SUSTAINABLY PROFITABLE
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A SUSTAINABLE AND PROFITABLE FUTURE WRITTEN BY
HARRY MENEAR PRODUCED BY
CAITLYN COLE
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CBRE
Joe Gomez, Head of Energy & Sustainability at CBRE, discusses sustainability in the facilities management space and the ways the company creates value for its clients
O
ver 40% of the world’s energy is consumed by commercial and industrial buildings. At a time when the need for climate action
and sustainability reform is greater than ever before, global real estate services and investment firm CBRE’s Global Workplace Solutions (GWS) division 04
is working to leverage new technology, alongside the combined experience of over 80,000 employees, to ensure the world’s leading companies are also sustainability leaders in the private sector. “We work across a broad, diverse background of clients with different needs and specialisations around their energy and sustainability appetites. Our goal is to create value for them in that space,” says Joe Gomez, Head of Energy & Sustainability, EMEA. We sat down with Gomez to find out how CBRE is delivering sustainability at a profit to its impressive roster of tier one clients. Gomez and the GWS division work across four different major verticals. “We work with major players in the industrial oil and gas business, in banking and insurance, technology, and life sciences and pharmaceuticals,” explains Gomez.
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Better air for the built environment There is a real drive for building occupants, managers and owners to utilise resources within the built environment more effectively now more than ever before. At VES, we know that understanding and influencing energy and sustainability will continue to be a critical facilitator in providing ever increasing control of good decision making. Our ability to respond to changes in building usage is strengthened by being aware of the choices made at business level, as we work to help stakeholders meet their environmental and commercial goals. We must also remain mindful of our long-term responsibilities to find ways to improve how we utilise precious resources as we develop over time. We believe that by embedding energy and sustainability goals and drivers within all our strategic decisions, we ensure constant progress and real tangible benefits along our transformation journey.
Our Collaborative Approach We work closely with business and technology partners to allow us to build upon the fundamentals of their expertise; key partners include Ziehl Abegg for fan & motor technology, Siemens Building Technology for controls and building integration, Hoval for energy recovery technology. Like us, their vision lies in creating energy efficient and sustainable environments to ensure technologies are used to the fullest potential; making every improvement easier to implement and longer lasting whilst ensuring future value can be unlocked through data built within the DNA of the solution. By bringing together these leading technologies within our own field of expertise in heating, ventilation and air conditioning, we can not only build ventilation systems to meet energy and sustainability standards for new buildings - we can facilitate energy improvement solutions for existing buildings which create lasting value and make a difference to occupants, building operation and environmental impact. No single technology applied in isolation can drive the energy and sustainability requirements of the future; just like our business partnerships, solutions are best achieved through a collaborative approach based upon tangible data and information which ensures consistent effective results with the ability to continuously drive
improvements through using the embedded data, which is captured and analysed as part of the solution. Replacing a belt driven centrifugal fan with an EC plug fan to perform the same duty can yield notable energy savings on its own. However, by understanding the purpose and usage of the area being served, we can ensure that even more energy is saved through optimised fan and motor selections and introducing modulating speed in response to intelligent demand control. We can use occupancy readings to ensure energy used on heating can be effectively reduced by introducing a controlled balance between fresh air intake, return and recirculated air, and usage of energy recovery devices such as thermal wheels. Along with associated reductions in maintenance requirements, and by working with our partners to bring together solutions in multiple air handling systems across buildings or whole estates, we can assist you and your partners in making a real and lasting impact on energy and sustainability in the buildings and estates you are responsible for.
