Redevco uses green tool to build tenant relations

The new sustainability benchmark developed by pan-European retail specialist Redevco is an attractive tool for intensifying relations with the company’s tenants, according to Judith Dröge, Redevco’s board member for human resources & corporate responsibility.

‘We have been collecting sustainability data now for five years, but the question we faced was: what’s in it for our tenants? We really struggled with that. It’s a complex issue, but we felt we needed to give something back. That’s why we have incorporated this tool into our corporate website. It’s available free of charge for both our tenants and other retailers.’

Earlier this week, the Amsterdam-based retail specialist announced it had developed a new sustainability benchmark that measures energy and water consumption by retail sector specialty rather than property type. For the first time, it is possible to monitor trends in individual retail sectors and identify the best ways to conserve vital energy resources at the property level.

One of the reasons given for why perfumery (and cosmetics) retailers are the biggest energy consumers is their widespread use of bright lighting as a marketing tool. Consumers often look less attractive under bright lights and are thus encouraged to spend more money on beauty products. Sports goods and telephony retailers are also relatively high energy consumers. By contrast, suppliers of household equipment and ready-to-wear fashion are relatively low energy consumers.

But, Dröge added, this year’s results merely provide a baseline and the real test comes next year when variations can be detected. ‘The data is there,’ Dröge pointed out. ‘It all starts with awareness. If you have the knowledge, then you can transfer it. We are now trying to start this process.’

Thanks to its calculations of energy consumption per retail category, Redevco is now able to prioritise the retail categories it should focus on first in order to reduce the environmental impact. ‘We now have a tangible tool for reaching out to our clients and starting a dialogue,’ Dröge noted. ‘This helps us understand their business better and helps us to find ways in which we can help them as a partner to reduce the environmental impact. It cost us money, but we now have data for 76% of our portfolio. We now aim to use this tool to get our tenants on board as well.’

With a history spanning almost two centuries, fashion department store chain C&A has a long tradition in corporate social responsibility which also extends to Redevco - the real estate investment vehicle of the Brenninkmeijer family which owns C&A. This year marks the fifth year that Redevco has published a corporate responsibility report and a sustainability survey of the company’s portfolio across Europe, Dröge noted. 'CSR embraces more than sustainability, it’s also about being a business in balance which takes people, planet and profit into account. Business in balance has been our motto for years, it’s embedded in our cultural system and DNA. You can’t sustain a business long term if don’t take it into account.’

In contrast to previous years, this year's sustainability survey looks at energy performance by retail category and country, Derk Welling, Redevco’s head of corporate responsibility, explained. ‘It’s the same data but we’re looking at it from a different angle. After all, it’s not about the building, it’s about the retailer.’

The Redevco sustainability benchmark is driven by a core belief in the mutual advantages of energy intensity reduction, Welling added. ‘It’s not about pinpointing who are the best performers, but rather about gaining a better understanding of the different retail categories and helping them to improve. That’s why we collect data and go beyond our responsibility.’

According to Welling, there is scope to use the tool within a broader context such as ICSC, but also for lobbying activities with legislative bodies in Brussels. ‘The reactions of our peers have been positive. This benchmark could be helpful for promoting data exchange in other companies as well. Within ICSC, a clear need has been signalled for promoting cooperation with tenants. This tool opens the conversation with them and provides a basis for how to proceed further. ‘

See also link below for a webcast interview with Derk Welling