As climate change impacts intensify, the need for greener, more energy-efficient buildings has never been more urgent. Addressing these challenges, the UK Net Zero Carbon Buildings Standard (The Standard) Pilot emerges as a pivotal initiative. The Standard is the first comprehensive, cross-industry standard designed to ensure that buildings in the UK achieve net zero carbon emissions. Developed collaboratively by leading organisations in the UK buildings sector, the Standard provides a clear definition of net zero carbon buildings, addressing both operational and embodied carbon. For commercial property owners, understanding these two components is crucial for effective carbon management and compliance. What is the UK Net Zero Carbon Buildings Standard Pilot? Launched in September 2024, the Standard is still in its infancy, with the full version of the Standard expected by the end of 2025. Key collaborators include prominent industry organisations such as BBP, BRE, the Carbon Trust, CIBSE, IStructE, LETI, RIBA, RICS, and UKGBC. The Standard aligns with the UK's ambitious climate goals, targeting net zero emissions by 2050, with interim milestones of a 68% reduction by 2030 and 78% by 2035. Its primary objective is to establish a unified methodology for assessing and proving that buildings can achieve net zero carbon. By setting clear metrics and targets, it ensures the built environment contributes meaningfully to limiting global temperature rise to 1.5°C. Key Components of the Pilot Operational Energy Use: The Standard sets stringent metrics for energy consumption during building operation. It emphasises energy efficiency and the integration of renewable energy sources to minimise carbon emissions. Embodied Carbon: This component addresses carbon emissions linked to construction materials and processes. Guidelines encourage the use of low-carbon materials and efficient construction practices to reduce these emissions. On-Site Renewable Energy: The integration of renewable energy systems, such as solar panels and wind turbines, is encouraged to decrease reliance on fossil fuels and lower operational carbon emissions. Refrigerants: The Standard promotes the use of refrigerants with low global warming potential (GWP) in building systems to further minimise environmental impact. Implications for Commercial Property Owners For commercial property owners, the Standard represents a critical shift in how the sector approaches sustainability. For many existing builds, meeting the new standards may very well require significant investment. However, there are potential financial incentives, including grants and green financing options, which can offset these expenditures. More importantly, buildings aligned with the Standard can be expected to yield long term savings through reduced operational costs. Improved energy efficiency and integration of renewable energy not only helps mitigate the initial upfront costs but also lowers energy bills over time. This dual benefit of immediate financial support and enduring cost reductions highlights the long-term economic advantage of aligning with the Standard. On the regulatory front, property owners will need to anticipate and align with stricter compliance requirements. While the Standard is currently voluntary, early adoption can help avoid future penalties and ensure properties remain competitive. Aligning with the Standard ahead of time also allows building owners to position themselves as leaders in the industry, gaining recognition from tenants, investors, and other stakeholders. Staying proactive in meeting these guidelines reduces the risk of rushed adjustments should the Standard become mandatory in the future. Market value is another critical consideration. Buildings that achieve net zero status are likely to see enhanced asset value and greater appeal to sustainability focused tenants. Modern tenants are increasingly prioritising environmentally friendly and energy efficient properties, which means that non-compliant buildings could face higher vacancy rates and reduced competitiveness in the rental market. Properties that fail to meet the Standard also risk becoming obsolete, potentially decreasing their long term value and investment appeal. By contrast, net zero compliant properties not only command higher demand but are overall more resilient to climate related risks, further enhancing their marketability. Complying with the Standard signals a strong commitment to sustainability, aligning with the expectations of tenants, investors, and the broader market. Organisations with robust ESG credentials are better positioned to secure investment and maintain stakeholder trust. Contributing to national and global climate targets bolsters corporate social responsibility efforts, fostering a positive brand image and strengthening long term industry leadership. How Resero Can Help At Resero, we understand the transformative potential of the Standard for the commercial property sector. Since 2016, we’ve been helping property owners and managers turn ambitious sustainability goals into practical, achievable outcomes. By bridging the gap between high-level strategy and practical implementation, we offer solutions that align with the operational realities of achieving net zero. Our Expertise Includes: Technical Asset Management : We