COMMENT Despite recent moves by the government, which risk dampening ambitions for sustainable development, I find myself more hopeful than ever when it comes to net zero. Every day I see first-hand the incredible passion, creativity and commitment that is present in our regions.
Recognising that at its core, sustainability is about creating positive futures for everyone, we urgently need to realise the huge potential that exists within the built environment across the country and the critical role it has to play in delivering net zero.
Pride in our cities
I do not think we should underestimate the level of pride that exists in our regions and cities. Mayors like Bristol’s Marvin Rees and Salford’s Paul Dennett, and council chief executives such as Bradford’s Kersten England, Salford’s Tom Stannard and Stockport’s Caroline Simpson are pushing for change and leveraging their procurement power to advance the sustainability and just transition agendas.
Local communities are demanding more and are increasingly willing to engage to drive meaningful local action. When taken together, these factors have limitless potential to transform our built environment and bring emissions down.
Civic institutions also have an important role to play, not only in supporting the transition in their own operations and estate management, but in the case of universities – often a great source of regional identity and pride – in their research, outreach and engagement with local stakeholders and communities.
I am based in Birmingham and a year after the first ever carbon-neutral Commonwealth Games were held in the city, the socio-economic benefits for the region have been valued at over £440m, with the £60m underspend remaining in the region for legacy programmes.
With findings by the Institute for Public Policy Research showing that community projects set up with the primary aim of reducing poverty and improving people’s day-to-day lives also act as catalysts for reducing emissions and restoring nature, Birmingham is an important example of what is possible when we support and invest in our regions.
Regional investment
Commercial buildings are an important piece of the net-zero puzzle and with occupiers increasingly asking the right questions, investors are going beyond the capital to transform their portfolios and meet ESG expectations and reporting requirements.
CBRE Investment Management, Federated Hermes and MEPC have long been investing in regional assets. Regionally based firms such as Bruntwood SciTech have been working to bring sustainable places and spaces to cities. Grosvenor’s Toronto Square offices in Leeds became the first building outside London to receive a NABERS UK Rating. These are just a few good examples.
Salford also deserves a special mention, with developments such as the English Cities Fund’s Eden development and nine-storey Greenhaus passivhaus leading the way.
How we will retrofit the £93bn of commercial property identified by Siemens Financial in June 2023 as being at risk of becoming stranded by MEES regulation is a challenge and one that is equally true for the residential sector.
Combined authorities and city regions such as GMCA and WMCA are now working to create the markets, solutions and workforce. Organisations such as the Green Finance Institute and other financial institutions are looking to unlock barriers to transition.
Going hyper-local
While the 15-minute city concept is a source of contention, it makes sense for buildings to be considered and managed with an understanding of the communities in which they are located.
It is up to planners, landlords, investors and communities to establish how buildings could or should be used, and then curating this to positively influence the lives of those using the spaces.
In practice, we are seeing more investors looking at the situational data for their buildings in the regions and wanting to shape their strategies for occupation and engagement based upon local needs in ever greater granularity. If nothing else, the climate crisis is provoking a unique opportunity and impetus to work hyper locally within a city, with a view to supporting wider regional success.
If sustainability is about creating positive futures for all, and if the UK is to achieve its net-zero targets, then our regional centres must be included in plans. While further investment and collaboration is required, the appetite and commitment for change in our regions is unmatched and the opportunities for investors abundant. We need to remain bullish in our expectations of change for all – the only question is, what are we waiting for?
Lydia Dutton is director, regional sustainability, at CBRE
