Corporate Responsibility and Sustainable Facilities Management
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Transcript of Corporate Responsibility and Sustainable Facilities Management
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Property CR AMP CapitalTopics Covered
Corporate Responsibility Framework AMPCI Property
Managing Environmental Performance in Assets
Case Study AMP Centre Case Study
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For more than 150 years, AMP has invested in the future forgenerations of Australians today, 1 in 6 are customers.
As a part of the AMP Group, AMP Capital Investors is committed
to building a sustainable future. The combination of our scale,breadth and capability provides us with the opportunity toinfluence the future and continue to make a difference.
By doing this well as a leading property investment manager, wecreate value for the stakeholders in our community, ourmarketplace, our workplace and our environment.
AMPGroup
Corporate ResponsibilityWhy AMP Capital Investors Positioning Statement
AMPCa
pital
Property
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Corporate ResponsibilityWhy Property Future Proofing Property Value
Meeting Market Demands (Tenant Survey)
- Reduced Vacancy & Incentive
- Tenant Retention
Reduced Outgoings = Higher Chargeable Rents
- Energy, Waste and Water costs all on the rise
- Carbon Tax
Capital Value and Asset Liquidity- Underlying Valuation
- Cost to Green (Progressive Operation or Step Capital)
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How important are environmental considerations for your businesswhen selecting space to occupy?
Corporate ResponsibilityWhy Property Meeting Market Demands
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Corporate ResponsibilityWhy Legislative Compliance
Energy Efficiency Opportunities Act 2006
National Greenhouse & Energy Reporting Act 2007
Mandatory Disclosure
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Responsibility to the general community and particularly the communities inwhich we operate
Our relationship with our investors, our tenants, our suppliers andprofessional/representative bodies and organisations
Responsibility to our own Property Team
Responsibility for our impact on the local, national and global environment
Our
community
Our
community
Our
marketplace
Our
marketplace
Our
workplace
Our
workplace
Our
environment
Our
environment
CR at AMP Capital PropertyProperty Pathways
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How we manage Environmental PerformanceIntegration to Investment Management Model (IMM)
MONITOR(30min Cause-Effect data)
REPORT(Accurate & Meaningful)
ACTION(Set Strategy & Plan)
MONITOR(30min Cause-Effect data)
REPORT(Accurate & Meaningful)
ACTION(Set Strategy & Plan)
IMMSimulation
Maximise
ROI
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Accountability through IntegrationInvestment Management Model
BUSINESSPLAN
DEVELOPMENTPLAN
INVESTMENT MANAGEMENT
10 YEARCAPEXPLAN
ENVIRON-MENTAL
STRATEGIES
ASSETSTRATEGIES
BUSINESSAWARENESS
TENANCYSURVEYS
ASSETPLAN
Q1 Q2 Q3
3YR
FLEXIBLE
10YR INVESTMENT HORIZON
51 432 106 98
AM
PM
PM
AMNOG
PM
NOGAM
AMAN
PM
PM
AMFIN
PM
AMFIN
PM
AMFIN
PM
AMFIN
DM
AM
7
AM Asset ManagerAN AnalystPM Property ManagerNOG National Operations GroupFIN FinanceDM Development Manager
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Managing Environmental PerformanceAction - Environmental Strategy
Environmental Strategy Plans (ESP) aredeveloped for all properties, that:
identify the environmental potential of aproperty
set targets for Energy, Waste and Waterperformance against current status
identify key initiatives to assist in achievingthese targets
Accredited assessors approve all plans
Engineered initiatives are costed for inclusionin business plans, with programmedinstallation aligned with a properties leasingprofile.
Plan layout
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Managing Environmental PerformanceAction, Monitor & Report
Sophisticated monitoring tools
Initiatives may be immediately monitored on-line to optimise practices and enhancemodelling process eg. TCA Webgraphs allow Facilities Managers to view dailyEnergy and Water usages in a property without having to wait for authority bills
Alarms are set to monitor excessive use, leaks, operational logic etc.
Energy Profile Before Energy Profile After
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Managing Environmental PerformanceAction, Monitor & Report
Performance data must be verified for use by authorities such as Department
Environment and Climate Change or for grant applications.
Energetics compile our consumption of Electricity, Gas, Waste and Water.This data can be reviewed on-line in various reports such as the BuildingPerformance Reports.
Energetics assess our performance using the NABERS rating tools.
For Benchmarking, data for all properties is uniformly reported.
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FUND LEVEL REPORTING
INDIVIDUALS ACCOUNTABILITY
Managing Environmental PerformanceAction, Monitor & Report
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Example Greening Project Repositioning Asset222 Exhibition Street, Melbourne
Purchased with approaching lease expiry
Standard Life Cycle Analysis to develop a10yr Capital Plan
Approached Tenant with Master Plan toinvest in NABERS upgrade
Modelled Investment vs Total Returnconsidering alternate Ratings vs Rent andOperating Expenses and Asset Valuation.
