The Road to Net-Zero: Why Property Leaders Must Act Now
Sustainability is a key priority for the UK property sector, requiring owners, developers, and investors to integrate environmental commitments into every aspect of their business. There are notable advantages for sustainable buildings; higher asset values and rental premiums (green-certified properties) and stronger investor confidence, alongside lower operational costs and possible improved tenant retention as their focus shifts towards sustainable living.
The UK government’s Net-Zero by 2050 target, alongside regulations such as the Minimum Energy Efficiency Standards (MEES) and its work on creating the UK Sustainability Reporting Standards (UK SRS), means property owners and operators face increasing pressure to decarbonise their assets.
Buildings account for a significant share of global carbon emissions, and reductions span across the supply chain, making the aim of net-zero complex. According to Energy Transitions Commission; “Global floor area is set to expand by ~50% by 2050, and if buildings continued to be built at today’s embodied carbon intensity, this could result in ~75 GtCO2 cumulative emissions between now and 2050.”
“This could be reduced to ~40 GtCO2 by feasible actions to decarbonise the production of cement/concrete, steel and other building materials, as described in the MPP’s sector transition strategies.”
“A further reduction to ~30 GtCO2 could be achieved via improvements in building design and construction technique and the elimination of wasteful overbuilding relative to demand.”
The challenge is further compounded by fragmented data, varying reporting frameworks, and the need for real-time decision-making.
Automating ESG Data and Reporting
The property sector generates vast amounts of ESG data across energy use, water consumption, waste, and carbon emissions. AI-powered platforms like IBM Envizi ESG Suite is transforming ESG reporting and energy management are helping property businesses optimise building performance, reduce emissions, and simplify compliance.
It offers automated data collection from sources such as building management systems (BMS), asset management systems, smart meters, utility bills and IoT sensors – standardising different data assets and portfolios for accurate tracking; and can ensure reporting aligns with regulatory frameworks.
Future-Proofing Property Portfolios with AI-Driven Net-Zero Strategies
IBM Envizi ESG Suite can summarize total energy consumption, cost and renewable electricity purchases across property portfolios, saving many hours of calculations. It can calculate GHG emissions based on this energy data, enabling you to track progress towards your goals for greenhouse gas reductions and renewable energy purchases. Energy conservation efforts are also tracked through Envizi, along with the associated avoidance in GHG emissions and expense.
By detecting anomalies in energy consumption, property professionals can be put in the driving seat to reduce emissions that comply with regulations whilst also adhering to tenant comfort demands.
When looking at Scope 3 emissions, ESG reporting analytics can provide intel on:
- Classifying supply chain spend data for emissions calculations.
- Integrating supplier sustainability data to assess carbon impact.
- Forecasting the impact of material and operational choices on long-term net-zero targets.
Green Building Certifications, such as BREEAM, LEED and NABERS UK can demonstrate commitment to the net-zero target, and integrating AI-powered analytics can empower landlords to proactively reduce a property’s carbon footprint from the outset.
IBM Envizi ESG Suite’s Building Ratings and Benchmarks Module lets you analyse and review your building ratings against benchmarks such as NABERS, Energy Star, GRESB and the Carbon Risk Real Estate Monitor (CRREM).
Stricter ESG reporting regulations and growing investor expectations are defining sustainability strategies, and it is integral for property professionals to ensure that these are both measurable and transparent. IBM Envizi ESG Suite provides a scalable, end-to-end solution for property firms to streamline emissions tracking, drive energy efficiency, and accelerate net-zero goals.
Get in touch with us to explore how automating ESG Data and Reporting can help.