How to Retrofit

RETROFIT HOW TO A Practical Sustainability Guide - Asia Pacific

We know that life is what we make it, and as one of the largest real estate companies in the world, we have the rare opportunity to help make an impact. We believe that living the change we want and need to see in the world is imperative. That’s why are taking action now to positively impact the planet, by taking practical steps to implement these changes today. This is why we’ve created the How to Guides Series – a set of clear, actionable how-to items you, the owner or occupier, can do right now to make your asset or even organization more sustainable and better optimised to handle what tomorrow brings. WE MAKE SUSTAINABILITY PRACTICAL

By living change now , we can ensure tomorrow is better for everyone.

LIFE IS WHAT MAKE IT WE

LIVING CHANGE NOW

HOW TO RETROFIT: WHY SHOULD I MAKE IT MY PROBLEM?

According to the World Economic Forum, 80% of the buildings today will exist in 2050. The built environment is responsible for about 42% of annual global CO2 emissions. Retrofitting is the least capital-intensive way to make our existing buildings smarter and more efficient in order to reduce carbon emissions. We define retrofitting as capital and operational changes within the current parameters of a building’s design. In the following pages you’ll find a three-step program that will guide you through how to retrofit your property and create efficient portfolios. Whether you’re in for a big change, or wanting to start small for now – any change can have an impact, and it’s cheaper than you may think. Let’s get started.

BENCHMARK YOUR PROPERTY STEP 1 UNDERSTAND YOUR BUILDING’S IMPACT ON THE ENVIRONMENT

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So you’re ready to reduce your impact? Great! The first step is understanding what you’re emitting – and where your carbon and energy weak spots are. In this case, that’s your Energy Use Intensity or EUI. Your building’s EUI can then be benchmarked against the energy performance of similar buildings to identify how well your building is performing in comparison. Importantly it can then also be used to compare against Net Zero EUI targets to understand how much energy you need to reduce to become Net Zero.

EUI is a measure of total energy used within a building in a year and is expressed in kilowatt-hour (kWh) per gross floor area (sqm). While there are many global certification programs that facilitate benchmarking and minimum performance standards of buildings (Energy Star, BREEAM, Green Mark, LEED, Greenstar, NABERS, etc.), EUI is unique in that it provides a somewhat universal indicator of energy efficiency. After understanding your EUI a good next step is understanding how energy is being consumed - this can be understood by undertaking an energy audit assessment. HOW IS EUI MEASURED?

The below pie chart indicates the percentage of energy consumption in a typical office building (this doesn’t include tenant consumption): HOW TO REDUCE EUI?

The good news is that if your building’s EUI is higher than average, you can retrofit your highest energy consuming systems. Below is a list of common energy guzzlers that are worth considering retrofitting for a cleaner, greener upgrade:

5% Others

10% Lift & escalator

Heating & cooling

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10% Mechanical ventilation

Lighting systems

LANDLORD ENERGY CONSUMPTION

Mechanical ventilation for car parks, common areas of M&E systems

Lift & escalators

15% Lighting

Building management system and controls

60% Heating & cooling

STEP 2 ASSESS OPPORTUNITIES FIND ENERGY CULPRITS AND FIX THEM

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The simplest way to upgrade your energy plan is to spot how and where energy is used so you can create an energy-saving plan that’s good for the environment, but also keeps your occupants happy and comfortable. After all, what good is a green building if no one wants to use it? This starts with auditing where your energy and emissions are coming from then taking impactful and realistic action to reduce them. While there are plenty of energy efficient steps to take, in the following pages you’ll find a list of common retrofits that can be implemented easily.

You don’t need to completely overhaul your building to make a big impact. Retro-commissioning and BMS optimization involve finely tuning an existing building so that it can operate at peak efficiency. This process takes into consideration the original design and specs of the building and addresses changes in space usage, occupancy and existing equipment retrofit since construction. RETRO-COMMISSIONING AND BUILDING MANAGEMENT SYSTEM (BMS) OPTIMIZATION

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HVAC SYSTEMS

Did you know that about 60% of the building’s base building energy is consumed by the HVAC system? A small performance improvement of your HVAC system can have a big impact on your energy usage.