Negotiated Optimum with the Tenant andagreed a new lease term with a strictKPI/Penalty focused Green Lease
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Example Project Asset Repositioning222 Exhibition Street, Melbourne
Reference System Option PredictedElec
kWh/annum usage
PredictedGas
kWh/annum usage
kWh/annum saving
(comparedto current)
CarbonDioxideSaving
(kg)/Annum
Cost $/kgCO2/Annumsaving
Percentagecontributedto achieving
a 4 starABGR
N2
Meter chilled water
loop to CHW loop
N3 and N4
Internal andperimeter zoneupgrade
N27Refurbish existingoffice lighting
N29 Office light zoning
N30ABGR Electricalmetering
N11 Mods to AHU's
N12
Sub-meteringmechanicalconsumption
N14 New BMS 702,672 305,328 409,140 $6,092,700 14.89 31%
N5
Chillerupgrade/VSDpumps
N10 and partN9
Upgrade CoolingTowers 364,465 307,535 412,097 $1,725,000 4.19 32%
N13Sub-meteringstandby generator n/a 5,000 $15,000 3.00 0%
N15Carpark ventilation(calculations) 186,359 31,146 41,736 $100,000 2.40 3%
N20 and N21Hot waterstorage/Solar HWS n/a 31,980 54,449 11,434 $30,000 2.62 1%
N23 and N24Upgrade CarparkLights 61,722 99,077 132,763 $120,000 0.90 10%
N25Upgrade Toiletlights 14,967 30,091 40,322 $60,000 1.49 3%
N26Office lift lobbylights 59,826 165,903 222,311 $99,000 0.45 17%
Sub Total: 1,390,011 31,980 993,529 1,274,802 $8,241,700 98%
Option 1
Purchase Accredited Green Power for shortfallplus 20% (annual expense over and above normalelectricity rates, estimated as $45/MWh) 508,369 681,215 $22,877 0.03
Option 2
Install fourth chillerwith a highefficiency chiller. 335,492 28,973 38,824 $350,000 9.02 2%
Total: 1,725,503 31,980 1,530,872 1,994,841 $8,614,577 100%
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Case Study
AMP Centre, 50 Bridge Street, Sydney
March 2010
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Case Study
AMP Centre, 50 Bridge Street, Sydney
Introduction
2001 Context
Scope
Environmental Performance
Lessons Learnt
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AMP Centre, 50 Bridge Street
Completed 1973
Net letable area 54,500sqm 42 office floors
1,200sqm floor plates
1,600 retail plaza
230 parking spaces
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2001 Context
Lease Expiries 2001 - 7%, 2002 - 13%, 2003 - 18%, balance of building by end 2006
HIH occupy 11,500sqm Provisional liquidation - 15 March 2001
Key competitors Compatriot buildings - Australia Square, MLC Centre, 20 Bond Street, Met Centre Premium buildings - Governor Phillip Tower, Chiefly Tower, Aurora Place
Services performance challenges Air-conditioning and lifts
Emerging sustainability tools
Project positioning Consolidate A grade credentials, offer a value proposition with premium views
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AMP Centre Refurbishment
Project Budget - $77 million
Major scope areas
air conditioning - 20% increase in capacity
lifts modernisation - 30% reduction in average waiting times
office lighting - 50% reduction in energy costs
main switchboard replacement dedicated tenant communication riser
new fire control room
foyer, lift car and office floor finishes
introduction of a foyer caf
$12 retail plaza upgrade - 6 new food outlets
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Performance Measures
Leasing - every tranch substantially pre committed
Operational Outcomes
Services performance
Energy consumption
tenant lighting - 50% down
base building energy - 43% down
Market indicators and competitor performance
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Environmental Performance
43% reduction in electricity usage from 2002 2009
2000 Y2K + GST Implementation focusedEnvironmental and Sustainability only just on their radar
2009 @ 3.0 Stars2010 @ 3.5 Stars (expected)
Investment Management Model
Investment performance
Lifecycle 10 year Capital Expenditure program Lease expiry profile
Market forecast
Competitor set forecast vacancy/supply
Lifecycle analysis
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Waste
Water
Energy
Environmental Performance
How?
New Air conditioning system from constant volume to variable air volume
New Carrier Chiller
New BMCS CO2 monitoring / car park exhaust
T8 Lighting
Car park sensor lighting
BMCS Upgrades
Night purge system Chiller strategy
Added plant not previously monitored and control led
Replacement of all HVAC Pumps most fans
Waterless urinals / recycling
- 2.5 star Nabers rating Saved 10.5 million litres per annum from 2006
Co-mingled waste Recycling Average of 70% per annum of waste recycled over the last 3 years
Retail Plaza food recycling 2008
OzHarvest program introduced 2008
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Where to Next
NABERS 4 Star rating is possible
Replace all chillers except row chiller Energy management system to BMCs
Retail Plaza reparation / Energy HVAC management
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Lessons
Maximise holding income
Tight coordination Sustainability
Identify opportunities
Constantly review and have
flexibility to move with technology IMM
Involve site team from projectstart
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Corporate Responsibility AMPCI Property
Its more than what we sayits what we do.
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Important note
Neither AMP Capital Investors Limited (ABN 59 001 777 591) (AFSL 232497), nor anyother company in the AMP Group guarantees the repayment of capital or the performanceof any product or any particular rate of return referred to in this presentation.
Past performance is not a reliable indicator of future performance.
While every care has been taken in the preparation of this document, AMP CapitalInvestors makes no representation or warranty as to the accuracy or completeness of anystatement in it including, without limitation, any forecasts.
This document has been prepared for the purpose of providing general information,without taking account of any particular investors objectives, financial situation or needs.An investor should, before making any investment decisions, consider the appropriatenessof the information in this document, and seek professional advice, having regard to theinvestors objectives, financial situation and needs.
This document is solely for the use of the party to whom it is provided.