In 2025, the operation of buildings accounted for approximately 30% of all global energy consumption and around 27% of total energy sector emissions. Following a drop in consumption in 2020 due to COVID-19 disruptions, carbon emissions from building operations are once again at levels that need to be halved by 2030 to effectively contribute to a Net Zero world. In 2025, investment in energy efficiency initiatives across the real estate sector increased by 15%. However, ongoing disruptions have diverted attention from green imperatives within commercial portfolio management. While it's true that newly constructed buildings tend to be more energy efficient, approximately 80% of buildings in 2050 have already been constructed. Therefore, enhancing existing stock through operational improvements is critical to the solution.
The business case for a Net Zero portfolio is compelling.
Adopting a Net Zero approach for property operations provides a range of benefits for commercial owners and operators.
It bolsters the commercial property sector's contributions to essential government and global performance targets. Developing resilient Net Zero portfolios aids in risk management and enhances resilience against climate change and related hazards, to which over one-third of REIT properties are vulnerable.
Superior financial performance attracts investors; sustainable properties and portfolios are more appealing to investors due to higher potential asset valuations. Owners benefit as properties that align with the highest sustainability standards can command at least a 10% rental premium and see roughly 14% lower operating costs, coupled with improved tenant attraction and retention.
Today's global workforce is increasingly aware of the sustainability credentials of the properties they engage with. Studies have also highlighted a link between building performance, cognitive function, and productivity, showing that green buildings can enhance cognitive performance by up to 26%.