IPF Costing Energy Efficiency Improvements (April 2024) Summary Report




Summary Report

The energy efficiency of commercial buildings remains a critical topic in the decarbonisation of UK buildings. Tightening regulations are driving energy performance requirements higher, while ESG reporting and disclosure is shining a spotlight on asset performance.

This research expands on the 2017 IPF publication and enables asset managers to understand what an array of energy efficient options will cost and how they will improve the Energy Performance Certificate (EPC) rating of their assets to bring them in line with the net zero carbon pathways, as set in the Carbon Risk Real Estate Monitor (CRREM) tool for energy and carbon intensity. The building typologies, covered by the research, have been expanded and now include the residential sector, alongside retail, office and industrial.

Energy efficiency measures, including electrification of heat, must be built into the next refurbishment cycle for an asset in order to reduce the cost of meeting energy efficiency standards.  The report concludes with five key steps that investors and asset managers should adopt when considering energy efficiency upgrades.

This publication provides a summary of the research and sits alongside the more expansive main report. An Excel file accompanies the research which permits the modelling of various scenarios to illustrate the impact of the various improvement packages, based on the seven typologies.