Sustainability has risen up the agenda across all sectors, not least universities, where it remains a key issue. Victoria Rounding and Michelle Beaumont reflect on the opportunities.
It is clear that sustainability is one, if not the, key issue for university estates. The introduction of the Impact Rankings (a global league table which assesses the social and economic impact of universities, using metrics based on the United Nations’ Sustainable Development Goals) by Times Higher Education demonstrates just how important sustainability has become and that the importance of sustainability to university estates should not be underestimated.
Students and the public are more likely than ever to challenge universities on where their capital is invested and what they are doing to become more sustainable, and the universities that act on this are more likely to be successful in the long term.
The SDG Accord Report 2020, endorsed by UN Environment, shows that awareness of the SDGs in higher education institutions across the world is steadily increasing. However, there is still much work to be done in order to meet the SDGs’ 2030 deadline, and unfortunately the Covid-19 pandemic has exacerbated the challenges that the SDGs seek to overcome.
Commenting on the 2020 report, Iain Patton, chief executive at the Alliance for Sustainability Leadership in Education (EAUC), said: “The pandemic is a stark reminder… that we must go further and with speed to embed sustainable development throughout society, but especially in our education sector. There are only 3,308 days to meet the Sustainable Development Goals 2030 deadline. And it is a deadline, not a target – change must happen now, and the education sector must be, as ever, a key pillar.”
As the UK endures its third national lockdown, most UK university students have been told to stay at home for the foreseeable future. But with the roll-out of Covid-19 vaccines finally under way, the return to “normal life” is tantalisingly close, and there is no better time for universities to ramp up their plans for sustainability within their estates in order to “build back better”.
Sam Barratt, chief of education and youth for the UN Environment Programme and chair of the UN Higher Education Sustainability Initiative, says: “Phrases such as the ‘new normal’ or ‘build back better’ have been commonly used in 2020. But for 2021, we can’t go back to the old habits of the past but must build new behaviours and choices for the future and really use this moment as a chance for renewal. That shift won’t be easy, but if we are to secure a better and more resilient tomorrow, we need to rethink what we are currently doing today.”
Why has sustainability moved up the agenda?
Growing concern about the climate crisis and the “Greta Thunberg effect” are driving individuals and institutions to take action and put sustainability at the top of the agenda. Environmentalism is no longer an ideology but part of everyday life.
As Lord Stern, IG Patel professor of economics and government at the London School of Economics and chair of the Grantham Research Institute on Climate Change and the Environment, has said: “There is mounting evidence that firms that put sustainability at the heart of their strategy perform better, too. It is vital that asset managers like [Legal & General Investment Management] must continue to use their influence to accelerate the sustainability revolution across all sectors.”
The development of a sustainable estate provides a unique opportunity for value creation and risk mitigation by universities. Many investors are now choosing funds that look at ESG (environmental, social and governance) factors in their investment processes. A recent survey by the Investment Association found that 38% of total UK assets integrate ESG into the investment process, up from 26% in 2019. The rise in popularity of sustainable funds is most likely down to the recognition that they now outperform more traditional investments and are often more resilient. Studies have shown that institutions with good ESG management tend to be more profitable over the long term, and they are also better prepared for sudden crises than institutions that do not follow a sustainable governance approach.
Therefore, universities that make real efforts to adopt the SDGs and balance their financial health with wider social and environmental interests are more likely to be successful.
Good sustainability in an education setting
Many UK universities have set net-zero goals up to 20 years ahead of wider UK targets and are already working on long-term sustainability plans. The implementation of green solutions, such as including renewable energy installations within new buildings and retrofitting existing buildings in order to maximise energy consumption, are common across many university estates.
However, sustainability is about far more than bricks and mortar. There is an exhaustive number of areas universities can consider when developing a sustainable estate, including transport and mobility, reducing the use of plastic, waste management, interaction with the wider community, targeting procurement at small and medium-sized enterprises and, perhaps most important of all, supporting the sustainable agenda.
To make even further progress, universities must continue to provide opportunities to promote sustainability not only through their estate management, governance, research and teaching but through increased collaboration with other parties and institutions. This is already being done by universities in Australasia, many of which topped the 2020 Times Higher Education Impact Rankings.
Speaking in the magazine’s Impact Rankings supplement, John Thwaites, chair of Monash University’s Sustainable Development Institute and of Australia’s National Sustainable Development Council, says that one of the reasons for the success of the Australasian universities is that they “have a strong global outlook” and that there are “a lot of good interdisciplinary projects”, many of which are centred on SDG targets among institutions in Australia, New Zealand, the Pacific and Asia. Thwaites states that “we’ve not just done this university by university but it’s been more a collaborative effort across universities and across business and civil society”.
Future challenges
The 2020 report suggests that funding and capacity remain the main challenges to institutions meeting the SDGs. Other challenges reported included a lack of best practice to learn from.
In relation to funding, there are opportunities that universities could take advantage of to help deliver energy and infrastructure projects within their estates – for example, the £1bn BEIS Public Sector Decarbonisation Scheme. Unfortunately, the deadline for this scheme has now closed; however, there are other funding options available, such as Salix Finance, which currently offers interest-free loans on behalf of the Department for Business, Energy and Industrial Strategy for energy-saving projects including solar PV, combined heat and power, LED lighting, laboratory upgrades and measures within new-build developments.
In terms of best practice for university estates, the 2020 report highlights that the Sustainability Exchange is working on compiling a growing bank of best practice for education institutions, including a resources section on sustainable construction and renovation.
Universities can also take note of Nottingham Trent University, which was named the fourth most sustainable university in the world by the 2020 UI GreenMetric World University Rankings. Not only is NTU making the now expected sustainability improvements to its new and existing buildings, but it has introduced a number of environmentally advantageous schemes across its campuses, such as planting 18,000 trees on and off campus using student and staff volunteers, installing beehives, planting wild flowers and developing plans for hedgehog-friendly campuses. Additionally, it has achieved “green flag” status at its Brackenhurst and Clifton campuses.
Therefore, it is clear that the universities that go that extra step to make environmental and sustainability changes to their estates are the ones which will come out on top.
Next steps
Sustainability is here to stay, and many universities have already made considerable efforts to further the sustainable agenda. The next step is for operators and stakeholders to take a much more collaborative approach and build links with other institutions and society as a whole in order to meet the SDG goals.
Ultimately, though, there is a risk that the sector’s capacity to succeed is jeopardised by a lack of incentives and the financial impact of the pandemic. Many commentators have predicted that the pandemic will have a catalyst effect on sustainability, but for this to come to fruition institutions need further support in the form of incentives and investment.
It is imperative that the government not only follows through with the plans detailed in its recent energy white paper, Powering our net zero future, but also takes action to enable the public sector to achieve net-zero targets by renewing recent schemes such as the Public Sector Decarbonisation Scheme when it publishes its new heat and building strategy, which is expected in the first half of 2021. Universities must therefore keep a close eye on what funding and assistance becomes available in 2021 to avoid missing out on this much-needed help.
Victoria Rounding is an associate solicitor and Michelle Beaumont is a partner and head of the education sector group in the real estate team at Irwin Mitchell
