Hermes Real Estate Exceeds Its 2020 Carbon Emission

Hermes Real Estate Investment Management Limited (HREIML) has released its 2012 Responsible Property Investment (RPI) Report, “Embracing new market expectations”, which highlights that HREIML has achieved absolute carbon emission reductions of over 41 per cent for its year on year standing portfolio since 2006. Further to this, HREIML has surpassed its 2020 target of a 40 per cent reduction and generated energy savings of over £1.5 million in the last five years.

Confirmed by carbon intensity reductions, the findings showed  particularly strong results across HREIML’s shopping centres, with 49 per cent carbon emission reductions relative to floor area, whilst office assets achieved a 46.6 per cent decrease. This is demonstrative of HREIML’s  best practice responsible asset management and the impact of new acquisitions and sales within the portfolio.

HREIML  has had great success with its waste strategy, seeing 42 per cent of waste recycled on site in 2011, and another 42% sent to waste sorting centre’s. In addition, HREIML is working closely with its waste management centres to ensure that 80 per cent of waste is recycled both on and off site by 2013. Lastly, water consumption was also down 14.4 per cent, helping HREIML move towards its 2020 target of 20 per cent.

David Price, Head of Asset Management at Hermes Real Estate Investment Management Limited, said: “As a result of a more focused management approach, involving monthly meetings with Property Managers, we have implemented a best in class responsible asset management programme that covers sustainability and risk and safety. This is clearly delivering results for our clients and our occupiers.”

Tatiana Bosteels, Head of Responsible Property Investment, Hermes Real Estate Investment Management Limited, said: “There is compelling evidence indicating that sustainable building characteristics reduce the risk of structures becoming obsolete and depreciating in value, enhance tenant retention, decrease void periods and lower operating costs. These are likely to have an impact on returns and higher risks of depreciation in the UK in the next five to ten years. Therefore, it is crucial to have a strategy to both mitigate the risks and take advantage of the new market expectations these changes provide.”

The Hermes Responsible Property Investment (RPI) strategy has been integrated into its overall investment practice with a range of dedicated tools and procedures covering all aspects of HREIML’s operations. These are inclusive of dedicated acquisition sustainability due diligence, responsible property management targets for all directly managed assets, minimum sustainability requirements for refurbishments and developments, active engagement on indirect and international investments and on-going performance monitoring.