NZC commitments: transforming property management

As the world grapples with the effects of climate change, JLL and the wider real estate industry is increasingly focusing on sustainability as a key priority. Among the forefront initiatives driving change are the net zero carbon commitments made by many. Property management is front and centre when it comes to JLL achieving our ambitious science-based targets, notably when it comes to delivering on our Scope 3 commitments. We are therefore seeing a focus on reducing carbon, integrated into everything our property management teams do. The following points cover examples of how our teams are transforming our property management practices and some wider trends that I and our teams are seeing.

1. Energy efficiency and operational optimisation: Net zero carbon commitments require our facility managers to prioritise energy efficiency throughout their portfolios. Retrofitting buildings with energy-efficient systems and technologies, monitoring and optimising energy consumption and implementing innovative solutions, such as smart building technologies like Hank and Turntide, contribute to reduced carbon footprints and lower operating costs.

2. Renewable energy integration: To achieve net zero carbon goals, our teams are increasingly exploring opportunities to integrate renewable energy sources into their portfolios. This includes solar panels, wind turbines and other forms of clean energy generation on-site or through partnerships with local energy providers. Investments in renewable energy infrastructure can lead to long-term cost savings and carbon emissions reduction.

3. Sustainable supply chain management: Our procurement team are now placing greater emphasis on sustainable procurement practices. This involves partnering with suppliers and vendors that prioritise environmental responsibility, ensuring the use of materials with a reduced carbon footprint, and supporting circular economy initiatives.

4. Water management and conservation: Net zero carbon commitments go hand in hand with prioritizing water efficiency. Our teams are adopting strategies such as rainwater harvesting, installing low-flow fixtures, and implementing smart irrigation systems to minimise water consumption. By effectively managing water resources, our property managers not only reduce their environmental impact but also mitigate operational risks related to water scarcity.

5. Enhanced reporting and transparency: Net zero carbon commitments bring a heightened focus on reporting and disclosure. Our property management teams are increasingly expected to provide accurate and transparent data on energy consumption, greenhouse gas emissions, and sustainability performance. Clients and tenants alike seek this information as part of a broader Environmental, Social, and Governance (ESG) framework to make informed decisions and ensure alignment with their own sustainability goals.

1. Growing investor and tenant demand: Investors and tenants are increasingly seeking properties that align with their sustainability objectives. Net zero carbon commitments are seen as a demonstration of proactive and responsible property management, attracting high-quality tenants, and boosting property valuations.

2. Green building certifications: We’re seeing a continual growth in the use of certifications, notably around new buildings as part of their marketing. As clients and tenants begin to focus more on how buildings are operated sustainably, we’re seeing a growth in the use of NABERS as a longer term certification compared to the traditional use of LEED and BREAM.

3. Industry collaboration: The shift towards net zero carbon commitments is encouraging collaboration within the industry. JLL’s in-house tech works closely with our property management teams and wider services to develop new ideas and implement new systems. We are also seeing closer collaboration with our tenants, where joint ESG goals are agreed and strived for.

Net zero carbon commitments are revolutionising the property management industry by placing sustainability at the forefront of decision-making. Energy efficiency, renewable energy integration, sustainable supply chain management, water conservation, and enhanced reporting are key considerations for property managers aiming to achieve ambitious carbon reduction goals. As the market increasingly demands sustainable practices, our property managers need to stay proactive, collaborate with industry partners, and leverage available resources to ensure successful implementation of net zero carbon commitments. By embracing these changes, our teams will not only drive positive environmental impact but also enhance property value and stakeholder satisfaction in an era marked by growing climate consciousness.

Please feel free to reach out to our team if you would like to discuss this topic or if you require further information on property management.