< Previous20 Business Link www.blmforum.net COMMERCIAL PROPERTY I t is international scientific consensus that global, human-caused emissions of CO2 (carbon dioxide) need to fall by approximately 45 percent by 2030, aiming to reach net zero around 2050, if not, the planet will keep heating up. To address this issue, a Net Zero Strategy has been published by the UK government setting out plans to reduce climate-destroying emissions and decarbonise all sectors of the UK economy. Of course, with the invasion of Ukraine and other global issues that have changed the UK economic landscape instigating high energy prices (and other inflationary pressures), the government has commissioned a review into its understanding of the impact of the different ways to deliver its net zero pathway to the UK public and economy – but still remains committed to reaching net zero greenhouse gas emissions by 2050 with Dame Meg Hillier MP, Chair of the Public Accounts Committee, stating: “The government’s net zero strategy requires government, local government, regulators, businesses, and consumers working all together to deliver its targets.” The net-zero strategy will greatly affect the commercial property industry as landlords must not rent out a building that doesn’t comply with the MEES (Minimum Energy Efficiency Standard) regulations, with an E rating being the minimum for a valid EPC (Energy Performance Certificate) currently and then, from 2025, all newly rented properties will be required to have an EPC rating of C or above. Many commercial landlords may feel content knowing their buildings are already rated E or better but need to be vigilant as the Government has set a target of lifting the MEES regulations, relating to the letting of non-domestic buildings, to a B by 2030, and this will affect approximately 85% of the UK’s non-domestic rented stock - helping the UK achieve its target of net-zero carbon emissions by 2050. EPCs indicate; how energy efficient a building is and gives a rating from G (inefficient) to A (very efficient), states how costly powering the property would be and how high its carbon emissions may reach (calculation methods differ between England/Wales and Scotland as a building located in Scotland tends to have a lower rating than would apply to the same building Net zero planning The rules are in and the property industry must comply – we look into what people should expect as we move into 2023. 22 Á 20-23.qxp_Layout 1 06/01/2023 09:11 Page 1www.blmforum.net Business Link 21 COMMERCIAL PROPERTY © stock.adobe.com/narawit 20-23.qxp_Layout 1 06/01/2023 09:11 Page 222 Business Link www.blmforum.net COMMERCIAL PROPERTY located in England/Wales). Tips to help improve an EPC rating anywhere and also improve property value can include: * converting a building to LED lighting systems which can reduce lighting costs by up to 50% and adding lighting controls, such as occupancy sensing and daylight harvesting lights, avoids wasting light energy in unused spaces and in the middle of the day as inefficient lighting is one of the biggest contributions to CO2 emissions and a low EPC rating * implementing well insulated lofts and cavity walls can improve ratings and correct insulation and also helps reduce noise pollution * upgrading windows to new, high quality double glazing which helps to retain heat * investing in better heating, venting and air conditioning systems to help energy efficiency * switching to renewable energy such as Solar/Photovoltaic panels, biomass, wind turbines and geothermal heat - many commercial properties use energy consistently, especially during the day, which coincides with the peak supply of renewable energy. The new EPC ratings are being phased in with interim milestones as the Government estimates about 10% of non-domestic rented buildings are below the ‘E’ rating, and so, by 1 April 2023, a landlord will only lawfully be able to continue to rent out a non-domestic building if it has an energy rating of E or above. Commercial property landlords also need to remember that even though they may have obtained a valid certificate when the lease was granted on a building - it could have expired as EPCs only have a 10-year lifespan - a current EPC is necessary the whole time that a property is let and this includes during leasing renewals. A further tightening of standards will take place on 1 April 2027 requiring all commercial property EPCs to have a minimum rating of C. Landlords will have to either demonstrate they comply by 1 April 2025 or use the following two years to ensure they do comply - if a property already has a C rating in April 2025, the landlord will be in compliance. The next interim milestone window is 2028 to 2030 whereby landlords will need to present a valid EPC by 1 April 2028 and from 1 April 2030, the minimum rating increases to B. If a commercial property already has