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Environmental Performance Monitoring Reporting Period: April 2018 – March 2019
Report date: 10th June 2019
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Executive Summary
This environmental performance monitoring report presents analysis for LondonMetric over the period April 2018 to
March 2019 and covers all assets under management. This report is designed to provide an overview of LondonMetric’s
environmental performance in the following ways:
• Understand your energy, water and waste performance down to a property level over the last six months.
• Highlight long term trends in energy, water and waste performance for each property on a like-for-like basis.
• Enable LondonMetric to identify where potential improvement initiatives would be most effective.
Performance at a glance
Energy Energy
Consumption
Cost*
17% 16% £2,465 £4,484 Bi-annual like-for-like Yearly like-for-like Bi-annual like-for-like Yearly like-for-like
change in energy change in energy change in cost change in cost
65% £152K Yearly absolute Yearly absolute
change in energy change in cost
Water Waste
Consumption Generated
26% 54% N/A N/A
Bi-annual absolute Yearly absolute Bi-annual like-for-like Yearly like-for-like change in water change in water change in waste change in waste to landfill
NOTES:
The environmental performance shown represents that of LondonMetric’s investment portfolio, excluding One Curzon Street HQ.
Bi-annual like-for-like = the same assets looked at for the period October 2018 to March 2019 versus October 2017 to March 2018
Yearly like-for-like = the same assets looked at for the period April 2018 to March 2019 versus April 2017 to March 2018
*Energy costs are being estimated using a cost per unit calculation, Electricity = £0.10 per kWh Gas = £0.035 per kWh
**The absolute change in costs relates to changes in electricity and gas usage, it does not include changes in CRC liability costs.
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Performance at a glance - analysis
Energy
Bi-annual like-for-like energy consumption over the period October 2018 to March 2019 compared to October 2017 to
March 2018 has decreased by 17%, and yearly like-for-like consumption has decreased by 16%. This is due to the
decarbonisation of the grid and gradual improvements in energy saving initiatives, such as the installation of LED
upgrades to car park lighting at several retail parks.
Marlow International, the only office property in the investment portfolio, was sold in September 2017. Therefore, this
asset has not been included in any of the like-for-like bi-annual or yearly data. The asset accounted for most of the
portfolio’s consumption, hence, consumption decreasing 65% for the yearly absolute analysis and this will be the last
where the data for Marlow impacts totals. This will mean absolute energy declines will likely be much smaller going
forward.
Water
Marlow International was the only property for which water data was available and so is not included in the biannual
absolute, however it is included in yearly absolute total. The other remaining assets that make up the absolute water
totals are the void assets.
Waste
Marlow International was the only property for which waste data was available. Now that the asset has been sold, no
data is collected for waste.
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Target Review
Below are LondonMetric’s annual carbon and energy reduction targets, which have been set in line with the UK’s Climate Change Act to reduce carbon emissions by 80% by 2050.
LondonMetric holds three asset types in its portfolio: Retail Parks, Distribution Warehouses and Residential. LondonMetric is only responsible for energy use at its one Residential asset, Moore House, when flats are vacant, and for the external areas at some of its Retail Parks. LondonMetric is not responsible for any energy consumption for its Distribution Warehouse assets, unless any of the units becomes vacant. Therefore, energy and carbon reduction targets are only applicable to its Retail Park portfolio.
Asset Type Energy Reduction Target
(kWh)
Carbon Reduction Target
(tCO2)
Retail Park 4% 4%
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Energy – Are we on track?
Progress against LondonMetric’s energy targets is shown below. The split between electricity performance over the past
2 years is shown in Figure 1. No gas data is displayed due to the sale of Marlow International, the only asset for which
gas consumption data was collected.
Retail Energy Reduction Progress
Annual Target: 4% Comparing: April 2017 – March 2018 to April 2018 – March 2019
Year to date progress: 16%
What have we saved? What have we used?
Like-for-like energy savings 45,943 kWh
239,422 kWh
Like-for-like energy consumption
Like-for-like carbon emission savings 29 t CO2e
74 t CO2e Like-for-like carbon emission
consumption
Annual Savings £4,824*
*excludes CRC costs £25,139
Annual costs
Figure 1: Like-for-like energy consumption per quarter for LondonMetric’s investment portfolio.
