Sustainability has become a critical feature of discourse for stakeholders in the built environment. Environmental Social and Governance (ESG) strategies have fuelled a growing focus on energy efficient, low carbon and healthy buildings. As a result, we’ve seen a shift in market expectations that reinforce a proactive approach to sustainability.
Meeting as-designed performance standards
One of the most prolific challenges in achieving sustainability in the built environment is maintaining sustainable concepts and theory during operation. Despite advancements in building technology, the challenge to maintain a building in accordance with best practice is a common concern. Poor commissioning, operational inefficiencies and a lack of occupant engagement creates a genuine gap between designed and actual performance metrics.
Asset owners and managers should implement robust measurement, verification and due diligence practices to continually optimise performance over the course of the building lifecycle. The challenge is knowing where to invest resource and how to act on insights effectively.
Addressing brown discounts and market expectations
Investors and tenants are increasingly demanding environmentally conscious, healthy and liveable buildings. The shift of these demands, from exclusive to mainstream, is creating a backdrop of devaluation for buildings that fail to meet sustainability objectives.
Green building certifications, such as BREEAM, LEED and NABERS, have become essential for attracting tenants and maintaining asset value. Occupiers are also considering biophilic design and health and wellbeing to meet their social sustainability goals; certifications like WELL are becoming increasingly respected by more affluent tenants aiming to meet their own challenges, such as staff retention. Owners and occupiers should focus on aligning their buildings with the latest standards, which can be a major and complex undertaking.
Understanding climate resilience and risk management
To protect assets against more frequent climate-related disasters and safeguard building longevity, built environment stakeholders should consider their climate risk profile. Physical risks, such as flooding, warming temperatures and storms, threaten the function of buildings that lack the appropriate infrastructure and equipment to manage. Further transition risks can be seen in the form of an evolving political landscape, resource volatility and developing regulation.
Investment strategies should consider condition surveys, adaptive design and nature-based solutions to mitigate rising insurance costs and demonstrate resilience against future climate patterns. The challenge is understanding the risk profile of an asset and where investment can most effectively reduce financial exposure. Proactive engagement in this respect can attract tenants and investors aiming to hold property for the long term.
Key takeaway
Sustainability has always been multifaceted, but the number of considerations that require active engagement in the built environment has never been greater. Stakeholders should leverage experience, technology and strategic planning to evolve their practices and achieve the true benefits of sustainable performance.
Our work at TB+A addresses these challenges directly. With experience leading sustainability certifications, setting strategic goals and undertaking materiality exercises, we can guide you through sustainability in operation.
If you’d like to continue the conversation, reach out to me directly at e.powell@tbanda.com.
