Case Study

PRUPIM Improver Portfolio

In 2007, we formally launched our Improver Portfolio. This is an innovative project which aims to quantify the impact of implementing low/no cost solutions to reduce carbon emissions and, ultimately, to enhance property values.

Phase One of the Improver Portfolio project investigated areas where we - as landlords - can have a positive impact. Environmental and energy audits were carried out during 2007 in order to establish a baseline, and following on from these, a series of low/no cost initiatives were identified for implementation. For example at our Waterside Shopping Centre (Lincoln), we have implemented a range of environmental initiatives which have resulted in significant cost savings, including:

• Installing efficient lighting – a survey was undertaken to replace all lights with efficient T5 fluorescent tube fittings. Possible savings from this action could amount to £5,000 per annum and reduce CO₂ emissions by over 36 tonnes. The payback period has been calculated at just over 12 months.
  

The baseline review has benefited our wider managed portfolio as well. For example, at our 2007 Shopping Centre Management Conference, all Shopping Centre Managers and Management Surveyors were issued with a number of low- and no-cost initiatives to reduce their use of energy and water consumption and to increase the amount of waste sent for recycling. We hope to report on the cost and environmental savings achieved as a result of this initiative in our next report.

The second phase of the Improver Portfolio project will continue in 2008 and will focus on tenant engagement as this remains a major challenge for PRUPIM. We will be working closely with consultants Ecofys, to develop an appropriate engagement strategy utilising the Tenant Energy Review as a key component.