Leading Chief Executive Officers (CEOs) have pledged today to reduce their real estate emissions by 50 per cent by 2030 and reach net-zero carbon not later than 2050.
With buildings contributing 38 per cent of all energy-related greenhouse gas emissions, leaders across all industries have a critical role to play in lowering their global real estate emissions.
“While real estate represents nearly 40% of all energy-related GHG emissions, the sector is frequently an afterthought when it comes to an organization’s decarbonization and sustainability strategies,” Head of Financial and Monetary Systems, World Economic Forum, Matthew Blake, was quoted to have said in a statement yesterday.
“Leaders across all industries have a responsibility to take action on their real estate GHG emissions to ensure progress in the fight against climate change,” he added.
It revealed companies that pledged to halve their buildings-related emissions by 2030 and reach net-zero building emissions by 2050 to include: Avison Young, Edge, GPFI Group, Ivanhoé Cambridge, JLL, Majid Al Futtaim Properties, Schneider Electric and Signify.
These firms would meet these targets by implementing the Forum’s Green Buildings Principles.
“Released last year, the Green Building Principles: The Action Plan for Net-Zero Carbon Buildings provides a clear sequence of steps to deliver net-zero carbon real estate portfolios: Calculate a robust carbon footprint of your portfolio in the most recent representative year to inform targets; set a target year for achieving net-zero carbon, by 2050 at the latest, and an interim target for reducing at least 50 per cent of these emissions by 2030.
“Measure and record embodied carbon of new developments and major refurbishments; maximise emissions reductions for all new developments and major refurbishments in the pipeline to ensure delivery of net-zero carbon (operational and embodied) by selected final target year, and drive energy optimisation across both existing assets and new developments.”
Some others include to maximise supply of on-site renewable energy, ensure 100 per cent off-site energy was procured from renewable-backed sources, where available; engage with stakeholders with whom you have influence in your value chain to reduce scope three emissions and compensate for any residual emissions by purchasing high-quality carbon offsets.
Developed in collaboration with JLL, the World Green Building Council and the Forum’s Real Estate community, the Green Building Principles could be formally adopted by firms and include an Action Plan detailing implementation.
The Action Plan provides globally applicable guidance on best practices to implement the principles for every stakeholder, from owners to occupiers to investors. Signatories will report progress annually as part of their public sustainability reporting and participate in a Practitioners Group to identify solutions around implementation.
Signatories shared why they have pledged the Principles:
“More sustainable real estate is essential,” said Coen van Oostrom, Founder and Chief Executive Officer, Edge. “The Principles offer a clear roadmap to help all building stakeholders tackle their emissions and deliver better buildings. The world deserves better buildings and it is entirely possible to significantly reduce the impact of both existing and new buildings.”
“It’s imperative that we address real estate related emissions,”, Global Chief Executive Officer and President, JLL, Christian Ulbrich said.
“Getting started is often the hardest part and the Principles offer a simple set of steps to do so. We believe it is easier to get to net zero in the built environment than for many companies to get to net zero in their core businesses and the business case is there to support action.”
