A blueprint for green shopping destinations

WHY LARGE RETAIL ASSETS BENEFIT FROM BEING ALIGNED TO A NET-ZERO STRATEGY

AN ONGOING JOURNEY

British Land has owned Meadowhall since 1999; seeing the shopping centre through two recessions, the rise of ecommerce, and Covid-19. The sustainability agenda has gathered pace in recent years, but we were already on the path to netzero.

From the very outset, Eddie Healey—founder of Meadowhall—had the foresight to understand the challenge that the environment faced and consequently the centre launched a Green File¹ with environmental drive engrained throughout. Initiatives and innovation have been a feature at the centre throughout its history. With our joint investor Norges we have the combined expertise and ambition to drive this agenda further with a plan to reach net zero by 2030.

I have seen excellent progress since becoming centre director in 2008, with energy consumption reduced by 58% from 2009-2020 (which equates to power for 1,450 homes per year) and a further 20% energy efficiency improvement planned by 2030.

The centre has always believed in doing the right thing. From the very start, Meadowhall has taken its role in supporting its communities incredibly seriously. Not only in terms of direct social interventions, but in the environment that we all share; and the history and initiatives adopted by the centre testify to this.

So, what makes for a greener shopping centre and why does this benefit both investors and shoppers?

Game

CHANGER INITIATIVES

Several initiatives are already in place or in active discussion that will set us apart in our drive to further reduce the environmental impact of the built environment. These include, but are not limited to:

ELECTRICITY PRODUCTION

We currently have the largest shopping centre photovoltaic (PV) panels array in the UK (3,418 currently installed) and these generate 15% of the energy required for common mall usage; with further expansion being explored. Onsite generation has so far produced 2.4m kWh since commissioning, comparable to powering 827 homes or 1,325 cars for a year, with savings of 260,000 tonnes of CO2 equivalent emissions. A wind turbine is also in our net-zero carbon plan with a one MW turbine being considered.

The site benefits from an adjacent biomass plant that produces 30MW electrical and 25MW thermal energy, reduces emissions by 65% when compared to natural gas, and is powered by locally sourced waste wood that would otherwise have gone into landfill. Discussions are progressing with E.ON, who own the site, on installation of a ‘private wire’ connection to better understand how we could tap into what is a local sustainable source of energy. This would benefit the centre commercially and provide additional security of supply, which is becoming an increasingly dominant consideration. Meadowhall and E.ON are also exploring the possibility of connecting into the district heating scheme, which is a low carbon heating and hot water system supplied by the biomass plant. The key challenge is establishing an economicallyviable connection into the system and this may be facilitated by discussions with some of our larger occupiers; a point currently being progressed.

WATER USAGE

A borehole was drilled in 2008 to access naturally occurring underground water. Through an Environment Agency extract licence, this supplies half the water used at the centre for things like flushing toilets. This saves a considerable amount of energy and chemicals that would otherwise be used to make the water drinkable. The annual saving is in the region of £130k and, so far, 200,000 m3 of water has been extracted.

LIGHTING

LED lighting has tangible savings and has been a straightforward update throughout the centre, with the internal lighting being upgraded in 2017-18 to the latest technology as part of the mall refurbishment. Within retail units, the use of LED lighting is a key focus for helping to move the net-zero carbon objective forward, and the tenant fitout guide has been adjusted to encourage this.

AIR CONDITIONING

Air conditioning is one of the biggest challenges to a large shopping mall when it comes to reducing carbon impact, but we have two systems in place that have made a considerable difference. Surprisingly to many, centre temperature management is more about cooling than heating due to the impact of body heat. Our Natural Ventilation (NV) system, which replaced a mechanical extract system in the refurbishment in 2017-18, has been an incredibly important initiative; driving a 3-4 degree shift in temperatures compared to those recorded externally, with a 55% reduction in electricity compared to the previous AHU system. We have also installed Oasis air handling units, which are 25% more efficient for cooling and 44% more efficient for heating than those that were in place previously.

These latter enhancements have made for a more pleasant mall environment with customer ratings improving significantly in this area. This raises another important consideration, that undertaking environmental projects in line with standard mall refurbishments makes for a better shopping experience, while also reducing operational carbon and associated embodied carbon impact of the scheme.

GREEN LEASES

As a key part of the net-zero carbon pathway at Meadowhall, we are actively working with occupiers to positively reduce consumption and improve the energy performance certificate (EPC) rating for the benefit of all parties. Green leases are now standard at the centre and we are exploring the possibility of incentivising environmental actions from occupiers through positive adjustments to the tenant fit out guide.

BIODIVERSITY

Environmental impact, of course, does not just relate to our buildings, but our landholdings too, and there are opportunities outside the shopping centre to improve the quality of the local ecosystem. We have projects that have reduced contamination of water sources, introduced green roofs, planted nature reserves, and improved cycle and walking routes around the site.

Image source: Meadowhall Roof Solar Panels

ENVIRONMENTAL AND SOCIAL IMPACT ALIGNMENT

Our strategy shows that there is no single answer to reaching net zero and our approach will continue to evolve as more innovative solutions become available. We know we have made great progress, but we are by no means resting on our laurels.

The answer is yes, for several reasons. Contrary to the common assertion that environmental improvements are necessary but also costly, they do often make financial sense as the savings in energy usage often pay back quicker than you think. If you could reduce carbon impact and operational costs, why wouldn’t you? If you could produce a large proportion of the energy you need while on the journey towards self-sustainability, why wouldn’t you?

More than that though, there is a clear and tangible link to creating customer and community loyalty. Shoppers prefer greener places, and there is a close tie between the environmental and social initiatives that we undertake across the centre and understanding the changing priorities of our visitors. Encouraging the use of electrical vehicles (EV) is one example of how we help our customers reduce their own carbon footprints: we now have 56 EV chargers on site, with a further investment planned.

Retail has had a myriad of headwinds over the last decade and, in order to stay relevant to shoppers, we not only need to develop and run our shopping centres responsibly but demonstrate that we also share their values. That is ultimately why this is such a critical path for investors too.

As a modern shopping destination, we must appeal to customers through an exciting and relevant offer while also demonstrating and aligning our social and environmental objectives with their expectations. Fail to do this and the whole occupational and investment value begins to unravel. Succeed in doing this and you continue to remain both environmentally and economically sustainable. That is why I am proud of the work we have done at Meadowhall to date and excited to continue driving our net-zero carbon strategy forward.

¹Our Green file is a document with practical advice on how retailers can support the centre’s environmental policy and tackle subjects including waste, recycling and energy consumption

KEY FACTS

58%

REDUCTION IN ENERGY
CONSUMPTION 2009-2020

3,418

OUTSTANDING

MEADOWHALL ACHIEVED BREEAM IN‑USE IN 2018

2.4 MILLION