Sustainable Buildings

Sustainability in the spotlight at EXPO REAL

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We’ve recently returned from EXPO REAL 2024 and wanted to share what the European real estate industry is talking about.

ESG is everywhere

ESG is only going to become more important in Europe. Strong ESG credentials are correlated with portfolio value and it will be a deal-breaker for investment. If projects are to proceed they’ll need to demonstrate they meet ESG requirements and have a viable Net Zero strategy in place. A deeper understanding by all stakeholders will be required.

For developers ESG is front of mind. They recognise its importance for investors backing projects. But for some mid-size players there’s a disconnect between ESG intentions and strategy and implementing these into developments and across existing portfolios. This is understandable; action is harder than words in the complex area of emissions, particularly when addressing Scope 3. More education and assistance will be needed to make Net Zero goals a reality.

Everyone’s talking about Embodied Carbon

Embodied Carbon – specifically the challenges it presents – was on everyone’s agenda. This is welcome, as reducing Embodied Carbon will be critical to transitioning to Net Zero. It was great to see this topic finally getting the airtime it needs.

That said, a lot of talk was surface level and centred on the scale of the challenge. As an industry, we must focus on decarbonising extraction, manufacture, transport and use, and innovation in key materials (concrete & steel), if we are to reduce Embodied Carbon to meet targets.

The Circular Economy has huge potential

More and more suppliers and manufacturers are considering the Circular Economy and sustainable manufacturing. In Europe specifically, modular construction is a big deal. Lots of companies are doing modular construction or pre-fabricated developments. This includes timber companies, which is not something we are seeing enough of in the UK.

Reusing materials is recognised as an area that has huge potential, but to drive this forward the industry will need to collaborate to create a viable market and overcome issues such as storage.

We had a great time connecting with everyone we met in Munich and look forward to returning in 2025.

Science Based Targets initiative guidance – what you need to know

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The Science Based Targets initiative (SBTi) has released its first guidance for the built environment sector to achieve Net Zero emissions.

Buildings and the built environment contribute over 25% of global energy-related emissions and are heavily impacted by the climate crisis. The guidance outlines four key actions:

  • Stop Fossil Fuel Installations: By 2030, companies must halt installing fossil fuel-based heating, cooking, power generation, and hot water equipment to cut direct emissions.
  • Reduce Operational Emissions: Companies must lower in-use operational emissions, with regional pathways developed by SBTi and CRREM to reflect local power grids and building usage.
  • Target Embodied Emissions: With a 15% growth in global built area expected by 2030, companies must reduce emissions from raw materials, manufacturing, transportation, and construction.
  • Retrofit Buildings: As 80% of current buildings will still be standing by 2050, retrofitting rates need to more than double by 2030 to meet the IEA’s Net Zero by 2050 Scenario.

Speak to us at Verte to help you plan and implement your Net Zero journey: hello@verteltd.com.

Let’s talk about Embodied Carbon for Cat B office fit outs

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Over the past few years, the construction industry has been focused on better understanding and measuring the impact of Embodied Carbon on total building carbon emissions. Several organisations in the UK have established targets for new builds for various building typologies, including residential and commercial office buildings.

One area where we have seen less progress is understanding and measuring the impact of Cat B office fit outs on total carbon emissions. This is a critical area to address because Cat B fit outs may be undertaken multiple times over a building’s life cycle and involve materials that have a short life span.

What’s more, separating the carbon emissions between shell and core, Cat A and Cat B works, is crucial for helping both landlords and tenants understand and reduce their carbon impact.

Overbury has set up a task group with various industry specialists to better understand these carbon emissions and today sees the launch of a new report ‘Counting the upfront carbon in Cat B office fit out Part 1’ addressing what the current upfront carbon performance level for a Cat B office fit out should be.

Thanks to Overbury and Zoe Glander, Environmental & Sustainability Manager, for setting up the task group, leading the production of this important report and driving this issue up the sustainable real estate agenda.

