ENVIRONMENTAL SUSTAINABILITY STRATEGY Environmental Sustainability Strategy Group Page 1 of 8 ENVIRONMENTAL SUSTAINABILITY STRATEGY 1. Group MANAGEMENT INFORMATION Date Strategy approved by LMH Board / Committee TBC Replacing / Updating Sustainability Strategy – May 2012 Next Review Date July 2016 Drafted By: Senior Asset Manager Responsible Executive Director Director of Landlord Services Circulation list Available to all LMH staff via intranet. Page 2 of 8 ENVIRONMENTAL SUSTAINABILITY STRATEGY 2. BACKGROUND AND DEVELOPMENT OF THIS STRATEGY In this context Environmental Sustainability refers to the impact of our activities, and those of our tenants, on the environment. This impact is measured in terms of the amount of carbon produced by our operating activities and the use of our properties. It is LMHs aspiration to minimise this impact whilst continuing to deliver value for money. Why do it? In addition to widely recognised environmental benefits, an effective approach to Environmental Sustainability can contribute to the delivery of our corporate objectives. Our Corporate Plan (2015/16 – 2019/20) sets out a commitment to: Deliver a comprehensive approach to the sustainability of assets and places through sound investment Improve energy efficiency of stock to meet carbon reduction targets and increase use of renewable energy by maximising available funding opportunities This strategy will contribute to these commitments in a number of ways: Reducing the amount of energy required to heat our homes and educating tenants to minimise their energy use can reduce tenant’s fuel costs and/or increase their comfort levels and health. This in turn can improve tenant’s life chances and lead to more sustainable tenancies and neighbourhoods. Reducing the amount of water used in our homes will reduce costs for tenant’s using water meters and increase the number of tenants who will benefit from water metering. Minimising the amount of energy used and waste generated by our corporate activities can reduce costs. Minimising the amount of waste generated by our investment and development programs can reduce costs. Employing the use of energy generating technologies can generate a financial return for LMH. The wider context. This is an LMH strategy; however, it sits within a wider context. LMH are influenced by EU and National targets on environmental sustainability, for example, the UK Government Target to reduce the nation’s carbon footprint by 80% from 1990 levels by 2050. LMH recognise that the housing sector needs to play its part in contributing to this carbon reduction. At a local level sustainability is a priority with the Major of Liverpool City Council who has set up a Commission on Environmental Sustainability. The Commission Group Page 3 of 8 ENVIRONMENTAL SUSTAINABILITY STRATEGY recognises the work underway to improve the energy efficiency of buildings in Liverpool and recommends that a commitment should be made to find innovative and creative solutions to retrofit the city’s buildings and housing stock. Fuel poverty is high in Liverpool, with 11% of customers estimated to be living in fuel poverty (2012)1. The key drivers behind fuel poverty are: energy efficiency of the property the cost of energy household income Although we cannot influence the cost of energy, we can improve the energy efficiency of our properties and support our tenants in reducing their energy usage, both of which will help to combat the likelihood and effects of fuel poverty. Progress so far. Since LMH was formed in 2008 a significant amount of progress has been made in improving our environmental sustainability: 1243 properties have received energy efficiency improvements, saving an estimated £300k for our tenants. 60% reduction in carbon emissions against the 1990 baseline as a result of our Decent Homes program. 1,600 customers given one to one advice on how to reduce water and energy bills from our Fuel Debt Advisors. Achievement of ISO140001 accreditation for Environmental Management Achievement of Silver status in an independent sustainability assessment (SHIFT) Our achievement has been recognised locally winning the Liverpool Echo Environmental Business of the Year in 2013 and nationally by Sustainable Homes who have classed LMH as ‘Silver’ performers in terms of Environmental Sustainability. While progress has been made, there is still more to be done and this strategy has been developed to maintain focus and set out LMHs approach to further improvements which will become progressively more difficult to achieve. But by targeting investment following the strategic themes set out below further improvements will be achieved in the next five years. Measuring success. 