This proposal outlines compliance strategies for a large financial organization to meet UK environmental legislation and corporate commitments, focusing on carbon management and energy efficiency. It emphasizes the need for timely implementation of measures related to energy performance certificates and carbon reduction commitments, alongside the importance of adhering to standards like LEED. A consultancy offers a range of services to facilitate compliance, including energy assessments, inspections, and ongoing management to ensure optimal environmental performance.

1. COMPLIANCE
COST
CONSUMPTION
CARBON
CONTROL
PROPOSAL
A Big Financial Organisation
Mr Prospective Client
This proposal has been created by Phil Evans
2008

2. The Situation
Prospect X of A Big Financial Organisation met with Mr Blue and Mr White of A CONSULTANCY in August 2008
to discuss controlling the impact of environmental legislation and corporate commitments. To ensure that A
CONSULTANCY could propose logical and practical solutions it was necessary to understand what motivated A
Big Financial Organisation. The text that follows is based on discussions with Prospect X and from reviewing
the A Big Financial Organisation website.
Energy Performance of Buildings Directive (EPBD)
Article 7 and 9 have been transposed in to UK law and Energy Performance Certificates (7) was enacted in April
2008, with two additional tranches taking the full implementation of the Article up to October 2008. Article 9 –
Air Conditioning Inspections will be a requirement from 1st January 2009
Carbon Reduction Commitment
A Big Financial Organisational ready has impressive credentials and experience in dealing with the
requirements of carbon trading and so this latest development should not present a problem for the company.
Although it must be made clear that A Big Financial Organisation will have to take a full part in the scheme due
to the size of the building portfolio in the UK
Legislative Compliance
The text that follows has been taken from the A Big Financial Organisation CSR Environmental section of their
website
Managing Our Own House
A Big Financial Organisation operates more than 20 offices with over X,000 occupants. Because environmental
responsibility begins at home, we are determining cost-efficient means of reducing even further the impact of an
operation that currently produces a comparatively low environmental impact.
Energy Management and Greenhouse Gas Reduction: A variety of commitments
Construction & Designing: A variety of commitments
Waste: A variety of commitments
Corporate Social Responsibility Commitments
A Big Financial Organisation has produced detailed information about their environmental performance on a
corporate level. This type of reporting must form the basis for any UK-based initiatives. The following
demonstrates the level of detail required for annual reporting
Energy Consumption
Parameter 2004 2005 2006
Electricity
x x x
(GJ)
Natural Gas
x x x
(therms)
Steam
x x x
(Mlbs)
Fuel
x x x
(Gallons)
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3. CO2 Emissions
2004 2005 2006
# Employees
# Facilities
CO2 Emissions from Electricity
(tons)
CO2 Emissions from Gas,
Steam, and Fuel Oil (tons)
TOTAL CO2 (tons)
Rate/Employee
Rate Change
Water Consumption
2004 2005 2006
# Employees
# Facilities
Water Consumption
(cubic meters)
Rate/Occupant
Rate Change
In 2006, our energy efficiency initiatives were enhanced by higher occupant density, which more than offset the
incremental electrical usage of our continuously growing computing requirements.
Our 2007 energy consumption and emissions data will be available mid-2008.
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4. The Solution
EPBD
It is clear that there is a need for a programme to be developed to ensure that the UK building portfolio of A
Big Financial Organisation is compliant with the EPBD. There is an October 2008 deadline for this and so a
decision will need to be made promptly so that resources can be allocated to produce the required Certificates
and Inspections.
LEED
To be compliant with the CSR requirements, there is a need to ensure that all UK building developments are to
the Gold (or higher) standard of LEED. Although the preferred Environmental Impact Assessment (EIA)
methodology in the UK is BREEAM (Building Research Establishment Environmental Assessment
Methodology), there is no reason why LEED cannot be used. The principles are predominantly the same; in as
much as any EIA has to consider all of the affects a building has on its surroundings. With this in mind, it is
possible to perform a “LEED-Lite” so that an indication of the likely impacts (including cost) can be made well
before major decisions have to be.
