April 17, 2015
SR Inc Member Executives Begin a Year-long Examination of Best Practices in Integrating the Internet of Everything and Renewable Energy Portfolio-wide
Sustainability Roundtable Inc. (“SR Inc”) was pleased to host a Q1 Executive Symposium in the Board Room at its headquarters in Cambridge, MA as part of its Sustainable Business & Enterprise Roundtable (“SBER”) business service. This SBER Member-Client meeting brought together dozens of top companies, large organizations, and real estate investors who are leading in the global move to more sustainable high-performance in real estate and corporate operations. The Symposium built upon SBER’s continuing investigation into achieving the ambitious goal of Net Zero Impact Portfolios by 2030. Specifically, the objective of the meeting was to initiate and deepen SBER Member Executives’ and SR Inc Team Members’ understanding of what Portfolio Managers and Directors of Corporate Real Estate need to know about the Internet of Everything (IOE) and the Renewable Energy Revolution in 2015. The Symposium’s discussions revealed findings, case studies, and management best practices related to these two technical revolutions, which will ultimately reshape portfolio management and help companies move towards Net Zero Impact Portfolios by 2030. Below are select relevant key takeaways drawn from preparation for and discussion during this Symposium.
Bentall Kennedy’s approach to Portfolio Optimization, developed in conjunction with the UN Environmental Program, outlines “7 Steps to Success”: ensuring executive awareness of the business case, measuring and benchmarking building energy performance, setting portfolio energy efficiency targets, linking asset manager compensation to energy performance, aligning lease clauses to enable retrofits, including impact on asset value in investment analysis, and taking a portfolio approach to determine next steps.
- Member-Clients noted the challenge associated with the transition to Intelligent Portfolios of piecing together data from different regions or countries that use disparate data collection and organization systems.
- Member-Clients recognized the importance of streamlining the reporting process and providing incentives for individual properties to increase participation in data reporting.
- By developing software that is highly accessible to a broad range of users and/or partnering with highly collaborative vendors, Member-Clients are able to continually improve and customize digital tools to meet their needs.
- To enhance communication of benefits produced by integrated building data analytics systems, Member-Client Bentall Kennedy is aligning metrics used in sustainability tools with business metrics of value to Investment Managers.
- By providing formal training programs or hiring new staff skilled in the use of relevant software, companies can support a more seamless integration of data management systems into operations.
- James Gray-Donald of Bentall Kennedy pointed to the benefits for landlords that improving building efficiency can produce, namely making the building more competitive with new buildings on the market, thus delaying market obsolescence, and also fostering tenant loyalty, as tenants become drawn to the experience provided by buildings that prioritize sustainability.
- Member-Clients discussed the need for caution when installing roof-mounted solar photovoltaic arrays, as roof damage during a building’s sale can result in legal fees that easily out-cost the savings from solar energy produced.
- Due to the rapidly changing landscape of the renewable energy market, Cisco’s Ali Ahmed recommended that companies take advantage of state and federal incentives currently available and reexamine portfolios for potential renewable energy projects previously deemed impractical.
- Ali Ahmed recommended considering all aspects of geography and building design when developing on-site solar projects, understanding their varying effects on economic outcomes of the project. He also suggested considering off-site renewable energy projects when possible.
Materials presented at the Q1 Executive Symposium and a summary of the discussion are available in SR Inc’s Member-only Digital Library. To download a copy of the presentation and notes on Intelligent and Renewable Energy Portfolios, click here.
Selected Relevant SBER Executive Guidance
Internet of Everything:
Renewable Energy:
