Nordic developer challenges peers with 2028 carbon target
Nordic property investor, NREP has made a commitment to being carbon neutral by 2028, which it claims would make it the first international real estate investor with a carbon neutral investment portfolio, as well as being ahead of the IPCC’s target date of net zero by 2050.
Furthermore, its goal includes both operational and embodied carbon and the company has stated that this target will be achieved without using carbon offsets.
The Copenhagen headquartered company does have a track record of sustainable development and initiatives include the largest rooftop solar plant in the Nordics (pictured below), the use of embodied carbon concrete, geothermal heating, the world’s first 100% up-cycled concrete building and UN17 Village, the first large-scale project to align with all of the UN’s 17 Sustainable Development Goals. The company recently announced the final close of sustainability technology fund 2150 at €268 million, the first five investments of which have the potential to mitigate over 1.6GT of CO2 emissions.
“NREP has always pushed the boundaries when it comes to ESG innovation and investment,” the company’s CEO Claus Mathisen said. “To achieve the ambitious targets we have set, many technologies need to be deployed in parallel and at scale, and we are determined to demonstrate to the industry how this can be done.”
NREP has about €12.5 billion of assets under management. As part of its phased pathway to achieving its carbon neutrality ambition, NREP said it has adopted decarbonisation tools provided by the Carbon Risk Real Estate Monitor (CRREM), to access science-based targets for each property type and geography.
The firm has allocated a team that is dedicated exclusively to its cause, and has set goals for delivery by 2023 which include reducing embodied carbon by up to 33% on 2020 levels in new developments, and halving operational carbon emissions against 2020 levels.
In addition to adopting innovative technology NREP said the key to achieving such reductions is an internal carbon pricing system.
On- and off-site renewable energy will be used to generate electricity and heat and all developments will undergo early-stage life cycle analysis to enable design and material choices that significantly reduce embodied CO2.
NREP does acknowledge that there will be residual CO2 emissions which it will capture using initiatives such as local forestation.
Prototype projects will indicate the way forward
The company will complete three large ground-up carbon neutral innovation projects by 2025 which will serve as prototypes and provide a benchmark for future schemes. These include a residential, logistics and an office retrofit.
The firm said that it aspires to position itself as an open source by sharing what it has learned and has urged other companies to do likewise.
“The built environment must take its rightful place in the global climate conversation and be both responsible and proactive,” Mathisen said. “I am hopeful that the stark reality we’re faced with will accelerate a desire within the industry of wanting to leave behind a more positive social and environmental impact – something that NREP has been advocating for many years.”
“The challenge should not be underestimated but we know that real estate has an enormous role to play in the transition to a zero-carbon economy and it has been hugely encouraging to see the sector galvanise ahead of COP26.
“But pledges alone aren’t enough – we need substantially more decisive action to protect our planet from the urgent environmental pressures that it faces and invite partners to join us in this movement towards making decarbonised cities a reality.”
