JWA: The Importance of Sustainability and Risk Management in Commercial Real Estate
CHAPTER 5: SUMMARY
JWA: The Importance of Sustainability and Risk Management in Commercial Real Estate
JWA provides an instructive roadmap on how organizations can improve their approach to sustainability and risk management in commercial real estate. The firm’s experience developing tailored ESG strategies sheds light on ways of improving efficiency, reducing environmental impact and increasing market value.
Key findings:
More than 50% of the buildings audited by JWA have a stranding year of 2024 or earlier. This illustrates the urgent need for the retrofit of these assets.
By leveraging operational efficiencies, JWA found that the stranding year can be moved 4 years ahead on average within the retail and office asset classes, improvements requiring capital expenditure, but not related to renewable energy have the potential to move the stranding year back 2035.
JWA found that warehousing and logistics have the biggest potential for operational improvements and, ultimately, decarbonization. There is an opportunity to save between 18% and 29% on operational improvements with limited upgrades related to controls.
