A Background to LoCus for Potential New Partners

Jane Wallis, Project ManagerOn behalf of Reading Borough Council and the 19 project Partners

What is LoCus

• LoCus is a free to the user (ERDF funded) business support programme• It provides environment advisory services to SMEs in Partner areas• It specialises on SMEs in rented premises • It stands for “Low Carbon Understanding for SMEs” • … but its more like “Low Carbon us” (as in, you & me)

LoCus is UNIQUE in that it seeks to work with Landlords and Tenants of a commercial building in order to find pathways to address the Landlord:Tenant divide.

Commercial Property & The Landlord:Tenant Issue

I’ll change the bulbs but not

the light fittings.

Its not my energy bill, and

it won’t increase rental

Tenant: Energy costs a small % of turnover and not a material decision.

Landlord: Property is just a long-term investment.

• Owners & Occupiers have conflicting needs and priorities of a building. • This is known as the Landlord: Tenant divide • It is a key reason for lower uptake of meaningful carbon reduction activity• It’s a notoriously difficult topic to address

Commercial Property & The Landlord:Tenant Issue

Consequently …

Carbon emission trends for commercial property

Lease Issues – traditional lease structure

Landlord Tenant

Rent

Lease Obligations

Service Charge

Service Obligation

Quiet Enjoyment

Tenant CSRObjectives

Landlord CSRObjectives

Source: Cardiff University Centre for Research in the Built Environment

Angela Langley & Lara Hopkinson 2009

Some hidden barriers in traditional leases include: Short leases “easy in- easy out”; the Dilapidations clause; and technical ownership of building fabric under insuring / repairing leases.

Landlord Tenant

Rent

Lease Obligations

Shared building related CSR objectives

Service Obligation

Quiet Enjoyment

Tenant external CSR

Objectives

Landlord external CSR

Objectives

Source: Cardiff University Centre for Research in the Built Environment

Angela Langley & Lara Hopkinson 2009

Shared cost / benefit

Lease Issues – new lease structure “Green Lease”

LoCus talks to Landlords and SME tenants about the issue.

LoCus recruits as many businesses on a commercial site as possible. Hopefully the Landlord engages too.

Tenants work on their own Resource Efficiency with LoCus’ help.

Landlords work with LoCus to quantify the business case of improving buildings, tenancy agreements and / or renewables.

Localised energy production can be modelled as potential new business ventures.

How LoCus Helps

Contact Neighbours

Create Clusters

Reporting

Contact Landlord

Site based Services

CO2

Customer Journey

Recruitment & cluster building

Contact Neighbours

Create Clusters

Contact Landlord

Recruit As an SME engages with the programme we use them as a gateway to develop a cluster.

Occasionally, the Landlord is the gateway and through them we contact the business community.

Initial Service Delivery

Initial 1:1 Service Delivery 1

We start with a conversation either face to face or by phone. •What are the business objectives environmentally.•Contextualise the environmental activities to other business tasks, objectives and priorities.•What does the business want to do?•Ownership and information on the building, fabric and lease arrangements.

This defines the first Service Delivery. Most commonly some form of environmental auditing but not always. Delivered by LoCus team OR contractor

This is light-touch auditing with simple action plans in order to maximise action implementation.

2-4 hrs 6-10hrs

Carbon Reporting

ReportingCO2

Service Delivery 1

Once we have quantifiable carbon data, we load it into our CO² tool. (to be sourced)

Ideally the client will be involved with this. Then can then add to the CO² picture as they go.

2-4 hrs

Following up and implementing actions

Assist Service Delivery 2

Ongoing After the initial report is sent, we follow up.

From our work to date, we know what the next stage is likely to be. This might be more environmental support, help implementing actions, training, Landlord negotiations, policy and EMS writing, etc.

It’s up to the customer what happens and when.

2-4 hrs ?6-10 hrs

Site based service delivery

Create Clusters

Reporting

Contact Landlord

Site based Services

CO2

2 hrs – 2 days+

When a cluster forms with good SME take-up on the site and preferably an engaged Landlord, LoCus can develop site based environmental programmes.

This might be renewables assessments, business modelling and installation assistance; travel plans and activities; co-operative buying, etc.

This is where the big carbon impacts can be realised.

The time taken on these activities will be shared among the registered participants.

Reporting

Reporting

LoCus is developing a comprehensive reporting suite to manage and monitor both client interventions, programme activities and evidence outputs.

A CRM system (Salesforce) will track all client activities and interventions, plus manage the pipeline. We can also use it for communications.

We can also manage all our Partner and other stakeholder information using this application.

A CO² tool will be synchronised to this to form 1 reporting application.

Plenty to do to reduce carbon cost effectively:

Carbon emissions in commercial property

Plenty to do to reduce carbon cost effectively: Cost effective solutions to Carbon Reduction

Behind the Scenes: The Partnership

Partner Name Strategic /Delivery

Responsibilities (as stated on proposal) Match?Y/N

Reading Borough Council

Delivery (Lead)

Coordinate and develop project – Project manage Y

Wokingham Borough Council

Strategic Promote to SME’s and landlords, cluster management and provision of technical support to SME’s and landlords.

Y

Bracknell Forest Borough Council

Strategic Promote to SME’s and landlords, cluster management and provision of technical support to SME’s and landlords

Y

Slough Borough Council Strategic Promote to SME’s and landlords, cluster management and provision of technical support to SME’s and landlords

Y

West Berkshire Council Strategic Promote to SME’s and landlords, cluster management and provision of technical support to SME’s and landlords

Y

Climate Berkshire Partnership (BESB)

Strategic Overseeing delivery of project and aligning with other sub-regional programmes. N

Business Link Berkshire Delivery Engage Berkshire businesses to raise profile and broker services offered by project. Y

Thames Valley Energy Delivery Technical Advisory Service Energy and renewable to SME’s and landlords

N

Behind the Scenes: The Partnership

Partner Name Strategic / Delivery

Responsibilities (as stated on proposal) Match?Y/N

Reading UKCIC Delivery Business Contact , networking opportunities, Promoting and disseminating project outputs to SME’s and landlords in Reading area

N

University of Reading Delivery Technical advisory service for SME’s and landlords. Integration into taught courses, alignment with student MSc and PhD projects, technical development of solutions for landlords. Alignment with business programmes and business focused learning packages.

Y

CEAC Delivery Technical advisory service for SME’s and landlords. EMS support and training package guidance and specialist advanced delivery.

N

SECBE Delivery Technical advisory service for SME’s and landlords, particularly with respect to building design, technical assistance with refurbishment and building solutions.

N

Medway Council Delivery Diamond partners to work with businesses and public sector organisations to reduce carbon footprint. Host to one member of project team serving Eastern area.

Y

Diamonds for Investment and Growth

Strategic Dissemination of project and approach across southeast diamonds. Strategic development of approach across Southeast

N

Oxfordshire County Council (OEP)

Delivery Diamond Partner, local delivery to promote project resources & disseminate outputs.

Y

Existing resources

New resources for delivery / development

Match Funding

Cash

ERDF projects require 50% Match Funding.

Match is taken “in kind” from Partners’ existing delivery.

Match is used to draw Cash from ERDF.

Cash pays for additional resources to enhance Partners’ existing delivery.

Match Funding

Outputs, Performance and the need for New Partners

A separate document is available for potential Partners explaining the Project history, outputs & Performance and reasons behind expanding the Partnership.

Jane Wallis, Project ManagerOn behalf of Reading Borough Council and the 19 Partners

0118 973 4014 / 07713 082330 Jane.wallis@locusproject.org.uk

www.locusproject.org.uk