Welcome to the latest edition of Sustainability Matters, a regular wrap from EG to make sure that you and your business are up to date with the latest news, views and opinion about all that is important in the world of ESG in the built environment.
As more and more organisations across the built environment, from architects and contractors to developers and institutions, commit to combating the climate crisis, it seems government has done what the pessimists among us expected and kicked the green can down the road a little.
PM Boris Johnson may very well want to “build, build, build” but what happened to “build back better”?
Focus in his big announcement was on building back at speed, not on energy efficiency, net zero, social value or biodiversity.
“We asked for ‘build back better’, but what we’ve got is ‘build, build, build’,” says Julie Hirigoyen, chief executive at the UK Green Building Council. “If we do not seize this moment, and take the opportunity to underpin our recovery plans with climate ambition, we will not achieve our target of net zero emissions by 2050.”
Plans to allow the demolition of empty commercial buildings for conversion to residential without the need for planning consent may very well see more housing developed, but, says RICS policy manager Tamara Hooper, what about all that embodied carbon?
“We welcome a new normal and looking for new ways for the housing and construction industry to recover and thrive, but oversight now will result in hindsight later,” says Hooper.
It seems the “build back better” push and the drive towards a sustainable future will have to be led by industry.
This week Legal & General committed to making all new housing stock it invests in net zero carbon by 2030, a commitment that spans its build-to-rent, build-to-sell, later living and affordable housing divisions.
“Construction is rocket fuel for UK economic growth: every pound invested delivers a threefold economic multiplier and the housebuilding sector provides jobs and vital economic resilience,” says chief executive Nigel Wilson. “But as we accelerate building, we have to avoid stoking up a climate crisis that would be at least as serious as the Covid emergency.”
And L&G isn’t alone. London & Quadrant Housing Trust has launched a search for sustainability consultants to work across its new-build portfolio and writing in EG this week, British Land’s chief financial officer Simon Carter outlines just how important a role the REIT has to play in protecting the planet – and its people.
“A net zero carbon portfolio is a bold target which will be difficult to achieve,” he admits. “However, growing interest from customers and our experience driving transformational progress underpin our belief that now is the time to be bold.”
Net zero housing developer Sero is hoping that a bold new pilot scheme it is running with Monmouthshire Building Society, the RICS and Rightmove for green mortgages will be able to finally show the value of green homes.
Sero co-founder Andy Sutton says: “There is little current evidence that the market places a value difference between high and low-energy homes. Identifying this value difference is key to enabling building more low-energy new homes and to the low-energy refurbishments of our existing houses. The end value underpins the finances and showing low-energy homes have better future value than high-energy homes will help support the higher cost of building or refurbishing these homes.”
Ben Elder, global director of valuation for project partners at the RICS, says the project will provide much needed real evidence of how the market is recognising the benefits of energy efficient buildings in ways that can be captured through the valuation and lending process.
The RICS plans to use the findings of the research to review and enhance the guidance it provides to its professional members.
Elsewhere in the world of ESG this week, we have seen Grosvenor submit plans for a 2,200-home sustainable village in West Oxfordshire, the former chairman of Luton Town Football Club has launched a search for a funding partner to deliver a green data centre with a floating solar farm on a 143-acre site in Bedford, Gresham House has closed a £300m sustainable housing fund and contractors including Multiplex, Willmott Dixon and Morgan Sindall have joined forces to create Contractors Declare and set themselves a target of reaching net zero carbon emissions by 2050.
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