by Clair Mooney | 14 May, 2021 | Main News Feed, Sustainability, Transformation
FIS has this week launched a new Sustainability Toolkit to help the sector to take a pro-active lead as a supply chain in supporting the UK ambition and meeting legal requirements linked to UK Net Zero carbon commitments, but also to look more broadly at the ethical and environmental aspects of sustainability.
In June 2019, the UK became the first major economy in the world to pass laws to end its contribution to global warming by 2050. With the The (Conference of the Parties) COP26 Summit taking place in the UK in November 2021, this year has been designated “The UK’s year or Climate Action”. With Construction accounting for 40% of UK Carbon Consumption, the construction industry is critical to supporting this commitment. In turn the Finishes and Interiors Sector representing around 11% of UK Construction and decisions and processes associated with the fit-out and finishing of buildings is estimated to account for 40% of energy in a building and hence has a big part to play in realising change. A recent manifesto published by Perkins & Will sets down a clear strategy to moving to zero carbon and identifies that the built environment is responsible for 40% of the UK’s total carbon footprint and within this fit-out is responsible for 40% of energy in a building. A key figure to target improvement identified in this report is that 300 tonnes of fit-out material goes to landfill every day.
The Sustainability Toolkit is the first output of a new Sustainability Working Group (which is being developed in partnership with the Supply Chain Sustainability School) has been established within the FIS community to help inform activity and provide a platform to encourage collaboration through the FIS and with wider industry initiatives. The plan is to use this group of experts to set down a clear action plan for the sector and highlight key strategic relationships that can be developed through the FIS to support transformation. Initially focus is in 5 core areas:
- Increasing knowledge and understanding within the supply chain
- Setting targets and standardisation (including monitoring and measuring impact)
- Providing an active network and encouraging collaboration
- Highlighting individuals and approaches that help inspire and inform change
- Informing design and encouraging better asset management
FIS Chief Executive Iain McIlwee stated:
“Whilst many have not been hit by the full force of the Net Zero tidal wave that seems to be heading our way, it is absolutely dominating discussions around the transformation of construction. When you step back and look at the principles of sustainability, they sit very closely to everything FIS stands for. Beyond the obvious environmental considerations, the ingredients of change are value led change, resource efficiency, innovation and harnessing technology, productivity, quality, collaboration and ultimately early engagement and dialogue up and down the supply chain. We are really grateful to the members who have got stuck in to date and look forward to exploring the full potential of the race to Net Zero and a focus on fairness and inclusivity that will be a key to transforming our supply chain for the better”.
The FIS Sustainability Toolkit is available here
If you are interested in joining the working group or simply seeing the draft action plan email info@thefis.org or call FIS on 0121 707 0077
Next meeting of the FIS Sustainability Working Group is set for 3pm on the 27th May – the meeting will be virtual. If interested in attending, email info@thefis.org
by Clair Mooney | 11 May, 2021 | Sustainability
Speaking at today’s virtual Business 7 Summit (or ‘B7’), which welcomes around 60 CEO’s from leading UK and global companies across the G7 countries, and feeds into the G7 Summit programme, Secretary of State for Business, Energy and Industrial Strategy, Kwasi Kwarteng, recognised the construction industry’s contribution to achieving Net Zero.
In remarks to the concluding session, which aimed to identify how government and business can work together to address global challenges in climate, digital and health, the Secretary of State set out his priorities and views on business leadership, highlighting that over 58 UK construction businesses have already signed-up to Race to Zero, including firms such as Lendlease and Multiplex.
The Secretary of State also highlighted the UK’s leading consultancy businesses working in the built environment, who have today collectively committed to offering ambitious design options and advice that are fully compatible with Net Zero outcomes to their clients. This means that the expert advice received by financiers, asset owners and operators will now be encouraging, and actively driving towards, ambitious Net Zero choices.
These firms are respected around the globe for their expertise and include AECOM, Arcadis, Arup, Atkins, Buro Happold, Jacobs, Mott MacDonald, Mace, Turner & Townsend and WSP.
