Retrofitting for Net Zero: Get it Right First Time

This three-part series of articles explores critical aspects of ‘getting it right first time’ in construction. ‘Get it right first time’ is now regularly heard by investors and lenders who fear the reputational damage and cost of having to return to ‘fix’ a building or development that may have gone ‘wrong’.

In the first article released in Q4, 2023, we emphasised the paramount importance of safety in building design and, more specifically, cladding remediation. In this second instalment, we delve into strategies and options for achieving carbon compliance and energy efficiency through technological innovation and retrofit as core ‘pillars’ to future building in any sector within the UK.

The United Kingdom’s ambitious Net Zero carbon emissions target for 2050 is significantly shaping the construction industry and particularly its funders. With the emergence of pivotal regulations, notably underscored in COP28, the emphasis on carbon compliance and energy efficiency has never been more crucial.

It is for architects to lead the journey to Net Zero through better design that is good for business and the planet.

Design Strategies

In navigating the challenges of achieving Net Zero, compliance with the Building Safety Act 2022 and contending with rising energy and construction costs, a resilient and innovative design approach is paramount. Cowan Architects encapsulates this as ‘Getting it right first time’, prioritising high-quality design to mitigate costly repairs, compliance issues, and reputational risks.

This strategic approach resonates with the circular economy model and underscores the importance of adept architects and design teams in maximising value within project parameters, while prioritising carbon reduction and sustainability goals.

Circular economy and Net Zero

“The greenest building is one that is already built.”
Carl Elefante, Former President of the American Institute of Architects (AIA)

An important aspect of a successful design strategy is to look at the circular economy and whole life carbon – AKA whole life costing. The principles of the circular economy can be summarised as limiting the materials we use, design for current and future use (or non-use) in mind, to use standardised components and modules and to minimise waste and reduce construction impacts.

Circular economy principles for construction, UKGB

Image Source UKGB

Currently, the focus is on achieving Net Zero in use; still very few buildings, new or retrofit, have achieved this status. However, the bigger challenge and opportunity is embodied carbon. This entails assessing carbon emissions across the entire supply chain. Meeting the Government’s Net Zero targets through the required decarbonisation of buildings demands a thorough grasp of whole life carbon. It’s an industry-wide challenge, but one we must not avoid. Architects face a significant responsibility in pre-design, planning and execution of buildings in order to deliver the carbon reduction obligations.

This will include:

1. Energy load reduction
2. Passivhaus & particularly EnerPhit Design Strategies
3. Efficient M&E and building operating systems.
4. Energy recovery
5. Renewables
6. Offsets.
7. Data collection, measuring and benchmarking strategy.

But what is the cost of all this? In its report, Ready for net zero? (Jan, 23), LGIM estimates that the average costs of transitioning buildings to Net Zero range from 2% to 15% of an asset’s value, depending on the real estate sector (see graph). This presents a considerable viability challenge, albeit an essential part of the Net Zero journey.

Cost of transitioning to Net Zero, LGIM

According to the International Energy Agency (IEA), the operations of buildings account for 30% of global final energy consumption and 26% of global energy-related emissions. As 80% of the 2050 building stock is already in place, retrofitting is imperative.

Retrofitting for Net Zero

According to real estate services provider, Cushman & Wakefield, 54% of homes in England have an EPC rating of D or lower, and around 12 million of these could be upgraded to a C rating or higher. The estimated cost for this retrofitting is £94 billion. Key strategies include insulation, upgrading windows, implementing renewable technology like PV and heat pumps, ensuring airtightness, improving ventilation, and addressing thermal bridges. The importance of the ‘Get it right first time’ design strategy in this context cannot be overstated. Neglecting to do so in any retrofitting project could result in significant financial losses and damage to the business’s reputation.

The social and commercial value of efficient buildings

Retrofitting for environmental gain holds profound social and commercial value. By optimising the built environment, we positively impact health and wellbeing, while also benefiting the environment. The positive outcomes of strategies such as improved daylighting and the integration of green spaces are multi-fold. These include greater biodiversity, reduced energy consumption and lower energy bills, a reduced carbon footprint and enhanced health and mental wellbeing.

The push for retrofitting aligns with a shifting consumer landscape, where energy efficiency is a critical factor in housing decisions. A recent Knight Frank report shows that enhancing a property’s EPC can increase its value by 20%. Additionally, a study by global real estate consultant JLL reveals that 83% of occupiers and 78% of investors believe climate risk is a financial risk. Retrofitting thus provides a robust platform for value delivery in the residential market. With many existing buildings falling short of future energy standards, repurposing them into energy-efficient homes becomes a pivotal opportunity.

Cowan Architects’ Retrofit Design Strategy

Retrofitting existing buildings presents architects with a unique set of commercial and design challenges. Addressing these challenges requires a combination of expertise, innovation, and collaboration.

Collaboration and coordination within the entire development team are essential. This involves resilient and innovative design to mitigate risks, prompt identification and addressing of issues, and maintaining adaptability in the project plan. Transparency of risk is highlighted as a crucial element for successful collaboration.

Solutions to Commercial Challenges

To meet ROI and carbon targets effectively, it’s essential to start with backward planning based on the goals set by funders, regulations, and market expectations. This entails developing detailed cost estimates, establishing clear budgets with contingencies, and exploring various financing options. Regulatory compliance should be prioritised, along with the engagement of experienced teams to ensure smooth implementation.

Embracing the ‘Get it Right First Time’ design strategy for carbon reduction

The ‘Get it right first time’ design strategy emerges as an indispensable guiding principle in the pursuit of carbon compliance and energy efficiency in UK architecture. This approach, championed by Cowan Architects, underscores the imperative of meticulous, high-quality design to mitigate potential pitfalls such as costly repairs, compliance issues, and reputational risks. At the same time, it enhances the value proposition for funders and investors, ensuring a robust return on investment.

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Cowan Architects

Simon Spiteri, Director

Brendan Geraghty, Non-Executive Director | Architect

info@cowan-architects.co.uk

West Sussex: +44(0)1342 410242