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.
Existing assets
The move to a consistent and coherent way of tackling and delivering the path to net zero has already begun. The World Green Building Council is advocating all new buildings to be operated as net-zero carbon by 2030. In addition, the UK Building Council’s Whole Life Carbon Net Zero Roadmap sets out a clear route for the UK to meet its legislated net-zero target for the built environment by 2050.
Yet with 80 per cent of the building stock that will be around in 2050 already constructed, it’s clear the biggest challenge is in transforming current assets. Architects, engineers, constructors and suppliers are developing retrofit strategies to create carbon-efficient buildings.
Verifying outcomes
Efficient design is just the first step. Next, it’s vital we prove that they perform as intended by monitoring the performance of buildings year on year. From a climate perspective, outcomes matter: the move towards a culture of verifying building energy performance is a much-needed step towards net-zero carbon. We are already seeing a successful demonstration of this through the adoption of Design for Performance strategies in commercial buildings.
Whole life carbon
Recognition of the impact of procuring new construction materials is now increasingly influencing new development proposals. Leading property developers now require whole-life carbon assessments for their developments at the planning stage. Whole-life carbon assessments help architects, engineers and constructors assess how the various stages of the property life cycle impact carbon emissions, so that appropriate mitigation strategies can be implemented.
Symbiosis
When it comes to building operation and performance, there is undoubtedly tension between designing the perfect environment for people and achieving net-zero carbon, but it is within this tension that some of the most innovative, nature-led and cost-effective solutions can be found. In the same way that society now better understands the symbiotic relationship between humans and our natural world, when it comes to zero carbon, our industry working together has the potential to greater appreciate the relation between the built environment and the climate.
by Ashley Bateson, head of sustainability, Hoare Lea