EDITOR’S COMMENT David Attenborough says it is a moment of crisis, Larry Fink says we are on the edge of a fundamental reshaping of finance because of it, former New York mayor Mike Bloomberg has revealed some ambitious promises to help it if he makes his way to the White House, and venture capitalist Fifth Wall has said it is the “biggest thing to happen to real estate since the invention of the internet”.
I know I used this column last week to talk about climate change and I know there will be some people who think, “Urgh, there she goes again,” but, and I make no apology for this, I don’t care. This is important stuff. As Fifth Wall’s Brendan Wallace says (and it is worth repeating), this is one of the biggest things to happen to real estate since the invention of the internet.
Climate change, as you will read on pages 19, 26, 32 and 38 of this week’s EG, is a business imperative and something that the real estate industry has largely caused. Real estate, as Fifth Wall says, is killing the climate, consuming 40% of global energy annually, emitting 30% of greenhouse gases and using 40% of raw materials globally. And when the public realises – which it will – that the industry is not taking decisive action, then, quite frankly, real estate is up a certain creek without a paddle.
Action is needed now. From everyone. Fink, Bloomberg and Wallace talk a good game. Fink says every company’s prospects for growth are inextricable from its ability to operate sustainably and serve its full set of stakeholders. He says Blackrock will put sustainability at the centre of its investment approach. It’s a great ambition, laid out in a very engaging letter, but we need to see this happen. Today.
Bloomberg wants to cut emissions across the US by 50% by 2030 and make it a requirement that by 2025 all new buildings meet zero-carbon emissions on site. They are great things to say when you are pitching to be the Democratic hopeful in the presidential race, but what about action now? If he wants all new buildings in 2025 to be zero-carbon, surely that requirement needs to already be in place?
So, yes, I “went on” about climate change here last week as well, but with good purpose. Change must happen. It must happen now. You know me well enough by now to know that I will keep going on, and that I do it because I have faith that you will take action, but, like all of us, need a little poke from time to time.
And, while I’m on a roll with a rant, what on earth is the BBC going on about? A mediocre “how to save the high street” documentary is aired one day (if you want informed and useful information about that, get in touch with our very own James Child), the next it runs an apparently data-led investigation saying empty rates relief should be scrapped because councils are losing out on £1bn of rates. The mind boggles. Scrapping empty rates relief would cripple landlords and ruin the high street.
The whole system is broken and needs fixing, with the can continually being kicked down the road. We have been promised that the burden of business rates on companies will be reduced. Will we see something worthwhile announced in the Budget on 11 March, or will that can be kicked again?
If you want to find out what government is doing for real estate and UK business, then EG has just the forum for you. We are partnering with the Department for International Trade at MIPIM to bring you a packed programme of events and invaluable opportunities to engage with decision-makers. Visit www.egi.co.uk/mipim2020 for details and keep your eyes on all our communication channels for more.
To send feedback, e-mail samantha.mcclary@egi.co.uk or tweet @samanthamcclary or @estatesgazette