Business case and investment By packaging our energy and sustainability business cases so they make sound business and financial investment sense, proposals can be delivered with equal priority alongside more conventional business investments. With the ever-growing pressures on the cost and utilisation of resources within the built environment, our energy and sustainability investments can provide far greater financial return and value than many other capital investments being considered. We have a wide spectrum of technical experts covering the UK, ready to meet and evaluate possible energy initiatives helping you progress along your own energy and sustainability journey. For more information: 023 8046 1150 | ves.co.uk | sales@ves.co.uk | LinkedIn Offices in Southampton, London, Manchester, Glasgow and Birmingham
CBRE
“ We work across a broad, diverse background of clients with different needs and specialisations around their energy and sustainability 08 appetites” — Joe Gomez, Head of Energy & Sustainability, EMEA
When taking on a new client, CBRE prides itself on being a full spectrum provider of a complete range of solutions. Through a number of years of experience of working with property portfolios of large global occupier clients, CBRE has developed an Energy Pathway product. This is now our standard proven approach to implementing an energy strategy for any of our accounts/clients. The methodology takes the client on a 10-step journey through energy management and allows for a tailored approach to be developed for each
CLICK TO WATCH : ‘THE SEAMARK BUILDING, ELM PARK, DUBLIN, IRELAND’ 09 portfolio. The core elements of this
all the time. Once you’re on this wheel,
program define our three major offerings.
the idea is that you keep it going and the
The company calls its three major
process will become self funding,
offerings “Buy Smart, Use Smart and
because of the amount of value that
Be Responsible”. Gomez explains:
you’re creating and releasing. CBRE is
“The supply side energy management
in the business of being a full provider
is ‘Buy Smart’; demand side energy
of all of these services.”
management is ‘Use Smart’; and ‘Be
There are three principal areas in which
Responsible’ is about sustainability.
CBRE creates value for its customers
That’s the wheel of services that we
through sustainability: profitability,
offer. We bring them in at whatever level
brand and risk management. “Our goal
our client is currently at and plug all the
is to help a company generate its
gaps to make them a fully comprehen-
output in the most energy efficient way,”
sive energy and sustainability business
explains Gomez. “There needs to be
that is creating value and mitigating risk
a business case to make sustainability w w w.c bre. co. u k
Transform your energy challenges into business advantage Centrica Business Solutions and CBRE have joined forces in a preferred partnership arrangement to help businesses tackle the four major energy challenges of high costs; power supply disruption; operational efficiency, and sustainability.
Energy costs are volatile and rising. Power grid instability and extreme weather events are increasing energy supply risk. Employees, customers, shareholders and regulators expect you to be green and energy efficient. Ageing energy infrastructure may be pushing up your operational and maintenance costs, while compromising productivity
It’s time to rethink your long-term energy strategy and take a proactive approach to lower carbon, lower cost, lower risk energy management. Expert support from world-leading energy solutions providers Centrica Business Solutions’ partnership with CBRE brings together the vast expertise and resources of two world-leading energy services and solutions providers. Jointly, we provide complete end-to-end support to integrate advanced energy technologies into long-term sustainable energy strategies. In this way, your business can increase profitability, productivity, energy security and environmental credibility.
See how we can help
Time to power up your long-term energy strategy The radical shift from traditional centralised energy generation to decentralised and digitised energy opens exciting new opportunities to gain business advantage from higher energy performance.
Goodbye passive top-down energy consumption. Welcome to the next generation possibilities of optimsing, monetising and controlling your sustainable energy strategy. Benefits of distributed energy Advances in intelligent digital energy technology provide cost-efficient distributed energy solutions that reduce risk and secure a more competitive and environmentally sound future. Centrica Business Solutions, part of the global energy and services company Centrica Plc, is a strategic energy partner for business – delivering outstanding results and stretching the boundaries of what’s possible. We design, build, finance, operate and maintain intelligent, end-to-end distributed energy solutions – enabling you to analyse, generate, store and monetise your energy. We have expertise in cutting-edge energy insight and prediction; on-site generation from solar and cogeneration; battery storage; back-up power; energy asset management, and demand-response aggregation.
Learn More
These exciting opportunities to redesign energy strategies and embrace the opportunities of localised, distributed energy solutions are hugely underexploited. We can remove investment barriers Some businesses are slow to adapt to new opportunities because they believe that it’s too complex, too risky, or too costly. However, with two of the world’s most capable and technically advanced energy solutions providers in your corner, these barriers quickly disappear. Together, Centrica Business Solutions and CBRE have the proven capabilities to deliver a complete smart energy program that mitigates risk and delivers powerful results. We’re here to support your long-term energy vision and distributed energy projects every step of the way – from design and development – to installation – through to long-term monitoring and operation. The cost of implementing innovative distributed energy solutions is falling and the return on investment is impressive. However, if lack of finance or competing funding priorities are frustrating your energy ambitions, Centrica Business Solutions provides long term flexible finance options. We have a long and proven track record of funding both CAPEX and OPEX costs via the ongoing energy and operational savings, with built in performance guarantees to mitigate risk. In this way we can accelerate delivery of the end-to-end clean energy solutions.
