You should watch Adam McKay’s “Don’t Look Up,” which stars Meryl Streep, Leonardo DiCaprio, and Jennifer Lawrence. The film addresses an existential, though preventive, threat to our planet, yet no one appears to be concerned. While a metaphor, many people’s climate reality is reflected in this political composition. There is no shortage of misunderstanding among those who care about how to effectively address this imminent peril.
But what if the solution was there in front of our eyes? Take into account that the “Built World” accounts for 40% of global greenhouse gas emissions. In the perspective of what’s at risk, 40% is a significant amount. Look up, to the right, and to the left in this scenario, because the solution might be everywhere. The anticipated 97 billion square feet of commercial real estate is front and center. Despite this large footprint and climate effect, action has been impeded until recently due to a lack of knowledge and the real estate industry’s slow rate of technological adoption.
Misconceptions about the rewards on climate investments, as well as, frankly, information overload as the business becomes smarter about carbon neutrality, have added to this. Fortunately, proof of climate tech’s return on investment for both purchasers and investors is emerging – evidence that might be critical in ushering the “Built World” into a carbon-neutral age.
Green is the same as green. You have to spend money to make money, as the adage goes. And, according to Jones Lang LaSalle (JLL), the way to decreasing real estate’s climate footprint begins with embracing technology that enable green certifications like as LEED and BREEAM. Green certifications result in a 6% rent premium for commercial real estate and an 8% sales premium for residential real estate, according to JLL’s analysis. However, acknowledging climate change and understanding the usefulness of climate technology is only the beginning. Knowing where to begin has its own set of difficulties.
To achieve this ROI, property owners have incorporated a variety of cost-cutting technology, including efficient lighting, redesigned cooling and heating systems, and energy-saving systems. After all, in order to receive a LEED certification, a building must achieve a performance score based on metrics from numerous areas such as energy, water, waste, transportation, and quality. To meet this need, technology has emerged across the value chain of planning, constructing, and retrofitting aspects of the building life cycle to enhance metrics across LEED’s goal categories. Specific considerations regarding investments at each phase are required to unpack the possibility.
