The investment case for net zero buildings
While buildings have a major part to play in supporting the transition to a low-carbon economy and society, many continue to operate at standards that are not consistent with meeting the objectives of the Paris Agreement on climate change. The reductions required by this agreement will only be achieved if the built environment plays a major part in supporting the transition to a low-carbon economy.
From an investment viewpoint, we believe those portfolios positioning towards the highest net zero standards will see financial benefits, as well as a reduction in risk.
Our net zero buildings article
While some energy reduction initiatives can be achieved at minimal cost, specifying new buildings or refitting existing buildings to net zero standards comes with an upfront capital cost.
Key highlights
Transitioning towards a net zero economy will require a major shift in the way buildings are constructed and operated.
That means deriving roadmaps for each asset to reflect their physical characteristics and current usage.
Central to ensuring the path to net zero is achieved is the relationship between the asset owner and occupier.
The introduction of net zero standards
Key to achieving net zero standards for buildings are embedding low levels of energy consumption and employing the use of low-carbon technologies. These standards typically involve a hierarchy of steps.
How will achieving net zero in buildings work in practice?
Central to this is the relationship between the asset owner and occupier. For many occupiers, inhabiting a sustainable building will move from being a ‘nice-to-have’ to a ’must-have’.
Case studies
Summary
We believe those portfolios that position towards the highest net zero standards will see benefits to both occupiers and investors.
In short, we believe there are early mover advantages to positioning portfolios to capture this performance and to future-proof assets for a changing world.
