It could be assumed that in times of serious economic crisis, sustainability initiatives may well be put on the back-burner. However, the need for a positive legacy in the midst of the Covid-19 pandemic has seen companies across all sectors commit to a ‘build back better’ mantra. There is even evidence to suggest that organisations who integrate Environmental, Social and Governance (ESG) are, in fact, more resilient.

Despite the very real challenges companies are facing, what’s become clear is that climate change is perhaps posing an even greater threat to our planet and, therefore, our lives. As a significant contributor to carbon emissions, the real estate sector is well placed to help make a difference.

First and foremost, many firms are now building climate resilience into their business models and accelerating the transition towards achieving net zero by 2030, going above and beyond the national target of 2050. Strategies vary depending on what is material to each company, however, alongside net zero, the focus has increased during this year on health and wellbeing, the circular economy and social value.

What’s more, the Government has recognised the importance of implementing regulations that enforce these goals via transparent reporting. Just recently, it was announced that reporting in line with the Task Force on Climate-related Financial Disclosure (TCFD) will be mandatory for a range of businesses across the economy by 2025, with some mandatory requirements to be in place from 1 January 2021.  

Given the pressure that the Government is currently under to quell the worst effects of the pandemic, this announcement reaffirms that the need to address climate risk remains a key priority.

There has also been an emphasis on creating safe environments that encourage health and wellbeing. There has been large demand from tenants for Viral Response modules from accreditors such as WELL and Fitwel. This builds upon demand for broader health and wellbeing certifications which were already gaining pace prior to the pandemic, with landlords able to charge premium rents for buildings that are able to boast about their green credentials.

Rather than shy away from the cost of implementing these changes, landlords now see the huge benefit of providing space that makes their occupiers feel safe and secure.

Part of being able to ‘build back better’, is also the opportunity to create a fairer, more diverse, inclusive and resilient society. Initiatives such as The Race At Work Charter, Changing the Face of Property, alongside government policy such as apprenticeship levies, have helped enormously to shift the demographic of the industry.

Also, the trend for integrated reporting on social impacts has seen many businesses working harder to both calculate and improve their corporate social value.

Ultimately, the mantra ‘build back better’ has created a positive focus in what remains an otherwise bleak period for many. While most of the effects of the pandemic could not have been foreseen, we know just how important it is to tackle climate change and the steps we need to take to make it happen.

Further information

Contact Lizzie Jones

Contact Savills Sustainability