0
10
20
30
40
50
60
70
80
90
100
Apr - Jun Jul - Sep Oct - Dec Jan - Mar Apr - Jun Jul - Sep Oct - Dec Jan - Mar
2017 2018 2019
Con
sum
ptio
n (M
Wh)
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Figure 1 shows the Retail Park portfolio which, before the sale of Marlow, only accounted for 5% of the energy usage of the entire portfolio. Due to the sale of the Office portfolio, the annual like-for-like energy reduction target for the Office portfolio of 4% is no longer applicable.
Retail Park assets now account for 100% of the portfolio’s like-for-like energy use between April 2018 and March 2019. The annual like-for-like energy reduction target for the Retail Park portfolio was 4%, the portfolio experienced an 16% reduction in energy usage over the reporting period.
St Margaret’s saw an increase due to incorrect billing in 2016/17 which resulted in the total for 2017/18 being reduced, additionally because consumption was very low (1,591 in 2017/18 and 2,203 in 2018/19) these changes appear more dramatic. Cannon Lane, Tonbridge continues to see the largest decrease of -75%. This was also due to incorrect billing from 2016, where estimated data was far greater than actual. This has led to constant fluctuations and refunds from the energy provider.
Table 1 below shows the yearly like-for-like analysis for all individual properties in LondonMetric’s investment portfolio,
with their associated changes in electricity consumption over the period April 2018 to March 2019 compared to April
2017 to March 2018, alongside the overall total energy change.
Carbon change Energy Change Electricity Change
Airport Retail Park, Coventry -36% -26% -26%
Cannon Lane, Tonbridge -79% -75% -75%
Dartford Heath Retail Park -21% -7% -7%
Dunstable Retail Park, Luton -39% -28% -28%
Kirkstall Bridge Shopping Park -14% -1% -1%
Lottbridge RP -56% -53% -53%
Madford Retail Park -38% -26% -26%
Martlesham Heath -32% -20% -20%
North Shields Retail Park -13% 1% 1%
Queens Drive -54% -46% -46%
Seager RP, Cardiff -8% 6% 6%
St Margaret's 21% 38% 38%
The Bubbleland Retail Park -22% -8% -8%
Totton Retail Park -33% -21% -21%
Trostre South Retail Park -19% -5% -5%
Table 1: LondonMetric properties in the like-for-like analysis and associated energy changes during the period April 2018 to March 2019
compared to April 2017 to March 2018.
For consistency with the annual report, one Retail Park asset has been excluded from the like-for-like analysis, Dunelm and Wickes. This asset
was excluded as no readings have been collected since Jan 2017. Similarly, the Residential asset Moore House was excluded from the like-for-
like analysis as the consumption figures cover tenant units during vacant periods and is therefore not comparable over the reporting period.
The full table with absolute energy performance data can be found in Appendix 3.
6
Energy – CRC costs
LondonMetric is a participant in Phase 2 of the CRC Energy Efficiency Scheme. Year 5 of the scheme spans 1st April
2018 to 31st March 2019. The forecast carbon allowance costs stand at £6,076 as shown in Figure 5.
Figure 2: CRC allowance costs for 2018/19 compared to 2017/18 costs
Where are we heading?
Your CRC liability is expected to decrease by 66% compared to the previous year’s cost.
The price per tonne has risen from £17.70 to £18.30 for this CRC year. For a breakdown of predicted allowance cost per
property, see Appendix 3.
CRC costs in perspective What’s coming up for CRC
CRC allowance costs are expected to make up
5.2%
of LondonMetric’s total annual energy costs.
Energy cost = £110,359 CRC cost £6,076 CRC % = 5.2%
Order ‘buy-to-comply’ allowances for Phase 4
3nd June – 31st July 2019 (at £18.30/ton CO2)
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Water – Are we on track?
Water reduction progress
Decrease in water consumption:
54%
Comparing: April 2017 – March 2018 to April 2018 – March 2019
What have we used?
