This CBRE Sustainability Index 2023 looks at how energy efficiency correlates with recent investment performance - in three sectors, office, retail and industrial. Perhaps the key finding is no surprise - “better energy efficiency appears to correspond with greater resilience to market downturns”. However there are interesting nuances - take for example, the differing performances within the retail sector, looking at retail warehouses and the high street. Or the limited differentiation between efficient and inefficient industrial assets. Naturally, both attributable to other, widely known, factors underpinning strong performance.
However there is no hiding away from the important transition to more energy efficient building stock across the real estate sectors- as a consequence of both regulatory and investment drivers. That said, unquestionably, the sectors are on a wider journey - not just in relation to energy efficiency, but wider decarbonisation, and a “net zero” goal.
It is in this context that the cross-practice Sustainability team at Forsters launch our “Sector Race to Net Zero” campaign. As we enter 2024, an Olympic year, we explore how the different sectors are faring on the “race” to Net Zero. What are the challenges to all sectors and how can the sectors overcome these? What are the challenges unique to the sectors? What can the sectors learn from one another? And underpinning all this, just what is the “Net Zero” finishing line, or does it go beyond that? As we explore in discussion with those real estate professionals at the very head of the “race”, these are just some of the questions on the table.
We launch the campaign, in conversation with the excellent Rob Wall, Assistant Director of Sustainability and Tax Policy at the British Property Federation. As we enter a general election year, Rob looks at the overall regulatory landscape, across the sectors- how can regulation support (and nudge) the sectors forward on this Net Zero pathway? Well worth a listen!
Better energy efficiency appears to correspond with greater resilience to market downturns.