We had originally discussed a “Decision Tree”, but from the A Big Financial Organisation website research the
decision is clear – if a new build project is going ahead, then it will have to be LEED GOLD.
CRC
Although A Big Financial Organisation already has experience in the carbon trading market, there may still be a
need for the correct data to be gathered on a site-by-site basis and fed into a central repository. A
CONSULTANCY can perform this task on your behalf.
Green Solution
As the legislative and CSR commitments could be considered onerous, time-consuming and complicated, A
CONSULTANCY will offer to deliver a range of services that will either ensure full compliance with a given
commitment, or will facilitate A Big Financial Organisation staff to reach full compliance.
A CONSULTANCY solution will allow you to choose from a range of “products” to meet your requirements.
There are so many commonly used terms in circulation today, energy, environment, carbon, sustainability,
Green House Gas, climate change, global warming etc. that when we talk about energy some think it does not
cover environment and vice versa. As we want to ensure you are confident that we have the skills and
experience to address all of these issues as and when required, we have chosen to package them as a Green X
Solution.
The Approach Part 1
Produce Energy Performance Certificates
Since April 2008, the accepted methodology for confirming the energy performance of a commercial building
has been to produce an EPC. For A CONSULTANCY to ensure that the sale or rent of a building is compliant with
legislation we will need to see a disposal list with proposed dates, so that we can prioritise the generation of
EPCs. An EPC needs to be “readily available to any prospective, serious purchaser/tenant” so it is important for
A Big Financial Organisation to ensure this is planned in advance and sufficient resource can be allocated.
Below are details of an actual building to give you an indication of the costs for producing an EPC:
A City of London building, almost 20 years old and over 10,000m2 with a light weight construction, ~90%
glazing, conventional heating and air conditioning systems and good access to accurate building information
cost £xxxx plus VAT and expenses. The building achieved a ‘D’ rating, which considering its age and heat gain
was better than expected.
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5. We prefer to quote on specific buildings as opposed to a standard pricing matrix. This ensures we can keep our
quotes accurate and competitive and avoids the hidden safety margins applied to matrices. The cost of an EPC
is dependent on many factors, such as the size and complexity of the building, as well as the availability of
information. Our preference would be to calculate a specific quote on a list of buildings assuming that
sufficient information was available and provide a discount for larger volumes.
In addition to the actual Certificate, there is a Recommendations Report generated from the same software
tool. The standard report is based on generic energy saving ideas and so we look to enhance it by including
building-specific recommendations. This enhanced report is a point of difference for us and also for you, as you
can demonstrate that there are meaningful opportunities for improvement of the building once purchased.
Produce Display Energy Certificates
A CONSULTANCY would recommend that buildings with no plans for disposal had a DEC produced, as this
would be valuable information to feed into the Carbon Reduction Commitment data repository. Strictly
speaking, a DEC is only required in public buildings, but there is considerable discussion about making it
compulsory for all commercial buildings in the future. A DEC lends itself to data capture for the purposes of the
CRC, so we believe it is well worth considering.
The production of a DEC is predominantly a desk-based exercise and assuming that all utility bills were made
readily available, could be done in as little as two days. A DEC is required by law (public buildings) to be re-
calculated every year, but once the initial system was set up the ongoing annual requirement would be one
day. Based on the A CONSULTANCY day rates at this time, the first year cost (per building) would be £xxxx plus
VAT and expenses.
Produce Air Conditioning Inspections
It is now the duty of a “Relevant Persons” to ensure that systems described above are inspected by an energy
assessor at regular intervals (max 5 years). Transitional implementation dates are:
Existing systems first inspection:
More than 250kW output - before 4th Jan 2009
More than 12kW output – before 4th Jan 2011
Systems installed on or after 1st Jan 2008 – first inspection due at (within) 5 years
Reports
A written report of the inspection must be given to the “Relevant Person”. The report must contain:
An assessment of air conditioning efficiency
Comment on size of unit in relation to buildings needs
Suggestions for improvements or replacement or alternatives
Identification data as previously discussed for energy certificates
The Department for Communities and Local Government suggest that it will take two days for an inspection of
a larger system and therefore the projected cost will be £1,900 plus VAT and expenses. Smaller systems will be
charged on an hourly rate.
