To meet the net zero challenge, growing industry expertise needs to be translated into tangible steps to support a wider understanding around prioritising investment to decarbonise existing and new stock. Jordan Marshall explores ways real estate owners can pick up the pace
鈥淎ccording to estimates, it will take Europe 400 years to decarbonise all its existing building stock,鈥 explains Helena Rivers, dnet zero lead for 好色先生TVs + Places Europe at Aecom.
That startling statistic is mirrored in the UK. The UK Green 好色先生TV Council estimates that the country鈥檚 29 million homes must be retrofitted at a rate of 1.8 every minute to achieve net zero by 2050.
鈥淲e need to meet this challenge by picking up pace,鈥 says Rivers. 鈥淚nitiatives such as the Public Sector Decarbonisation Scheme are leading by example, accelerating improvements in building fabric and moving away from gas to electric heat sources 鈥 but that is just a tiny element of our building portfolio.鈥
鈥淎s for new-build, the healthcare sector is an exemplar of best practice,鈥 says Dave Cheshire, a director in Aecom鈥檚 sustainability team and specialist in new buildings and major refurbishments.
He adds: 鈥淲e are also seeing policy shifting in the right direction, which should accelerate the rate of change,鈥 referring to the London Plan鈥檚 whole lifecycle carbon assessments for referrable projects, and the proposed stringent LETI and RIBA targets.
Considering these examples, how can experts support other private and public building owners to decarbonise existing and new stock at the pace required?
鈥淭he language around net zero can be jargon-heavy and we know that those responsible for buildings can feel that the whole topic of sustainability is impenetrable, so they find it hard to know where to start,鈥 says Cheshire. 鈥淭he statistics show that there are a lot of people in this situation 鈥 and that鈥檚 understandable, as there are no straightforward answers to the net zero challenge.鈥
Rivers agrees, saying: 鈥淎s net zero specialists in the built environment, it鈥檚 our job to translate our expertise into tangible steps to support our clients through the journey so that they understand where best to prioritise investment to decarbonise existing and new stock at the pace required.鈥
Take a portfolio approach
鈥淕enerally speaking, the organisations who are making the most progress with decarbonising their existing building stock are those that take a portfolio-wide approach,鈥 says Rivers, citing the positive impacts of initiatives such as the Net-Zero Asset Owner Alliance, which requires members to reduce the overall emissions of their portfolios across all asset classes, from listed equities to real estate.
As asset owners recognise the benefits of adopting a more structured approach to estate decarbonisation, methodologies that provide strategic energy portfolio planning, design and delivery are in greater demand. Rivers shares two relevant examples from Aecom鈥檚 suite of decarbonisation tools.
For campus-level strategies, Aecom鈥檚 interactive Rosetta methodology is used to create dynamic decarbonisation roadmaps where constraints can be changed and analysed to realise the impact on operational and capital expenditure, phasing, resilience and operational carbon. For estates that are geographically distributed, Aecom鈥檚 OCEAN tool provides internal and external benchmarking and also integrates with Carbon Risk Real Estate Monitor (CRREM) in a secure environment.
鈥淏oth are being used by our clients to achieve their carbon and energy goals while maintaining building operations and staying in control of costs,鈥 she says.
Three steps for buildings owners to accelerate the journey to net zero |
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1 / Set operational and embodied carbon targets in the brief no matter what the project, whether it is new-build, refurbishment, retrofit, or replacement of kit |
2 / Proactively invest in your building management to ensure efficient operation from soft landings to long-term energy management. This should include strategies for lifecycle projects to shift to lower carbon solutions rather than like-for-like replacement |
3 / Seek collaboration on whole building carbon performance between landlord and tenant; embrace green leases and sharing of energy data. Collaboration is a critical element in achieving net zero |
Think beyond completion into operation
Cheshire and Rivers agree that developers, operators and occupiers need to think holistically about how commercial buildings are designed and operated.
鈥淭hink about how you鈥檙e going to use your building against how that building was originally designed,鈥 advises Cheshire. 鈥淚f you are in a large building but only have four employees who need to use it 24/7, then update the control strategy accordingly so that you are not heating, ventilating or cooling the entire building unnecessarily.鈥
He adds: 鈥淭he famous landlord/tenant divide is interesting from a carbon perspective as the landlord loses control over the energy demands of the building once the tenants move in.鈥
Some farsighted developers are crossing that divide and taking a new approach, particularly at the end of a lease when landlords take responsibility for the equipment in the tenant鈥檚 demise and work closely with the tenant鈥檚 fit鈥憃ut team to ensure that the design fits with existing net zero targets,鈥 he says.
Don鈥檛 delay carbon budgeting
Another tangible step is carbon budgeting. To meet the Paris Agreement target of limiting global temperature increase to 1.5潞C, every building in the world must operate at net zero carbon by 2050. Real estate owners need to start carbon budgeting right away, says Rivers.
鈥淭hese decarbonisation commitments are really challenging, so carbon budgeting is not something that can be put off,鈥 she says. 鈥淥rganisations that start to carbon budget now will give themselves a clear pathway to achieving their net zero commitments.鈥
There are financial implications of delayed action too. 鈥淚f organisations delay spending money on decarbonising their existing real estate until closer to their target dates, they risk a higher one-time capital spend later down the line,鈥 Rivers continues. There鈥檚 also the carbon cost to consider too as inaction will result in unnecessary emissions in the interim.
鈥淭o pick up the pace of change, our emphasis must be on action and implementation,鈥 she says.
Dave Cheshire is a director in the sustainability team at Aecom and provides advice on sustainable, circular and net zero buildings. He is the author of 好色先生TV Revolutions and The Handbook to 好色先生TV a Circular Economy, RIBA books that explain how to apply the circular economy to the built environment.
Helena Rivers is net zero lead for 好色先生TVs + Places Europe at Aecom, supporting both public and private sector clients on their journey to net zero, focused on their existing real estate assets. She is also vice president of the Institution of Mechanical of Engineers. In 2019 Helena was named as one of the most influential women in engineering by the Financial Times and in 2022 won the WICE award for digital innovation.