Kwasi Kwarteng said: “The UK’s construction and engineering industries are leading the world in the drive to cut emissions, and I am thrilled to see so many businesses from all over the globe share this ambition.
“As we build back better, the commitments made at this summit will support the construction industry to make this essential low carbon transition and I look forward to working closely with the sector and the Construction Leadership Council on this journey.”
iain McIlwee, FIS Chief Executive said: “Net Zero is fast emerging as the most talked about subject in construction, rightly driven by an understanding we need to be better and a Build Back Greener mindset from Government. Beyond growing understanding of environmental impact, we are living through a time when material supply is short and global supply chains fractured – we are being forced to confront and consider carefully everything we use, make sure we avoid waste by getting it right first time and ultimately how we can reuse and reinvent to prevent waste.
Recognition from the Secretary of State in terms of the work done so far is encouraging and I am encouraged by the CO2nstruct Zero work of the CLC, but to hit the targets being talked about we need a monumental supply chain shift in terms of the way we design, procure, construct and manage buildings.
For me Net Zero starts, as with every element of improvement in construction, with early engagement and genuine attempts to manage risk through collaboration. Let’s be clear being unsustainable is another risk, one that crystalises when the supply chain is not engaged with and informing the design, site planning and communicates effectively about how we can be better together, rather than simply contractualises the problem. Our new sustainability working group is focussing on five key areas; informing design, encouraging better material and asset management, increasing knowledge and understanding within the supply chain, setting targets and standardisation in monitoring and measuring, providing a collaborative support network and highlighting individuals and approaches that help inspire and inform change. As a first step we have updated our Sustainability Toolkit and we are calling on any member interested in supporting us in this work to join our new working group.”
You can access the upgraded FIS Sustainability Toolkit here
Hannah Vickers, chief executive of the Association for Consultancy and Engineering (ACE) and CO2nstructZero lead at the CLC said: “I’m delighted to see ACE members among those demonstrating the leadership required if our industry is to play its part in helping society to meet its ambitious Net Zero targets.
“The UK’s leading global consultancy businesses are well advanced in achieving Net Zero on their direct emissions. In order to deliver significant reductions to society’s carbon emissions, these firms are now also committing to proactively shaping their clients’ decisions and approach. This means that more projects will start out with Net Zero at their core, delivering a positive knock-on effect along the entire construction supply chain.”
by Clair Mooney | 2 May, 2021 | Sustainability, Technical
The Department for Business, Energy and Industrial Strategy (BEIS) has opened a consultation on introducing a performance-based policy framework in large commercial and industrial buildings. This consultation sets out the government’s proposals to introduce a national performance-based policy framework for rating the energy and carbon performance of commercial and industrial buildings above 1,000m² in England and Wales, with annual ratings and mandatory disclosure as the first step. The consultation closes on 9 June.
In the impact assessment document it is asserted that information failures, behavioural barriers and split incentives, mean the operational performance of commercial and industrial buildings in terms of how well they use energy, is inefficiently poor, and not net zero consistent. This causes overuse of energy, and hence higher Green House Gas emissions. A key part of resolving this is having a consistent means of assessing buildings’ operational performance. Existing measures of building performance, such as the Energy Performance Certificate, do not adequately reflect their real performance, and this is particularly acute for larger buildings. Government intervention is required as this information must be developed at the level of the entire stock, and existing market-driven interventions cover a small minority of the stock.
The consultation is in 2 parts:
The impact assessment accompanies the Phase One: Office Sector consultation and provides supporting analysis on the proposals.
We welcome responses from all contributors with an interest in these proposals, but would like to hear in particular from:
- owners and tenants of commercial and industrial buildings above 1,000m²
- investors, asset managers and lenders
- energy consultants
- facilities management companies
- businesses involved in retrofit of these buildings
- the wider market
For more information and how to respond
For more information and to respond to the consultation click here. If you are responding, it would be helpful if you could direct key points to FIS to support any response we make on behalf of the community. Key questions from the consultation are provided below.
