2021-11-08-莱坊-Future_of_Cities_Sustainable_Investing_7页_13mb

h3. Executive Summary

This report explores the evolving relationship between sustainable investing and the development of cities, with a specific focus on the real estate sector, particularly office buildings. It highlights the growing influence of climate change awareness, global initiatives like the UN SDGs and the Paris Climate Agreement (COP 21), and the increasing importance of Environmental, Social, and Governance (ESG) factors in investment decisions.

Key trends include:

• The significant rise in sustainable investment funds, driven by capital markets and regulatory pressures (e.g., EU permits for nearly zero-energy buildings starting 2021).
• Growing demand for "green" buildings certified by standards like LEED or BREEAM, leading to higher operating efficiency, tenant preferences, and investment valuations.
• The adoption of ESG criteria, partly facilitated by tools like GRESB, to assess risk and integrate sustainability into long-term investment strategies.
• The shift towards modern, energy-efficient building technologies, although sometimes challenged by conflicting demands, like zero-energy goals versus user well-being trends.
• Notable progress in countries like Poland, where sustainable investments and certifications are growing rapidly in the office market, though challenges like decarbonization persist.

The report concludes that sustainable investing and responsible approaches represent the future of the property sector, essential for mitigating climate risks, complying with regulations, meeting stakeholder demands, and contributing to sustainable urban development. A roadmap for zero-carbon buildings by 2050 is deemed crucial.

h2. Global Context

• UN Sustainable Development Goals (SDGs): Launched in 2015, emphasizing goals like sustainable cities, responsible consumption, and climate action. Participatory processes hold individual states accountable.
• Paris Climate Agreement (COP 21, 2015): Long-term aim is to limit global warming well below 2 degrees Celsius (>1.5°C preferred). It drives legal regulations and fosters awareness of climate risks and change.
• Climate Change Impacts: Manifest as extreme weather, resource scarcity, pollution, and pandemics, increasing urgency for sustainable solutions.
• Urbanization: Cities house ~70% of the global population by 2050, generating ~80% of global electricity demand and responsible for ~70% of GHG emissions. Buildings are key energy consumers/emitters within cities (approx. 40% energy, 50% natural resources, 1/3 GHG emissions globally).

h2. ESG in Real Estate

• ESG Definition: Environmental (Emitters/consumers, responsible generation), Social (Human rights, employment, tenant satisfaction, neighborhood impact), Governance (Transparency, risk management, strategy implementation).
• ESG Policy Implementation: Can be organizational (company strategy) or fund/portfolio level (3-5 year action plans). Crucial for identifying and mitigating risks related to ESG issues, enhancing reputation, potentially reducing costs (energy, water, waste) and improving valuation.
• Growing Trend: Capital investors increasingly incorporate ESG criteria, driven by alignment with client/fund requirements, professional responsibility, and long-term risk mitigation.
• GRESB: A global benchmark tool (~100,000 properties benchmarked, ~4.5T USD market value) used by investors and owners to measure, track, and benchmark ESG performance.

h2. Sustainable Building Practices and Case Studies (Poland Focused)

• Energy Efficiency: Optimizing lighting (natural/artificial), HVAC systems, using rainwater recovery, efficient LED lighting reduces utility consumption, operating costs, and environmental impact. Poland shows significant growth (~60% market share) in green-certified office space.
• Material Use: Sourcing regional/recycled materials is important.
• Certification: Green building certifications significantly influence tenant choice and investment perception. Requirements are increasing across Europe.
• Forward-Looking Approach: Moving towards zero-energy (net zero consumption/emission) or near-zero energy buildings is a key challenge and future direction dictated by climate goals (e.g., the "well" concept focused on occupant well-being needs adaptation alongside decarbonization goals).
• Case Study (Poland): Office construction increasingly emphasizes sustainability. Technologies supporting green construction are adopted, driven by large funds and global consulting involvement. Sustainable, ecological projects are vital due to legal pronouncements and user expectations.

h2. Policy Recommendations & Future Outlook

• Roadmap Towards Zero Carbon Buildings (by 2050): Developing detailed strategies to address both operational and embodied carbon emissions (erroneously underemphasized in current policies). Crucial for meeting COP 21 goals.
• National Regulations: Need updates to cover the entire building lifecycle (from design to demolition) regarding CO2 emissions.
• Industry Collaboration: Initiatives like the Polish Green Building Council (PLGBC) aim to bring together stakeholders for shared progress.
• Influence of Pandemics: Events like COVID-19 may heighten appreciation for sustainable (well-ventilated, adaptable) spaces and strengthen the link between health and environmental responsibility.

h2. Contacts (Poland)

Knight Frank Poland provides strategic advice and consultancy services across commercial real estate sectors (contact details provided for various departments and individuals). Contact details include emails and phone numbers for different functions like Property Management Compliance, Research, Valuation & Advisory, etc.

h2. Disclaimer

Knight Frank provides reports for general information only. No responsibility is accepted for any loss or damage arising from reliance on the content. Reports do not necessarily reflect views on particular properties or projects. Reproduction is prohibited without permission.