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News Release

London

Jones Lang LaSalle Advances Property Industry’s Sustainability Efforts


London, 16th November 2010 – Earlier this year Jones Lang LaSalle’s Energy and Sustainability Services (ESS) team was commissioned by INREV – the European Association of Investors in Non-listed Real Estate Vehicles – to survey a cross-section of its members about sustainability issues. The report, just published by Jones Lang LaSalle on behalf of INREV, highlights several barriers which must be overcome if the industry is to make real progress in this area.
 
Lack of appropriate training, inconsistent terminology and metrics, and little guarantee that sustainability improvements will enhance fund performance, are among the challenges facing the industry, it reports.  Matthias Thomas, CEO of INREV, said: “Investors and fund managers are working hard to put in place sustainability aspects but this report shows that some basic building blocks could be improved to ensure these initiatives are incorporated more productively across the industry.”
 
Matthew Tippet, Director of Jones Lang LaSalle’s ESS team, added: “It’s clear from this research that sustainability is a key issue for European real estate investors and fund managers. Although some forward-looking firms are making substantial headway, the general pace of progress will continue to be limited without training, common standards and metrics and a clear business case for making sustainable investments.  Thanks to our support, INREV’s Sustainability Working Group is now able to identify a series of new initiatives to help its members in these critical areas, enabling them to overcome barriers and eventually improve the sustainability of their funds.”
 
INREV is not the only industry association that Jones Lang LaSalle’s ESS team is currently advising. “It’s developing sector specific sustainability reporting guidelines for the Global Reporting Initiative and recently compiled the Greenprint Foundation’s online Carbon Index. Charles B Leitner, CEO of Greenprint Foundation, said; “Amidst an explosion of wide-ranging environmental initiatives, it has been difficult to find a common starting point to measure and benchmark carbon emissions across the worldwide property industry.  With the help of Jones Lang LaSalle, Greenprint Foundation has launched its Carbon Index to establish that starting point and advance the industry’s efforts to reduce energy usage and carbon emissions while building value.”
 
Building upon these successes, in recent months the team has secured a series of new mandates with both national and international trade bodies, which together represent a wide range of sectors and markets. Among these are the BCSC (British Council of Shopping Centres) and EPRA (European Public Real Estate Association). The latter has asked the firm to work with its members to develop sustainability reporting Best Practices Recommendations (BPRs). It is hoped that these will become the established benchmark for sustainability for European property firms and investors in the same way that EPRA’s financial reporting BPRs have become the established benchmark for transparency.   The association plans to publish the first set of sustainability BPRs by September 2011.
 
Gareth Lewis, EPRA Director of Finance, says: “We are aiming to get consistent and comparable standards into the regular workflow of property firms and to help our members navigate the many and varied sustainability initiatives underway in Europe. Our ultimate goal is to achieve a consensus around a clear unified set of key performance indicators, common language, and methodology - Jones Lang LaSalle’s unrivalled sustainability reporting expertise and its international reputation as a leader in this area, meant it was an obvious choice to accompany us on this journey.”
 
Similarly, the BCSC, recognising the firm as the UK’s leading provider of sustainable real estate services, recently commissioned Jones Lang LaSalle to identify ways that shopping centre operators can reduce CO2 emissions. An estimated 820 shopping centres, covering over 13 million m2 of lettable area, contribute approximately 3 million tonnes of CO2 emissions to the UK total.  By engaging and consulting BCSC’s members and performing cutting edge research, Jones Lang LaSalle’s ESS team will produce a report called “Accelerating change towards a low carbon shopping centre”.  Due to be published in early 2011, this will contain practical guidance on how to reduce CO2, for all those involved in the operation of shopping centres.
 
Julie Hirigoyen, Head of Jones Lang LaSalle’s ESS team, said: “The growing number of sustainability mandates with industry bodies indicates that sustainability continues to be a significant issue for the sector and that companies are increasingly looking to industry bodies for support.  As a partner of choice for so many associations, it is clear that Jones Lang LaSalle is seen by many as the voice of the industry on sustainability issues. This gives us a real opportunity to draw upon our extensive reservoir of relevant experience in order to provide consistent advice and effective solutions to a large share of the market – helping advance and accelerate the industry’s efforts to become sustainable.”