Fewer than one in 10 portfolios will be net zero by 2050, say asset managers

Fewer than 7% of European real estate portfolios will be net zero by 2050. A survey by ESG data firm Deepki also revealed that just 5% of asset managers believe that 81-99% of portfolios will meet the 2030 target of a 50% reduction in emissions. Deepki surveyed 250 commercial real estate asset managers in the UK, Germany, France, Spain and Italy. Some 70% of respondents work for an institution with more than £500m of assets under management, and 30% for institutions with up to £500,000 AUM. The findings show the sector still has a long way to go to meet its targets. Some 40% of those surveyed expected that between 41% and 60% of their commercial real estate assets would reduce carbon emissions by 2030. And 22% said emissions would be reduced for between 61% and 80% of their commercial property investments by the deadline. Nine in 10 survey participants said emissions would have halved in less than 20% of their commercial real estate assets by 2030. There is more optimism around hitting 2050’s net zero target. Some 22% of asset managers expect that between 61% and 80% of their commercial real estate portfolios will be net zero by the deadline. Another 35% say between 41% and 60% will have met the target. But 29% said that between 21% and 40% of their property portfolios will be net zero by 2050 and 4% said that only up to 20% of their investments will hit the target. Vincent Bryant, chief executive and co-founder of Deepki, said: “We are in the midst of a climate emergency and the real estate sector is responsible for 37% of global CO₂ emissions. The pressure is on commercial real estate managers across Europe to reduce carbon emissions across their portfolios. It is essential that asset managers identify the source of their emissions, and demonstrate that they are taking effective action to meet the 2030 and 2050 targets.” To send feedback, e-mail piers.wehner@eg.co.uk or tweet @PiersWehner or @EGPropertyNews Photo © FredFroese/iStock