Property Market, Financing and The Climate Crisis.
The connection between the Property Market, Climate and Finance is gathering momentum and while the Global Real Estate industry is more focused than ever on energy efficiency and sustainability, the industry is falling well short of where it needs to be in terms of actions required.
Will 2021 be the year that the Property Industry turns awareness of Climate crisis and years of greenwashing into real action?
A snapshot of some recent activity and announcements in the Property, Investment and Finance markets is positive, but we’re still playing catch up when you see some of the more recent damage inflicted on the environment. While Scientific Experts advice can fade easily, the melting of glaciers and multiplication of extreme weather events since 1980 is more difficult to ignore. With 5 of the warmest years on record occurring since 2015, the next 10 years are crucial if we are to make a meaningful impact and reduce further catastrophic weather events.
From an Irish perspective some positive actions and performances include;
- The Society of Chartered Surveyors in Ireland recent Sustainability Declaration, acknowledges a Climate and Biodiversity Emergency and encourages all SCSI members to join up and make the Declaration. Members also commit to follow sustainable business practices and encourage clients and others to follow similar practices during their day to day lives.
- Leading Irish Property Investment and Development Companies committing to achieving Carbon Neutral target by 2030.
- Ireland’s largest Commercial Property Investment Co IPUT, became the first Irish Property Co to sign up to the World Green Buildings Council and pledges to both own and develop assets that operate at #netzerocarbon by 2030. In addition, the Marlet Property Group which just recently announced the sale of Ireland’s largest PRS portfolio seeking over €1 billion, is also committed to achieving a Carbon neutral target by 2030.
- Promoting and advancing Energy performance standards within the construction industry including NZEB, BREEAM and LEED are all important steps in recent years.
- Irish Banks including AIB and Bank of Ireland are making steady progress on International ESG rankings according to a recent Sustainalytics study. AIB ranked 71 out of 1,025 Banks and Bank of Ireland came in at 176th when compared to their international competitors. In a recent PropertyLocator.ie Webinar, AIB also made reference to the importance of the sustainability section in Credit applications and their commitment to have 70% of all new lending Green by 2030. Further evidence of the role Finance can play in the shift to a more sustainable and lower carbon economy.
Other notable announcements on a Global scale include:
- Leading Global Investment manager Schroders advancing their ESG mandate and many other top International Corporations changing their business roles and focus to serve not only their shareholders but also the environment.
- Panattoni Europe which is the European branch of one of the World’s largest Industrial and Logistic Developers, is focused on Green Energy and Sustainability and achieving Carbon Neutrality by 2025.
- UN declaration of the 2020’s as a “Decade of Action” to respond to one of the World’s biggest challenges to decarbonise the planet.
Only time will tell if actions over the next 10 years speak louder than words, in a world where most recent experiences suggests not enough are listening.
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