The trouble with going green: A lack of available data, realistic costings and universal benchmarks are some of the obstacles that stand in the way of net-zero ambitions. Can they be overcome?
How realistic are real estate net-zero investment portfolio pathways? Are they based on plans that will both truly benefit the environment and produce better returns? Or are they in danger of becoming vanity projects that will end up delivering little ultimate benefit?
Even if only viewed through the narrow lens of a fiduciary, the case for reaching net-zero carbon emission portfolios appears to be watertight. In a report released in January, called Return on Sustainability, JLL clearly spells out the financial case for green-certified buildings. Citing the Routledge Handbook of Sustainable Real Estate from 2018, it highlights a meta-analysis of 42 studies on the value of green properties, of which only three did not conclude that there is a rent premium for green certifications. In addition, only four of the studies failed to find a sales premium for environmentally-friendly buildings. Overall, the meta-analysis discovered that green certifications result i