Harnessing Energy Performance Across Borders: A Strategic Approach for Global Real Estate
5 Minute Read-Time
In today's rapidly evolving real estate landscape, multinational corporations (MNCs) like Knight Frank, Cushman & Wakefield, and Land Securities Group PLC are increasingly recognising the imperative to enhance their commercial buildings' energy performance. This drive is not only motivated by a desire to improve energy credentials for sale, letting, and ESG (Environmental, Social, and Governance) compliance but also by the urgent need to contribute to global decarbonisation efforts.
Global Emissions and the Urgency for Energy Efficiency
Buildings, both residential and commercial, are responsible for a significant portion of global energy use and related greenhouse gas (GHG) emissions. In 2022, direct CO2 emissions from building operations decreased to 3 Gt, while indirect emissions surged to nearly 6.8 Gt, reflecting an increased reliance on electricity. This juxtaposition underscores the pressing need for the buildings and construction sector to accelerate decarbonisation efforts to align with Net Zero Emissions (NZE) scenarios. Building-material-related GHG emissions are expected to rise from 3.5 to 4.6 Gt CO2eq annually by 2060 under current trajectories, emphasising the critical role of material efficiency and the adoption of zero-carbon-ready buildings in mitigating emissions.
The Strategic Advantage of Cross-Border Energy Performance Consultancy
For MNCs with extensive real estate portfolios that span multiple countries, centralising energy performance evaluations with a single consultancy offers unparalleled benefits:
Quality Assurance: A unified approach ensures consistency in energy performance calculations, significantly reducing the risk of discrepancies in data quality and accuracy. This is vital for making informed decisions about property investments, renovations, and compliance strategies.
Comprehensive Building Energy Data Management: Centralised data management facilitates a holistic view of a portfolio's energy performance, enabling strategic planning for energy reduction, ESG compliance, and identifying opportunities for cost savings and efficiency improvements.
Adaptation to Global Policies and Innovations: With countries and regions such as the EU, China, Japan, and the USA implementing stringent energy performance and decarbonisation policies, a consultancy with a global purview is better positioned to navigate these diverse regulatory landscapes and leverage best practices across borders.
Call to Action for Real Estate Giants
The construction and operation of commercial buildings account for more than one-third of global energy-related emissions, with operational energy use alone representing about 30% of global final energy consumption. This stark reality, coupled with the sector's potential for significant emission reductions through improved energy efficiency and the adoption of zero-carbon and renewable energy technologies, highlights the urgent need for MNCs to adopt a more strategic, cross-border approach to energy performance management.
By centralising energy performance consultancy services, real estate MNCs can ensure consistent, high-quality data across their portfolio, enabling them to meet global ESG standards, reduce operational costs, and contribute meaningfully to the global fight against climate change. The time for action is now, as the window for achieving global decarbonisation goals narrows. Real estate giants have a pivotal role to play in shaping a sustainable future, and by embracing a unified approach to energy performance, they can lead the way in the transition to a greener, more energy-efficient world.
In conclusion, the benefits of a cross-border energy performance strategy are clear. Not only does it offer a path to enhanced energy efficiency and compliance with ESG criteria, but it also positions MNCs at the forefront of global efforts to combat climate change and promote sustainable development. The question for CEOs, CFOs, and key decision-makers in the real estate sector is not if they can afford to implement such a strategy, but whether they can afford not to.