1 https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/319280/Fuel_Poverty_Report_F inal.pdf Group Page 4 of 8 ENVIRONMENTAL SUSTAINABILITY STRATEGY LMH have taken part in an independent sustainability assessment which compared LMH’s sustainability performance with other housing associations – though a group called SHIFT. The benchmark assessment reviews strategy and management, office practices, performance of existing buildings and new build. All the strategic themes outline below are covered by the assessment and as such it offers a coherent tool for measuring delivery of this strategy. In 2014/15 LMH ranked 31 out of 53 peers putting LMH in the ‘silver band’ category. LMH’s performance (red bar) compared to peers (blue bars) is set out in the graph below. LMH aspires to reach Gold award in the next five years. 3. STRATEGIC THEMES Condition of Properties LMH has direct control over the energy efficiency of a property and therefore can in part help reduce fuel poverty of our customers. The actions which LMH take to reduce fuel poverty for customers also have the additional benefit of reducing carbon emissions. LMH, like most landlords, measure the energy efficiency of a property using SAP ratings. SAP (standard assessment procedure) is the energy efficiency rating of a home. The higher (e.g. A or B) the rating the more energy efficient the home is and the lower the fuel bills are likely to be. The Government’s Fuel Poverty Strategy is introducing a new energy efficiency standard from 2018 preventing private landlords (not social landlords like LMH) Group Page 5 of 8 ENVIRONMENTAL SUSTAINABILITY STRATEGY from renting out energy inefficient properties, which at this point is classed as homes with a SAP rating below ‘E’. There is an aspiration that by 2030 all will be ‘C’ rated. Although LMH are not directly required to meet this standard LMH aspire to meet and hopefully exceed this target. The current SAP ratings for LMH stock are set out in the graph below. Our activities in this area include: Reviewing SAP Band D and E properties and assessing of the viability of raising their standard. Identifying funding opportunities to support investment in the energy efficiency of our properties. Investigating and implementing green energy solutions such a solar pv. Ensuring we maximise the energy efficiency of our new build properties and are in a position to comply with the requirement to build to Zero Carbon standard in 2016. Activities in this theme are led by the Asset Team. Behavioural Change Our behavioural change activities are led by the Regeneration Team. Behavioural change can have as great an impact on environmental sustainability as physical improvements to properties. For example, the five simple energy Group Page 6 of 8 ENVIRONMENTAL SUSTAINABILITY STRATEGY saving tips we promote to tenants can save them £180 on their energy bill, this is similar to the effect of installing solar panels. Therefore it is important that LMH take steps to help change behaviour of customers, particularly those who are fuel poor and those who are involved in energy efficiency investment projects. LMH operate a range of interventions in this area: 1. Operating a Fuel Debt and Energy Advice Service which offers customers one to one home visits to review energy suppliers, energy and water debts and promote energy and water efficiency tips. 2. Working with local schools and young people to encourage behaviour change and instilling energy efficient behaviour. 3. Providing energy saving tips and messages and promoting interventions in our tenant newsletter. 4. Sign posting tenants to schemes run by others, for example the Warm Home Discount Scheme. Corporate Behaviour The management team and all employees are fully committed to continually improving our environmental performance across all of our business activities, complying with relevant legislation and regulations and preventing pollution and we encourage our business partners and members of the wider community to join us in this effort. LMH recognises our key corporate impacts on the environment to be in the areas of; transport purchased materials energy use water use waste generation LMH are ISO140001 accredited for Environmental Management which has driven significant improvements to the environmental sustainability of the business in the areas above to date. This is managed by the internal ‘green group’ called Green Initiatives For Tomorrow (GIFT) that leads on improving corporate behaviour. 4. GOVERNANCE AND DELIVERY The results of our SHIFT assessment have been analysed and a SMART action plan developed by GIFT, the Regeneration Team and the Asset Management Team. This plan will be reviewed annually or more frequently as required. Group Page 7 of 8 ENVIRONMENTAL SUSTAINABILITY STRATEGY Responsibility for delivering the strategy lies with all LMH staff; however the KPIs set out in the action plan will be monitored and reported to the Assets Board on an annual basis to ensure visibility and accountability at an executive level. The detailed SMART targets set out in the action plan and progress towards them will be monitored by the Assets Operational Team and GIFT through Covalent. 5. REVIEW This strategy is a five year strategy. The strategy and action plan will be reviewed annually and if necessary revised to reflect the latest developments and changing nature of LMH’s operations. Group Page 8 of 8
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