Building ESG: the realities of net-zero-carbon real estate

Globally, buildings are responsible for 38 per cent of greenhouse gas emis­sions. In the context of ESG investments staying resilient throughout the pandemic, the case for ESG-led decisions in driving a sustainable economic recovery is a strong one. The resulting invest­ment landscape will be rooted in trust, transparency and insight.

 

For those with capital invested in the built environment, this means understanding every build­ing, estate, and portfolio’s operational performance – and taking bold decisions now to accelerate the move to net-zero carbon.

 

Net zero carbon is by far the most challenging task the real estate and construction sector has ever embarked upon. No single element of the industry can deliver it alone, but nor can any afford to take a back seat. The opportunities presented by momentum from investors, ignited by public con­sciousness, and strengthened through legislation, are abundant. This need for accelerated evolution, or even wholesale transformation for many assets, is not to be under­estimated. It demands that we ask the most basic of questions: are we on the same page, and can we find a way to speak the same language?

 

Courageous collaboration

 

With such a fragmented industry, the task is best tackled by aiming big and working collaboratively. An initial focus on progress through fine margins and a disci­plined eye on building momentum will be key to managing the mosaic of real estate and construction.

 

The move by the Global Real Estate Sustainability Benchmark towards greater detailed verifica­tion and demonstration of performance is a clear indication that the industry is embarking upon a new era. It’s an era that necessitates a new way of communicating. The shackles of our industry’s silos must be shaken off. In their place, we need an empowered ecosystem that brings together investment and funding, development and asset manage­ment. The ultimate outcome of a net-zero-carbon built environment benefits all, yet it is an ambition that could splinter the industry if we aren’t careful. By coming together to understand the thread that runs from investor to devel­oper and asset manager, insight and expertise can be exchanged, strengthened and evolved.