Reduced water consumption 1,220 m3
1,023 m3 Absolute water consumption
Marlow International was originally the only asset within the investment portfolio with water consumption. Following
numerous assets becoming void, LondonMetric have had to collect water consumption data on two of these void assets
where water supply was present (Boden and Wakefield).
Waste – Are we on track?
As Marlow International was the only managed asset with waste, following the sale of the asset in September 2017, and
no other assets within the investment portfolio collecting waste data, there is no longer any waste data being collected
and tracked.
Waste Management Progress
100% diversion from landfill
Comparing: April 2017 – March 2018 to April 2018 – March 2019
What have we sent to landfill What have we recycled?
N/A N/A
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One Curzon Street HQ
Although LondonMetric have not set environmental performance targets for their HQ, it is important to monitor and
measure the energy and water consumption, carbon emissions and waste recycling at this asset for reporting purposes.
Energy Reduction Progress
Year to date progress: 16%
Comparing: April 2017 – March 2018 to April 2018 – March 2019
What have we saved? What have we used?
Like-for-like energy savings 26,369 kWh
143,717 kWh
Like-for-like energy consumption
Like-for-like carbon emission savings 7 t CO2e
39 t CO2e
Like-for-like carbon emission
consumption
£367*
*excludes CRC
costs
£12,860
Water Reduction Progress
Year to date progress: 8%
Comparing: April 2017 – March 2018 to April 2018 – March 2019
What have we saved? What have we used?
Like-for-like water savings -47 m³
612 m³
Like-for-like water consumption
Waste Management Progress
100% diversion from landfill
Comparing: April 2017 – March 2018 to April 2018 – March 2019
What have we sent to incineration? What have we recycled?
4.31 tonnes
5.29 tonnes
£829 savings on landfill tax as no waste sent to
landfill
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Moore House
LondonMetric has not set specific environmental performance targets for its Residential asset due to data only being
collected for void units. However, as the asset does still contribute to the overall energy reduction for all assets, it is
important to monitor and measure the energy consumption and carbon emissions for reporting purposes.
Energy Reduction Progress
Year to date progress: 30% Comparing 2017 and the estimated 2018 consumption
Comparing: April 2017 – March 2018 to April 2018 – March 2019
2017/18 2018/19
Total energy consumption for
whole year 46,695 kWh
32,697 kWh
Total energy consumption for
whole year
Absolute carbon emission savings 16.42 t CO2e
13.04 t CO2e Absolute carbon emissions
Assets void for whole year on
record 15 Void Assets
15 Void Assets
Assets void for whole year on
record
Percentage of estimated data 5% Estimated 6% Percentage of estimated data
The graph highlights that although Moore House has seen an overall energy reduction, the flats which have been vacant for 12 months consecutively to create a like-for-like comparison have actually increased their energy usage by 5%.
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Appendices
Appendix 1- Data Quality Notes
• Throughout the 2-year period, any assets that have been bought or sold have been excluded from all like-for-like analysis but have been included in the CRC cost forecast for 2018/19.
• Moore House, Marlow International and one Retail Park asset have been excluded from the like-for-like analysis.
o Dunelm and Wickes were excluded due to the asset no longer collecting data since Jan 2017.
o Marlow International, the only Office asset, was sold in September 2017 and so not included in the like-for-like analysis.
o Moore House data is for voids and so changes greatly year on year and thus is not comparable for like-for-like.
• 2% of energy data for assets held during the full two-year reporting period has been estimated between April 2018 and Mach 2019.
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Appendix 2 - List of assets analysed in this report
Facility Name Sector
Included in ‘Like-for-Like’ analysis?
