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

Inside the foyer at 245 Hammersmith Road

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.

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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.

Inside glass offices

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.

Skyscrapers in New York

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

  • Steps to a net zero office

    Inside view of 1 Victoria Street, Windsor

    Steps to a net zero office

    Analysis from the London Energy Transformation Initiative (LETI) illustrates a series of steps available to reduce Energy Use Intensity (EUI) in line with the objective of meeting net zero standards.

    The steps that are available vary according to the specifics of the building – whether it is a new build or a refurbishment, its age and the type of building.

  • Engaging with the management of Marston’s PLC

    People working at 245 Hammersmith Road

    Engaging with the management of Marston’s PLC

    As part of our platform wide ESG occupier engagement initiative, we held a series of discussions with members of Marston’s senior management team over the last 12 months. This has already led to Marston’s committing to provide automated utilities data across the long-lease assets in our portfolios (49 pubs) as well as their HQ.

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.

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Exterior view of 245 Hammersmith Road

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