The built environment must accelerate decarbonization to support the net-zero goal

While the built environment is going in the right direction, it is still not moving fast enough to decarbonize building stock, according to the latest annual sustainability report produced by RICS and World Built Environment Forum. 

The 2021 report, which collates sentiment from over 4000 contributors to the RICS Global Commercial Property Monitor and the RICS Global Construction Monitor, shows a greater appetite for greener buildings and more sustainable projects but not at a fast enough pace to help reach global net-zero targets. 

In the commercial sector in 2021, over 40 percent of respondents identify client, stakeholder, and customer demand as one of the main driving forces behind the Environmental, Social, and Governance (ESG) investment boom. Indeed, a net balance of +55 percent more respondents to the survey pointed to an increase in occupier and investor appetite for green and sustainable buildings in the past year, with only 6 percent of respondents reporting a fall in demand for such assets despite the challenges posed by Covid.  

Looking at the construction sector, two-thirds of respondents say that the top priority for the sector to become more sustainable is through minimizing waste, and around half of respondents see more resilient construction products, materials, and components as a principal concern. Despite 55 percent of respondents reporting an increase in demand for recycled and reusable materials in the past year, 43 percent have yet to see a change. 

“As countries strive to achieve net-zero, the rising awareness in how integral ESG goals are to our future is coming through in our survey, as more occupiers and investors look for buildings that contribute to reducing their carbon footprint. The data also shows the impact this demand is having on rents and lease terms with encouraging statistics coming through about how green buildings are achieving higher returns,” Simon Rubinsohn, RICS Chief Economist, commented.

(WBJ)