By Chris Dietz, President of Global Operations, Leading Real Estate Companies of the World
Environmental issues present some of the greatest challenges for international communities. From global warming, deforestation and water scarcity, the scale of the impact is undeniable. Under the 2015 Paris Agreement, 197 countries agreed to try to limit global temperature rises to 1.5C by 2100.
To achieve this, scientists said that net zero emissions should be reached by 2050. However, the UN now wants countries to bring forward their net zero targets by a decade to avoid what it called “the growing climate disaster”.
I’ve always believed the real estate industry has a key role to play in highlighting these environmental risk factors, with buildings responsible for nearly 40% of global GHG emissions. Approximately 11 percent of these emissions are generated by manufacturing materials used in buildings (including steel and cement), while the rest is emitted from buildings themselves and by generating the energy that powers buildings which is why becoming more sustainable can make a huge difference.
Alongside the growth of the industry over the past two decades, we have seen a focus on the importance of sustainability, initially looking at governance and environmental issues, and social impact gaining ground in recent years, now commonly referred to as environmental, Social and Governance (ESG).
The real estate industry is often accused of falling short in its sustainability efforts. However, in comparison to previous years, it has made significant strides in embracing environmentally friendly solutions across the board. While the pace of change may not satisfy everyone’s expectations, it is crucial to acknowledge earnest efforts being made across the globe, but the journey towards sustainability takes time and commitment.
Developers and property managers now face the challenge of keeping up with ever-evolving laws, regulations, and certification requirements that govern green building practices. Their commitment to staying informed and meeting these standards demonstrates a genuine desire to effect positive change. The quest for certifications and other recognitions further illustrates the industry’s dedication to sustainable development.
Today’s industry has a range of standards and certification systems at its disposal to evaluate and promote green building practices that did not exist before. These include LEED (Leadership in Energy and Environmental Design), BREEAM (Building Research Establishment Environmental Assessment Method), ENERGY STAR Certification, WELL Certification, Fitwel Certification, Living Building Challenge, and SKA Rating System. Each of these systems offers a comprehensive assessment of various sustainability criteria, such as energy efficiency, environmental impact, and occupant well-being.
As ESG building standards and regulations continue to evolve and improve, so must the sustainability training and education for developers, builders, agents, and buyers. Compared to previous years, there is now much greater awareness and understanding of basic sustainability concepts and industry-specific green practices. While there is still room for growth and learning, the progress made thus far is commendable.
Some specific examples of sustainable practices and technologies being adopted within the real estate industry include electric smart glass, solar tiles, eco-friendly heating solutions, and stormwater management strategies These practices are just a few notable advancements that significantly contribute to sustainability efforts and underscore the industry’s ongoing commitment to environmental responsibility and innovation.
However, it is crucial to remember that change cannot happen overnight. Transitioning towards sustainability requires careful planning, research, and investment—all of which take time to materialize.
The real estate industry is actively striving for sustainability, despite the sometimes-negative portrayal in the media. With evolving standards, certifications, and innovative technologies, progress is being made. Instead of focusing solely on perceived shortcomings, let us recognize the industry’s commitment and encourage further innovation. The global property sector, like any other, is embarking on a complex journey towards a greener future.
About Leading Real Estate Companies of the World®
With offices in London, Singapore and Chicago, Leading Real Estate Companies of the World® (www.LeadingRE.com) is a global network of top independent real estate firms, with 550 companies and 138,000 sales associates in over 70 countries including the UK. LeadingRE supports its members with powerful connections to other market leaders and access to innovative, performance-driven programs. Its online learning platform, LeadingRE Institute, was named to Training magazine’s Top 10 Hall of Fame. LeadingRE also operates RELO Direct®, Inc. (RELODirect.com), its full-service relocation management company providing mobility services for corporate clients worldwide; and Luxury Portfolio International® (LuxuryPortfolio.com), its luxury marketing division, which markets approximately 50,000 luxury homes annually. LeadingRE is also active in commercial real estate, with 200 firms in over 20 countries specializing in the commercial arena. The firm also has an international project marketing program, Destinations by LeadingRE.
