The real estate sector plays a major role in advancing sustainability initiatives and policies globally. As one of the largest contributors to greenhouse gas emissions, the real estate industry has significant potential to drive positive environmental change through sustainable building design, construction, and management practices. Implementing green features into new and existing buildings can dramatically reduce energy and water consumption, waste and pollution output, while creating healthier indoor spaces. Sustainable real estate also offers economic benefits such as operational savings and higher property values.
Key Areas Where Real Estate Impacts Sustainability
Energy Efficient Building Design
Incorporating passive design strategies that maximize natural daylight and ventilation can lessen the need for mechanical lighting, heating and cooling systems. Installing high efficiency LED lighting, insulation, windows and doors further reduces energy demands. Onsite renewable energy systems like solar panels also cut electricity usage.
Sustainable Building Materials
Using responsibly sourced construction materials with high recycled content and low carbon footprints cuts down on waste and emissions. Common examples include recycled steel, sustainable timber and eco-friendly insulation. Materials with declarable contents also support end-of-life recycling.
Water Conservation Systems
specifying drought-tolerant native landscaping and efficient irrigation such as drip systems or captured rainwater significantly reduces potable water consumption for landscaping. Installing low-flow plumbing fixtures inside buildings also cuts back on water waste.
Waste Reduction and Recycling
Adopting responsible waste management plans during construction and operation prevents usable materials from ending up in landfills. Providing onsite recycling stations and composting also promotes sustainability.
Healthy Indoor Environments
Using low or no VOC paints, adhesives and materials improves indoor air quality. Allowing daylight and fresh air into building interiors through proper ventilation also supports occupant health and productivity.
How Real Estate Influences Sustainability Policies
The real estate industry plays a lead role in advancing environmental policies and regulations that promote sustainability.
Demonstrating Viability of Green Building Practices
Successful sustainable real estate projects showcase the feasibility of green design and operations to the wider industry. Quantifying their economic benefits builds a business case that drives faster policy development and industry adoption.
Advocacy and Lobbying Efforts
Leading industry groups advocate for stronger building codes, performance standards and incentives that advance energy efficiency, renewable energy and other sustainability goals. Their position gives weight to regulatory proposals.
Investing in Innovation
Real estate stakeholders help fund research and development of cutting-edge efficiency technologies, materials and best practices. Their investments accelerate technical breakthroughs and commercialization.
Implementing Voluntary Programs
Many developers and property managers spearhead self-governed initiatives to reduce their portfolio’s environmental impacts before policies require them. Their voluntary commitments pressure competing assets to follow suit.
Educating Consumers
Increasing awareness among tenants and home buyers about the benefits of sustainable buildings grows market demand. This “pull” on the industry propels stakeholders to offer more green options and prompts quicker policy action.
Key Sustainability Policies Shaped By Real Estate
The real estate industry has already informed the development of several impactful sustainability policies.
- Building Energy Codes - set minimum efficiency standards for the building envelope and systems
- BENCHMARKING AND DISCLOSURE Laws - require tracking and reporting of building energy and water usage
- Property Assessed Clean Energy (PACE) Financing - funds energy efficiency and renewable energy upgrades through a voluntary property assessment
- Net Zero Building Mandates - require new constructions to produce as much renewable energy as they consume
Additional Examples of Sustainable Real Estate Practices
- Brownfield Redevelopments
- Adaptive Reuse Building Conversions
- Transit-Oriented Developments
- LEED and Other Green Building Certifications
- Embodied Carbon Tracking
- Net Zero Water Buildings
- Biophilic Design Strategies
- Sustainable Landscape Management
Conclusion
The real estate industry is pivotal in creating a sustainable built environment that minimizes environmental harm and climate impacts. By embracing green building design, construction and management practices, the sector can significantly cut emissions, energy, water use and waste across the building lifecycle. Beyond environmental benefits, sustainable real estate also offers tangible economic value through operational savings and higher asset prices.
As major property owners, developers and landlords continue to demonstrate the feasibility of low-carbon buildings, they pave the way for faster industry adoption and stronger supporting policies. Through their advocacy, investments and voluntary leadership, real estate stakeholders have the power to accelerate sustainability progress in cities globally. Ultimately, the widespread realization of healthy, resilient and regenerative buildings rests on the real estate industry’s willingness and ability to lead by example.
FAQs
What are some key benefits of sustainable real estate?
Some major benefits include lower operating costs from energy and water savings, higher building valuations, improved indoor environmental quality, future-proofing against climate impacts, and positive brand image for developers and landlords.
Do sustainable buildings cost more to develop?
While some green features have higher upfront costs, the investment typically pays back in just a few years from direct savings and higher rents or sales prices. Many utilities and states also offer rebates and tax incentives that improve ROI.
What are common green building certifications?
The most widely used ratings are ENERGY STAR, LEED, WELL Building Standard, Living Building Challenge, Passive House, and Net Zero Energy Building certification. Each has different categories and levels of certification.
How can policy incentivize greener real estate?
Common incentives include property assessed clean energy (PACE) financing, expedited permits, density bonuses, rebates, and tax breaks for projects that meet established sustainability criteria. Many cities also allow floor area ratio bonuses.
What is embodied carbon and why does it matter?
Embodied carbon refers to the GHG emissions associated with manufacturing building materials. As buildings become more efficient to operate, embodied carbon makes up a larger share of their lifetime footprints. Tracking and disclosing embodied carbon drives demand for greener materials.
