Navigating Real Estate Sustainability Amidst Rising Energy Costs
The real estate industry is one of the most important sectors in combatting climate change. With volatile energy markets, driving operational cost pressure the need to enhance energy efficiency and embrace sustainable practices has never been more urgent.
According to Reuters, from fires and heat waves to hurricanes and floods, extreme weather events have caused $313 billion in global economic losses in 2022 alone. Commercial real estate has been at the center of various geopolitical and climate change-induced recessions, impacting economic activity, property prices, liquidity dynamics, operational costs and property insurance costs. Utility bills, for example, make up 22.5% of the total service charge in the UK according to a research by Savills. Real estate managers are increasingly recognizing the potential impact of climate change on asset performance and portfolio valuation and have started to acknowledge climate risk as a major investment consideration.
The challenge lies in balancing the economic viability of projects with the imperative of sustainability. In 2022, European governments have collectively allocated 500 billion euros to alleviate the repercussions of the rising energy costs. This includes anti-crisis measures, financial relief, and loans to energy companies. But this is now about more than just stop-gap measures, it is also about making buildings future-proof. The focus now is on incorporating energy-efficient technologies and design principles right from a project's inception as well as when retrofitting existing buildings. The mindset around sustainability needs to evolve and any investment in this space should touch on 3 fundamental pillars:
De-risking the portfolio or asset to ensure its long-term resilience and stability of the investment.
Clearing regulatory hurdles to ensure compliance with government and corporate targets.
Increasing the efficiency to boost Net Operating Income.
This is where BuildingMinds comes in. BuildingMinds fosters innovative technology and AI-driven tools to create a tailored and energy-efficient solution that redefines real estate sustainability. Our platform monitors 7.7. megatons of CO2 emissions in more than 22.000 buildings across 100 countries by facilitating and monitoring the effectiveness of sustainable practices aligned with regulations, while also empowering stakeholders to drive the performance and value of their portfolios.
For real estate managers, BuildingMinds serves as a strategic partner in navigating the energy crisis. The surge in energy prices necessitates a swift integration of energy-efficient technologies and sustainable design principles into ongoing and future projects.
Are you interested in learning more about BuildingMinds and its impactful role in driving ESG sustainability? Reach out to our experts and request a meeting today.
