The move to net zero is under way. More than a fifth of the world’s biggest companies have made commitments to cut their emissions to net zero, according to a new report by the Energy and Climate Intelligence Unit and Oxford Net Zero.
In real estate the commitments are even stronger. Every week another major owner or investor reveals their commitment to the climate challenge and their pathway to achieving net zero. Here we look at a selection of those commitments to help paint a picture of how real estate is tackling the climate crisis.
The global investor: Nuveen Real Estate
Nuveen Real Estate, one of the largest real estate investment managers in the world, has committed to making its $133bn (£96.4bn) global property portfolio operationally net zero carbon by 2040.
The investment manager said it would review each asset in its portfolio and would create a net zero building plan for each property, making sure that buildings operate as energy efficiently as possible. It will also work alongside occupiers to guarantee tenant emissions are aligned and included in a building’s net zero carbon strategy.
Its pathway commits to reducing its energy intensity by 30% by 2025, by which time it also expects to have costed business plans for net zero strategies for all of its buildings and have gathered energy data for 50% of its tenants.
By 2030, Nuveen says it will have reduced the carbon intensity of its portfolio by half and have renewable energy power purchase agreements in place globally. Offsets will not be purchased until 2040.
“ESG has sat at the heart of our investment strategies for well over a decade,” said global head of strategic insights Abigail Dean. “As the world moves towards a net-zero carbon future, governments around the world will, rightly, increase environmental regulations to achieve this, but we believe it is important to move towards this target as soon as possible.
“Although some measures are relatively easy to implement, there are still some big challenges for the real estate industry in reaching net zero, particularly in the standardisation of measurement and the collection of data. Landlord and tenant collaboration will be key to overcoming these hurdles.”
Read Nuveen’s pathway to net zero here.
Picture © Nuveen
The developer: Landsec
Landsec has set out a five-step strategy for its pathway way to net zero by 2030. The REIT’s pathway provides five key focuses for it to reduce its carbon emissions.
For operational carbon, the group has set a target to reduce emissions by 70% by 2030 off a 2013/14 baseline for all buildings that have been in its control for at least two years. It will also seek to reduce its energy intensity by 40%.
In a bid to further enhance its green energy credentials the REIT, which has procured 100% REGO-backed electricity since 2016, said it would work towards moving some of this procurement to direct renewable projects. As part of that plan it will conduct feasibility studies for the installation of solar PV and battery storage across its estate. It aims to achieve a renewable energy capacity of 3mw by 2030.
To reduce its embodied carbon, Landsec has set a maximum carbon intensity across its supply chain of 900kg of carbon per sq m for new-build commercial buildings, and 500kg for retail projects. A residential benchmark is yet to be set.
The group has also committed to signing up to third-party verification and standards, such as the NABERS UK programme and BREEAM, and will use offsetting as a last resort.
Nick de Mestre, managing director of strategy, research and innovation, said: “Landsec remains at the forefront of sustainability in the real estate sector. We know that our customers, partners and employees are rightly passionate about the impact we have on the planet. We are looking forward to continuing to work with the Better Buildings Partnership on the Climate Change Commitment and are pleased to have published our net zero carbon pathway.”
Picture © bennettsassociates.com
The agent: Gerald Eve
Gerald Eve is planning to be better than net zero carbon by 2050 and has instead set itself the goal of becoming carbon-negative by 2030. It wants to be a business that removes more carbon than it produces within the next 10 years.
The commitment will apply to all of the firm’s operational and advisory activities and an action plan detailing practical measures to achieve the target will be published in the autumn.
Senior partner Simon Prichard said: “Real estate is central to the challenge of decarbonisation, and our carbon-negative pledge shows both the seriousness with which we take this issue and the optimism we hold for what can be achieved with radical thinking.
“Through our own actions and the advice we give to clients we all have a role in the fight against climate change, and this pledge is part of our wider commitment to do all we can to play our part.”
The agent’s roadmap will look at how its can procure 100% renewable or low-carbon energy, improve energy efficiency, reduce waste and water use, select “green” office space, shift to electric vehicles and offset as a last resort.
Read more about Gerald Eve’s commitment here.
Picture © Gill Allen/Shutterstock
The public sector: West Midlands Combined Authority
Earlier this month West Midlands mayor Andy Street launched a new West Midlands Net Zero Business Pledge. It encourages companies and other organisations to commit to reducing their carbon emissions and providing them with practical support and guidance on how to achieve those targets.
“We have been clear from the outset that we simply cannot get to net zero without the participation of our region’s businesses,” said Street. “We’re going to need around £4.3bn of investment over the next five years to clean up our economy, and it’s not all going to come from the public sector.
“Our West Midlands 2041 plan presents a huge commercial opportunity for local businesses in areas such as retrofit, clean transport, forestry and carbon capture, all of which will create tens of thousands of jobs here in the region. This is an exciting moment for the West Midlands and I am determined we seize this opportunity to become a leader in green enterprise.”
The WMCA declared a climate emergency in June 2019 and made its commitment to be a net zero region by 2041 in January last year.
Its plan to reach net zero includes the business pledge, the implementation of a zero-carbon homes route map, which provides clear actions and target for reducing operation, embodied and whole life emissions for new residential development, and its proposals for a 4.5m sq ft gigafactory at Coventry Airport.
The “first five years” plan also includes proposals to unlock as much as £70m in land-based renewables and almost £500m in rooftop PV by 2026.
The WMCA has recently secured a £5m investment to start implementing a number of proposals in the plan, including its net-zero neighbourhood concept and natural capital programme, which seeks to create better access to green space across the region.
Image © Coventry City Council and the West Midlands partnership
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