Link Logistics
2023 Sustainability Report
P.10
Introduction
Overview
Sustainability
Social Impact
Governance
Appendix
Energy Solutions: Aligning Incentives for Property Owners and Occupiers Leveraging ENERGY STAR® Compliance Data to Drive Efficiencies
Accelerating Energy Efficiency Catalyzing Renewable Energy Development
Scaling Sustainable Development Sustainable Development Spotlight: Reinvigorating a Riverside Site
Energy Solutions Aligning Incentives for Property Owners and Occupiers
A milestone achievement for our firm was the December 2023 launch of Energy Solutions, Link Logistics’ comprehensive energy and utility management program.
Energy Solutions takes a novel approach to what is known in industrial real estate as the “split incentive barrier.” This stems from the traditional triple-net leasing model under which utility accounts are kept in customers’ names. When a utility account is in a customer’s name and the property owner deploys capital for energy- related improvements, the customer—not the owner—receives the cash flow benefit from utility savings. As a result, both parties hesitate to deploy capital for energy improvements. Energy Solutions overcomes this barrier and is central to our approach to climate change and our three-phased sustainability strategy. Under the Energy Solutions program, customers transfer their utility accounts to Link Logistics to be managed on their behalf. Our teams then benchmark consumption and expenses via a dashboard accessible through Link+. Guided by that data, we then deploy capital
toward energy efficiency upgrades that generate financial benefits for both customers and the firm, which aligns incentives for both parties. The goal is to make customers' spaces energy efficient; we can then purchase and install renewable power sources on their behalf, which can lower operating costs while reducing emissions. Through year-end 2023, Energy Solutions generated a total benefit of $0.16 per square foot for enrolled customers, with $0.06 per square foot generated in utilities savings and $0.10 per square foot of cost avoidance generated through insulation from volatility in energy market rates via Link Logistics' innovative power procurement amenity. This represents an average savings of 12% off utility bills for participating customers. We have enrolled more than 1,000 customers in Energy Solutions so far, and aim to make the program available to everyone who leases space from us.
Program Spotlight In March 2024, the Energy Solutions product dashboard accessed through our proprietary customer portal, Link+, received the ENERGY STAR® Excellence in Data Innovation Award from the U.S. Environmental Protection Agency for work performed in 2023.
Energy Solutions dashboard as viewed through Link+
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