HSBC UK launches new tool to help property portfolio clients
HSBC UK has launched a free interactive digital tool to help property portfolio firms establish the current status of buildings and identify investments to improve energy efficiency.
The Buildings Sustainability Assessment Tool has been designed in partnership with sustainability consultancy, CFP Green Buildings. It provides a rich set of data and offers a clear view of the investment needed to make environmental improvements to a property portfolio.
The tool has been launched ahead of new regulatory requirements from April 2025 which will require all rental properties to demonstrate an energy performance certificate (EPC) rating of at least C – efficiency is rated from A (most efficient) to G – for new tenancies. By April 2028 this will apply to all tenancies.
Andy McDonald, head of real estate finance at HSBC UK, said: “Energy use in buildings is a significant contributor to carbon emissions and addressing that will play an important role in the transition towards net zero. While the majority of new buildings are built to an accredited sustainability standard, many existing buildings will need to make big improvements in order to become compliant with the planned regulations and contribute to broader climate change mitigation efforts.”
How does the Buildings Sustainability Assessment Tool work?
The tool shows owners a summary of their portfolio (including number of properties, annual emissions and annual energy costs), current or estimated EPC ratings.
The tool is based on proprietary algorithms, which automatically calculate the costs and potential savings to provide a tailored recommendation to help achieve energy and carbon emissions reduction based on over 50 cost-saving measures (covering technology, operations, maintenance and management).
Portfolio owners can then filter the measures against the impact on the EPC rating, investment cost, estimated payback or annualised savings. This will help with prioritising investments, turning sustainability goals into achievable actions with insights at their fingertips.
Commenting, Bram Adema, founder and managing director at CFP Green Buildings, said: “The tool makes large-scale building retrofits a financially attractive reality. Unlike traditional methods, this innovative solution empowers portfolio owners and managers to make data-driven decisions about retrofitting at scale.
“It provides a comprehensive business case at both portfolio and individual property levels, allowing them to analyse the financial benefits of targeted investments compared to conventional replacements. Ultimately, this helps them achieve significant carbon emissions reduction while maximising the return on their investment.”
Andrew McDonald added: “Transition across the built environment requires careful planning. The environmental standard of buildings is already being priced into investment markets and forms a key element of many occupational choices. As such, this is very much a here and now issue for property owners who will need to manage both the potential risks as well as new business opportunities that it will create. Inevitably innovation, new business models and regulations will all play a part.
“We’re offering the HSBC UK Buildings Sustainability Assessment Tool to clients at no charge in order to help portfolio owners (or their tenants) identify energy efficient investments in their buildings and build a sustainability strategy for the long term.”
