Katy Janda on green leases

CK
IWWORKING with
Infrastructure Creation of Knowledge and Energy strategy Development
http://www.energy.ox.ac.uk/wicked/
A WICKED approach to better building
performance: leasing in an energy context
Katy Janda, Environmental Change Institute, Oxford University
WICKED Co-Investigator and Research Director
IEA Task 24 Behavior Workshop
Swedish Energy Agency
21 March 2016

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Common claims about energy efficiency…

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DECs
Green Leases

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WICKED’s perspective:
It isn’t easy being “green”
 A ‘wicked’ problem (Rittel & Webber 1973) is:
 Complex and interdependent
 Difficult to solve (may be difficult to recognize)
 Addressing one aspect of a wicked problem may
reveal (or create) other problems
 Energy use is a WICKED sociotechnical problem:
 The retail sector is diverse and complex.
 One size will not fit all.
 Technological solutions must fit organisational characteristics
Top-Down
Analytics
of the Data Rich
Learning
from the
Middle-Out
Bottom-Up:
Enriching the
‘Data Poor’

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14 July 2015
The WICKED challenge:
what new information and tools can help
different segments of the retail sector
develop proactive energy strategies?
Infrastructure
Technical
Organisational
Legal
Creation
of
Knowledge
Energy
strategy
Development
Working with…

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WICKED time frame July 2014-16, partners
14 July 2015
In advanced discussion:

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One size solution will not fit all.
What about 6 sizes…?
14 July 2015
WICKED
Market
segments
Owner
occupiers Landlords Tenants
Data Rich
AMR + energy
managers
Type
A
Type
B
Type
C
Data Poor
Manual meters, no
energy managers
Type
D
Type
E
Type
F
Leased Space
Best
practice
leasing

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‘Greener’ leasing practices: why?
14 July 2015
Traditional Leases: problematic environmental practices
‘Split incentives’ $
Landlord invests in plant, equipment, building fabric;
tenants pay energy costs
My
energy
bills
My
building
landlord
tenant

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14 July 2015
‘Split incentives’ $
Adversarial relationship: ‘utility maximising’
Rent is
too
expensive
Need to
increase
rent!
landlordtenant

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14 July 2015
‘Split incentives’
Adversarial relationship
Ignore environmental issues

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14 July 2015
Traditional Leases:
problematic
environmental
practices
Greener Leases: environmental preservation and
opportunity
‘Split incentives’ ‘’Green improvement” clauses: example, tenant
allowed to upgrade and reap savings benefit; shared
costs
Adversarial
relationship
Working together: duty to co-operate in relation to
energy management and sustainability
Ignore environmental
issues
Data- sharing
Maintain energy ratings

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14 July 2015
Janda, K. B., S. Bright, J. Patrick, S. Wilkinson, & T. Dixon. 2016. "The
evolution of green leases: towards inter-organizational
environmental governance." Building Research & Information. DOI:
10.1080/09613218.2016.1142811..

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M&S
 800 stores in UK + 400
overseas
 Governed by “Plan A”
sustainability objectives
 Announced “green lease”
policy in 2013
 70 MOUs with existing “Better
Building Partnership” landlords
Learning
from the
Middle-Out
14 July 2015
CGreen Leases for multi-national
retailer (data rich tenant)

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Findings 1: What a green lease is and does…
 Model green clauses promoted by UK and Sydney ‘Better
Buildings Partnership’ (BBP) industry groups contain:
 Varying levels of ambition, specificity and
enforceability
 Only the Sydney BBP has a model green clause
enabling the landlord to recover the cost of
environmental improvements through service charges
 Adopted green clauses in the UK and Australia:
 Tend to be broad and unenforceable
 Include very general commitments:
 to improve environmental performance
 to cooperate (e.g., share data about
environmental performance)
14 July 2015

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Findings 2: Who tends to use green leases?
WHO?
 Across the UK and Australia, green leases are used by large powerful
organisations.
 Generally led by landlords, particularly BBP members
 Exceptions:
 The Australian government requires green leases for its
offices
 Marks & Spencer (M&S) is implementing a green lease &
MoU policy across its the UK properties
WHERE?
 More prevalent in the office sector than in the retail sector
 More prevalent in prime properties than in sub-prime properties
14 July 2015

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Findings 3:
 Green leases have more
symbolic value than material
impact
 Lease clauses, including
green ones, appear to have
little relevance to day-to-
day operations
 Early adopters suggest the
negotiation process
provides a platform for
discussion and cooperation
14 July 2015Janda, K. B., S. Bright, J. Patrick, S. Wilkinson, & T. Dixon. 2016. "The evolution of
green leases: towards inter-organizational environmental governance." Building
Research & Information. DOI: 10.1080/09613218.2016.1142811.

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Conclusions and Next steps
14 July 2015
Room for
voluntary
improvement
Tenant
Business as Usual Capacity to Improve
Landlord
Business as
Usual
Capacity to
Improve
X
Tenant
Leads
landlord
(e.g, M&S)
Landlord
leads (?)
tenant
Green leases
(co-evolution of
improvement)

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Thoughts for further research
14 July 2015
My core
business
My
building
Building
performance
landlord
tenant
Katy.janda@ouce.ox.ac.uk

Katy Janda on green leases

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