clauses related to sustainability requirements for both landlord and tenant are becoming more common in commercial property leases. These can vary in their scope of requirements and can include, sharing utility data, improving EPC performance, improving water and waste management, and ensuring sustainable materials are used for retrofitting and repairs. Green lease clauses can be legally binding and result in termination of tenancy contract if breached.



  • Biodiversity Net Gain (BNG): Under the Environment Act 2021, from February 2024, new developments in England will be required to increase biodiversity by 10% compared to the pre-development baseline. BNG measurements will adhere to DEFRA’s biodiversity metric.



  • Increasing commercial rent prices: As demand for high efficiency commercial property increases the rental market is likely to see an increase in rental prices. However, whilst tenants may pay higher rents, they will benefit from improved efficiency, resulting in lower utility fees.



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.


To find out more, send us a message


Wind turbine against a blue sky, with the text
by Doug Mccauley 25 Sept, 2024
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.
Pylons in a field with text 'NATIONAL GRID ESO ANALYSIS AUGUST 2024'
by Doug Mccauley 17 Sept, 2024
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.
Pylon against sky with text
by Doug Mccauley 12 Aug, 2024
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.
Electricity pylons at sunset with text
by Doug Mccauley 08 Jul, 2024
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.
City skyline at night
by Doug Mccauley 20 Jun, 2024
Some interesting key developments that are impacting commercial property in the UK
Electricity pylon against cloudy sky with text
by Doug Mccauley 13 Jun, 2024
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.
A river flowing through a mountainous setting with a partly cloudy sky
by Doug Mccauley 06 Jun, 2024
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
Wind turbine with text
by Doug Mccauley 05 Jun, 2024
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 past 12 months, the UK saw the highest number of Solar PV projects granted planning permission, and the second-highest energy capacity for Solar PV in the last 14 years, with almost 4,000 MW of energy capacity set to be delivered by these projects. Whilst the number of onshore wind projects granted planning permission in the UK increased slightly, the average energy capacity for these projects increased significantly compared to the previous 12-month period, reaching its second-highest level in the last 14 years. The total energy capacity and average energy capacity from offshore wind granted planning permission in the UK increased significantly compared to the 12 months prior, highlighting a recovery from low levels of approved offshore wind energy in the UK during the previous 12-month period.
Electricity pylon against cloudy sky with text 'National Grid ESO Analysis April 2024'
by Doug Mccauley 13 May, 2024
April was a record-breaking month for electricity generation in Britain, with the National Grid reporting that carbon emissions from electricity generation fell to 19gCO2/kWh for a period on April 15th, surpassing the previous record. Electricity sourced from fossil fuels dropped to 2.4% over the same period. Wind energy was the main contributing source to Britain’s electricity in April 2024, accounting for over a third (35%) of the mix, almost 10% more than in April 2023, and its highest contribution for April in the last four-years. Gas contributions fell dramatically compared to April 2023, representing only 17% of Britain’s electricity mix in April 2024, half of its April 2023 value. This is the lowest proportion of Britain’s monthly electricity it has made up since at least 2020. Solar contributions remained consistent with April for previous years, contributing 6% of the electricity mix in April 2024. Imports rose by 2%, comprising 15% of the mix, it’s highest proportion for April since at least 2020. Nuclear’s contribution rose by 2% from April 2023, to deliver 16% of Britain’s electricity mix in April 2024. Contributions from biomass, and coal increased by 1%, making up 7% and 1% of Britain’s electricity mix in April 2024, respectively. Both Hydro and Storage contributions remained consistent with April 2023. Almost 60% of the electricity generation in April 2024 came from zero-carbon sources, representing a 13% increase from April 2023, and the highest for April in the previous 4 years. The rolling 12-month average for May 2023 to April 2024 remains substantially lower than the previous three 12-month periods, at 143 gCO₂/kWh, and approximately a fifth lower (19%) than the previous 12-month period. Increasing the electricity generation delivered by renewable sources can help us achieve our Net-Zero ambitions, ensure energy security, and decrease reliance on imports.
Electricity pylons at sunset with text
by Doug Mccauley 08 Apr, 2024
Wind energy was the main contributing source to Britain’s electricity in March 2024, accounting for 33% of the mix, a 4% increase compared to March 2023, and its highest contribution for March in the last 4 years. Solar contributed 4% of the electricity mix in March 2024, a 1% increase compared with March 2023. Gas contributed 24% of Britain’s electricity mix in March 2024, the second lowest proportion of Britain’s electricity it has made up since at least 2020 and a 10% decrease compared with March 2023. Imports saw a 3% increase, comprising 17% of the mix, its second highest proportion since at least 2020. Coal, Nuclear, Biomass, Hydro & Storage contributions remained consistent with March 2023. More than half (51%) of the electricity generation in March 2024 came from zero-carbon sources, representing a 4% increase from March 2023, and the highest for March in the previous 4 years. The rolling 12-month average for April 2023 to March 2024 remains substantially lower than the previous three 12-month periods, at 148 gCO₂/kWh, and 17% lower than the previous 12-month period. Increasing the electricity generation delivered by renewable sources can help us achieve our Net-Zero ambitions, ensure energy security, and decrease reliance on imports.
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