Climate change and the real estate sector


Climate change and the real estate sector

Climate change and the effect on the real estate sector

The real estate and construction industry is one of the biggest contributors to global warming, responsible for 40% of all global carbon emissions. Many acknowledged the impact the real estate sector had on climate change, however, little was done by them to address the problem. Up until now.

Recently, real estate and construction have started to take action. They have not only tried to mitigate the impact of their sector on climate change, they are proactively developing new solutions. Public pressure, expected tighter regulations, or generational change could all be reasons for the newfound determination to reduce their impact on the climate. Regardless of the reason, reducing their impact is a positive and important step in the effort towards climate mitigation.

Changing attitudes

The previous lack of environmental change from the real estate and construction sector was contributing to an increasingly negative image of the sector. Over the years, the sector received criticisms from NGOs, warnings from scientists, and millennials, buyers, and investors voiced their objections. This pressure combined with a deeper understanding of the risk that climate change poses to real estate has led to the realization that it is time to initiate real action when it comes to climate change. Already investors are taking climate change into account in their strategies and the construction sector is adapting new methods and materials to limit their recourses and energy consumption and resist climate-related extreme weather. Bringing the real estate and construction industry more in line with much of the business world.


Besides the voluntary actions, the real estate and construction sector have to adhere to the increasing number of climate-related regulations. All European countries are now following a path to tighter regulations and more demanding standards. Keeping to these regulations is inescapable, but moving faster than the regulations can be a key differentiator. Showing concern for the climate can be invaluable in the current marketplace, where the climate and other social issues are becoming increasingly important.

Taking action

The real estate and construction sectors are not just changing their attitude toward climate change, they are taking bold action to prevent further climate change. Real estate and construction companies are taking responsibility and thinking of bigger and better solutions to help limit the temperature rise. They are hoping to help society at large to limit the temperature rise below 2°C in the next 10 years, as stipulated in the Paris Agreement.
In order to achieve their climate-related goals, the real estate and construction sector will have to keep the momentum going. The necessary changes will require a new way of working and seeking guidance from external partners, as well as successfully leveraging technology to ensure fluidity, traceability, and accountability. It is a big ask, but it is no longer optional. The time for the real estate and construction sector to take a leading role in saving the planet is now.

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