In our last blog about sustainable CRE, we looked at the value of investing in environmentally sustainable buildings. This time, we’re going to focus on one of the challenges of building a sustainable CRE portfolio: namely, how to ensure your tenants use your building in an environmentally-conscious way.Whether you are a CRE landlord, owner, investor or asset manager, this should be of interest to you. Why? Because the activities of occupiers could make up as much as 70-80% of a building’s total carbon footprint (source: EG). So even if you have a host of green building certifications and have installed super-efficient main building services , how your building performs depends significantly on how your tenants operate within it.This is known as the ‘'performance gap’: the difference between how a building should perform when it’s designed, and how it actually does perform when it’s occupied.
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Last month, the BBP - whom we have been working with since 2016 (https://fabriq.space/blog/better-buildings-partnership-reebooted/) - officially announced its partnership with NABERS to bring their incredibly successful building performance rating standard to the UK. Currently operating in Australia and New Zealand, NABERS comes with a proven track record of bridging the performance gap between building design and in-use operational energy consumption.NABERS energy ratings measure and verify the actual energy use of existing buildings, providing a rating from 1-6 stars and helping building owners to accurately target, measure and communicate the energy performance of their buildings
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The interest in ESG (Environmental, Social and Governance) investing has really accelerated in the last few years — this Google Trends graph shows that quite clearly:
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