June 3, 2021
Net Zero refers to the balance between the amount of greenhouse gas produced and the amount removed from the atmosphere and is increasingly a metric used by investors to assess vital ESG standings of investments. Today, real estate is responsible for almost 40% of energy and process-related emissions – a fact not unnoticed by investors who are increasingly calling for reductions.
In new developments these standards are readily met. 70-80% of buildings that will be in-use in 2050 have already been built today. To tackle this, IPSX and Carbon Intelligence have published a 7 point-plan for asset owners to consider as they look to make their assets work harder for investors and improve their carbon emissions.
Seven key steps to align existing building stock with net zero requirements:
1. Optimise building operation (commercial buildings are complex to operate and utilise automation systems. However, automation only works efficiently when the underlying control logic has been fine-tuned). Optimisation will help bridge the performance gap between building design and operation.
2. Upgrade plant and systems to benefit from efficiency of new technology. It is important to consider whether the operational energy and carbon savings outweigh the associated embodied carbon with these retrofit projects over its design life.
3. Maximise passive design and natural ventilation where possible.
4. Eliminate fossil fuels such as gas through replacement with heat pumps or connecting to local low carbon heat networks.
5. Upgrade building fabric, glazing and airtightness in line with individual components’ life cycles.
6. Install on-site renewable energy where possible and source your energy from renewable sources.
7. Have a strong occupier engagement programme
David Delaney, Group Chief Executive of IPSX commented; “We are pleased to work with Carbon Intelligence to help support the publication of this new report. We see it as important to help real estate owners and our issuers optimise the efficiency of their buildings and significantly reduce the amount of Co2 that buildings produce. This cannot be tackled without the involvement of asset owners and investors”.
Oliver Light, Commercial Director of Real Estate, Carbon Intelligence says;
“As we focus on the transition of the real estate market to be Net Zero, we are pleased to work with IPSX to showcase the importance of asset owners adopting a clear Net Zero strategy. I hope our 7-point-plan will serve as a blueprint for the decarbonisation of a great number of commercial properties in the UK."
IPSX’s relationship with Carbon Intelligence sees assets admitted on the International Property Stock Exchange benefit from clear guidelines on how they should be reporting and managing both embedded and operating carbon emissions.
IPSX Wholesale is a market exclusively for institutional and professional investors.