Already a subscriber?Sustainability has landed on the desk of the chief financial officer – and this will change the way we value green buildings.
And now the people holding the purse strings are front and centre. New reporting standards and disclosure requirements based on the International Sustainability Standards Board’s recommendations will be effective from July 1. The responsibility for meeting net zero targets is now squarely on the shoulders of CFOs and audit committee chairmen.
This aligns with market data. Buildings with high NABERS ratings enjoy higher face rents and lower vacancy rates. More attractive assets translate into higher annual returns; Green Star-rated offices command a 13.5-percentage-point higher annual return in comparison with non-rated assets.But the research also found clear opportunities for the real estate sector to think differently about the net zero challenge.
These are just two examples; the opportunity is different for every company. But signposts from some of Australia’s leaders show us the direction of travel. We are seeing that tenants want to understand embodied carbon measures when comparing buildings. They also focus on retrofits in addition to the consideration of rating tools that have become standard.