{"id":8870,"date":"2023-06-01T11:41:48","date_gmt":"2023-06-01T11:41:48","guid":{"rendered":"https:\/\/cfpgreenbuildings.com\/?p=8870"},"modified":"2024-02-19T14:43:00","modified_gmt":"2024-02-19T14:43:00","slug":"why-investing-in-sustainable-real-estate-in-canada-yields-financial-value-and-reduces-gigatons-of-carbon","status":"publish","type":"post","link":"https:\/\/cfpgreenbuildings.com\/news-and-cases\/why-investing-in-sustainable-real-estate-in-canada-yields-financial-value-and-reduces-gigatons-of-carbon\/","title":{"rendered":"Why investing in Sustainable Real Estate in Canada yields financial value and reduces gigatons of carbon"},"content":{"rendered":"\n
Sustainable real estate includes commercial and residential real estate property that is designed, built, and operated in a way that minimizes environmental impact. The trend towards sustainability in the real estate industry has been driven by several factors including increasing global awareness of the need to protect the environment, stricter government regulations and the desire to save money on operating costs. Listed below are some of the trends, opportunities, and challenges that currently drive the urge to expand the sustainable real estate offer in Canada.<\/em><\/p>\n\n\n\n Real estate contributes nearly 40% of global carbon emissions. Climate risk is also an opportunity to create solutions that enhance operation efficiency, generate new revenue, and improve returns and asset values at the same time they reduce environmental impact. McKinsey research estimates approximately USD $9.2 trillion in annual investment will be required globally to support the net-zero transition. To be in line with the Paris Agreement to maximize our chances of limiting rising temperatures to 1.5 degrees Celsius, the built environment must aim to cut emissions by 50% by 2030 and be net zero carbon by 2050 at the latest.<\/p>\n\n\n\n Sources: Climate risk and the opportunity for real estate | McKinsey<\/a> and How the conversation around green real estate is changing | World Economic Forum<\/a><\/em><\/p>\n\n\n\n Building energy codes and standards are in place in only 80 countries, and without further expansion 40% of the expected growth in floor area by 2030 will not be covered by building codes for the whole sector. To align with the Net Zero Scenario, the buildings sector require The COVID-19 pandemic has elevated health and wellness as a key consideration for tenants selecting properties. Tenants now have to \u201cearn the commute\u201d of their employees, so they are seeking to increase productivity and talent retention in a tight labor market through providing smarter green buildings. The World Green Building Council studies show up to 11% productivity gains from improved ventilation, up to 23% productivity gains from improved lighting design, and substantial improvement in employee retention through green retrofits.1. Climate change is a critical issue for the real estate sector<\/h3>\n\n\n\n
Source: The future of sustainable real estate is smart | Deloitte<\/a><\/em><\/p>\n\n\n\n2. As the economy decarbonizes, new opportunities arise to create new revenue streams and improve asset values<\/strong><\/h3>\n\n\n\n
3. Energy efficiency and clean buildings policies continue to expand<\/strong><\/h3>\n\n\n\n
all new buildings and retrofits to be zero-carbon-ready by 2030 at the latest.
Source: Buildings sectorial overview | IEA<\/a><\/em><\/p>\n\n\n\n4. Tenants are demanding healthier and more environmentally sustainable spaces<\/strong><\/h3>\n\n\n\n
Source: The future of sustainable real estate is smart | Deloitte<\/a><\/em><\/p>\n\n\n\n