optimise property performance and value throughout its lifecycle, ensuring compliance with statutory obligations and identifying opportunities for efficiency improvements. Net Zero Carbon Strategies : We also l everage frameworks like BREEAM and NABERS UK, both of which align with the Standard, to assess energy performance, reduce emissions, and deliver tangible progress toward net zero. A key to meeting the Standard and achieving net zero is to determine a feasible transition plan at an early stage, all too often we have seen sustainability report recommendations that are unfeasible in the real world, and with commercial buildings contributing 40% of the UK’s carbon emissions, the need to decarbonise portfolios has never been more urgent. Resero provides tailored pathways to help you align with your net zero carbon goals, ensuring minimised risks, maximised asset performance, and strengthened ESG credentials. Conclusion The UK Net Zero Carbon Buildings Standard Pilot represents a transformative step toward decarbonising the built environment. Its comprehensive approach to operational and embodied carbon, coupled with its focus on renewable energy and low GWP refrigerants, sets the benchmark for sustainable building practices. For commercial property owners, proactive planning and investment in alignment with the Standard offer a pathway to enhanced asset value, regulatory compliance, and ESG leadership. By embracing the Standard, the sector can seize the opportunity to lead in sustainability, ensuring a resilient and competitive future.

In the dynamic landscape of UK commercial real estate, effective technical asset management is the cornerstone of success. However, even seasoned professionals can fall victim to common pitfalls that undermine portfolio performance. At Resero, we've identified five key areas where mistakes frequently occur: Regulatory Compliance, Risk Management, Decarbonisation, Strategy, and Operational Efficiency. Let's explore these areas and discuss how to avoid potential missteps. 1. REGULATORY COMPLIANCE MISTAKES The UK's regulatory landscape is constantly evolving, particularly in the wake of Brexit and increasing focus on building safety. Common mistakes include: Overlooking changing regulations: Many asset/building managers fail to stay abreast of new legislation, such as the SFG20 compliance standards, the Building Safety Act 2022, and risks associated with the trajectory for the Minimum Energy Efficiency Standards (MEES). Failing to maintain proper documentation: Incomplete or disorganised records can lead to compliance issues and potential fines. How to avoid: Implement a robust compliance management system, conduct regular audits, and consider appointing a dedicated compliance officer. Stay informed through industry bodies like the British Property Federation and RICS. 2. risk management oversights In an uncertain economic climate, risk management is more crucial than ever. Typical errors include: Underestimating potential threats: Failing to account for risks such as market volatility, interest rate changes, or unforeseen events like the COVID-19 pandemic. Lack of comprehensive risk assessment: Focusing solely on financial risks while neglecting operational or reputational risks. How to avoid: Conduct regular, comprehensive risk assessments. Develop scenario planning exercises and implement robust risk management strategies that cover all aspects of your portfolio. 3. DECARBONISATION PITFALLS With the UK government's commitment to net-zero emissions by 2050, decarbonisation is no longer optional. Common mistakes include: Ignoring sustainability/net zero trends: Failing to recognise the growing importance of Environmental, Social and Governance (ESG) criteria to investors and tenants. Short-term thinking in energy efficiency: Opting for quick fixes rather than long-term sustainable solutions. How to avoid: Set clear sustainability goals aligned with the UK's net-zero target. Invest in green technologies and conduct regular energy audits. Consider certifications like BREEAM to demonstrate your commitment to sustainability. 4. STRATEGIC MISSTEPS A well-defined strategy is essential for long-term success. Frequent errors include: Lack of clear long-term vision: Focusing on short-term gains at the expense of long-term value creation. Failure to align technical asset management with business objectives: Operating in silos rather than integrating technical asset management with overall business strategy. How to avoid: Develop a comprehensive technical asset management strategy that aligns with your organisation's goals. Conduct regular strategy reviews and ensure stakeholder engagement across all levels of your organisation. 5. OPERATIONAL EFFICIENCY BLUNDERS In the competitive UK market, operational efficiency can make or break your portfolio's performance. Common mistakes include: Neglecting preventative maintenance: Reactive approaches to maintenance often lead to higher costs and disruptions. Resistance to new technologies: Failing to adopt PropTech solutions that could streamline operations and improve tenant experience. How to avoid: Implement predictive maintenance programmes, embrace innovative PropTech solutions, and focus on continuous process improvement. Consider tools like smart building systems to enhance operational efficiency.

