Assessing the Environmental Performance of Existing Buildings

1. Assessing the Environmental Performance of Existing Buildings To improve the environmental performance of existing buildings, we must first measure it

2. Agenda • Introduction • What is Green Rating? • 6 indicators • 4 levels of performance • Dialogs through factual data • Report & Synthesis • Web-based Benchmark Platform • Green Rating Alliance • Benefits

3. Introduction • The Green Rating initiative was launched in 2008 by Bureau Veritas with AEW Europe, AXA REIM, ING REIM and GE RE Europe, joined by Kaman Grund in March 2010 • Methodology developed, tested and readjusted on real cases to consistently assess the environmental performance of Existing Buildings across borders • Over 200 buildings have been assessed in Europe (*), representing more than 3 million sqm, covering office, logistic and retail assets, with 17 participating companies among leading European Property Investment Companies. *France, Germany, Italy, Spain, The Netherlands, United Kingdom + Nordic & Central Europe

4. What is Green Rating? A MEASURING AND DECISION MAKING TOOL TO • Assessconsistently the environmental performance of existing buildings through cost-effective and pragmatic approach, at the asset or portfolio level • Improvethrough concrete action recommendations and monitor progress • Benchmark buildings stock through a consistent pan-European database, screening portfolio to select for instance assets with high potential or good “green” credentials • Communicate on the performance of assets with tangible indicators, assessed by an independent third party • Between landlords and tenants (Green Leases) • Between sellers and buyers

5. 6 objective and tangible indicators • ENERGY • CARBON • WATER • TRANSPORT • WASTE • WELLBEING

6. With behavioural improvement & maintenance optimisation With limitedinvestments (Payback < 7 years) 4 levels of performance Performance under current conditions of use, based on factual data of consumption (utilities invoices, metering) and usage by tenants (occupation scenario, setting temperatures, …) Actual Performance linked to building “intrinsic” characteristics (envelop, equipment installed), assessed through a dynamic thermalmodelling. Intrinsic

7. Report & synthesis

8. Dialogs through objective data Factual data assessed by Independent 3rd party LANDLORD PROPERTY / BUILDING MANAGER TENANT ACTION PLATFORM

9. Web-based Benchmark Platform • 40 defined benchmark analysis on key environmental indicators • Multi-criteria research on typology of building, country, surface, construction date, … • Queries available on different benchmark sample : selected building(s), client own portfolio, complete database • Secured data, consistently assessed by a third party • Confidentiality rules with anonymous benchmark sample

10. How does your buildings compare to a European sample? Example of building B in Frankfurt – Germany This building is among good performers in terms of Energy and Carbon (recent building with good insulation along with optimised operations and maintenance). Water is also good as the building has water efficiency equipment in toilets and on taps. The Transport performance is below average mainly because of limited access to public transport and no initiative from tenants to encourage green transportation modes Wellbeing indicator shows average performance as the building design meets only some environmental criteria (good acoustic performance of material, no issues related to air quality) but some others should be improved. Waste performance is below average because building operations are not well managed concerning waste sorting.

11. How does your portfolio compare to a European sample?

12. Green Rating Alliance • Since the beginning, the founding partners have closely collaborated to develop a cross-border environmental rating scheme for existing buildings, contributing hence to the progress of the Real Estate Industry, in the field of Sustainability, • With the creation of the Green Rating Alliance, a non profit association, the partners wish to set up the right means to: • further develop this initiative, providing a benchmark platform on environmental performance of buildings and opening the assessment scheme to new auditing companies and users, • provide a legal vehicle for the Green Rating (GR) initiative, offering the possibility, as an independent entity, to participate in other initiatives (e.g. SBA, UNEP) or for public funding application (e.g. EU, IEE) www.green-rating.com

13. Benefits - Landlord • Potential increase in asset value • Benchmarking local or global assets • Tenant retention, higher occupation rates • Reduced service charges – (landlord costs) • Higher occupation (attract new tenants, easier on green buildings) • Building a relationship with tenant (common ground, working together) • Provides an upgrade path, with realistic pay back • Adds to the sustainability statement incorporated in the CRS report • Demonstrates to employees the companies green commitment

14. Benefits – Managing Agent • Improving relationship with client (landlord) • Independent verification • Building a better relationship with tenant (common ground, working together) • Increased margin (waste) • Maintain revenue stream by tenant retention –– high occupancy levels • Brand image improvement – Greener buildings • Enhanced USP’s for attracting new clients (landlords) • Adds to the sustainability statement incorporated in the CRS report • Demonstrates to employees the companies green commitment

15. Benefits - Tenant • Brand awareness (green building) • Adds to the sustainability statement incorporated in the CRS report • Convince landlord/Managing Agent to commission green improvements on the building • Service charge negotiation (lease terms) • Demonstrates to employees the companies green commitment • Working with the MA on how to make green savings • Savings on energy costs