This year we proved ourselves capable of adapting to an immediate crisis, fast-tracking trends that had been emerging slowly and implementing them without fear of cost or consequence to survive and thrive amidst the chaos.
And yet when it comes to addressing a crisis that has been unfolding for decades, we have yet to exhibit the same appetite for survival.
The built environment accounts for approximately 36 percent of global energy consumption, and nearly 40% of total direct and indirect carbon dioxide emissions. When it comes to addressing climate change, we are a significant part of the problem. And yet as we’ve proved with the way we responded to COVID, we can also be a significant part of the solution.
Adoption of renewable energy. Peak energy demand reduction. Electrification. Waste avoidance and recovery. Water efficiency. The real estate sector has significant scope to help tackle climate change. We just need to match appetite to scope.
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The long-term cost of not acting now, both environmental and financial, should provide sufficient catalyst for the transition not just to more energy-efficient buildings, but a more holistically sustainable sector. Globally JLL has made the commitment to not be driven by future regulation and enforcement to target being carbon-neutral by 2030. Here are five ways we can partner with you to make a positive, lasting difference.
1. Build Green
Adapting existing buildings and constructing new developments that do not rely on fossil fuels would seem to be an obvious place to start.
The New Zealand Green Building Council (NZGBC) defines green buildings as those that are designed, built and operated in ways that reduce or remove any negative impact on the environment and the people using it. Green buildings make more efficient use of resources such as energy and water, and provide healthier environments for people to live and work in.
JLL NZ managing director Todd Lauchlan. Photo / Supplied
It is becoming more common for investment managers and financiers to demand that companies disclose business model exposure to climate change. But while implementing these new and sometimes complex principles requires significant upfront investment, these costs are more often than not offset by the returns and benefits for all involved.
Developers can take advantage of capital cost savings, greater access to capital and asset protection; owners can expect lower operating costs, greater tenant attraction and retention and higher leasing rates; and tenants can benefit from improved health and wellbeing, reduced operating costs, and heightened marketability as a result of corporate social responsibility.
2. Embrace the Future of Work
COVID has been our DMC DeLorean, transporting us to a future state that had seemed a decade away at the start of the year. Having demonstrated that we can work effectively from anywhere, office environments will now increasingly represent so much more than a workplace.
They will become the centre of value creation within organisations; areas where employees, outside experts and partners come together – virtually and/or physically – to work on new products, services and ideas. Firms that step up their game to get a fresh perspective on reimagining their workplace into the future will be far more ready to confront challenges — and opportunities — than those who do not.
We’re already seeing the surge of flexible space, allowing businesses to de-densify their workplaces and transform them into collaborative spaces where people can perform together. Technologies like artificial intelligence, the Internet of Things, augmented reality, and ultra-fast connections are the key enablers of this transformation that will make a positive contribution to climate change management through behaviour change and reducing the need to travel.
3. Harness the power of the people
The opportunity for the real estate sector isn’t only in physical buildings. We can also contribute to the health and wellbeing of customers and employees through promoting social sustainability, inclusion and diversity and accessibility.
Thoughtful office building design, workplace strategies and activities can collectively help build a culture that promotes physical and mental wellness. Providing strong opportunities to help people grow in their jobs, progress their careers and develop market-relevant skills is critical to sustainable business growth and long-term organisational health.
The expectations of tenants, employees and their visitors continue to rise. They look for recycling bins and composters. They expect lights that turn off when no-one is in a room and demand efficient elevators. They want somewhere to leave their bikes and have a shower when they ride to work. In short, occupiers are the greatest drivers of sustainability, so we need to empower them, not hold them back.
4. Reduce waste
Waste reduction strategies encompass waste sent to landfill, collection of organic waste, disposal of electronic waste, management of energy use and greater education around recycling.
Across all sectors, commercial real estate owners, managers, and occupiers have a significant role to play in reducing the waste generated by building users. Simple things like removing single-use plastics, adopting a paperless operation, installing efficient lighting and water fittings, and considering material sourcing in new fitouts all have an impact.
We specialise in delivering strategies that yield substantial savings in utility bills to our clients, while helping them drive towards low or net zero carbon goals through sustainable engineering design and working with our Integrated Facility Management or Energy and Sustainability colleagues. What is good for the planet can ultimately be good for the pocket too.
5. Support our future cities
Cities are the engines of civilisation. Despite occupying only 3% of the world’s landmass, more than half of the world’s population live in them, generating 80% of global GDP.
Here in New Zealand our major cities have remained stubbornly beholden to the proclivities of previous generations, encouraging often single-occupancy vehicle use over active or passive transport. But times are now changing. As urbanisation continues to surge, organising our cities around people, not just cars, is commercially and economically constructive with the potential to significantly reduce our carbon footprint.
Enabling up to 50,000 passenger movements during peak hours, Auckland’s City Rail Link (CRL), which is scheduled for completion in 2024, will be a huge enabler of change, connectivity and collective impact. Auckland’s property owners, businesses, investors and residents need to make sure they’re fully informed of the dramatic practical and property infrastructural changes coming their way so together we can create the world’s most liveable city.
We are particularly focused on this opportunity and will be holding a number of events next year, featuring a range of national and international experts to uncover the opportunities provided by our future cities. If you have a voice or vested interest in the sector, I encourage you to come along and be part of the discussion.
- Todd Lauchlan is managing director of JLL NZ
