The real estate sector understands sustainability is key



The path to net zero has taken it one step further as one of the world’s most carbon-emitting sectors claims to place more emphasis on sustainability and decarbonisation. We know the scientific rationale for the worldwide quest for decarbonization: this process minimizes overall greenhouse gas emissions, mainly through the use of low-carbon energy sources. It is critical to climate change mitigation and offers attractive business opportunities for property owners, residents and investors, according to new research.

The real estate industry, in particular construction and construction, is responsible for 38 percent of the world’s carbon emissions, says at least one poll. Key players in the sector are starting to respond in kind: global commercial real estate company JLL recently issued a poll This showed that senior real estate executives are now more focused than ever on sustainability issues. Overall, they recognized the reality that climate risk is financial risk. In addition, the COVID-19 pandemic has added a sense of urgency to accepting the risks of climate change while ensuring the safety of buildings that the real estate industry builds, sells and leases; Meanwhile, citizens are demanding safer and more sustainable spaces in which they live and work.

“People are beginning to see buildings as a means of change and a force for good rather than a fork in costs, but that’s exactly what needs to happen to fulfill all of these commitments,” said Robbie Hobbs. Leader of JLL’s global sustainability and workplace management product group in a recent interview with TriplePundit.

Economic benefits of decarbonization

How interest and demand For sustainable real estate growth, the industry leaders have several options to increase the attractiveness of their assets and remain competitive. Updates can be made to the existing infrastructure. Alternatively, Hobbs explained that new technologies and the promise of competitive return on investment (ROI) support the additional costs needed to ensure the long-term sustainability of the real estate industry.

In addition to updates, the decarburization tactic includes another option. According to a JLL study, investors believe decarbonization creates value and a competitive advantage for them. Hobbs considered three options for the decarbonization process that investors can rely on. These include on-site renewable energy, off-site renewable energy purchase and compensation. Through these steps, investors can differentiate their asset values ​​beyond standard factors such as location and square footage.

Such options, along with prioritizing progress towards a zero economy, can help companies continue to thrive in a competitive real estate market. During an interview with 3p, Hobbs highlighted the business opportunities associated with the increased focus of real estate companies on sustainability and decarbonisation for tenants of their buildings.

One such opportunity for clients of these companies is the ability to attract and retain talent, as the next generation of employees will often make career decisions based on the desire to work in companies that align with their values. The real estate industry’s commitment to building and refurbishing buildings for long-term sustainability is critical as climate change is often cited as one of the causes. five biggest problems Millennials and Gen Z.

Ensuring sustainability in real estate

A heightened focus on sustainability, driven by bold long-term commitments to tackle climate change, is not enough; Businesses need to be able to showcase their progress if they want to take advantage of any economic opportunity in the future while enhancing their brand reputation. Developers and investors say they are well aware of this. For example, the study indicates that they understand that any current ambitious climate change mitigation plans need to be implemented. In fact, 81 percent of stakeholders surveyed by JLL believe that strong partnerships between cities and their industries can help implement zero-clean action plans.

“We need owners, investors and city officials all working together to regulate, attract investment and bring the development of the supply up to the required level,” said Hobbs. He added that teams are effective and can drive change because they have more lobbying power. On the other hand, governments also have responsibilities. Hobbs elaborated on this issue, explaining that clear guidelines and regulatory frameworks provided by cities can promote good behavior in the broader real estate industry.

Right now, real estate industry leaders are increasingly focusing on new technology, data collection and measurement. According to JLL, these three focal points can close the digital divide in this industry and provide zero-to-zero plans. In particular, for property owners and tenants, technology is the main focus of investment; is critical because it can provide opportunities for improvement, analytics and decision making. Despite the enormous potential of technology to help the real estate sector make progress on climate change, nearly half of JLL surveyed say their current data systems are in development.

The current attitude of senior management in this industry is clear. Owners, tenants and investors have no choice but to meet the growing demand for sustainable properties to support their livelihoods. Committing to a clean zero or even low carbon economy is an obvious way to go, as it can lead to higher returns in climate change mitigation.

Image Credit: Laura Tancredi /Pexels; Chait Goli /Pexels


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