Conducted for Mace by Censuswide, the research of over 4,000 building portfolio and asset managers across the UK, USA, UAE, and Hong Kong, working across 14 sectors – including healthcare, architecture and engineering, residential real estate, retail and leisure, and infrastructure, was conducted by to gain a better understanding of how asset managers are meeting the climate challenge. Mace says that ‘with recent developments all but confirming that the world will exceed the Paris Climate Agreements 1.5 °C target, and the built environment accounting for 40% of global emissions, the study highlights that there is much more that needs to be done’.
Mace said: “The report details the broad value creation when it comes to sustainable assets, being strengthened resilience, competitive advantage, reduced operational costs, increased asset value, and improved risk management. What seems incongruous is that over half of respondents recognise that more sustainable assets are also crucial to unlocking financing for their business, and are becoming a standard mandate from outside investors.”
When asked ‘What, if anything, is your key motivator for creating more sustainable assets?’, aside from it being the right thing to do, the main reasons cite were finance (54%), followed by investor mandates (19 %), regulatory compliance (15%), and occupant expectation (10%). Looking specifically at the UK, finance is a motivator that rises to 65% of asset managers, with the most important areas of investment to deliver sustainable portfolios being data and AI (36%), ahead of standardisation of reporting frameworks (22%), decarbonisation technologies (21%), and ‘green skills’ and talent (18%).
Local authorities are ‘ahead of the curve ‘on their sustainability journey, with 32% reporting being in the implementation phase, followed closely by 31% for healthcare, 19% for real estate and retail & leisure, and just 13% for architecture & engineering.
James Low, Mace’s Global head of Responsible Business (pictured), said: “It is imperative that businesses have sustainable assets, and with many making Net Zero carbon commitments for 2030 and 2050, asset managers have a crucial role to play in shaping the future of our growing urban environments. While this study has found sustainable solutions can combine environmental and financial advantages, most asset managers have only just started their journey when it comes to implementing their strategies.”