That’s why it’s important to monitor the performance of your HVAC system carefully – including chillers, heaters and air distribution systems.

It’s also worth getting a detailed energy audit so that your equipment meets the property’s energy demand and any other local legislative requirements.

Retrofitting your lighting can dramatically improve your energy output – and is often a quick win for a brighter tomorrow. LIGHTING SYSTEMS Replacing existing lighting with low-energy lighting alternatives, such as LED lights, can significantly reduce the amount of energy required to light up a space. That’s bright! GET THE RIGHT LIGHTS Design to the latest code of practice, or better, with lower power density. Lowering your power density means reducing wattage per square metre, while still maintaining the same light output (or lux level). LOWER YOUR POWER DENSITY Overlighting is a common source of excessive energy consumption. Not every part of your building needs equal lighting. With that in mind, design according to purpose and look at how each space is used to determine how much lighting is actually required and retrofit accordingly. LIGHT ONLY WHERE YOU NEED IT Advanced sensory systems are an excellent way to employ smart devices such as occupancy and daylight controls. They do all the thinking for you by responding to immediate lighting needs. That’s a smarter way to save. Plus, sensors also collect data on the lighting energy profile that will provide insights into occupant usage, and lumen output requirements to inform building programs, space utilisation and design. USE SENSORY SYSTEMS TO EMPLOY SMART DEVICES

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The business case for powering your building using renewable energy is becoming stronger and stronger. On-site and off-site options may be available depending on your building design. Some options for renewable energy include solar, wind, geothermal and biomass. Installing solar modules in particular can reduce demand-based utility costs and even give you additional financial incentives. While at first it may not seem possible to power your property with renewable energy, it’s worth looking into seeing if this short-term investment could yield a long-term gain. RENEWABLE ENERGY You’ll find there are a lot of unexpected parts of your property that are guilty of consuming a lot of energy. Luckily, there are some simple ways to fix them. Take mechanical ventilation systems in basement carparks, fresh air intake and escalators, for example. By retrofitting variable speed drives controlled by sensors that respond to real-time requirements you can make these common installations perform more efficiently. With these additions your system can respond to changes in the environment in real time, rather than having to be manually controlled. Easy. And efficient. Please remember that energy optimisation and retrofits for lifts and escalators may need to be implemented by the original manufacturer or OEM. They may also have some additional advice on efficient technologies relevant to device. OTHER SYSTEMS

It’s not just about changing the buildings to save energy. It’s about changing the mindsets of the people in them. From raising awareness about the benefits of renewable and efficient energy tactics to making sure the technologies installed are used properly – it’s up to us to change our behaviour around the energy transition. Some examples of simple behaviour change include: Ensuring property users turn off lighting, heating and BEHAVIOR CHANGE

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cooling after hours or at times of low occupancy. Centralising workplaces so that energy can be

concentrated where the people are. Buying and using efficient appliances.

Being able to identify energy overuse or system failures and reporting them to the people who are overseeing them.

STEP 3 RETROFIT WHERE POSSIBLE RETROFIT ACCORDING TO YOUR NEEDS

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Retrofitting is a great way to make a positive impact on the environment and could reduce your building’s carbon emissions by 70%. But retrofitting isn’t all or nothing. There are various levels of investment that can yield different energy savings. And once you have a plan on how to retrofit your property, it’s time to execute.

LEVEL 3

LEVEL 3 • Implement integrated whole building approach (i.e. this could involve building envelope, plus a lighting upgrade, plus a mechanical retrofit). DEEP RETROFIT • Get over 45% energy savings.

LEVEL 2

STANDARD RETROFIT

LEVEL 1

EXISTING BUILDING COMMISSIONING

• Get up to 25-45% energy savings.

• Replace existing equipment to improve energy efficiency.

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• Get up to 25% energy savings.

• Achieve with minimal risk and capital investment.

• Improve building operations, controls and maintenance procedures.

