Integrating Climate Risks in Real Estate
Real Estate Investor members of UNEP FI, CERES – INCR, IGCC, IIGCC, PRI and the RICS believe it is economically and practicably feasible for the real estate sector to play a significant role in limiting global temperature increase to 2°C.
The Integrating Climate Risks in Real Estate paper summarises key roles, risks and opportunities for real estate investors.
Important facts to note:
- The building sector consumes approximately 40% of the world’s energy and contributes to 30% of global annual greenhouse gas emissions.
- The global universe of investable real estate is worth about $50 trillion.
- New buildings can easily be built to use 30-50% less energy than required by most energy codes dating back to 2005.
- There is growing evidence across geographies that a climate friendly and sustainable real estate sector can both preserve and increase asset value.
- Technology and operating processes are currently being used to improve energy efficiency of existing building portfolios by a further 2-4% each year.
- The scale of the investment opportunity in energy efficiency building retrofits globally will rise to US$300 billion annually by 2020 and is supported by a robust business case.
- Yet, the current rate of investments is a fifth of that required to stay within the desired less than 2°C pathway.
Further reading relating to the real estate sector and the recent events at COP21:
FM World: Business Pledges Huge Building Carbon Cuts
GreenBiz: Why Tackling Climate Change is Good for Business
GreenBiz: 4 City Initiatives out of COP21
GEF: A report on Sustainable Cities and the approach to attempt to promote urban sustainability.