- Real estate has a key role to play in the race to net zero.
- Only a minority of real-estate organizations have a sustainability action plan.
- JLL and the World Economic Forum's 10 Green Building Principles establish a sustainability framework for the industry.
Net zero commitments have surged this year as cities, investors, businesses and educational institutions signal their intent to help create a more sustainable future. This shared ambition, boosted by the UN’s Race to Zero campaign, indicates that we are moving in the right direction. But we need more. Next year must be when we turn talk into tangible action plans.
Real estate and the built environment – responsible for close to 40% of global carbon emissions – have a significant role to play. JLL’s Decarbonising the Built Environment report found that only 18% of organizations have an action plan for their real estate portfolio. While much attention is focused on new, state-of-the-art buildings that achieve the highest sustainability certifications, 70% of buildings that exist today will still be here in 2050, highlighting the need to repurpose spaces, retrofit older buildings and refurbish in line with circular economy principles.
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Companies needed a roadmap to get their real estate to net zero carbon emissions. Now they have one. To guide real estate investors and occupiers on implementing and achieving their net zero carbon targets across their portfolios, JLL has partnered with the World Economic Forum to establish 10 Green Building Principles. It also complements existing initiatives, for example by explaining what companies need to do to deliver against the WorldGBC Net Zero Carbon Buildings Commitment.
The 10 Green Building Principles cover five key areas:
1. Adopting a data-driven approach
One of the first steps is knowing exactly what needs to be addressed. Businesses need to calculate a robust carbon footprint of their portfolios in the most recent representative year to inform targets.
2. Setting goals along the journey
The scale of the challenge facing us in the coming decades is daunting. It’s important that companies set a target year for achieving net-zero carbon as part of their longer-term strategy. This needs to be no later than 2050, though we’re seeing many companies and governments aim for sooner. Our new principles recommend interim targets for reducing at least 50% of these emissions by 2030.
3. Tackling embodied carbon
Businesses need to maximize emissions reductions for all new developments and major refurbishments in the pipeline to ensure delivery of net-zero carbon by their final target year.
Measuring and recording the embodied carbon emissions associated with the materials and construction processes for new developments and major refurbishments is essential. The World Green Building Council estimates it will account for half of the entire carbon footprint of new construction between now and 2050. Reducing it through measures such as low-carbon materials, modular construction and implementing a circular economy approach will be a critical factor in real estate’s ability to reach net zero.
4. Focusing on clean energy
Reducing the energy buildings consume is central to a net zero future. This means businesses need to drive energy optimization across both existing assets and new developments. They also need to maximize the supply of on-site renewable energy, and make sure all off-site energy is procured from renewable-backed sources where available.
Any residual emissions need to be compensated for by purchasing high-quality carbon offsets. A lot of guidance has come out in the past year, but there’s more to come, especially through the SBTi’s Net-Zero Standard.
5. Collaborating widely
Reaching net-zero carbon emissions by 2050 is going to require teamwork at nearly every stage. Our principles call for engaging with stakeholders in the value chain to reduce Scope 3 emissions (indirect emissions in the wider value chain). Businesses also need to develop more partnerships to better identify opportunities and equitably share the costs and benefits of interventions.
What is the World Economic Forum doing to promote sustainable urban development?
Cities are responsible for 75% of global greenhouse gas emissions and are home to over half of the world’s population—a number that will grow to two-thirds by 2050. By going greener, cities could contribute more than half of the emissions cuts needed to keep global warming to less than 2°c, which would be in line with the Paris Agreement.
To achieve net-zero urban emissions by 2050, the World Economic Forum is partnering with other stakeholders to drive various initiatives to promote sustainable urban development. Here are just a few:
- The Coalition for Urban Transitions is the first major global initiative aimed at helping countries achieve inclusive, sustainable economic growth through better urban policies. Consisting of 50 partner organizations, the coalition brings national governments into the process of decarbonizing our cities by connecting them with city leaders. Read our impact story to learn how this coalition is making a difference.
- The Zero Carbon Buildings for All Initiative pledges to fully decarbonize all new buildings by 2030 and all existing buildings by 2050.
- The Systemic Efficiency project arose from the Zero Carbon Buildings for All Initiative. Jointly led by the Forum’s Platform for Shaping the Future of Energy and Materials and the Platform for Shaping the Future of Cities, Infrastructure and Urban Services, the Systemic Efficiency project brings global policy-makers, financiers and the private sector together to create systemic change in the urban ecosystem by optimizing energy efficiency in buildings, transport and various industries.
To learn more about our initiatives to promote zero-carbon cities and to see how you can be part of our efforts to facilitate urban transformation, reach out to us here.
There is no time to waste. Investors and occupiers need to deliver against the commitments they have boldly laid out in the last year. With the 10 Green Principles framework, it’s no longer a question of how can we reach net zero, but how can we push ourselves to get there faster. Let’s build on the momentum and make 2022 the year that real estate turns commitments into action.