At Resero, we believe in the power of fostering new talent and perspectives within our industry. Our "grow-our-own" approach is designed to bring in fresh ideas and innovative solutions by nurturing young professionals. By providing them with the right tools, training, and opportunities, we aim to create a dynamic and forward-thinking workforce capable of tackling the challenges of sustainable energy and building design. Energy Engineer, Georgia Tierney guides us through her experience joining Resero straight out of University: From Work Placement to Energy Engineer: Georgia’s Story My journey with Resero began in 2022, sparked by a lecture given by Non-Executive Director , Andrew Cooper that aligned perfectly with my postgraduate dissertation. After reaching out to Andrew with a list of questions, what started as a simple enquiry quickly transformed into a work placement opportunity. During my first few weeks at Resero, I immersed myself in learning how to use software to create digital twins, build models, and understand the practical applications of the recommendations made towards asset improvement. It was during this time that I was put through the One-Click LCA Summer School to help me gain first-hand experience in crafting a Life Cycle Assessment (LCA). The hands-on experience was invaluable, and within three months, I was thrilled to receive an offer for a full-time position to join the Net Zero Carbon (NZC) Design team as a Junior Energy Engineer, to begin as soon as I completed my master’s degree in Medical Radiation Physics. Since joining the team permanently, my learning and development has continued at a rapid pace. Some of the key training programs and courses I’ve completed include:

By their very nature ‘fugitive’ emissions can, at best, only be estimated during the design stage of an embodied carbon report, often called a Life Cycle Assessment (LCA). A LCA is a method of evaluating the environmental burden of processes and products during their life cycle from cradle to grave . Post installation record keeping of fugitive emissions can inform subsequent reviews, and reporting. Giving exaggerated importance to estimated fugitive emissions may compromise the selection of air conditioning equipment that is demonstrably more suitable for the application, and in many cases more energy efficient than the alternatives. What are fugitive emissions? Fugitive emissions refer to the gases or vapours that are released from pressurised equipment due to leaks, evaporation, or other unintended or irregular releases. In the context of refrigerant gas within air conditioning systems, fugitive emissions refer to the leakage of refrigerant gases into the atmosphere. Refrigerant gases are commonly used in air conditioning/heat pump systems as part of the mechanical cooling/heating cycle. Refrigerant gases may escape from the system due to various reasons such as equipment failure, poor installation, neglect during maintenance, and as part of final decommissioning. Fugitive emissions are rightly a concern, many refrigerants are potent greenhouse gases. For example, commonly used refrigerants like hydrofluorocarbons (HFCs) have a much higher global warming potential than carbon dioxide. Even small amounts can contribute significantly to global warming. How does the sector mitigate against fugitive emissions? It is not only good practice to mitigate against fugitive emissions refrigerant handling is also covered by several UK regulations and standards: The Fluorinated Greenhouse Gases Regulations 2015: This regulation implements the EU F-Gas Regulation in the UK, which aims to reduce emissions of fluorinated greenhouse gases (F-gases), including HFCs used as refrigerants. It requires companies that produce, supply, use, install, service, maintain or dispose of equipment containing F-gases to hold a company certificate issued by an approved certification body. Individuals carrying out these activities must also hold a qualification recognised by the Environment Agency. The Ozone-Depleting Substances Regulations 2015: This regulation implements the EU ODS Regulation in the UK, which aims to protect the ozone layer by controlling the production, supply, import, export, ownership, and use of ozone-depleting substances (ODS), including certain refrigerants. It requires companies that carry out these activities to hold a company certificate issued by an approved certification body. The Health and Safety at Work Act 1974: This act requires employers to ensure the health and safety of their employees and others who may be affected by their activities. This includes ensuring that refrigerants are handled safely. The Control of Substances Hazardous to Health Regulations 2002 (COSHH) : These regulations require employers to assess the risks from hazardous substances, including refrigerants, and take appropriate measures to prevent or control exposure. British Standard BS EN 378: This standard specifies safety and environmental requirements in relation to the design, manufacture, installation, operation, maintenance and disposal of refrigerating systems and heat pumps. F-Gas Certification: Technicians who install, maintain or service stationary refrigeration equipment containing F-gases must hold a valid F-gas certificate issued by an approved certification body. Waste Management: The Environmental Protection Act 1990 and the Hazardous Waste Regulations 2005 require businesses to ensure that waste refrigerants are disposed of safely and responsibly. The legislation above illustrates that prevention of fugitive emissions is something that the industry is focused on and that the loss of refrigerant, other than through exceptional circumstances, is entirely preventable. Failure to comply with the applicable regulations can result in significant fines for responsible parties (beyond engineers and contractors). Therefore, it's crucial for landlords and building managers to ensure that the handling of refrigerants is done responsibly and in accordance with the law. The importance of Technical Asset Management in this regard should not be underestimated, site auditing is key to responsible building management, read more here . Including fugitive emissions within LCA reporting LCAs assess the environmental performance of a building and the outputs have numerous environmental indicators but are often collectively referred to as the amount of Carbon Dioxide equivalent (CO2e) emitted during the manufacture, transport, and construction of building materials, together with end-of-life emissions. BS EN 15978-1 provides a calculation methodology for the assessment of environmental performance of buildings. Whilst it is normal practice to include fugitive emissions within LCA reporting, it is also good practice that the reader is given guidance on their relevance, and importance, in understanding the buildings overall total environmental impact. Diligence should be taken to source manufacturers data, as an example, Daikin¹ recommend the following percentages for embedded carbon reporting: Refrigerant Recovery Efficiency = 99% Annual leakage rate = 2% of refrigerant charge Annual purge release factor = 0% Annual service release = 0% Probability factor for catastrophic failure = 0.001% This information confirms that: During refrigerant recovery, at end-of-life or because of repairs, gas lost is considered minimal and is associated with residual amounts (service engineers gauge lines). Industry studies show that correctly installed systems are not prone to refrigerant leaks. VRV systems do not require any purging of refrigerant, plus refrigerant purging is not permissible under UK and EU regulation. VRV leak checking as part of annual servicing can be done without ‘opening’ the refrigerant side of the system. Interestingly, Daikin Industries have carried out a study that shows that catastrophic failures on systems occur 1 in every 10,000 systems, there recommended 1 in every 1000 is a very conservative figure. In conclusion the reporting of fugitive emissions should be done with care, and reports should include explanatory notes. There are many factors when considering equipment selection, whilst embodied carbon is one of them it should form part of a holistic approach. A whole life carbon assessment (WLCA) standard can estimate the amount of carbon emitted throughout the life cycle of a constructed asset, from the early stages of development though to the end of life. It gives visibility to embodied carbon, operational carbon, and user carbon. Sources ¹ Daikin Pol01 BREEAM Calculation Default Values

The Technical Asset Management team at Resero oversees many areas, but at the heart of what we do is risk management. Our market-leading site audits are supported by tailored software that ensures consistent reporting whilst mitigating landlord risk. What is building statutory compliance in the UK?  Statutory compliance in non-domestic properties refers to the legal requirement for commercial buildings to adhere to certain laws, regulations, and standards. This is crucial in ensuring the safety, health, and welfare of the people who use these buildings and that the building complies with environmental regulations. Non-compliance can pose significant risks to insurance policies, the value of the property and of course the occupants’ health and wellbeing. The role of statutory compliance in non-domestic properties is multifaceted and includes the following: