BREEAM In-Use in the Industrial Sector: Its Importance and Role in Sustainability

What is BREEAM In-Use?

BREEAM (Building Research Establishment Environmental Assessment Method) In-Use (BIU) is an online assessment methodology designed by the Building Research Establishment (BRE) for specifically assessing environmental performance and management practices of existing and operational assets. Unlike BREEAM for New Construction, BIU focuses on the performance of existing assets throughout their lifecycles. This framework helps owners, operators, and managers identify opportunities to improve efficiency, reduce environmental impacts, and enhance occupant wellbeing.

The Industrial Sector and Its Connection with BIU

The UK industrial sector, which includes warehouses, logistics hubs, distribution centres, and manufacturing facilities, has experienced significant growth in recent years due to the expansion of e-commerce, supply chain operations, and advanced manufacturing. It is also responsible for a large proportion of the UK’s emissions; it remains the third-highest emitting sector, at 12% of the UK’s total greenhouse gas emissions in 2023, totaling 51.8 MtCO₂e. 

Industrial buildings are often large, energy-intensive assets that operate for long hours and consume significant amounts of energy, water, and other resources. As sustainability, carbon reduction, and ESG reporting become increasingly important for occupiers, investors, and regulators, asset owners are looking for ways to measure and improve building performance. BREEAM In-Use provides a recognised framework for assessing the environmental, social, and operational performance of existing buildings, helping industrial assets benchmark their sustainability credentials and identify opportunities for improvement.

Why BIU Matters for the Industrial Sector

1. The Performance Gap

Over time and with regulation changes, the overall sustainability of a building declines. In the industrial sector, this is compounded by the fact that assets often have a change of occupier as well as operating model, which can significantly alter performance. BIU addresses this gap by assessing the building as it actually operates. Certification is not a one-off exercise; assets must be reassessed every three years. This results in an up-to-date evaluation of these assets and also keeps them aligned with the latest requirements and wider ESG objectives.

2. The Owner and Tenant Division

Industrial assets are often leased, and tenants are responsible for the management of the assets thereafter. This makes it difficult for the owners to certify the assets individually. BIU addresses this by allowing the evaluation to be split into Part 1 – Asset Performance and Part 2 – Management Performance. This enables the owners to certify the fabric and base systems performance separately and incentivises the tenants to be more proactive in managing their operational performance.

3. Minimum Energy Efficiency Standards

Under the Government’s June 2026 interim response on the Minimum Energy Efficiency Standards (MEES), privately rented non-domestic buildings in England and Wales above 1,000 m² will need to achieve at least EPC B from 2031, where cost-effective. The previously proposed interim target of EPC C by 2027 has been dropped, and the new requirement remains subject to secondary legislation. Many larger industrial assets, such as distribution warehouses, fall within this category, raising the standard with which the sector will need to comply in the coming years. BIU gives owners a structured, evidence-based view of where an asset is underperforming, helping them keep performance up to date and prioritise improvements to comply with the standards well before the next letting or lease renewal. 

Benefits for Owners and Landlords

1. Attracting Premium Tenants

Occupiers such as major logistics operators, third-party logistics providers and large supermarket chains have strict net-zero and ESG targets that they need to comply with as company policy. As a result, they are unlikely to lease assets that would increase their company’s carbon footprint. Having BREEAM certification is therefore highly valuable in attracting these occupiers as it provides a globally recognised, third-party-verified certification scheme providing an indication of sustainability performance. This makes an asset easier to shortlist, strengthens the owner’s position in lease negotiations and supports tenant retention at renewal.

2. Access to Green Funds and Loans

BIU is recognised by GRESB (Global Real Estate Sustainability Benchmark) and contributes towards the rating. Many institutional investors use GRESB results to evaluate funds. A stronger BIU rating can therefore help attract investment. BIU counts towards indicator BC1.2 Operational Building Certifications, part of the Building Certifications aspect of GRESB’s Performance Component. BC1.2 is added to BC1.1 (design and construction certifications, such as BREEAM New Construction) to give a single BC1 score worth up to 8.5 points. Operational certifications carry the most weight, and portfolios without them rarely achieve top certification scores. The operational data gathered for a BIU assessment, including energy, water and waste consumption, also supports GRESB’s performance data indicators, where complete and accurate data coverage improves results. Investors, lenders and regulators increasingly expect credible, independently verified operational data in ESG and climate disclosures, including those aligned with TCFD and its successor ISSB standards, as well as GRESB. BIU provides a structured, assured dataset that strengthens reporting quality and reduces the risk of greenwashing claims.

A recognised certification can also support access to green loans on more favourable terms. Under the Loan Market Association’s Green Loan Principles, eligible categories include green buildings that meet recognised regional, national or international standards or certifications. A BIU certificate can provide the evidence necessary to qualify the asset. It can also help with Sustainability-Linked Loans which require the borrower to show regular evidence of meeting the green standard in order to benefit from reduced interest rates. The ongoing nature of BIU is a clear advantage in this respect. Sustainable loans require regular reporting and independent verification of performance, and a facility can be declassified if its green credentials lapse. Periodic BIU re-assessment provides a ready-made, credible evidence trail for the life of the loan. 

3. Protecting and Enhancing Asset Valuation

In the current market, having a certified sustainable asset can significantly affect its valuation. Research found that investors were willing to pay around 19% more for European warehouses rated BREEAM Very Good or above than for lower-rated assets, rising to 24% outside super-prime locations.  

On the other hand, the value of an asset can be penalised if it does not meet regulatory standards or occupier performance requirements. This is known as the ‘brown discount’. In addition, the proposed MEES requirement of EPC B from 2031 presents a significant risk for industrial landlords as valuers and tenants will factor in the capital investment needed to bring non-compliant assets up to standard. An uncertified asset with no operational performance data is likely to be viewed cautiously by buyers and priced accordingly. BIU addresses both concerns. A current certificate backed by real consumption data gives buyers and valuers confidence that the asset is well managed and understood, which supports liquidity at sale. Just as importantly, the assessment provides a clear, costed view of what improvements are needed, so upgrades can be planned into the asset strategy rather than discovered in a buyer’s due diligence.

The Road Ahead for Industrial Assets

Policy and market expectations are moving in one direction, towards tighter requirements for the buildings. Minimum energy standards are anticipated to rise to EPC B for larger rented buildings from 2031, benchmarks and disclosure frameworks such as GRESB and the ISSB standards (which build on TCFD) increasingly ask for verified operational data, and occupiers and lenders are setting net-zero conditions of their own. At the same time, most of the buildings the UK will rely on in the coming decades are already standing. UKGBC estimates that around 80% of the buildings that will be in use in 2050 have already been built. Standards for new construction alone cannot close that gap, so the real challenge lies in improving existing stock. As one of the few established schemes designed specifically for buildings already in operation, BREEAM In-Use is set to become increasingly important for owners, occupiers and investors alike. The next significant development is BIU Version 7, which BRE expects to release later in 2026. Early proposals suggest it will place more weight on measured operational performance and stronger evidence, meaning a given rating may be harder for the same building to achieve than under Version 6. Details are still provisional, but assets with reliable energy and water data and well-documented management practices are likely to be best placed for the transition.