New York– Top CEOs pledge to reduce their real estate emissions by 50% by 2030 and reach net-zero carbon not later than 2050.
With buildings contributing 38% of all energy-related greenhouse gas emissions, leaders in all industries have an important role to play in lowering their global real estate emissions.
“While real estate represents nearly 40% of all energy-related GHG emissions, the sector is always on the mind when it comes to decarbonization and organizational sustainability strategies,” said Matthew Blake, Head of Financial and Monetary Systems, World Economic Forum. “Leaders in all industries have a responsibility to act on their real estate GHG emissions to ensure progress in the fight against climate change.”
The following companies have pledged to halve their building-related emissions by 2030 and reach net-zero building emissions by 2050:
· Avison Young
· Edge
· GPFI Group
Ivanhoe Cambridge
· JLL
· Majid Al Futtaim Properties
· Schneider Electric
· Explanation
These companies will achieve these targets by implementing the Forum’s Green Buildings Principles. Released last year, the Green Building Principles: An Action Plan for Net-Zero Carbon Buildings provides a clear sequence of steps to deliver net-zero carbon real estate portfolios:
1. Calculate a sustainable carbon footprint of your portfolio in the most recent representative year to determine targets
2. Set a target year for achieving net-zero carbon, at the latest by 2050, and an interim target to reduce at least 50% of these emissions by 2030
3. Measure and record the carbon footprint of new developments and major renovations
4. Maximize emissions reductions for all new developments and major pipeline repairs to ensure delivery of net-zero carbon (operational and embodied) by the selected final target year
5. Drive energy optimization in both properties and new developments
6. Maximize the supply of on-site renewable energy
7. Ensure that 100% off-site energy is obtained from renewable-backed sources, if available
8. Engage with stakeholders where you have influence in your value chain to reduce the scope of the 3 emissions
9. Offsetting any remaining emissions by purchasing high-quality carbon offsets
10. Engage with stakeholders to identify joint efforts and equitable sharing of costs and benefits of interventions
Developed in collaboration with JLL, the World Green Building Council and the Forum’s Real Estate community, the Green Building Principles can be formally adopted by companies and include an Action Plan detailing implementation.
The Action Plan provides globally applicable guidance on best practices to implement the principles for every stakeholder, from owners to occupiers to investors. Signatories will report progress annually as part of their public sustainability reporting and participate in the Practitioners Group to identify implementation solutions.
The signatories shared why they pledged to the Principles:
“More sustainable real estate is essential,” said Coen van Oostrom, Founder and Chief Executive Officer, Edge. “The Principles offer a clear road map to help all building stakeholders tackle their emissions and deliver better buildings. The world deserves better buildings and it is entirely possible to reduce the impact of current and new buildings.
“We need to talk about emissions related to real estate,” said Christian Ulbrich, Global Chief Executive Officer and President, JLL. “Getting started is often the hardest part and the Principles offer a simple set of steps to do this. We believe it is easier to get to net zero in the built environment than many companies get to net zero in their core businesses and the business case is there to support action. “
“The emphasis on bringing together the world’s leading businesses and public figures to collectively address issues such as climate change and drive social change is central to what Avison stands for Young. ESG considerations across the board must be addressed in the real estate sector – buildings have a huge impact on our daily lives and on the planet,” said Mark E. Rose, Chairman and CEO, Avison Young. “We are happy to adopt the Green Building Principles and show our peers that achieving net zero is not only possible but essential for a better built environment and more resilient and successful cities. .”
“By nature, real estate requires long-term thinking and therefore we have a duty to invest with conviction and build a legacy for future generations,” said Nathalie Palladitcheff, President and CEO, Ivanhoé Cambridge. “We have a collective opportunity and responsibility to decarbonize the built environment and this ambitious commitment will require a change in practices throughout the real estate value chain.”
“The industry has traditionally seen investments in sustainability as a trade-off with other aspects such as customer experience, but it is very clear that we need to shift our thinking,” said Ahmed Galal Ismail, CEO, Majid Al Futtaim Properties. “Sustainability is really a trade-on and sustainable assets are more valuable. We are committed to moving our portfolio and proving what is possible in line with the Principles.”
“We have the innovation to transform the current building stock through electrification and digitalization and develop the smart, green buildings of the future,” said Philippe Delorme, Executive Vice President, European Operations, Schneider Electric. “Schneider Electric is proud to adopt the Principles and show how we can move buildings to be healthier, more efficient and ultimately net-zero carbon.”
“We continue to commit to the planet and respond to our footprint on the earth” said Harsh Chitale, CEO, Digital Solutions Division, Signify. “The Principles are an ideal way to help every type of company address the emissions from the buildings they own and/or occupy.”