Asset Sale Date
Asset Purchase Date
Airport Retail Park, Coventry Retail Park Yes - 24/09/2010
Boden, Leicester Industrial, Distribution Warehouse
No 31/10/2018 26/11/2010
Calver Road, Warrington Industrial, Distribution Warehouse
No - 28/06/2018
Campbell Road, Stoke Industrial, Distribution Warehouse
No - 01/02/2018
Cannon Lane, Tonbridge Retail Park Yes - 20/02/2013
Cleveland Gate Retail Park Retail Park No 21/11/2017 03/12/2014
Dartford Heath Retail Park Retail Park Yes - 13/11/2013
Dunelm and Wickes Retail Park No – no data collected since Jan 2017
- 14/01/2015
Dunstable Retail Park, Luton Retail Park Yes - 20/02/2013
Faraday Road Industrial, Distribution Warehouse
No - 25/05/2016
Havens Head Retail Park Retail Park No 03/08/2017 13/12/2010
Kirkstall Bridge Shopping Park Retail Park Yes - 18/01/2011
Launceston Retail Park Retail Park No 07/09/2018 04/08/2010
Lottbridge Retail Park Retail Park Yes - 23/03/2016
Madford Retail Park Retail Park Yes - 25/09/2013
Marlow International Office No 30/09/2017 27-Jul-2012
Martlesham Heath Retail Park No 15/11/2018 14/05/2013
Moore House Residential Separate Analysis - 17/11/2013
North Shields Retail Park Retail Park Yes - 13/02/2015
One Curzon Street HQ Corporate Office Separate Analysis - 01/01/2013
Queens Drive Retail Park Yes - 01/08/2016
Seager Retail Park Retail Park Yes - 07/08/2013
St Margaret's Retail Park No - 14/10/2016
The Bubbleland Retail Park Retail Park Yes - 14/12/2014
Totton Retail Park Retail Park Yes - 06/12/2014
Trostre South Retail Park Retail Park Yes - 03/07/2014
Wakefield Industrial, Distribution Warehouse
No 22/03/2019 01/09/2015
Note: All directly managed assets with environmental performance data are included here, though some only contribute to part of the analysis period due to their acquisition or disposal from the portfolio.
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Appendix 3 – CRC costs per property
Asset Name Sum of Current Total
Consumption Predicted CRC
Cost for 2018/19 % of Total CRC
Allowance Costs
2017/18 (Apr - Jun)
Emissions (t CO₂)
2018/19 (Apr - Jun)
Emissions (t CO₂)
% Emission Change
Wakefield 745,935 £4,006 64% 0 219 N/A
Boden, Leicester 52,764 £324 5% 0 18 N/A
Faraday Road, Crawley 49,765 £207 3% 2 11 394%
Kirkstall Bridge Shopping Park 48,212 £277 4% 22 15 -31%
Calver Road, Warrington 39,759 £187 3% 0 10 N/A
Campbell Road, Stoke 31,390 £175 3% 1 10 541%
North Shields Retail Park 31,382 £175 3% 13 10 -27%
Airport Retail Park, Coventry 26,726 £149 2% 14 8 -41%
Seager RP, Cardiff 17,509 £98 2% 6 5 -15%
Dunstable Retail Park, Luton 15,506 £86 1% 8 5 -38%
The Bubbleland Retail Park 15,023 £84 1% 6 5 -26%
Dartford Heath Retail Park 13,208 £74 1% 5 4 -25%
Totton Retail Park 8,838 £49 <1% 4 3 -36%
Queens Drive 8,506 £52 <1% 7 3 -58%
Launceston Retail Park, Cornwall 6,310 £39 <1% 6 2 -67%
Cannon Lane, Tonbridge 5,385 £33 <1% 7 2 -76%
Martlesham Heath 3,098 £17 <1% 3 1 -64%
Trostre South Retail Park 2,860 £18 <1% 1 1 -28%
Madford Retail Park 2,850 £17 <1% 1 1 -32%
St Margaret's 2,203 £14 <1% 1 1 -16%
Lottbridge RP 2,063 £12 <1% 2 1 -63%
Note: Only assets contributing to CRC costs for Phase 2, Year 5 (April ‘18 to March ‘19) have been included here.
JLL – Upstream Sustainability Services
Beth Ambrose
Director
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+44 (0)207 399 5709
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Senior Consultant
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+44 (0)207 852 4917
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Analyst
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+44 (0)207 087 5210
www.jll.com
Jones Lang LaSalle
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