a B rating in April 2028, the landlord would be in compliance again but if not, a landlord needs to present a new EPC with a B rating by 1 April 2030 or register an exemption if necessary. Non-compliance with MEES regulations can result in enforcement action and a fine but an EPC doesn’t need to be presented if a building is listed, temporary (only erected for a maximum 2 year), a place of worship/other religious activity, an industrial site, workshop, non-residential agricultural building that doesn’t use much energy, a detached building with floor space less than 50 square meters or a building due to be demolished. Finally, new ‘shell and core’ lettings, renting of a commercial unit in a stripped- out condition so tenants fit it out with heating and lighting at the point of letting, the EPC for these units are likely to be ‘F’ or ‘G’ rating, making it unlawful for letting. So, compliance options would include giving early access to the tenant to fit out the unit or the landlord installing items that the tenant replaces if necessary - the landlord is always required to hold a valid EPC at the point of letting and remember that the tenant’s fit-out may have an impact on the EPC rating. All EPCs are only produced by an accredited energy assessor who will visit the property to carry out an assessment and will then lodge the EPC on a national register. An EPC must be displayed by fixing it to a commercial building if the total useful floor area is over 500 square metres, the building is frequently visited by the public or an EPC has already been produced for the building’s sale, rental or construction. If in doubt about any EPC ratings or requirements seek professional advice or go to - www.gov.uk/energy-performance- certificate-commercial-property - which has everything up to date on this new, climate changing landscape. 20-23.qxp_Layout 1 06/01/2023 09:11 Page 3www.blmforum.net Business Link 23 COMMERCIAL PROPERTY © stock.adobe.com/ZIHE 20-23.qxp_Layout 1 06/01/2023 09:11 Page 424 Business Link www.blmforum.net LOGISTICS AND TRANSPORT Research shows there is over £2 billion in goods stuck in Yorkshire warehouses due to supply chain issues, and yet the sector still struggles to bring in new talent. A study by Barclays Corporate Banking has claimed that there are over £2 billion worth of goods languishing in Yorkshire warehouses due to supply chain issues. The study went on to claim that over 66% of businesses in the region are affected, at a cost of up to £900,000 per company in some cases, with the most affected industry being food and drink. When quizzed, 86% of manufacturers in the region said their customers were being affected and facing delays. Furthermore, 60% claimed they were planning to increase prices in the new year to deal with rising costs, but 90% went on to say they expect their business to grow. The hiring problem 24-27.qxp_Layout 1 06/01/2023 09:13 Page 1www.blmforum.net Business Link 25 LOGISTICS AND TRANSPORT This may seem a polarising message to many but is pretty much a view of the logistics industry in Yorkshire and Lincolnshire right now. It is a sector with huge potential for growth, constantly increasing demand, but too few people to address it. Normally when this happens businesses grow or crop up to take their share of the profits, but that isn’t possible when new companies cannot hire enough staff to man their fleets. The skills shortage we have talked about many times continues to rear its head, and this time there are quantitative figures behind it. The simple fact is that the sector is a lucrative and successful one that – despite soaring fuel costs – has incredible potential to grow, but all the potential in the world is meaningless without employees. Brexit has closed off the ability to bring in foreign workers, and the logistics industry is one with the least uptake among younger people, who see it as uninteresting labour with 26 Á 24-27.qxp_Layout 1 06/01/2023 09:13 Page 226 Business Link www.blmforum.net LOGISTICS AND TRANSPORT minimal pay. The latter is not true in many cases, but the truth matters little if the perception is otherwise, and this only goes to show that the industry is not doing enough to reach out and change the minds of young people. Or, perhaps, that industry leaders are putting it off because they assume “someone else” will do it for them. The government will do it, or a trade body will do it, or their competitors will do it, or the teachers will do it. All of whom are busy with a thousand other things just as industry leaders are. The reality is that if you want something done you need to do it yourself, and you need to do it properly. While logistics firms are doing their best to lobby to younger audiences to try and get more people interested in the industry, it’s hard to know how effective this has been. Shocking new research published nationally