Real estate has a responsibility to decarbonise – here’s how
From retrofitting buildings to environmental initiatives, the real estate sector is waking up to the need for carbon strategies, says Lourdes Calderón Ruiz.
Real estate is an indispensable part of our everyday life, something we simply can’t live without. It plays a critical role in shaping our social life by providing us with essential assets such as housing, schools, hospitals, and commercial spaces, enabling communities to grow.
By designing and developing spaces that foster community interaction and cohesion, the real estate sector creates environments that enhance the quality of life.
For example, through commercial developments, the sector stimulates local economies and creates jobs, supporting the overall wellbeing of communities. At the same time, it also has a negative impact on the environment. With nearly 40% of global carbon dioxide emissions coming from the real estate sector, it bears a significant responsibility in reducing those emissions.
Improving energy efficiency
Europe’s real estate sector is increasingly adopting carbon-reduction strategies. One of the primary approaches is improving energy efficiency in buildings. Retrofitting existing buildings with better insulation, energy-efficient windows, and modern HVAC systems can significantly reduce energy consumption.
The benefits of these approaches are outlined in the CRREM Embodied Carbon of Retrofits report, supported by Hines, UNEP FI, and EPRA. New developments are now often designed to meet stringent energy efficiency standards, such as those outlined in the Energy Performance of Buildings Directive.
The integration of renewable energy sources is another critical strategy. Solar panels, wind turbines, and geothermal systems are being incorporated into building designs to reduce reliance on fossil fuels. Some innovative projects even aim for net-zero carbon emissions, where the total amount of carbon dioxide emissions produced is offset by the amount of renewable energy generated on site.
The choice of building materials is also crucial. Sustainable materials, such as recycled steel, reclaimed wood, and low-carbon concrete, are becoming more popular. These materials not only reduce the carbon footprint of construction, they promote a circular economy by minimising waste. Furthermore, the adoption of green building certifications, like BREEAM and LEED, encourages developers to adhere to high environmental standards throughout the lifecycle of a building.
Environmental impacts
Water conservation measures, such as rainwater harvesting and the use of greywater systems, are also being implemented to reduce the environmental impact of real estate developments. Efficient landscaping with native plants reduces the need for irrigation, further conserving water resources.
The real estate sector’s commitment to social responsibility extends to its environmental stewardship. By engaging with local communities and stakeholders, developers can ensure that new projects meet the needs of the population while minimising environmental harm. Transparent sustainability reporting and adherence to ethical standards in construction practices build trust and demonstrate a genuine commitment to reducing carbon emissions.
CRREM’s Green Governance report, also supported by EPRA, highlights the importance of setting, implementing, and assessing corporate net-zero commitments to mitigate transition risks and achieve long-term carbon reduction goals.
In conclusion, the European real estate sector has a profound social impact and a significant role in carbon reduction. By integrating sustainable practices and prioritising community wellbeing, the sector can contribute to a healthier, more sustainable future.
As the demand for green buildings grows, the real estate industry must continue to innovate and lead by example, ensuring that development projects not only meet the needs of today, but also preserve the environment for future generations.
Lourdes Calderón Ruiz is ESG manager at the European Public Real Estate Association
