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Improving the sustainability of Hermes Real Estate assets

Hermes Real Estate is one of the UK’s largest real estate fund managers with £6 billion worth of assets under management. The organization has 21 property professionals with 20 years average industry experience and covers the UK, Europe, the Americas, Asia and Australia.

Hermes Real Estate wanted to develop a Cost Benefit Analysis (CBA) tool to guide investments that would improve the financial, social and environmental profile of its assets. The Head of Responsible Property Investment required an independent expert to act as facilitator for both internal and external meetings, to help prioritize, communicate and apply industry best practice.

Anthesis worked as an independent client advisor to the Head of Responsible Property Investment (RPI) to deliver the Cost Benefit Analysis tool for the business. The Hermes RPI program has subsequently delivered some impressive savings for the company’s directly managed assets, some of which were introduced directly as a result of the tool:

• Over £2 million savings in energy and direct landfill tax avoidance

• Lowest insurance premium in the market thanks to the company’s track record on risk and safety

• Over 40% reduction in carbon intensity in the year on year standing portfolio for offices and shopping centers

• 17% carbon emissions reduction across the property portfolio for 24 properties held from 2006 to 2010

• 15% water reduction across the property portfolio for 16 properties held from 2006 to 2010

• Almost zero percent of waste sent directly to landfill

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