1. Bartholomew Room

2. Commercial Property – Shape the Debate: Have your say on engagement, value and risk Chair: Keith Bugden, Programme Director, BBP Paul Edwards, Head of Sustainability, Hammerson Miles Keeping, Partner and Head of Responsible Property Investment, Drivers Jonas Deloitte Stuart Bowman, CoreNet Matthew Tippett, Upstream Sustainability Services, Jones Lang Lasalle Bartholomew Room

3. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Commercial Property – Shape the Debate: Have your say…..

4. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Paul Edwards Head of Sustainability OWNER OCCUPIER ENGAGEMENT

5. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position of Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Key issues…. 1.Sharing information is the key to success 2.Owners and occupiers have the same challenges and opportunities 3.Best results can be achieved through partnership and collaboration

6. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Questions….. 1.Who is most responsible for taking the lead in engagement? Owner or Occupier? 1.Owner 2.Occupier 2.Do you think regulation over the past 5 years has helped in any way to improve owner / occupier relations? 1.Yes 2.No

7. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Miles Keeping CEnv MRICS FRSA Partner, Sustainability GREEN VALUE

8. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position of Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Key issues…. One main issue & two key issues The main issue we really do need to get over: Value premium or value discount? Other issues: What are the key drivers of value? We all need to be more sophisticated in our analysis!

9. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Premium or Discount: ‘Re-phrasing’ the Evidence Rental Value divergence between energy efficient and non-energy efficient offices – The Netherlands 9 Source: The Value of Energy Labels in the European Office Market – Nils Kok & Maarten Jennen – May 2011

10. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Premium or Discount: ‘Re-phrasing’ the Evidence Rental Value divergence between energy efficient and non-energy efficient offices – The Netherlands Source: The Value of Energy Labels in the European Office Market – Nils Kok & Maarten Jennen – May 2011 Correlation between Energy Efficiency and Rental Indices “Generally” Positive “Generally” Negative

11. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Drivers of value: Some scenario implications Source: IIGCC (2010)

12. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Sophisticated analysis: Understanding the threats to value Likelihood of occupiers acting on their policies Sector Source: SIAM LLP Proportion of rental income (%) Strength of carbon reduction policy amongst different business types (based on sample of £1.5bn of tenant-occupied real estate assets) No Policy Policy With targets Source: Deloitte LLP

13. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Conclusion Increasingly compelling evidence available supporting value shift as a result of energy efficiency/wider sustainability factors Risk that trend is interpreted as delivering ‘Premium’ or ‘Added’ Value… of greater concern is depreciation and obsolescence Impact on property and portfolio performance will be property specific – and not based solely on sustainability credentials Impact of tenant demand will be interesting & important to monitor Strategy should focus on immediacy, likelihood and scale of impact together with ability to mitigate and harness upside.

14. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Questions….. 1.Do you believe there is a link between sustainability performance and value? 1.Yes 2.No 2.What do you think will be the biggest driver linking sustainability to value? 1.Obsolescence 2.Tenant retention 3.Increasing Regulation 4.Rental value 5.Building Ratings (EPCs, DECs etc)

15. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Stuart Bowman CEng MEI Director of Breathe Energy Ltd Knowledge & Learning Group Leader CoreNet UK CLIMATE CHANGE RISK

16. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position of Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Key issues…. 1.Tangible climate change risks 2.How big are these risks? 3.How important are these risks?

17. Drivers Jonas Deloitte UK screen 4:3 (19.05 cm x 25.40 cm) White markers indicate position off Drawing Guides 7.40 cm 2.91 Inches 6.00 cm 2.36 Inches 8.00 cm 3.15 Inches  11.70 cm  4.61 inches 0.50 cm  0.2 inches   0.50 cm  0.2 inches 11.70 cm  4.61 inches  To view Drivers Jonas Deloitte drawing guides: 1.Right-click on slide and select ’Grid and Guides...’ 2.Check ’Display drawing guides on screen’ 3.Select ’OK’ 6.75 cm 2.66 Inches Questions….. 1.What do you consider the biggest climate change risk? 1.Buildings no longer fit for purpose 2.Escalation of operational costs 3.Insurance availability 4.Disruptions to supply chain 5.None are of significance 2.How important, relative to other business issues, is the management of climate change risk? 1.High 2.Medium 3.Low 4.Not on our radar

18. Bartholomew Room

19. Commercial Property – Shape the Debate: Have your say on engagement, value and risk Matthew Tippett, Upstream Sustainability Services, Jones Lang Lasalle Bartholomew Room

20. No slides received