ERM Checklist
CHECKLIST
1.1 - Name a senior individual to take responsibility for environmental risk.
Examples include Head of Property Management / Facilities Management / Sustainability and may sit within either the Property Management Team or Asset Management Team. If multiple individuals are given responsibility for different aspects, a governance structure should be mapped out clearly defining roles and responsibilities. Individuals should be regularly reported to on environmental incidents and issues of non-compliance; the current status of these incidents and the mitigation measures in place. It is important that reporting requirements from property management to asset management teams are clearly defined, especially when property management services are outsourced to a managing agent.
1.2 - Develop and maintain an environmental legal register that identifies compliance obligations.
An environmental legal register should highlight key legislative and regulatory risks that a property may be subject to e.g. EPCs, Air-conditioning inspections, Heat Network Regulations, Duty of Care, ESOS, CRC, Invasive species regulations, Tree Protection Orders etc. This would typically be produced with the support of a specialist consultant and should include sufficient information to enable site managers to easily identify whether legislation and regulations are applicable to individual sites. This would typically be produced with the support of a specialist consultant and should include sufficient information to enable site managers to easily identify whether legislation and regulations are applicable to individual sites.
1.3 - Develop and maintain a risk register that identifies key environmental risks.
A risk register should highlight environmental risks that a property may be subject to, such as flood risk and land contamination. This could be incorporated into the environmental legal register. It would typically be produced with the support of a specialist consultant and should include sufficient information to enable property and facilities managers to easily identify whether risks are applicable at any given individual site.
1.4 - Assess the applicability of the environmental legal and risk register at each site.
All properties under management (including those that are FRI or void) should be assessed against the registers to identify which risks are applicable. Additionally, Property Manager should also endeavour to ensure that occupiers are meeting their own legal requirements. This could be done through annual walkarounds/ inspections and any risks identified recorded in the appropriate register. In particular, management responsibility should be determined for FRI and void properties, This stage will inform the development of a management regime to control the identified risks. It is important that the legal and environmental risks registers contain the necessary information to enable this task to be easily undertaken by a site manager or facilities manager. This stage is not intended to assess compliance but applicability. For example, all properties with landlord provision of waste removal services would be subject to Duty of Care regulations in England and Wales. For environmental risks such as flooding, more specialist advice may be required to assess the risk level of individual sites. The property owner is responsible for deciding whether this is appropriate.
1.5 - Issue guidance notes, procedures and training to assist site teams in achieving compliance and managing risk.
Each individual organisation must decide how best to ensure that property managers are able to ensure compliance and appropriately manage risk. It would be typical to develop a series of guidance documents, procedures and training material so that there is a basic level of knowledge and competence in this area.
1.6 - Assess the property for compliance against legislation and regulation, and for sufficient management of risk.
Once the applicable risks for each site has been established, a regime must be put in place to monitor compliance with the relevant legislation and regulations, as well as the policies and procedures that have been developed to manage risk. This would typically entail a regular audit of each site to assess the extent to which it is compliant and is managing identified environmental risks. The audit frequency can vary significantly depending on the level of risk identified at each site. Depending on the risk level and the activity that is taking place on site, a certain level of self-assessment may also be deemed appropriate. This may also be supported by a risk/non-compliance register that is stored in a central location and notes issues as and when they occur.
1.7 - Establish a process to report the status of environmental risks and compliance obligations to the Asset Manager.
A regular update of the status of environmental risks and compliance obligations should be reported to the asset manager. This should highlight risks, the management strategy, any instances that have occurred and corrective measures implemented. This may be for a single site or for a portfolio of properties.
1.8 - Ensure the handover process for acquisitions and disposals includes all required information on environmental risks and compliance obligations.
See BBP Acquisitions Sustainability Toolkit and MAP Core Provisions for Property Management: Handover Checklist for further information.