The Approach part 2
LEED-Lite
The capabilities within A CONSULTANCY mean that we can offer an initial assessment of the likely impacts of a
building design, with a view to comparing it with a LEED GOLD standard. In many cases, design teams are
relatively new to the concepts of low environmental impact design and are therefore prone to increasing the
project cost through poor decision-making. This service is intended for projects that are already underway.
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6. We will offer you our LEED-Lite service, which will give you independent confirmation of whether your design
team is on target for delivering a LEED GOLD building, without entailing excessive costs.
This is only a cursory review, (and does assume that all necessary information is available at the time of the
review) but we will ensure that after two days we are in a position to give you sufficient ammunition to “re-
educate” your design team if the need arises. There will not be a formal written output for this service; we will
feedback to you via email and telephone. The reason for this is to minimise the cost to you whilst maximising
the time we have for analysis and therefore our level of confidence in the information we provide you.
The Approach Part 3
LEED GOLD
A CONSULTANCY has full LEED capabilities and we would be delighted to become involved in one of your
brand new design projects from the start, so that we could guarantee compliance with your CSR requirements.
LEED for New Construction and Major Renovations
LEED for Existing Buildings
LEED for Commercial Interiors (fit-outs by tenants)
LEED for Shell and Core (total building minus tenant fit-outs)
The cost of LEED is like the EPC, in as much as it is dependent on the size, complexity etc. of the project and/or
building. What must be kept in mind is that an EPC only considers energy-related issues. A LEED has to review
all environmental impacts; i.e. travel, pollution, waste management etc. so the costs can be considerably
higher.
An indication of costs for a full environmental impact assessment such as this would be ~£xx,000 plus VAT and
expenses. A project-specific (and therefore more accurate) quote can be produced on request and on receipt
of sufficient data/information.
The Approach Part 4
Green X Manager
In addition to the need to coordinate and project manage the production of EPC and LEED assessments, as well
as data gathering for CRC, it is clear that environmentally-based legislation will continue to become more and
more complicated and objectives ever more stringent.
With this in mind, A CONSULTANCY wishes to offer you our services in the form of a Call-Off Manager, who can
be used as technical advisor; or any other relevant task that you wish to outsource.
The first function will be to ensure that accurate data is gathered for the CRC. This information can come from
DECs, LEED and also A Big Financial Organisation Accounts teams and technical staff. All of this information will
be collated and packaged in a manner suitable for CRC and any other A Big Financial Organisation reporting
requirements, such as the annual report.
The role will also be to liaise with A Big Financial Organisation in independent Energy and Environmental
Manager role. Advising on forthcoming legislation, utility price volatility, new technologies, training and
awareness etc.
We would want a commitment of three years, as this would enable us to build good and honest relationships
with the relevant A Big Financial Organisation people, as they would know we were going to be around for a
reasonable amount of time.
The cost would be based on the A CONSULTANCY day rate and a discount could be negotiated for three or
more years. The basic service would be to ensure that any data gathered was validated and passed onto the
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7. correct people in a timely manner. In addition, newsworthy (Green) information would be disseminated. One
day per month would be the minimum required and this could be increased in accordance with your needs,
whether through planned actions or reactive/urgent issues.
Rates
Unless a specific project/timeframe can be agreed, the hourly rates for the A CONSULTANCY team are as
follows:
£xxx/hour
£xxx/day
The Benefits
CSR and Legislative compliance
Accurate data for CRC
Better Systems and Services Control
Reduced Carbon Footprint
Lower Pollution
Indirect reduction in fossil fuel usage
Improved Environmental Performance
Enhanced PR Opportunities
The Future
There are many more items within the A CONSULTANCY Green Solution, suitable additions for A Big Financial
Organisation are shown below:
 Green Maintenance
 Enhanced Metering
 BMS re-calibration
 Continuous Commissioning
 Portfolio Consolidation
 Monitoring & Targeting
 Bureau Service Provision
 Training and Awareness
 Project Management
We would be happy to discuss any of the above (with no obligation) at a convenient time to you.
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