The commercial case for making buildings more sustainable

Despite the current economic headwinds, developing and implementing clear decarbonization and resilience strategies now is the smart decision for longer-term performance:

• Mounting costs from climate risks, including heatwaves, flooding, storms and droughts, are increasingly impacting urban areas – with big implications for building owners.

• Rising demand for sustainable buildings and spaces that support corporates’ low carbon goals and meet employees’ rising expectations will change lease markets at scale.

• More restrictive finance and tougher regulation are coming down the line. Companies face more stringent building performance standards and corporate disclosure mandates.

Creating a more sustainable and resilient future requires today’s buildings to undergo marked transformation in their infrastructure and operations.

Yet in today’s tough economic environment, securing the internal buy-in and investment needed to make existing buildings more sustainable can be a difficult task.

Investment in real estate is down and fundraising is more challenging. The office sector, in particular, is experiencing dynamic shifts in demand with the impact of hybrid work on lease renewals.

Despite the shorter-term hurdles, developing and implementing clear decarbonization and resilience strategies now is the smart decision for longer-term performance. In many respects, the commercial case for sustainable buildings has never been stronger due to three key factors:

Mounting costs from climate risks

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Increased demand for sustainable buildings

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More restrictive finance and tougher regulation

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