Why join GREEN

Why join GREEN

The sector is responsible for 30-40% of global carbon emissions. Environmental factors are becoming increasingly important in real estate. Real estate investors are increasingly required to demonstrate and report on the sustainability of their investments. These developments coupled with the physical risks associated with global warming mean that real estate portfolios are becoming increasingly vulnerable to climate change on a range of levels.

The real estate sector is not on track to reach Net Zero by 2050

Although real estate is relatively easier to decarbonize than many other industries, with limited impact on business models and many profitable or risk-reducing sustainability measures available, the sector is still not on track to reach Net Zero by 2050. While these factors contribute to the likelihood of successful investor engagement, the sector remains largely under-engaged. The reason for this slow progress is twofold:

• Lack of awareness: There is a lack of awareness of the before, and therefore, there is a need to understand and discuss climate risk management of real estate companies and funds.
• Systemic barriers: Despite willingness of many stakeholders within the industry to speed up decarbonization, there are systemic barriers which are preventing the industry to move forward. One of those barriers is a lack of carbon and energy performance transparency.

Transparency is key to getting the sector on track

We need a real estate market where carbon and energy data are shared and used like financial data to inform decision-making. This means having carbon and energy performance transparency and comparing it against clear targets that are broadly 1.5°C-aligned or better. This will enable the market to properly identify, price, and demand low-carbon buildings and portfolios. Investors can play an important role in delivering this through:

1. Stimulating demand for transparency
2. Driving better ratings tools
3. Facilitating data sharing
4. Advocating for policy