GreenGen partnered with KKR to achieve BREEAM certification for a diverse portfolio of assets across the US. The initiative was recognized with the GRESB Portfolio Integration & Commitment Award at the 2024 BREEAM Awards.
*This case study was originally posted on the BRE website, highlighting 2024 BREEAM Award winners. You can view the full summary and all award winners here.
Summary
BREEAM Award: 2024 GRESB Portfolio Integration & Commitment Award
BREEAM scheme: BREEAM USA In-Use Residential V6 & BREEAM USA In-Use Commercial V6
Rating Breakdown: Acceptable 8% | Pass 67% | Good 26%
Asset type: Industrial, Residential
Developer/Owner: Kohlberg Kravis & Co (KKR)
Assessor company: GreenGen
BREEAM Certification Overview
The KKR project involves the BREEAM certification of a diverse portfolio comprising 39 assets located across various states in the U.S., including Arizona, Florida, Georgia, Massachusetts, North Carolina, New York, Texas, Illinois, California, and Washington. These assets, which consist of both industrial and residential properties, vary significantly in size from 200,000 to 1.5 million square feet and were primarily constructed within the last decade.
This initiative emerged from KKR’s strategic focus on sustainability and resilience, driven by the need to enhance asset efficiency, improve tenant experiences, and mitigate risks. The decision to pursue BREEAM certification was rooted in the objective to align with globally recognised sustainability standards, thereby identifying key areas for improvement and reinforcing KKR’s commitment to environmental stewardship and corporate responsibility.
The BREEAM certification process, facilitated by GreenGen’s certified assessors, encompassed a thorough assessment of each asset, resulting in portfolio ratings of 8% Acceptable, 67% Pass, and 26% Good.
This process was complemented by the development of detailed action plans aimed at elevating each asset to the next BREEAM rating tier. Each action plan included a roadmap featuring no-cost measures as well as implementation projects with projected costs, timelines, and descriptions for the KKR team to evaluate. These action plans recommend specific enhancements, prioritized by the average cost per weighted credit, to ensure cost-effective improvements, or improvements with the greatest ROI, are implemented first. Commonly recommended solutions from these plans typically fall into the following categories:
- Energy: local energy performance assessments, metering and monitoring, controls, solar PV
- Water: Leak detection and prevention measures, efficient equipment like toilets and faucets, low flow showers
- Health and Wellness: CO2 sensors, user comfort control, internal lighting level, and radon risk management
- Resilience: natural hazard risk assessments, flood risk assessments
Key challenges faced during this project included the diversity of asset types and locations, varying building systems, and tight timelines. BREEAM’s structured framework and consistent certification process were instrumental in overcoming these challenges, providing a roadmap for value creation and risk mitigation. The project not only enhanced the sustainability profile of KKR’s portfolio but also demonstrated the tangible benefits of integrating environmental considerations into asset management, thereby strengthening KKR’s competitive edge and aligning with GRESB goals and broader sustainability commitments.
Benefits
The BREEAM certification provided multiple benefits, clearly demonstrating the value of sustainable practices:
- Risk mitigation: Identification and mitigation of potential risks, enhancing asset resilience.
- Efficiency improvements: Enhanced asset management efficiency, leading to cost reductions and operational savings.
- Market position: Improved market position by aligning with recognised global sustainability standards.
- Tenant satisfaction: Healthier and more productive working environments for tenants, supporting their CSR goals.
- Environmental impact: Significant reductions in energy and water usage through targeted upgrades.
- Financial incentives: Easier access to green financing and incentives due to improved sustainability credentials.
- Future planning: Establishment of a baseline performance to inform ongoing improvements and maintenance strategies.
- Portfolio performance: Overall increase in average asset score by approximately 13% after implementation, with portfolio ratings breaking down as follows:
- Pass: 8%
- Good: 76%
- Very Good: 16%
For more information on how the GreenGen team can help you achieve BREEAM certification, reach out to us:
