In today’s property market, ESG factors enhance asset value, ensure compliance, and meet investor and tenant expectations. At Metrus, we are committed to sustainability, holding ISO 14001 accreditation and strengthening our ESG strategy through key certifications across our portfolio.

Highlights include BREEAM Very Good at 60 Sloane Avenue and Epworth House, BREEAM Excellent at 10 White Lion Street, and top cycling scores at 10 Grosvenor Street (Gold) and 1-4 Ely Place (Platinum). 21-22 Great Sutton Street also earned a Green Plaque Retrofit, reinforcing our commitment to responsible property management.

ESG isn’t just a choice—it’s the future of property management. Here’s why ESG should be at the core of property management.

1. Compliance with Regulations

Property managers must align with ESG standards to remain compliant with increasing government regulations and sustainability goals. Key regulations include:

– Minimum Energy Efficiency Standards (MEES) – Stricter EPC requirements for rental properties.

– The UK Net Zero Target – Encouraging energy-efficient building practices.

– TCFD Reporting – Mandatory climate-related financial disclosures for larger firms.

ESG in Action:

We are pleased to share our ongoing efforts to enhance the energy efficiency of One Strand, a prominent building overlooking Trafalgar Square. Working with a team of specialists, we’ve meticulously developed a roadmap to achieve net zero carbon. By utilising dynamic thermal modelling of the current EPC rating, we’ve identified several CAPEX projects that will boost the building’s energy efficiency while reducing costs for our occupiers.

2. Enhancing Asset Value and Attracting Investment

An effective ESG strategy can drive long-term property value. Benefits include:

– Higher rental yields and occupancy rates.

– Increased investor confidence due to sustainable and ethical management.

– Reduced operational costs through energy efficiency and waste reduction.

ESG in Action:

With a clear vision set until 2030, One Strand is launching two major ESG projects in 2025. The first initiative involves installing solar panels on the building’s roof, expected to generate a minimum of 49.6 kWp. This investment will significantly reduce energy costs for occupiers and is projected to have a payback period of just four years. By improving energy efficiency, the project enhances the building’s long-term asset value and makes it more attractive to investors.

3. Meeting Tenant and Occupier Expectations

Modern tenants seek environmentally responsible and socially conscious properties. ESG-driven management:

– Improves tenant retention and satisfaction.

– Promotes healthier living and working environments.

– Aligns with corporate sustainability goals of commercial occupiers.

– Reduced operational costs through energy efficiency and waste reduction.

ESG in Action:

One Strand’s second major ESG project focuses on upgrading the energy meters to gain a comprehensive understanding of the performance of the central plant and consumption costs. This upgrade will directly benefit occupiers by helping them capture human capital usage, improving efficiency, comfort, and air quality for their staff. The new meters will integrate with AI technology, providing a fully auditable trail of metering data—a crucial tool for occupiers committed to ESG targets.

4. Reducing Operational Risks

Ignoring ESG considerations can lead to:

– Legal and financial penalties.

– Reputational damage.

– Stranded assets that become unviable due to non-compliance.

ESG in Action:

By proactively investing in solar energy and advanced metering, One Strand is mitigating future risks related to energy price fluctuations and evolving regulatory requirements. These initiatives ensure compliance, reduce the risk of stranded assets, and position the building as a forward-thinking, sustainable property.

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5. Future-Proofing Your Portfolio

Sustainability is the future of property management. Implementing ESG measures now ensures:

– Long-term resilience against climate risks.

– Adaptability to evolving market and regulatory landscapes.

– A competitive edge in attracting tenants and investors.

ESG in Action:

The One Strand roadmap to net zero carbon by 2030 is a prime example of how ESG strategies future-proof assets. By integrating renewable energy solutions, smart technology, and data-driven decision-making, the building is on track to remain competitive, compliant, and highly desirable in the evolving property market.

Final Thoughts

A robust ESG strategy is no longer just a corporate responsibility, it’s a business imperative. By integrating ESG principles, UK property managers can enhance asset performance, remain compliant, and contribute to a sustainable future.

Is your property ESG-ready? Now is the time to take action.