This was a central theme at FOOTPRINT+ 2024. The event highlighted the many barriers to transition investors and property owners face: sourcing and collating data to review an asset’s performance and develop a pathway to net zero; implementing individual asset improvement plans beyond the fund level; regulation that doesn’t yet recognise value-add real estate investments; and the difficult economic environment.

So how does the industry overcome these challenges?

Portfolio screening and reviewing asset-level performance will be key to understand priorities and work within capital constraints while addressing stranded assets. Tailored asset-level improvement plans aligned with investment objectives and horizons can then be developed. These should address energy and carbon, but climate resilience should be assessed alongside decarbonisation – along with ESG credentials, including health and wellbeing and ecological impacts.

Reducing operational energy will be critical. Collaborating with occupiers and asset and building managers to collect data and empowering them to use this to make changes. Looking beyond EPC performance to energy use intensity; not relying on changes to the grid alone.

Finally, retrofit presents a huge opportunity for property owners to create their own sustainable buildings – to attract occupiers and avoid assets becoming stranded. But it will be crucial for retrofit strategies to achieve a balance meeting market demand for high levels of sustainability with the capital expenditure available.

Thank you FOOTPRINT+ and to everyone we heard from and met for an inspiring and thought-provoking event - now it’s time to turn insights into action.

If you’d like to understand more about transitioning your assets and future-proofing real estate portfolios, say hello@verteltd.com.

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By Verte