Today – 22 April 2022 –  is International Earth Day. A day that highlights the need for all of us – businesses, governments and individuals – to come together and take action on the climate. Calls 'to act (boldly), innovate (broadly), and implement (equitably)' with 'everyone accounted for, and everyone accountable in a partnership for the planet' resound. But today, in many ways, is like any other. The climate crisis requires action this day and always, and the property industry has a significant role to play.

While climate action was already top of the political, societal and boardroom agenda before the Covid-19 pandemic, the gift of time that lockdown gave us provided the opportunity to consider the impacts we were having not only globally but also on our local environments.

ESG (Environmental, Social and Governance) has evolved into its own industry in the last two years, and now we need to make sure we all work towards the commitments that have been set. Evolving the way we live, work and play in response to the climate crisis is paramount. What are we going to have to do and what are we going to have to stop doing?

It’s worth focusing on what the impact of global rising temperatures would be. The UN and its Intergovernmental Panel on Climate Change (IPCC) have modelled various scenarios from an increase of +4.9 degrees and the very worst of consequences, to +1.5 degrees - the target set in the 2015 Paris Agreement and the threshold beyond which the impacts could be disastrous.

But what relevance does it have to us? Surely this is a geopolitical issue? Well, yes and no. Yes: we need governments to provide the framework and incentives to get it to happen, but if we wait for them to act, it will be too late.

The property sector is a major emitter of greenhouse gases and we have to take responsibility. Yet, while the challenge is great, the opportunity to make change for the better and for good is greater. Whether through the creation of highly energy efficient new and retrofitted developments, to the restoration of our rural land and woodlands to be a net sink of carbon emissions – the commitment and creativity amongst those in the sector gives us hope to achieve sustainable, regenerative communities.

This is no longer an area where writing an annual report will suffice. Our clients and the next generation won’t allow it. We have to approach ESG proactively or face future economic loss. I am inspired by the passion that the generation entering the property sector have for this topic and how strongly they believe that the property sector can provide solutions.

'Sustainable business is good business', however, we recognise that this is easier said than done. What the sector needs is practical advice on what to do and when to do it and what we are seeing in the marketplace.

Further information

Contact Nick Green

IPCC report challenges real estate industry to act now to mitigate climate crisis

Savills Energy & Sustainability