Understanding the true scale of your carbon liability
‘Follow the money’ may be a phrase synonymous with criminal investigations, but today it’s equally applicable to a dynamic realignment in the global investment market towards environmental, social and governance (ESG) assets.
‘Follow the money’ may be a phrase synonymous with criminal investigations, but today it’s equally applicable to a dynamic realignment in the global investment market towards environmental, social and governance (ESG) assets. Shares in ESG stocks have significantly outperformed rival equities, and commentators see this not as a short-term bubble, but the commencement of a transformational shift in investment focus to ethical and sustainable asset classes.
As the built environment is one of the largest contributors to global carbon emissions, the momentum building behind this investment revolution demands an urgent and sustained response from contractors, building owners and tenants. The direction of travel will see us move away from what have been termed ‘building badges’ during design and construction – the BREEAM and LEED type accreditations, towards performance-in-practice certification. A radical shift from pre-operational ‘estimated performance’ environmental benchmarks, to the rigour of data-driven and measurable real-life building performance metrics.
In the context of science parks, research campuses and the technology and innovation sector, this change has profound implications. Estates and individual buildings are major energy consumers – the process load is high because of the activities undertaken in these spaces, and as a sector, we are failing to even address the fundamentals of how we are actually using the energy consumed.
ISG conducted analysis of a multi-storey R&D space and found that operational energy use was over six times more than the Part L model would estimate, due to the high process loads in fume cupboards and other R&D equipment, as well as controls not operating the base building HVAC systems efficiently during operation. A quick win here is simply monitoring the energy consumption of our buildings, comparing this to the design modelling and descriptions of operation, and optimising performance. ISG’s Performing Places platform provides this benchmark data and is the starting point to understanding the scale of the net zero challenge.
We must, however, be under no illusion that we can reach net zero carbon by robust energy monitoring and swift corrective action. With an electricity grid powered solely by zero carbon sources, such as renewables, collectively, our buildings must reduce their energy consumption by circa 80% to hit net zero by 2050. This level of energy reduction must be derived from sustainable materials specification, smart design of our buildings and efficient operation. Deep retrofit of existing property assets will increasingly be the start point, ahead of demolition and new build, as embodied carbon calculations will almost always favour re-use and adaptation, as embodied carbon targets are slowly decreased by planners.
This is a challenge of immense proportions and the cost will be significant – but the cost of inactivity is even greater - reputationally, financially, from a talent, investment, societal and planet perspective. The most cost-effective option is to start now and programme this upgrading alongside routine maintenance and refurbishment. If you’re not focusing on net zero today, the exponential growth of your carbon liability tomorrow could come with a particularly heavy burden.
To find out more on Debbie's thoughts, watch her virtual presentation at the recent United Kingdom Science Park Association (UKSPA) webinar where Debbie was joined by sustainability experts from BDP and Avison Young to discuss how science park owners, occupiers, developers and businesses can and must, take radical steps to secure a net zero legacy.
To download our Sustainable Buildings Monitor research and insight report, click here.
As the built environment is one of the largest contributors to global carbon emissions, the momentum building behind this investment revolution demands an urgent and sustained response from contractors, building owners and tenants. The direction of travel will see us move away from what have been termed ‘building badges’ during design and construction – the BREEAM and LEED type accreditations, towards performance-in-practice certification. A radical shift from pre-operational ‘estimated performance’ environmental benchmarks, to the rigour of data-driven and measurable real-life building performance metrics.
In the context of science parks, research campuses and the technology and innovation sector, this change has profound implications. Estates and individual buildings are major energy consumers – the process load is high because of the activities undertaken in these spaces, and as a sector, we are failing to even address the fundamentals of how we are actually using the energy consumed.
ISG conducted analysis of a multi-storey R&D space and found that operational energy use was over six times more than the Part L model would estimate, due to the high process loads in fume cupboards and other R&D equipment, as well as controls not operating the base building HVAC systems efficiently during operation. A quick win here is simply monitoring the energy consumption of our buildings, comparing this to the design modelling and descriptions of operation, and optimising performance. ISG’s Performing Places platform provides this benchmark data and is the starting point to understanding the scale of the net zero challenge.
We must, however, be under no illusion that we can reach net zero carbon by robust energy monitoring and swift corrective action. With an electricity grid powered solely by zero carbon sources, such as renewables, collectively, our buildings must reduce their energy consumption by circa 80% to hit net zero by 2050. This level of energy reduction must be derived from sustainable materials specification, smart design of our buildings and efficient operation. Deep retrofit of existing property assets will increasingly be the start point, ahead of demolition and new build, as embodied carbon calculations will almost always favour re-use and adaptation, as embodied carbon targets are slowly decreased by planners.
This is a challenge of immense proportions and the cost will be significant – but the cost of inactivity is even greater - reputationally, financially, from a talent, investment, societal and planet perspective. The most cost-effective option is to start now and programme this upgrading alongside routine maintenance and refurbishment. If you’re not focusing on net zero today, the exponential growth of your carbon liability tomorrow could come with a particularly heavy burden.
To find out more on Debbie's thoughts, watch her virtual presentation at the recent United Kingdom Science Park Association (UKSPA) webinar where Debbie was joined by sustainability experts from BDP and Avison Young to discuss how science park owners, occupiers, developers and businesses can and must, take radical steps to secure a net zero legacy.
To download our Sustainable Buildings Monitor research and insight report, click here.