I was delighted to be a contributor to the report. If you would like to discuss reducing Embodied Carbon in relation to Cat B office fit outs or other projects, say hello@verteltd.com.

Meet our UKGBC Future Leaders

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We’re proud of Ainsley Diprose, Associate Director, and Petro Michaelas, Principal Sustainability Consultant, for representing Verte on the UKGBC Future Leaders programme – we’re honoured our team made up 10% of this year’s intake!

Following the group’s final reflections workshop last month, we spoke with Ainsley and Petro about their experience.

What has been your UKGBC Future Leaders highlight?

Petro: I enjoyed the whole programme — it was hugely valuable connecting with brilliant speakers, facilitators, and fellow leaders. It was truly inspiring to meet so many passionate, like-minded individuals from across the built environment. We felt like one big family!

The highlight for me? An audience with sustainability campaigner & writer Jonathon Porritt. We delved into tough issues that made me reflect on the urgent need for action. The realisation hit me hard: our environment and humanity are on a collision course with a metaphorical iceberg. But Jonathon’s message was clear—there is hope. Every individual and every action can make a difference. Together, we can turn this around!

How will you use your new skills to accelerate change?

Ainsley: As an industry let’s have more conversations, let’s talk beyond the brief! We are so capable of delivering to industry standards, but I want to work with clients to push boundaries. I want us to embrace community impact and involvement, to look at what is beyond biodiversity net gain and find ways to secure long-term commitment and investment. 

Buildings may be static but the impact they have is not and there are so many questions to be answered and conversations to be had. The UKGBC Future Leaders programme has given me the confidence to hold space for these discussions so that we can together drive positive change at pace.

Retrofit challenge for Life Sciences

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How can you align life sciences developments with net zero objectives?

This was a key part of the debate for the ‘Retrofit challenge for Life Sciences’ panel I chaired at FOOTPRINT+, featuring speakers Dave Wakelin, Director of Sustainability, Gleeds; Simon Hepher-Davies, Asset Manager, British Land; Alex Wraight, Allies and Morrison; and Ivan Jovanovic, Technical Director, Atelier Ten.

Here’s a snapshot of what we discussed:

Life sciences is a growing market with huge potential. But life sciences buildings are more carbon intensive, so key sustainability challenges must be worked through.

For retrofit projects, reducing embodied and operational carbon is even more complex because you are working within a set of constraints. The business case is also tougher, as fitting out for life sciences costs 3-4 times more than office floors. But lots of late 90s and early noughties buildings do readily convert; they have lots of power and floor space. The concrete based loads of older buildings also have lots of benefits.

Flexibility is key to resilience in this sector. It’s critical to be clear who the customer is. You need to understand what they want from the space, how it will change over time – be used and reused – for example from vaccine research to data processing.

You also need tenant engagement on the operational journey. How can tenants drive down energy? For larger occupiers with Net Zero Carbon targets this will be easier, but for start-ups you need to help them understand why reducing operational energy should be a priority and then how they can achieve it. For example, do they really need 24/7 power for lights and ventilation – or can this be concentrated.

Life sciences needs its own targets – particularly for operational carbon. Labs are big users of energy, varying in their demands, so the sector requires new standards to aim for. Targets for building fabric don’t stray too far from commercial offices, but life sciences require high levels of single use plastic – and other materials. We need to strike a balance between reducing carbon emissions and recognising the work being done by the sector – progressing scientific breakthroughs. The Government has a role to play here, recognising that embodied and operational carbon levels for life sciences can’t be compared directly to offices.

The UK life sciences market is growing, and this presents a great opportunity. Despite tough competition from new buildings retrofit should play an important role. Designing to very high specifications and prioritising flexibility will be key – and if projects are to succeed you need to build and believe it will work.

By prioritising sustainability we can support growth, but also enable the UK to be a market leader in life sciences sustainability standards and best practices.

If you’d like to find out more reducing embodied and operational carbon in your life sciences development plans, say hello@verteltd.com.

How do you decarbonise your assets?

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This was a central theme at FOOTPRINT+ 2024. But 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.