Performance

BTPS Family and JV Management Performance

In the interests of good practice sharing we are very much engaged and cooperate with the property companies in the BTPS family, Argent and MEPC and with our Joint Venture partners with regard RPI.

We have agreed with Argent and MEPC to include the performance data of their assets which are managed under our RPM programme in this section of our report. In the interests of best practice reporting we have omitted these figures from our performance section analysis that relates to Hermes managed properties only, but in the interests of transparency, we felt it was appropriate to include them here. This work is part of our continuous improvement commitment.

RPI coverage
If we include those assets which are managed by Argent and MEPC, who have agreed to include their portfolios in our RPM programme, then the number of properties measuring and monitoring energy falls to 114 for the 2008 calendar year.

Number of properties measuring energy data for a full calendar year, including sister company assets

With agreement from Argent and MEPC, we have analysed the performance of these assets in our performance review section.

Further to this, we are actively engaging with other Joint Venture partners to ensure all assets in which we have an interest are accountable and have in place some form of improvement programme.

Management performance

Energy consumption and CO2 emissions
Absolute owner controlled energy consumption for Hermes and the MEPC and Argent portfolios expressed as kgCO2

Note: Some historic data that was previously published has had to be updated in this year's report because inaccuracies were discovered. These inaccuracies were discovered at Brindleyplace as part of an exercise to reconcile historic meter readings. This highlighted differences between some of the meter reads that had been taken originally and the figures that we published in last year’s report. Following a rigorous data checking process, we believe that the data stated in this report is an accurate representation both of 2008, but also of prior years. This process has highlighted the importance of reliable metering arrangements, and for this reason, we encourage our PMs to install Automatic Meter Reading (AMR) capabilities wherever possible.

Absolute CO2 emissions for Hermes, MEPC and Argent

MEPC and Argent have seen their carbon emissions increase by 3,848,052 (42.8%) since 2007. The reasons for this are twofold. Firstly, as explained above, we have had to discount 2007 data for some of Argent’s Brindleyplace properties, but have reported on them in 2008. This means that we are reporting on 48 properties in 2008 compared to 45 properties in 2007.

Secondly, MEPC has seen considerably increased occupancy levels in the last year as a number of its properties have come on-line following development and refurbishment.
MEPC continues to implement the RPM programme across its portfolio and many of the properties that it has brought into the programme within the last two years have been built to a particularly high standard. When its occupancy rates have stabilised across its portfolio, we will be able to examine the success of its management practices through the like-for-like portfolio analysis.

Brindleyplace, owned by Argent and managed by GVA Grimley, has been in the programme for about 18 months, and so understandably is still developing some of the processes required. That said, they have good systems in place and we are impressed with their commitment to date. We have an accurate baseline for 2008 for three of the properties within the estate, and should be able to report on the rest of the estate next year.

Water consumption

Water consumption for Hermes and MEPC

MEPC has seen its water consumption increase by 9,395m3 (18.16%) since 2007. As with energy, this is primarily attributable to a large increase in occupancy levels for those properties that have come on-line following development and refurbishment.

MEPC has now succeeded in setting a reliable baseline for water and we should be able to conduct a like-for-like portfolio analysis next year.

Argent was unable to report on any water data in 2008.

Waste

Total MEPC portfolio waste by disposal route for 2008 (m3) (7 business parks)

2008 is the first full year for which MEPC has provided waste data. Each of its seven business parks is supplying volume data. And as a portfolio MEPC currently sends only 14% of its waste directly to landfill.

Brindleyplace, which came into our programme in 2008, has already started to record waste by weight and is quickly adopting best practice management to improve its performance.

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