Climate-friendly construction: Engineered timber and the drive for more sustainable buildings
Climate change continues to shape the values, choices and investment decisions of the real estate industry. Asset owners and tenants, in particular, are acknowledging that they will be judged on the performance of the buildings they own and occupy, while simultaneously, investors are increasingly pushing to see that their capital is being used in more sustainable ways.
Real estate accounts for approximately 36 percent of global energy consumption and 40 percent of total direct and indirect CO2 emissions, according to JLL. Left unchanged, the global trend towards urbanisation and the ever-increasing demand for new building stock will see these numbers continue to rise. Unsurprisingly, the United Nations Environment Programme (UNEP) estimates that the real estate sector has the greatest opportunity to reduce greenhouse gas emissions compared to other industries, with potential energy savings estimated to be as much as 50 percent or more by 2050.
Government policies regul