Properties go green – The Portugal News

Sustainability is an increasingly important factor in the real estate market, with 83% of investors predicting an increase in tenant demand for sustainable buildings.

These results are in line with two recent CBRE environmental, social and governance (ESG) studies which also found that over 54% of investors want to change their portfolio strategy in favor of ESG.

In the two reports in question, the “ESG Guide for occupants: Environmental, social and governance agenda in the occupation of a property”, dedicated to occupants, and the “ESG & Real estate: 10 key facts that investors must knowledge ”, aimed at investors, the real estate consultant identifies some important ESG considerations for real estate investors, as well as the latest trends, innovations and regulatory requirements of the sector.

“ESG is playing a bigger role in how businesses operate, investors are starting to incorporate ESG considerations into all phases of the property lifecycle, from due diligence to acquisitions and leasing to asset management.” , CBRE told Idealista.

According to the consulting firm, “there is increasing pressure on owners, operators and occupants of buildings to reduce their carbon footprint.” “’Green leases’ between landlords and tenants to achieve certain environmental goals will become a more common tool for investors to monitor and improve the environmental performance of their real estate assets. They add, noting that “the gap between ‘green premium’ and ‘brown discount’ in leasing is widening”.

CBRE also considers that “there is sufficient evidence that green buildings generate higher returns than comparable non-green properties, indicating considerable potential for a ‘brown shed’ in properties with relatively lower environmental performance.”

Reduce carbon footprint

Noting that construction industries are responsible for nearly 40 percent of global annual carbon emissions and that cement and steel production each account for around 5 percent, CBRE concludes that “viable alternatives such as wood are more ecological, due to carbon sequestration ”. “Timber construction costs vary depending on the type of property, but, on average, they can be equal to or less than construction with conventional materials. Timber also offers greater cost stability and can significantly reduce construction time through prefabrication, ”the paper reads.

Emphasis is also placed on the fact that technology plays “a fundamental role in creating significant and lasting changes in the practices and portfolios of investors, improving the collection and reporting of ESG data”.

For Cristina Arouca, Research Director at CBRE, “The insights drawn from these studies will help corporate real estate executives discover opportunities to move towards a more sustainable future. These opportunities exist at every stage of a property’s life and can only be optimally achieved when coordinated across a wide range of all stakeholders, ”she concludes.

According to the World Green Building Council, buildings are currently responsible for 39% of global energy-related carbon emissions: 28% of the energy resulting from the use of the building (heating, cooling and electricity) and the 11% remainder from materials and construction. .

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