Energy Usage

A clear strategy on energy conservation is imperative. Our Energy Action Plans form the first stage of this process. These plans will be used at every stage of the property's life cycle and will assist us in improving our energy performance across the portfolio. By improving our energy performance we aim to provide savings to tenants through reduced energy costs and resultant Carbon Reduction Energy Efficiency Scheme charges.

Our aim is to purchase all electricity supplies on green tariffs where green tarrif rates are available in accordance with our payment terms and within 10% of the rate for brown energy. Energy contracts are regularly reviewed and also tendered on an annual basis by our consultants in order to secure the best prices.

During the year to 31 March 2011 over 89% of electricity supplies were purchased on green tariffs with electricity generated from renewable sources such as wind farms and hydroelectric plants.

The Carbon Reduction Commitment Energy Efficiency Scheme (CRCEES) requires organisations to report their carbon emissions on an annual basis and purchase carbon allowances. The Company was not required to participate in the first phase of the CRCEES which started on 1 April 2010. However, we continue to monitor our energy consumption in line with the legislation to prepare for our likely inclusion in the second phase of the scheme.

Consumption of both gas and oil has increased by 17% in the year ended 31 March 2011. This increase was reflected across the majority of properties in the portfolio; we have attributed this to a longer, colder winter during the reporting year, with consistently higher consumption in the winter months when compared to the same period in the previous year. In addition the increase in gas consumption at four properties reflects the increased occupancy levels at those properties during the year to 31 March 2011.

Total electricity consumption has increased by 25%; this has been attributed to two properties, wholly owned by Great Portland Estates plc, where occupancy levels have increased significantly during the year to 31 March 2011.

Gross carbon emissions have increased by 28% in the year ended 31 March 2011. This is as a result of the increased energy use in the portfolio, primarily caused by increased occupancy levels. Net carbon emissions have decreased by 5% in the reporting year; this has been achieved by our objective to increase the purchase of electricity supplies on green tariff contracts.

Water Usage

The Group’s water efficiency aspirations are included in our Sustainability Framework which is used by internal and external project teams for all our refurbishment and developments and we have committed to the installation of greywater and rainwater harvesting systems in our new developments.

Total water consumption has increased by 16% in the year to 31 March 2011. This increase can be attributed to the increased occupancey of four properties during the reporting year and to a temporary increase in water consumption at one property caused by short term refurbishment activities.