COMMENT As the largest asset class in the world, real estate plays a key role in all our lives – it is where we live, sleep, work, learn, play and spend our leisure time. And while we have a strong connection with the buildings we use on a daily basis, it’s important that we remain conscious that real estate is the most polluting asset class in the world and, crucially, do something about it.
With the COP26 UN climate summit in Glasgow this November, not a week seems to go by without a big real estate developer, asset manager or investment firm making a carbon reduction pledge. While some real estate companies have been measuring and reducing their carbon emissions for many years, we need to ensure that as many property companies as possible in the UK and beyond follow suit. This is more than a box-ticking exercise for them – it creates quantifiable business value and accelerates positive impacts on the climate crisis and society.
Spreading the word
Unfortunately, in many cases – especially for smaller businesses – they don’t know what they need to do to make a difference and are often overwhelmed by the challenge. According to research released last month by the British Chambers of Commerce, nine out of 10 small businesses are not measuring their carbon emissions, while only one in seven has set reduction targets. The solution to this is demystifying the process of reducing carbon as well as working with and educating businesses.
We are doing our bit to spread the word. We’re currently in the midst of our Zero Carbon Tour, which will see us visit 30 UK towns and cities in Planet Mark’s fully electric-powered carbon battle bus. It started in Cambridge late last month and will finish in Glasgow for COP26. As part of the tour we aim to meet more than 10,000 businesses – including many property firms – which will be offered free practical net zero advice and carbon reduction workshops until the end of COP26.
A notable stop on the tour last week was The Hub at Prologis’s DIRFT logistics facility in Northamptonshire, where Simon Cox, Prologis’s head of sustainability, discussed the company’s journey to net zero. Prologis has been ahead of the sustainability game in the real estate industry for more than a decade and has been running carbon lifecycle assessments of its buildings since 2006.
Indeed, Prologis has just finished its first building in Apex Park in Daventry, which is its first truly net zero building, where the operational and embodied emissions have got to zero. This was achieved, in part, by the construction of a 2.6 megawatt PV peak, which allows the building to create more energy than it needs to operate.
Excitement and action
What we want to see is more than just one-off cuts and ad-hoc reporting on carbon reduction. We want to demonstrate that consistent year-on-year carbon reductions are achievable for businesses of all shapes and sizes. We can accelerate awareness, explain how to set net zero goals and excite the business community into action.
Applying this type of ongoing rigour to our carbon reduction drive is the best way for the UK – and the real estate sector as the biggest polluter – to play a real part in finally getting on top of the climate emergency.
Steve Malkin is chief executive of Planet Mark
