Sustaining new standards
Last year the UK became the first major economy to pass a law requiring that its greenhouse gas emissions reach net zero by 2050.
Writing in a blog post back in February, Knight Frank partner Victoria Ormond predicted that the law’s new regulations would directly impact the country’s real estate market, including the London office market. The UK’s capital would now, she wrote, be “leading the charge towards carbon-neutral, green investing”.
This push has been driven by further regulation that impacts how investors such as pension funds and insurers look at green investing and their allocations to real estate. “In a low–bond yield environment, these liability-matching investors are increasingly looking to real estate,” explained Ormond. “[And] UK pension fund regulations now require ESG considerations to be included in Statements of Investment Principles. For insurance firms, the most recent Bank of England stability reporting required insurers to benc