Hermes

Organisations:

Hermes – Commercial property landlord, Jones Lang LaSalle – Managing agent, Focus FM – Energy and Facilities Management Consultants

Size:

Large

Location:

Eight multi-let offices London-wide

Aim:

To develop and implement an energy management strategy for the Hermes / Jones Lang LaSalle commercial property portfolio, through tenant engagement.

How Hermes made a difference:

Hermes is a commercial property landlord that elected to take action in tackling climate change.

Hermes undertook a successful pilot of its energy management strategy initiative at Nations House W1, where carbon emissions have been consistently reduced by 36% over six years.

In 2006, this initiative was extended across eight Hermes properties, resulting in first year savings of 504 tonnes of CO2 emissions (6% of total) or 1,966 MWh. The initiative is now being rolled out across the entire Hermes property portfolio.

As with many office buildings, the occupiers of the properties are not the owners. Additionally, all the buildings are multi-tenanted. This was identified as a barrier in the London Climate Change Action Plan, as contributing to the so called tenant-landlord disconnect.

This can act as a barrier to improving energy efficiency in these buildings. Hermes acknowledged that engagement with tenants was crucial in overcoming this barrier and was achieved through a number of linked initiatives.

• Presentations convened by Jones Lang LaSalle to tenant representatives to introduce the need for energy management measures.
• The holding of an Energy Awareness Week at Nations House in March 2007 and other Hermes properties in October 2007. This event publicised energy trends and facts specific to each building, introduced simple saving actions aimed at individual tenants, and included the production of a carbon footprint for each building.
• As part of the highly successful energy week, an energy consultant from Focus FM met separately with tenant representatives and senior management to discuss how they could contribute to improving the energy efficiency of their building. This led to the creation of a building specific energy policy targeting a 5% year on year carbon reduction.
• Energy audits are planned at each property with one already completed. Agreeing these actions is expected to be significantly easier due to the work that has been undertaken to engage with tenants from the outset.

All of the behavioural change actions that have been undertaken have been designed to complement a complete cycle of energy management services. This includes monitoring consumption, target setting and performance management, regular updates to energy audits, and a facilities management service to implement recommendations.

Changes implemented with tenants at Nations House as a result of the Hermes / Jones Lang LaSalle energy week include:

• Aspect Capital now use timer plug adaptors to automatically switch off the printers at night.
• Warner are looking into the possibility of sensors to automatically turn off lighting when the office is un-occupied.
• Tourism Ireland have now implemented many energy saving tips and now bring up energy saving every week at the staff meeting.
• Pimco are considering timer plugs to turn off printers at night, double sided printing, and an initiative to switch off monitors.

Each property within the portfolio is expected to save 5% of carbon annually. Critical to success is the partnership between the landlord, managing agent and tenant.

Of the eight Hermes/ Jones Lang LaSalle properties that the energy management initiative have so far been rolled out on, six are on track to beat this target.