Discover how Centrica Business Solutions and CBRE can help you transform your energy performance and future-proof your business growth.
CBRE
$21.3bn Approximate revenue (2018)
1906
Year founded
80,000
Approximate number of employees 12
attractive.” The first value opportunity
peak hours. “They can then bank that
that CBRE provides revolves around
obligation as a virtual power station
a “reduction in spend and therefore an
and do that multiple times around the
increase in profitability. Our customers
country,” explains Gomez. “Then they
reduce what they spend on their energy,
could have 20 megawatts of energy
getting back any revenue they’ve
that can be used to shave peak demand.
overpaid on their energy bills, and they
When the whole country puts the kettle
actually can drive revenue into their
on during Bake Off adverts, they don’t
coffers if their national grid has programs,
have to turn another gas turbine on; we
known as demand side response
can use this virtual power plant.” CBRE
schemes, that will pay clients to turn
has a full matrix of over 150 initiatives
load off,” says Gomez. Demand side
that can be used to make savings on
response schemes involve financially
clients’ energy. “We work on a traffic
incentivising grid users to reduce or
light system,” explains Gomez. “Our
shift energy consumption away from
goal is to take every red and amber box
E XE CU T I VE PRO FI LE
Joe Gomez Joe Gomez has served as Head of Energy & Sustainability at CBRE since 2016. He is a Warwick Business School MBA and a UK Chartered Energy Engineer, with a specialisation in Energy, Building Services, Refrigeration & HVAC sectors. In his role at CBRE, Gomez creates value for his customers through utility price reduction, productivity improvement, brand enhancement, supply and demand side energy management. He is responsible for the operation of CBRE’s energy and sustainability platform, as well as the company’s energy and utilities management services.
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CBRE
Watch the video
SmartServices click to find out how
where there’s the potential for an energy saving and turn it green. By doing this we not only save the client money but also make that building itself greener. That will then give that business the best carbon credentials they could possibly have.” CBRE is the trusted advisor and partner to its clients. “We’re there to run and manage their property,” says Gomez. “We don’t make anything or sell any products, but we sell our expertise and human horsepower.” Over the years, CBRE has built up its
“ The goal is to turn every building green over a course of time. That will then give that business the best carbon credentials they could have” — Joe Gomez, Head of Energy & Sustainability, EMEA
relationship with a trusted network of w w w.c bre. co. u k
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CBRE
third party suppliers and contractors. One such company is VES. Founded in 1968, VES provides energy efficient ventilation and air handling solutions across multiple verticals in the industrial and commercial real estate space. “We believe VES is one of the best air handling units and air flow management businesses in the country,” says Gomez. “What you get is a bespoke solution that fits your needs at a high quality standard. We believe that their attention to detail and their thoroughness is something we would stand 16
behind.” Another avenue through which CBRE can drastically improve the sustainability of a property is its lighting system. “We work closely with global lighting provider Sylvania in delivering efficient and comprehensive lighting solutions to our client base,” explains Gomez. “Sylvania have a knowledgeable and committed team of professionals supporting us and they act as an extension of the GWS value chain in scoping, designing and delivering value.” Secondly, CBRE manages its clients’ sustainability branding, helping clients to position themselves on indices like the Dow Jones Sustainability index,
the FTSE4Good, the Carbon Disclosure Project and the Global Real Estate Sustainability Benchmark,” says Gomez. “These rankings show the world our customers’ green credentials. If they occupy the top spots on those indices, not only is it good for their brand and good for how attractive they are to their market, but it also drives greater transparency between the company and its customers.” Thirdly, CBRE offers risk management through its sustainability expertise. “The energy and sustainability landscape has experienced a proliferation of financial and legislative requirements, driven by the United Nations Climate Change Program to deliver a world to our grandchildren that’s 1.5 degrees cooler than if we don’t take action,” notes Gomez. CBRE manages the risks of compliance for its customers so that “whether they’re lending money or making Nurofen, we take away their compliance headaches and minimise their exposure to the financial impact of those regulations and penalties”. The sustainability service CBRE provides is linked to three major trends in the industry, which Gomez calls “the three Ds: de-carbonisation, decentraliw w w.c bre. co. u k
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CBRE
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“Because if you drive something more efficiently you drive it more reliably. And if you drive it more reliably, you’re driving better facilities management” — Joe Gomez, Head of Energy & Sustainability, EMEA
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CBRE
100
Clients served worldwide
450
Offices worldwide
18 years 20
Voted the industry’s top brand by the Lipsey Company
sation, and digitisation”. De-carbonisa-
to overtake fossil fuels for the first
tion reflects the global movement away
time as the UK’s primary electricity
from fossil fuels in favour of renewables
source.” Over the summer of 2018,
like wind, solar and geothermal energy.
