The Journey to Net Zero | Decarbonising China's Commercial Real Estate

      CBRE Research launched the The Journey to Net Zero | Decarbonising China's Commercial Real Estate, which provides insights from CBRE’s business practices on carbon footprint and decarbonisation strategy of China’s commercial real estate.
 
Real Estate Carbon Footprint

• With occupier, landlord and investor decision-making dependent on robust data to assess current carbon emissions, the effectiveness of measures taken, and the financial costs and benefits, carbon footprint tracking and reporting has become a critical step for companies seeking to achieve net zero goals.

 
Occupier Decarbonisation Strategy

• Improving energy efficiency is the most visible and fastest decarbonising measure. CBRE recommends that occupiers begin by conducting systematic energy audits, and then assessing and identifying which assets and facilities need to be replaced, upgraded, or retrofitted.
• Occupiers can further decarbonise their energy chain by transition to renewable energy through measures including producing renewable energy on-site and purchasing renewable energy in the marketplace.
• Occupiers can optimize their workplace strategy planning with specific measures including increasing utilization, telecommuting and videoconferencing, automation and Big Data, employee behaviour change management, sustainability certification, green leasing, etc..
• Construction materials are the most important implied carbon in corporate real estate supply chain. Occupier can decarbonise the supply chain through measures including reducing the amount of goods and services purchased, purchasing from companies that have decarbonised, installation/use in a low-carbon manner, etc..
• The last step is to explore carbon offset opportunities, which although much lower in unit cost than technical carbon reduction, can only meet current decarbonisation requirements and require continuous investment, whereas the impacts of technical carbon reduction have continuity and costs can be spread over a longer time span.

 
Landlord Decarbonisation Strategy

• Obtaining a sustainable building certification carries significant weight in demonstrating a landlord’s commitment to decarbonisation, while leasing a building with sustainable certification is the most tangible manifestation of an occupier's real estate decarbonisation strategy.
• Landlords can collect data through measuring instruments and sensors, and read, integrate and cross-analyse with intelligent building systems. This ensures that the investments, returns and impacts of decarbonisation can be measured, evaluated, and demonstrated throughout the lifecycle of the planning, implementation, and retrospective adjustments.
• Occupier-landlord cooperation can be effectively promoted and implemented through the adoption of green leases. By clarifying the obligations and rights of landlords and occupiers in leasing terms, both parties can share the costs and benefits of green retrofitting and operation and participate more actively in decarbonisation.