The global real estate industry continues to progress toward net zero despite an uncertain economic environment. Government regulations, investor and tenant demands, new sources of capital and financial incentives, and physical and transitional climate risks are strengthening the business case and building global momentum on climate action.
In 2022, the ULI Greenprint Community grew to more than 125 real estate companies, representing more than 16,500 assets with more than $2 trillion in real estate assets under management. Each year since 2009, ULI Greenprint members have reported their asset-level operational energy, water, waste, and carbon performance data to be included in the State of Green report. For the first time this year, ULI Greenprint piloted the voluntary submission of embodied carbon data from recent development projects to State of Green, Volume 14. This data is an important step in encouraging real estate to measure and reduce its embodied carbon emissions as the industry progresses toward net zero.
As Brian Swett, principal, Americas East leader with Arup and ULI’s Randall Lewis Center for Sustainability in Real Estate board chair put it, “As this past year’s seemingly endless onslaught of … unprecedented climate change–driven extreme weather events becomes appreciated as our new normal, the imperative of delivering a net carbon neutral built environment as quickly as possible is abundantly clear. Even in these unusual economic markets impacting numerous real estate sectors, the time for delivering dramatic carbon emissions reductions is now, as we have no time to delay.”
Increasing Commitment to Net Zero
Recognizing the importance of reducing emissions as part of an ESG strategy, thirty-six ULI Greenprint members representing more than $1.1 trillion in assets under management have aligned to the ULI Greenprint Net Zero Carbon Operations by 2050 goal, collectively committing to reducing their operational carbon emissions to net zero by 2050. ULI Greenprint defines a net-zero portfolio as highly energy efficient and fully powered from on-site and/or off-site renewable energy sources and offsets. ULI Greenprint measures members’ progress toward these goals by tracking their collective improvements in energy efficiency, purchase of power from green utilities, and increased investment in on- and off-site renewable energy and offsets. Members have continued to reduce year-over-year like-for-like operational carbon emissions using strategies such as energy efficiency and renewable energy procurement.
Year Over Year Results
ULI Greenprint tracks like-for-like, year-over-year reductions in whole building emissions every year. In 2022, the ULI Greenprint community achieved continued reductions across all four categories:
- Carbon emissions: 6.6 percent reduction
- Energy use: 1.6 percent reduction
- Water use: 1.0 percent reduction
- Waste diversion: 0.2 percent reduction
2022 Results
Changes are a measure of reductions or increases from the 2021 median to the 2022 median. The graphs below include whole building data.
Industrial distribution warehouses and parks and retail shopping centers had the two biggest reductions in carbon in 2022, both with 19 percent reductions. Only residential student housing showed an increase, of 3 percent, which may be reflective of a post-COVID increase in students back on campuses full time.
Energy results were more mixed than carbon, with slight increases in energy use intensities for industrial manufacturing, office, student housing, and retail high streets. Retail centers experienced the largest reduction of 5 percent. Industrial distribution warehouses and parks also had a 4 percent reduction and included over 2,000 assets which contributed to the overall energy reduction of the portfolio.
While retail, single-family homes, and office did have increases in consumption, this was offset in the larger ULI Greenprint portfolio by the strong reductions, especially for industrial and multifamily residential.
While retail high street and retail centers had substantial increases in waste diversion this year, this accounted for less than 70 assets, so did not significantly impact the overall portfolio as much as the neutral industrial performance and reductions in waste from other asset types.
Introducing Embodied Carbon Data Collection
Real estate must continue to achieve reductions in operational carbon emissions, andthe industry increasingly recognizes the importance of reducing embodied carbon as well – the emissions resulting from the manufacturing, transportation, installation, maintenance, and disposal of building materials. Buildings account for a total of 39 percent of global carbon emissions annually, and 11 percent of those emissions come from embodied carbon. In fact, embodied carbon from materials and construction can account for half a building’s lifetime emissions.
This year, ULI Greenprint invited members to voluntarily submit embodied carbon data for new developments completed in the past five years. Members reported their total CO2 A1 through A5 embodied carbon emissions (see below for A1-A5 definition).
A1 through A3 include emissions associated with the extraction of raw materials, transportation to the materials processing facility, and manufacturing the product to be used in the building. A4 includes emissions from transporting the material to the construction site, and A5 includes emissions resulting from the construction process. The report also includes a few project profiles that highlight embodied carbon reduction strategies.
Continuing to Expand ULI Greenprint’s Global ImpactBlakely Jarrett, senior director at ULI’s Greenprint Center for Building Performance, is optimistic about the global ULI Greenprint community’s future. “The continued improved performance shown in this report underscores the notion that sustainable buildings are good for business despite evolving market conditions. By thoughtfully planning for the inevitable shift to net zero, real estate can enjoy lower operating costs, attract longer-term tenants, and avoid fines for regulatory noncompliance. ULI Greenprint’s mission to “Reduce Carbon, Build Value” has never been more important. We look forward to another year of progress—join the movement!”
Interested in learning more? Read the full report here.
