31/08/2022
The climate impact of the real estate industry and why should we take action.
According to sustainlab.co; the real estate industry currently contributes to almost 40% of global greenhouse gas emissions: 28% from operational emissions (i.e. energy needed to heat, cool, and power buildings) and 11% are generated from materials and construction. From the construction of new properties to the upkeep and performance of existing ones, there are high levels of energy consumption and a strong reliance on fossil fuels in the real estate industry.
Recent IPCC reports have already confirmed that extreme, catastrophic weather conditions due to our changing climate are going to happen way sooner than you’d expect, which also means rapidly increasing physical threats for the real estate industry!
Interest in sustainability has also been rapidly increasing among investors, owners, and tenants. Investors, policymakers, and the public are also increasingly calling for changes to be made in real estate companies’ business models.
Upcoming legislations such as the EU taxonomy and the SFDR will contribute to increasing demands for transparency in non-financial reporting and higher levels of accountability, on top of proposals for mandatory non-financial due diligences. Planning ahead and staying ahead of the game (i.e. the eventual influx of additional reporting legislation in the future) can only be rewarding. Fast, fitting and data-driven actions today = clear advantages tomorrow.
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