Real Estate, Hospitality & Construction

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Communicating to investors: efficiency of real estate assets

Did you know:

Buildings account for 43% of the UK’s carbon emissions? Property companies are therefore a major source of carbon emissions – but they are also a major part of the solution.

Building regulations now require buildings to be much more energy efficient. Indeed, by April 2018 it will be illegal for a commercial property company to rent out a building which has an energy efficiency rating lower than E.

Studies suggest that more energy-efficient buildings generate higher rent, lower occupancy levels and return a higher capital value when sold.

There is therefore a commercial, regulatory and moral imperative for property companies to improve the energy efficiency of their assets and communicate this to investors.

Integrated reporting is a significant evolution in corporate reporting and an ideal mechanism to communicate this because it focuses on explaining how an organisation creates sustainable value.

It provides a broader perspective on ‘value’ than statutory financial statements alone, connecting the different ‘capital’ sources an organisation draws on to create a sustainable commercial return.

An Integrated Report for a property company would draw a meaningful connection between its sustainability strategy and business performance, providing investors and other stakeholders with material and concise information about how it creates sustainable value.

Our global network of sustainability practitioners bring deep experience in sustainability and corporate reporting, and experience helping clients embed sustainability into their core business strategies.

Contact

EY - Doug Johnston Doug Johnston
Partner
+44 (0)20 7951 4630


 

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  • EY Integrated reporting: Elevating value 2.8Mb
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    EY - UK Real Estate case study - Crown Estate

    Redefining what is possible

    With a new CEO and corporate strategy, The Crown Estate embarked on an ambitious project to publish a world-class Integrated Report – the first of its kind in the UK. And we have been working with them throughout this journey.

    Integrated reporting represents a significant evolution in corporate reporting, and allows The Crown Estate to communicate its business strategy, performance and prospects in a concise and comprehensive way.

    This year’s report – the second in a three-year programme – also shows the link between the resources and relationships that sustain the business and how The Crown Estate contributes to the wider environment through its business activities.

    Not only have we supported The Crown Estate in identifying the issues that will drive future business performance but we have also helped it create a world-class Integrated Report and receive market recognition for being pioneers in integrated reporting. But don’t just take our word for it: Our competitor, PwC, awarded the first AND second reports its prestigious Building Public Trust awards. The Crown Estate’s 2014 Integrated Report has also recently won ICAEW’s Finance for the Future award.

    By helping The Crown Estate to think more holistically about its performance, EY has also played a valuable role in contributing to a more sustainable economy.

    Services provided: Sustainability services

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Contact us

Russell Gardner
Head of Real Estate,
Hospitality and Construction
(RHC), and RHC Tax Leader,
UK&I
+44 (0)20 7951 5947

Peter McIver
Head of RHC Assurance,
UK&I
+44 (0)20 7951 1894

Fraser Greenshields
Head of RHC Transaction
Advisory Services,
UK&I
+44 (0)20 7951 7151

Mark Wesley
Head of RHC Advisory,
UK&I
+44 (0)20 7951 3279

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