A new worldwide survey conducted by global delivery consultants and construction experts, Mace, for its latest report titled State of Sustainable Assets reveals that while 97% of asset managers feel able to keep pace with environmental regulations and reporting requirements, 80% are not yet implementing strategies or thereby achieving sustainable outcomes.
Conducted 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 architecture & engineering, residential real estate, retail & leisure and infrastructure, was conducted by Mace to gain a better understanding of how asset managers are meeting the climate challenge.
With recent developments all but confirming that the world will exceed the Paris Climate Agreements 1.5-degree target, and the built environment accounting for 40% of global emissions, the study highlights there is much more that needs to be done.
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 report details the main reason being finance (54%), followed by investor mandates (19%), regulatory compliance (15%) and occupant expectation (10%).
When 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%).
Of the sectors included in the research, it is Local Authorities that are ahead of the curve on their sustainability journey, with 32% saying they are in the implementation phase, compared to 20% for Infrastructure, 19% for Real Estate and Retail & Leisure and just 13% for Architecture & Engineering.
Commenting on the survey results, James Low, Global Head of Responsible Business, Mace Group, states:
It is imperative 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.
“This study has found that sustainable solutions can combine environmental and financial advantages, however, most asset managers have only just started their journey when it comes to implementing their strategies.
“But with asset managers now able to keep pace with current environmental regulations and reporting requirements, it’s time to enact their strategies with tactics that can be implemented and measurement systems needed to get them off the mark.”
With legislation clearly not doing enough to prompt consolidated action, though enabling businesses to meet minimal requirements, the report references that in future organisations are likely to witness the adoption of global frameworks to rationalise reporting across geographies and encourage greater action.
To deliver measurable outcomes, the report highlights that asset managers should consider prioritising sustainable skills to tap into a digitally enabled approach, linking strategic thinking with technology to unlock the most far-reaching outcomes for greener portfolios.
Whilst not enough strategies are yet to be successfully implemented, the positive news for optimists is that asset managers are in a unique position between tenants and owners to advocate for sustainability and swift and bold action now will create a healthier built environment in the future.
For more information and to access the full report, please visit the dedicated website page
