We were lucky to have Dr Katy Janda, from Oxford University, at our Swedish Task 24 workshop. She presented her findings on green leases in Australia and the UK

1. CK
IWWORKING with
Infrastructure Creation of Knowledge and Energy strategy Development
http://www.energy.ox.ac.uk/wicked/
A WICKED approach to better building
performance: leasing in an energy context
Katy Janda, Environmental Change Institute, Oxford University
WICKED Co-Investigator and Research Director
IEA Task 24 Behavior Workshop
Swedish Energy Agency
21 March 2016

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CK
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http://www.energy.ox.ac.uk/wicked/
Common claims about energy efficiency…

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CK
ED
http://www.energy.ox.ac.uk/wicked/
DECs
Green Leases

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CK
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http://www.energy.ox.ac.uk/wicked/
WICKED’s perspective:
It isn’t easy being “green”
 A ‘wicked’ problem (Rittel & Webber 1973) is:
 Complex and interdependent
 Difficult to solve (may be difficult to recognize)
 Addressing one aspect of a wicked problem may
reveal (or create) other problems
 Energy use is a WICKED sociotechnical problem:
 The retail sector is diverse and complex.
 One size will not fit all.
 Technological solutions must fit organisational characteristics
Top-Down
Analytics
of the Data Rich
Learning
from the
Middle-Out
Bottom-Up:
Enriching the
‘Data Poor’

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CK
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http://www.energy.ox.ac.uk/wicked/
14 July 2015
The WICKED challenge:
what new information and tools can help
different segments of the retail sector
develop proactive energy strategies?
Infrastructure
Technical
Organisational
Legal
Creation
of
Knowledge
Energy
strategy
Development
Working with…

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CK
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http://www.energy.ox.ac.uk/wicked/
WICKED time frame July 2014-16, partners
14 July 2015
In advanced discussion:

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CK
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http://www.energy.ox.ac.uk/wicked/
One size solution will not fit all.
What about 6 sizes…?
14 July 2015
WICKED
Market
segments
Owner
occupiers Landlords Tenants
Data Rich
AMR + energy
managers
Type
A
Type
B
Type
C
Data Poor
Manual meters, no
energy managers
Type
D
Type
E
Type
F
Leased Space
Best
practice
leasing

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CK
ED
http://www.energy.ox.ac.uk/wicked/
‘Greener’ leasing practices: why?
14 July 2015
Traditional Leases: problematic environmental practices
‘Split incentives’ $
Landlord invests in plant, equipment, building fabric;
tenants pay energy costs
My
energy
bills
My
building
landlord
tenant

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CK
ED
http://www.energy.ox.ac.uk/wicked/
‘Greener’ leasing practices: why?
14 July 2015
Traditional Leases: problematic environmental practices
‘Split incentives’ $
Adversarial relationship: ‘utility maximising’
Rent is
too
expensive
Need to
increase
rent!
landlordtenant

10. W I
CK
ED
http://www.energy.ox.ac.uk/wicked/
‘Greener’ leasing practices: why?
14 July 2015
Traditional Leases: problematic environmental practices
‘Split incentives’
Adversarial relationship
Ignore environmental issues

11. W I
CK
ED
http://www.energy.ox.ac.uk/wicked/
‘Greener’ leasing practices: why?
14 July 2015
Traditional Leases:
problematic
environmental
practices
Greener Leases: environmental preservation and
opportunity
‘Split incentives’ ‘’Green improvement” clauses: example, tenant
allowed to upgrade and reap savings benefit; shared
costs
Adversarial
relationship
Working together: duty to co-operate in relation to
energy management and sustainability
Ignore environmental
issues
Data- sharing
Maintain energy ratings

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CK
ED
http://www.energy.ox.ac.uk/wicked/
14 July 2015
Janda, K. B., S. Bright, J. Patrick, S. Wilkinson, & T. Dixon. 2016. "The
evolution of green leases: towards inter-organizational
environmental governance." Building Research & Information. DOI:
10.1080/09613218.2016.1142811..

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CK
ED
http://www.energy.ox.ac.uk/wicked/
M&S
 800 stores in UK + 400
overseas
 Governed by “Plan A”
sustainability objectives
 Announced “green lease”
policy in 2013
 70 MOUs with existing “Better
Building Partnership” landlords
Learning
from the
Middle-Out
14 July 2015
CGreen Leases for multi-national
retailer (data rich tenant)

14. W I
CK
ED
http://www.energy.ox.ac.uk/wicked/
Findings 1: What a green lease is and does…
 Model green clauses promoted by UK and Sydney ‘Better
Buildings Partnership’ (BBP) industry groups contain:
 Varying levels of ambition, specificity and
enforceability
 Only the Sydney BBP has a model green clause
enabling the landlord to recover the cost of
environmental improvements through service charges
 Adopted green clauses in the UK and Australia:
 Tend to be broad and unenforceable
 Include very general commitments:
 to improve environmental performance
 to cooperate (e.g., share data about
environmental performance)
14 July 2015

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http://www.energy.ox.ac.uk/wicked/
Findings 2: Who tends to use green leases?
WHO?
 Across the UK and Australia, green leases are used by large powerful
organisations.
 Generally led by landlords, particularly BBP members
 Exceptions:
 The Australian government requires green leases for its
offices
 Marks & Spencer (M&S) is implementing a green lease &
MoU policy across its the UK properties
WHERE?
 More prevalent in the office sector than in the retail sector
 More prevalent in prime properties than in sub-prime properties
14 July 2015

16. W I
CK
ED
http://www.energy.ox.ac.uk/wicked/
Findings 3:
 Green leases have more
symbolic value than material
impact
 Lease clauses, including
green ones, appear to have
little relevance to day-to-
day operations
 Early adopters suggest the
negotiation process
provides a platform for
discussion and cooperation
14 July 2015Janda, K. B., S. Bright, J. Patrick, S. Wilkinson, & T. Dixon. 2016. "The evolution of
green leases: towards inter-organizational environmental governance." Building
Research & Information. DOI: 10.1080/09613218.2016.1142811.

17. W I
CK
ED
http://www.energy.ox.ac.uk/wicked/
Conclusions and Next steps
14 July 2015
Room for
voluntary
improvement
Tenant
Business as Usual Capacity to Improve
Landlord
Business as
Usual
Capacity to
Improve
X
Tenant
Leads
landlord
(e.g, M&S)
Landlord
leads (?)
tenant
Green leases
(co-evolution of
improvement)

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CK
ED
http://www.energy.ox.ac.uk/wicked/
Thoughts for further research
14 July 2015
My core
business
My
building
Building
performance
landlord
tenant
Katy.janda@ouce.ox.ac.uk
http://www.energy.ox.ac.uk/wicked/