TECH ’ S BOOST TO CRE SUSTAINABILITY
Luminaries in commercial real estate discuss sustainability and how to galvanize the industry to address climate risk .
One of the biggest challenges of our age is climate risk — an increase in average temperature of only a few degrees will lead to a catastrophic cascade of effects , resulting in built-world destruction , extreme weather , and enormous loss of human life . It ’ s therefore imperative that every industry accept its responsibility to decrease its carbon footprints with a tremendous sense of urgency .
The real estate industry , in particular , is the single largest contributor to climate risk , consuming 40 percent of the world ’ s energy , emitting 30 percent of all greenhouse gases , and consuming 40 percent of all raw materials , according to Fifth Wall . Despite my 30-plus years in the real estate industry , discovering these current statistics was a complete shock for me , and I ’ d bet most people in the industry also aren ’ t aware of these alarming facts .
While galvanizing the commercial real estate industry to embrace climate risk and create healthier , safer , and cleaner working and living environments is an extraordinary task , early signs show that the industry is rising to the challenge . Today , we already have some of the world ’ s leading CRE companies devoted to making strong , measurable commitments toward sustainability .
To truly tackle climate risk , the industry requires the collective efforts of all players , from landlords to construction companies , technology startups to the venture firms funding new solutions , and consultants and industry associations .
For example , Cushman & Wakefield set ambitious science-based targets and has committed to partnering with its clients to achieve net-zero value chain emissions by 2050 . Likewise , Boston Properties recently committed to carbon neutral operations by 2025 , as well as establishing its Board of Directors Sustainability Committee . Tishman Speyer is aiming to reach net-zero across its entire portfolio by 2050 , according to ESG Today . Industry titans such as Oxford , Hudson Pacific , and Prologis have been tracking sustainability improvements and are continuing to commit toward more sustainable ways of developing and maintaining properties . The number of startups developing climate tech solutions is also encouraging .
However , to truly tackle climate risk , the industry requires the collective efforts of all players , from landlords to construction companies , technology startups to the venture firms funding new solutions , and consultants to industry associations . I ’ ve collected thoughts from a few of these leaders on the climate crisis within their organization . While we as an industry have a long , long way to go to lead the world in decarbonizing and getting to net-zero , I , for one , am encouraged by these early signs that CRE will indeed be an example for other businesses to follow in addressing the greatest threat to the world we have ever faced .
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COMMERCIAL INVESTMENT REAL ESTATE MAGAZINE FALL 2021