Real Estate Investor Magazine South Africa September 2014 | Page 17

UPFRONT

G

oing green has become an absolute
imperative for short-term and longterm success and survival in the
property industry. There can be no
doubt that with rapidly rising utility
costs and ever-more demanding
tenants, property owners who are not going green are
running a significant risk of being left behind with
buildings that are simply too expensive to operate and
therefore unattractive to tenants, buyers and investors.
To avoid the very real risk of obsolete buildings,
property owners, investors and developers need to
prioritise the sustainability of buildings, as a means to
future-proof their property investments.

Sustainability: “a business approach that creates longterm shareholder value by embracing opportunities and
managing risks derived from economic, environmental and
social developments” – UNEP
With approximately 70% of the world’s wealth bound
up in land and real estate, and buildings accounting
for approximately a third of the world’s energy
consumption, contributing significantly to global
greenhouse gas emissions, the sector is vital to stable,
sustainable investment and growth around the globe.
There is encouraging momentum in the global real
estate investment industry towards understanding
and acting on the risks and opportunities that arise
from climate change and sustainability. Sustainability
impacts are indeed increasingly being recognised,
acknowledged and built into value estimates by
property valuation professionals. Such practices have
become explicit obligations by those responsible for
setting valuation standards. The recent alterations to
the RICS Red Book (Royal Institute