June 4, 2024 – Ella Krygiel
According to CBRE, buildings are responsible for 37% of global carbon emissions and 34% of energy demand worldwide. This statistic – in addition to important buzz words like “decarbonization” – are a driving force for businesses to make strategies in reducing their carbon footprint.
What does this matter in the case of real estate? Studies report that more consumers and employees are prioritizing environmentally conscious brands and workplaces than ever before, and the failure to make these environmental changes could become a business liability.
As the effects of climate change continue to take shape, property owners and managers have a responsibility to make net-zero commitments.
Below are three strategies that businesses can implement to meet carbon-reduction goals.
Analyze Your Carbon Emissions Data
Consider the financial investment in decarbonization (decarbonization: the permanent removal of carbon emissions of an organization) by creating a portfolio strategy of data visualizations. This will help meet carbon removal goals – not to mention, it will help keep you and your organization accountable for achieving these targets.
Another recommendation from the CBRE report is to align your ambitions with The Science Based Targets Initiative (SBTi). SBTi is a corporate climate action organization that is a gamechanger for businesses striving to meet greenhouse gas (GHG) emissions reductions. SBTi is just one resource that companies can implement when comparing their data.
Develop Your Decarbonization Strategy
Once you’ve analyzed the high impact areas your organization needs to focus on, determine a plan for reducing carbon. Every building with heating, cooling and lighting features emits carbon which contributes to heat trapping in the atmosphere. The best approach is to “reduce what you can, offset what you can’t.”
Prioritizing electrification and renewable energy in your buildings is a start. “The future of buildings and transportation is electric,” the CBRE report states. “In buildings, electrification has the potential to reduce emissions, improve an asset’s bottom line and attract quality tenants.” The resources worth considering are provide EV charging stations to buildings and engaging with landlords to secure charging sites and/or negotiate lease adjustments to accommodate EV charging.
Another strategy is determining the best type of renewable energy that will meet your GHG emission reductions, such as solar, solar thermal or wind. Studies find that, “Currently, one type of renewable energy is practical and commercially viable for real estate owners and occupiers: on-site solar photovoltaics (PV).”
Offset Your Carbon Balance
One of the last steps of the carbon reduction strategy CBRE provided is to “offset.” Offsetting is when a company continues to produce carbon but compensates for it by funding other projects like reforestation, for example.
The four tactics to consider as part of reducing GHG within your organization are: continuously improve energy efficiency; electrify your portfolio; transition to renewable sources of energy and alternative fuels; and credibly offset the remaining carbon balance.
As businesses begin their decarbonization processes, it’s important to consider the small ways customers and suppliers can reduce emissions, such as buying low-carbon products; buying from companies that have decarbonized; or making products that produce less carbon.
Reducing your building’s carbon footprint will prevent the likelihood of contributing to global socio-economic and environmental risks.