renewable energy already exceeded
In addition to the moral imperative,
other sources during periods of intense
CBRE uses the rapid advance of green
sunshine, and in 2018 UK energy
technologies like battery storage and
production from coal fell by 25%.
photovoltaics to “make sure people will
“That’s a consequence of that agenda
do something because it makes
being driven and price points begin-
financial sense as well.’’ In January,
ning to compete with and become
Business Green reported: “As early
better than traditional methods,”
as 2020, renewables are on course
says Gomez.
way, which reduces reliance on the grid and creates more resilient local operations.” CBRE maintains strong ties with energy companies that emphasise sustainability in their offerings and are making strides towards a decentralised energy future. Centrica is a multinational energy and services company with its headquarters in Windsor, Berkshire, that is moving into decentralised power generation options. “What they’re doing is moving into distributed energy solutions, which take the energy they are providing to their clients, but design those solutions to be so efficient that the customer uses less energy,” Gomez says. “Centrica have their own Combined Heat and Power (CHP) business in Manchester. They’re the only CHP The second trend, decentralisation,
manufacturer in the UK. They have their
involves the restructuring of energy
own metering business, their own battery
distribution infrastructure on a global
storage business and their own solar
scale. “We as a nation and as a planet
business. They provide the full technical,
cannot continue to feed our need for
project management and funding agre-
energy by building more power stations
ement solutions we believe a customer
ad infinitum, and by digging up the
could utilise. So, we have a preferred
roads and laying more and more copper
arrangement with them,” he explains.
wire to bring us more and more energy.
Digitisation, Gomez believes, will allow
That’s just patently unsustainable,”
CBRE to increase both efficiency and
Gomez explains. “We should be looking
sustainability for its clients. “If you put
to generate energy in a decentralised
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CBRE
“ VES, we believe, is one of the best air handling unit and air flow management businesses in the country” — Joe Gomez, Head of Energy & Sustainability, EMEA 22
everything, you’d have ultimate and infinite knowledge of the machinations of our needs in life, right?” Gomez asks. “Now, if you put a sensor on every part of a building – its windows, boilers, chillers, air handlers, low voltage power points and its computers – you could identify a problem and fix it before the building’s occupants were even aware something was wrong. Not just if some-
thing was broken, but if it was about to break.” Gomez believes that the power of predictive analytics and automation will dramatically change the real estate management industry. “That continual progression towards complete data transparency on everything that moves is the goal,” he says. Looking to the future, Gomez believes that digitisation will continue to have an exponentially magnified effect upon the sustainability space. “Digitisation is the way forward, not only with respect to facilities management, but in respect to the ability for facilities management to be driven by smart decisions around energy,” Gomez emphasises. “Because if you drive something more efficiently you drive it more reliably. And if you drive it more reliably, you’re driving better facilities management.”
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CBRE Corporate Headquarters 400 S. Hope Street 25th Floor, Los Angeles CA 90071, US www.cbre.co.uk