Making change isn’t always easy. There can be barriers to implementation such as economic restrictions, regulatory challenges, lack of knowledge about what to do or how to do it, and social limitations. Once you understand what you want to achieve and you’ve removed the barriers, then it’s time to consider the roles of the consultants to support your goals.

Our Consultants can help you with:

Carrying out an energy/net zero audit to identify energy saving measures. This helps you understand your retrofit options and how to meet current and future legislation and your sustainability targets. Ongoing reporting to confirm the project will meet the goals and savings modelled in the business case. Appropriate commissioning to ensure the new system/s are operating as modelled and designed. Defining your goals, removing your barriers, finalizing your design, appointing your vendors and project managing. Maximizing financial returns from the project, including uplifting rent, retaining tenants, driving asset value improvements.

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If you are interested in retrofitting your property, our sustainability and project development services experts can help you with our end-to-end solutions.

SUSTAINABILITY SERVICES

We take practical steps across your sustainability journey to protect and enhance the value of your real estate:

CREATING SUSTAINABILITY STRATEGY • Baselining & benchmarking • Materiality assessments

DRIVING OPERATIONAL EFFICIENCY • Utility management • Benchmarking surveys • Energy, water, waste audits • Efficiency plans

• Vision & objectives • Goal & target setting • Strategies & roadmaps

• Energy modelling • Procurement plans

ENABLING COMPLIANCE • ESG compliance programs • Carbon accounting • Building benchmarking & mandatory audits • ESG compliance reporting

DEMONSTRATING IMPACT • ESG data collection, management & governance • Building certifications (LEED, BREEAM, WELL etc.) • Benchmarking & score optimization (GRESB) • ESG reporting & disclosures (GRI, SASB, CDP, TCFD etc.) DELIVERING NET ZERO • Net zero audits • Net zero strategy & roadmaps • Policies & processes

1

CREATING SUSTAINABILITY STRATEGY

MANAGING CLIMATE RISK • Climate risk scenario analysis

4

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• Climate risk scores & assessments • Risk mitigation strategies and plans • TCFD Reporting & EU Taxonomy advisory

• Procurement programs • Project management

Contact:

MATT CLIFFORD Head of Sustainability & ESG, Asia Pacific matt.clifford@cushwake.com

NINA SPAETH Director - Sustainability & ESG, Asia Pacific nina.spaeth@cushwake.com

MIKA KANIA Director - Sustainability & ESG, Asia Pacific mika.kania@cushwake.com

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PROJECT & DEVELOPMENT SERVICES

CUSTODIANS OF CAPITAL EXPENDITURE HOW WE HELP OCCUPIERS AND INVESTORS;

Cushman & Wakefield is a trusted partner for occupiers and investors to manage their capital expenditure and project delivery around the world. By seeing things differently, we anticipate market changes and are first to capitalise, ensuring clients and the business can be what’s next in their respective sectors. Leveraging our global networks and local experience, we prudently optimise capital expenditure and deliver integrated design, project and construction management services for our clients. We listen closely to our clients, fully understanding their project goals and business needs while driving business results well beyond project delivery “on time and on budget”. Our interdisciplinary teams use data-driven, predictive analytics to provide strategic and forward looking advice to guide our clients through the entire real estate decision-making process, unearthing innovative facility solutions critical for productivity and maximising return on investment.

OCCUPIERS

INVESTORS

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Contact:

TOM GIBSON Head of Project & Development Services, Asia Pacific tom.gibson@cushwake.com

JAMES BENJAMIN NORMANDALE Director, Vertical Practice Group Specialist Projects Project Development Services, Asia Pacific james.normandale@cushwake.com

CHRISTINE HO Associate Director, Alternative Assets, Project & Development Services, Asia Pacific christine.ho@cushwake.com

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RETROFIT HOW TO A Practical Sustainability Guide - Asia Pacific

ABOUT CUSHMAN & WAKEFIELD Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in approximately 400 offices and 60 countries. In 2022, the firm reported revenue of $10.1 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), Environmental, Social and Governance (ESG) and more. For additional information, visit www.cushmanwakefield.com.

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