suggested that 25% of young people feel they are not prepared to enter the workforce, up to and including having no idea what they want to be. While it’s naïve to say that is 25% of young people the logistics industry can be targeting, they can at least aim for a portion of that number. The fact is that school visits and talks to students won’t do anything to change minds. It didn’t when we were younger and won’t now. Children will see it as a free day from lessons and that alone. To really make a difference it may be more important to talk to people of the age of 14-16, and stress real-world things like the pay, the work, and the opportunities – and then to get them interested by offering to involve them in operations and let them see first-hand what the job © stock.adobe.com/KOTO © stock.adobe.com/Gorodenkoff 24-27.qxp_Layout 1 06/01/2023 09:13 Page 3www.blmforum.net Business Link 27 LOGISTICS AND TRANSPORT will entail. All too often is “reaching out to the youth” seen as something one does maybe once per generation, standing in front of a class of distracted children and talking about things they can’t really grasp and haven’t had to think about yet. On the other hand, there is another easily accessible demographic in female workers. Women are woefully underrepresented in the logistics sector and aiming to make the workforce more inclusive for them is not just to meet goals of inclusivity, but to open up a pool of new recruits. There is obviously a lot of work to be done, but the recruits are there if people can only improve on reaching them. Perhaps what the sector means when it says, “there is no one to hire” is more “it’s harder to find the people I could hire.” We help businesses develop their teams and their business by providing funded business growth consultancy. Our training includes, driver training, logistics training for office-based teams, managers and supervisors, we also provide a full suite of Health and Safety qualifications. We can help you. Please get in touch by emailing opportunities@transafetraining.co.uk Are you looking to grow your logistics business? We provide expertise in business growth and training. 24-27.qxp_Layout 1 06/01/2023 09:13 Page 428 Business Link www.blmforum.net IT AND COMMUNICATIONS © stock.adobe.com/standret 28-31.qxp_Layout 1 06/01/2023 09:14 Page 1www.blmforum.net Business Link 29 IT AND COMMUNICATIONS Ahead of the The main reason why companies don’t upgrade their IT and telecoms systems is under the pretence of saving money. Not only are they allowing themselves to be beset by constant connectivity issues but, ironically, by not upgrading they risk letting costs rise as much as fifty per cent. Prices skyrocket when a company is breached by hackers, ransomware, or any other kind of malware which becomes almost an inevitability when using legacy IT. When computers reach a certain age, they become incompatible with system and security updates and fixes, making them functionally obsolete and vulnerable to data breaches. Businesses with old, out of date software are more than twice as likely to suffer a data breach. There’s no two ways around it, good cybersecurity needs to be paid for, yet it will be cheaper than the financial fallout of a ransomware attack. However, there are ways to minimise the costs of cybersecurity. It’s critical not to wait until a cyberattack. Book a consultation with a trusted, reputable provider to understand your business’s needs and what levels of protection it requires. Any company that uses a smartphone or computer is vulnerable to attacks, but different levels of protection will be required for difference companies. A builder’s merchant that uses a few computers for sales and inventory won’t need the same levels of protection as, say, a digital marketing firm. There are understandable reasons why a company would choose not to invest in modern IT and telecoms technology. Another reason is a fear of not being able to use new systems. As business becomes increasingly digital, staying relevant, being able to connect with clients and customers more easily, and gaining a competitive edge in an increasingly crowded marketplace means moving with the times and embracing digital transformation. A McKinsey Global Survey of executives found that their companies have accelerated the digitisation of their customer and supply-chain interactions and of their internal operations by three to four years in the wake of the pandemic. As for the fear of not being able to understand and operate modern technologies – everybody can be taught new skills. Often, when these systems are installed, their use will be demonstrated, while training sessions can be booked for the whole team to take part in. Just because your IT and telecoms currently works doesn’t mean it’s working at peak efficiency, or that it’s safe. 30 Á 28-31.qxp_Layout 1 06/01/2023 09:15 Page 2Next >