Three-quarters of real estate developers, owners and asset managers around the world are planning to invest in climate tech over the next five years, according to the finding of a new report by CRETech.
Its survey, which represents owners of 7.9bn sq ft of commercial real estate and was compiled in partnership with Urban Land Institute and Fifth Wall, found that collectively, respondents had already invested $172.5m (£122m) over the past year in climate technologies, with 75% expecting to increase that investment.
Over the next five years, 38% said they planned to increase investments in carbon offsets, and 54% in renewable energy certificates.
All of the survey respondents agreed that the real estate industry had a part of play in climate change, yet 2% of survey respondents thought that the industry was doing enough to address climate change. The majority (67%) said that while progress had been made, much more work was needed to be done.
The majority of action taken by real estate companies against climate change has been the deployment of technologies across their portfolios, with 75% of respondents taking this action followed by the certification of buildings with LEEDS, WELL or similar accreditations (63%).
Less than half (40%) were making direct investments in climate technologies, with 64% saying that a lack of clear return on investment was a hindering their spending into climate tech. Around half said that high upfront costs and prioritisation of other interests were a barrier to investment. Some 31% were also concerned that the technology would become obsolete.
For those that were investing in climate tech directly, 64% were doing it to gain a competitive edge and 56% because it lowered operating costs. More than half said they felt a moral sense of responsibility to investment.
Demand from tenants (39%), regulators (35%), employees (31%) and lenders (12%), was not yet having a significant influence on decision-making, according to the report.
“The results of this survey provide us with the insights needed to drive actionable change and ensure that the real estate industry can achieve widespread carbon reductions through investments in new and evolving climate technologies,” said CREtech Climate chief executive Michael Beckerman.
“As we embark on this journey to decarbonize the built environment, it is important to emphasise that emerging climate technologies will be the lifeline to protecting and enhancing our environment for future generations.”
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