How to achieve BREEAM certification without major capex

It’s a tough market for existing buildings. To be commercially competitive, assets must demonstrate their ESG credentials – often by undergoing extensive refurbishment. No easy feat in a difficult lending environment.

But it is possible for buildings to achieve a high-level BREEAM certification without major capex.

Introducing BREEAM In-Use

BREEAM In-Use (BIU) is the lesser-known counterpart to BREEAM New Construction and Refurbishment and Fit Out (RFO).

It’s the BRE Group’s benchmarking certification programme for operational buildings, where clients can achieve BREEAM certification without undergoing substantial refurbishment.

Instead, BIU looks at the performance of the physical asset and the management of the building – how the asset is performing operationally. This focus on management processes is a key differentiator – allowing the building to be assessed on its operational performance, including energy and water use.

Recognised in the UK and internationally, BIU differs from other certifications (such as LEED, The WELL Building Standard and SKA) that rely more heavily on design features, best achieved through substantial design interventions.

Asset owners can use the BIU assessment framework to gain valuable insights into the performance of their buildings and achieve a level of certification. Once certified, they can prioritise where to allocate capital to improve performance and then re-certify to enhance the building’s rating over time. This flexible approach makes BIU a practical option for clients looking to achieve certification for reporting purposes e.g. GRESB without considerable investment.

How BREEAM In-Use works in practice

BREEAM In-Use ratings are scored against key categories that affect a building’s impact and performance, including: management practices; circular economy principles / responsible resource use (waste and materials); and resilience to risks such as climate change.

Categories are assessed in two Parts: Part 1 Asset performance (the building itself); and Part 2 Management performance (the building management processes). A flexible certification solution, each Part is independently scored and assessed enabling clients to choose the approach best aligned with their needs.

A BIU assessment can be conducted at speed – in just a couple of weeks. The pre-assessment also has the potential to be applied across a portfolio of assets because it does not focus in on specific design aspects (as with other certifications).

Another advantage is that BIU requires recertification every three years, ensuring ratings stay current. This avoids a dated rating and any concerns over greenwashing – claiming an asset is sustainable when it is unlikely to stand up to the current day’s standards. BIU works well for a variety of sectors, including offices, industrial storage facilities, and student accommodation.

Commercial impact

BREEAM In-Use offers significant commercial advantages.

Firstly, its suitability for portfolio screening enables owners to identify underperforming buildings, understand the causes, identify necessary improvement works and then prioritise capital allocation for these. Fully understanding a building’s performance also puts owners in a stronger position when selling assets as they have the data and rating to avoid price-chipping.

Secondly, BIU is a non-invasive form of certification, allowing buildings with some remaining vacant floors to benefit from ratings to secure tenants without causing disruption to occupiers already in situ.

For major repositioning projects, BIU can serve as a feasibility measure, helping identify the scale of necessary adjustments and prioritise capital allocation.

Achieving a BIU rating that covers an asset’s physical and EUI performance also helps asset owners comply with ESG and GRESB reporting standards and meet requirements to access sustainable financing options such as green bonds that require 10% of a real estate portfolio to be certified.

Lastly, implementing these measures increases overall market competitiveness by enhancing ESG credentials, identifying measures to retain asset value and prevent stranding, and secure occupiers and higher rental incomes.

What’s next?

We’ve seen a lot of sustainability updates recently within the industry including BREEAM New Construction Version 7 and the launch of the UK Net Zero Carbon Building Standard’s Pilot. How will this impact BIU?

In truth, Version 6 of BIU was already ahead of the previous versions of BREEAM New Construction and RFO (for example, it scrapped materials and replaced them with the resource and resilience categories); Version 7 has aligned to the standards of the current BIU version. BIU is also a more dynamic, future-proofed certification thanks to frequent updates to reflect the three-year recertification element. And the UK Net Zero Carbon Buildings Standard works over a certain level of works, so BIU continues to be a great fit for certifying existing buildings as they are, or with smaller scale improvements. BIU also extends beyond carbon, capturing a broader sustainability picture of the performance of an asset and its management.

Accelerating change

The industry has vast amounts of existing building stock that are too often losing out to newer developments. With 80% of the assets needed in 2050 already constructed, we can’t build our way to Net Zero. Instead, we must reinvigorate the buildings we have to enhance their market appeal and BREEAM In-Use is a great way to achieve this without major capex.

We’re currently working with a range of clients seeking BIU certification – including projects targeting BREEAM ‘Excellent’ ratings. For some asset owners BIU appeals as it enables them to benchmark their London properties against other European assets; certification also contributes to their ESG reporting requirements.

For other clients owning older buildings across the UK, BIU confirms their assets’ sustainability credentials in a cost-effective way increasing market competitiveness and helping fill vacant floors within properties.

If you would like to understand how BIU could benefit your asset portfolio, say hello@verteltd.com – our team would love to help.

Additional contributions provided by Petro Michaelas, Principal Sustainability Consultant.