Consultation Questions
- Do you have any evidence which supports, disputes, or could add to, the evidence presented by the Government in this chapter? In terms of the evidence presented in this chapter, do you support the Government’s analysis?
- Do you support the rationale set out in this chapter? If so, are there any changes you would make or considerations you would add to the rationale the Government has set out? If not, could you please explain why, providing evidence where possible.
- Do you support the Government’s proposal to underpin a performance-based policy framework with a rating that looks to modernise the DEC, in the ways set out above? If so, are there any changes you would make or considerations you would add to the proposal? If not, could you please explain why, providing evidence where possible.
- The Government proposes that, as a first step, building owners and single tenants should be required to obtain an annual performance-based rating, and disclose that rating online. Do you support this proposition? If so, are there any changes or amendments you would make to the proposal? If not, could you please explain why, providing evidence where possible.
- What is the best way to support Small and Medium Enterprises in obtaining annual performance based ratings, where the owner of the building or the single tenant is an SME?
- Should the Government:
- Allow owners of buildings above 1,000m² to use their annual performance-based rating to satisfy their existing regulatory obligation to present a valid EPC before a building is sold or let. As set out above, under this option the Government would continue to collect data about fabric and service improvements. Where prospective buyers or tenants want information about the building fabric and services, EPCs can be obtained on a voluntary basis.
- Continue to require owners of buildings above 1,000m² to present a valid EPC where the building is sold or let, recognising that the EPC and a performance-based rating assess different things, and can collectively provide a better level of information about the building than either rating would in isolation.
Please outline your preferred option and your reasoning, providing evidence where possible. Please set out any changes or amendments you would make to the options, or if you would favour a different option. An appraisal of the benefits and risks of both options, providing evidence where possible, would help inform the Government’s decision making.
- Recognising that the Government has committed to review the threshold for each sector, do you consider 1,000m² to be a sensible starting position for determining which buildings should be required to obtain annual performance-based ratings?
- Should the Government consider expanding the performance-based rating to cover factors such as water, waste and indoor air quality? What do you consider would be the benefits of this approach? Would there be any drawbacks?
- Has the Government identified what you consider to be the right objectives for a successful delivery model?
- Do you support the Government’s proposal that the annual rating should not be accompanied by recommendations for improving the rating? If so, are there any changes you would make or considerations you would add to the proposal? If not, could you please explain why, providing evidence where possible.
- Do you support the Government’s proposal that exemptions should be limited to a relatively few buildings? Are there any grounds for an exemption that you feel are appropriate, which the Government has not considered? Ahead of the findings from the Government’s research project we also welcome views on how the requirement to obtain and disclose an annual rating could be enforced most effectively.
- Are there any considerations you would like to add to the Government’s analysis of the factors that are likely to drive improvements in ratings? Do you support the Government’s proposals to improve ratings from day one?
- Do you consider that linking a clear financial incentive, or disincentive, to annual performance[1]based ratings would be an effective way to drive improvements in those ratings?
- What do you consider would be the impact of the incentives and interventions that have been suggested? Are there ways you think those incentives or interventions could be made more effective? Are there other incentives or interventions that the Government has not considered here, which you believe would be more effective at ensuring ratings improve over time?
- Do you agree with the Government’s assessment and preferred approach? Please provide evidence or case studies, where possible, in your response.
- Do you agree that flexible energy use should be a core component of the rating? What is the best way, technically, to reflect flexible energy use in the rating structure?
- Do you agree with the Government’s preferred option to use a star rating format? Are there any formats which the Government has not considered that you believe could be more effective?
- The Government welcomes feedback on the considerations outlined above. What are the key factors that the Government should consider in determining fair and effective rating benchmarks and a fair and effective rating scale? Where possible, please provide evidence, or case studies, to support your feedback.
- Subject to the outcome of this consultation, the government will work with the ratings administrator, and with industry experts, to tailor the framework appropriately to each sector. At this stage, the Government welcomes any additional feedback on the high-level technical considerations outlined in this chapter, especially where there may be key considerations that we may have not addressed, or not been able to cover. Where possible, it would be helpful if you could provide evidence and case studies to support your response.
