November 2016 Real estate assets decarbonisation: Strategies for enhanced investment value and green credentials In association with Siemens Siemens develops digital tools for energy efficiency Credit Suisse Navigator platform REIM on track with optimises decarbonisation real estate
SIEMENS MARKET INSIGHT Real estate assets decarbonisation: Strategies for enhanced investment value and green credentials By James Williams Reducing the carbon footprint of buildings and enhancing sustainability are fast becoming business critical issues for institutional real estate investors. But in order to implement an effective green strategy to lower one’s carbon footprint, having access to detailed building performance data and analytics is vital.
SIEMENS MARKET INSIGHT dataset consisting of 56,000 buildings worth USD2.1 trillion. The study found that REITs with a higher sustainability ranking not only performed better in terms of the return on assets but also the return on equity. To further illustrate the point, on 10th September 2016, The Economist2 featured an article on green investing and referenced BlackRock, one of the world’s biggest fund management groups.
SIEMENS MARKET INSIGHT Navigator – the cloud-based energy and sustainability platform Turning data into results across your entire building portfolio Data analysis Apps to track energy & sustainability KPIs Data connection and collection Gathering the data you need Leverage transparency Make insight-based decisions with selfservice dashboards Uncover opportunities Take action to optimise your buildings Data-driven services from Siemens Awareness is certainly growing with respect to improving buildi
SIEMENS MARKET INSIGHT Siemens will often devise an energy efficiency programme based on the following tiered system: • Tier 1 – the worst performing (largest) buildings. Siemens engineers will go on site and do an energy audit to come up with an energy efficiency proposal to improve the energy and cost performance of the building. • Tier 2 – overall energy consumption of the buildings is not significant but by applying control strategies, the facility can be run in a more optimal way.
SIEMENS MARKET INSIGHT Taipei 101, Taipei, Taiwan The Taipei World Financial Center – or Taipei 101 – is the world’s second-tallest building. The goal was to transform the office tower into a “green” building and to achieve LEED certification. In July 2011, Taipei 101 was awarded LEED’s highest quality level: platinum. The custom solutions from Siemens allow the following annual savings: • 3,000 tons of CO2 emissions • 28,000 tons or 10 percent of water consumption • 1,261 tons or 10 percent of waste • 4.
SIEMENS MARKET INSIGHT focusing on the development of the value of real estate by making it more attractive to tenants.” The Siemens service capabilities encompass: • Strategy & planning • Evaluation & assessment • Programme implementation • Ongoing services & optimisation • Continuous measurement & reporting. “For institutional real estate investors, our advisory and performance services help to increase the value of their RE portfolio and maximise returns for their end investors.
SIEMENS MARKET INSIGHT through predictive maintenance and remoteservice delivery. Helping clients achieve typical cost savings of 20% Fluri estimates that the typical level of cost savings that Siemens helps clients achieve is in the region of 20%, depending on the maturity of the building stock. “Some buildings might be old and under-maintained, and there are a lot of improvements that can be made.
SIEMENS MARKET INSIGHT Demonstrating that buildings comply with industry benchmarks such as ENERGY STAR is a positive message to convey to institutional investors, but it requires accurate and comparable performance data. That is what Navigator provides, in varying degrees of granularity, which clients can use to benchmark the performance of their portfolios, and fulfil non-financial reporting requirements.
SIEMENS MARKET INSIGHT developed Real Estate Cockpit and Siemens Mindsphere,” confirms Huber. There are various benefits to this collaboration that help give customers valuable information on their real estate portfolios at the click of a button. For example: • Transparency on building types and multiple KPI’s such as vacancy rates, cost per tenant, cost per sqm. • Leveraging internal and external data on Siemens’ Navigator platform to benchmark building performance and forecast operational budgets.
SIEMENS MARKET INSIGHT Baumann, COO and Head of Sustainability at Credit Suisse Real Estate Investment Management. “The second pillar relates to what we do with new building acquisitions. We developed our own ratings system for new construction projects, called the ‘greenproperty’ seal, which is based around the Swiss Minergie standard. “This greenproperty seal is certified by our external valuation agents and we apply it to all new building projects that we acquire.
SIEMENS MARKET INSIGHT provided in April this year, “we are well on track with the decarbonisation programme”. “I’m confident we will reach our 10% CO2 reduction target. We have seen huge potential in some of our older larger buildings where we’ve already achieved a 15 to 20% reduction in CO2.
