As environmental concerns take centre stage and the global call for sustainability grows louder, businesses globally are realising the urgency of integrating ESG initiatives and green practices into their core operations. Environmentally conscious tenants have proliferated, and these tenants are seeking end-to-end sustainable office solutions that align with their Net Zero Carbon (NZC) goals. In this report, we aim to provide CRE professionals with actionable insights as they work towards delivering on their organizations’ ambitious Net Zero Carbon (NZC) goals.
Key Takeaways
- Competition for sustainable office spaces to intensify: Lease expiry events will be a critical point for organizations to reevaluate the sustainability credentials of their office premises, thus driving up the demand for sustainable assets. As a result, there will be a scarcity of suitable properties available, leading to fierce competition among occupiers vying for sustainable assets.
- Focus to shift towards building performance data and active collaboration with landlords: While green building certifications have a role to play in making buildings sustainable, in their current form they do not guarantee energy efficiency or lower carbon emissions. The green lease contract will be an important instrument to warrant transparency in building performance data and ensure active mission-aligned collaboration between landlords and occupiers throughout the life of the lease.
- Sustainability tech to account for the largest share of increased investment in technology: Technology holds immense potential in driving measurement and reporting of data as a way to accelerate the journey towards Net Zero Carbon. There is clearly a need to bridge the technology gap through significant investments. Corporates will prioritize sustainability technology that enables a transition from a reactive to a predictive stance
- Securing rapidly growing renewable energy to become key for sustainable operations: The shift towards renewable energy is a crucial move towards achieving a low carbon-built environment. By transforming buildings from passive energy users to active contributors through on-site renewable energy generation, the real estate sector can play a vital role in driving this shift.
- Organisations finding it difficult to keep track of ever-evolving ESG regulations: The evolving regulatory and reporting landscape presents a significant obstacle for all stakeholders. While companies are wary of increasing carbon taxes and other emissions-based fines, increasing investments and costs required to establish a green portfolio are also being considered. A shift in mindset is required, from concerns about the cost of establishing a green portfolio and implementing ESG initiatives to considerations regarding the potential costs if these investments are not made.