The time for action is now

Progress on the journey to net zero may have picked up the pace in the past five years, but Marcella Thompson, Global Head of Corporate Sustainability & Reporting at CBRE, says now is the time to accelerate further.

“We can celebrate what has been achieved, such as gaining clarity on decarbonization pathways - we know the levers that will help us move the building sector forward. There is also more of an understanding between sustainability and asset value and resilience. This provides a great foundation but now we need to pivot more into action.”

Words and good intentions aren’t enough as Thompson highlights, “Many organisations have made public commitments to sustainability, but not all have an actionable plan to deliver on their commitments in time. There's a real need for strategic roadmaps that outline steps and prioritise action.” Thompson outlines the key drivers that are increasing this focus: “The first would be competitive advantage. Successful companies are demonstrating innovation and leadership. Being proactive on decarbonization today is going to make a company more competitive tomorrow.”

“We’ve also seen a lot of change in reporting – it’s no longer voluntary. When we think about building efficiency and the decarbonisation of the building sector, there's growing momentum at local, county and regional levels that is really driving change. What might have been a ‘nice to do’ is becoming a ‘have to do’ and that is creating a groundswell of action.”

Thompson also suggests that future-proofing buildings is now a key target: “Having assets that are resilient to the physical impacts of climate change or have a higher market value due to desirable sustainability attributes, those are the things that help companies bring resources to the table and maintain investor confidence.” 

“Sustainability is becoming inextricably linked to not only the value of the assets, but the value of the company.” Thompson adds that “There's an absolute need to protect investments by future-proofing the built environment, and that's where resilience and adaptation comes in. We can have the most sustainable building, but if it’s not protected from the impact of climate change it won’t hold value.”

Thompson highlights why the focus is so important for the industry: “The built environment is where we all spend our time, whether working or living, so it’s very tangible and it becomes very personal. Whether you're an occupier, visitor in the space, or it's your own residence, there’s a close connection to the actions that you take and the outcomes. 

“Consider the relationship between sustainable design and health and wellness. The personal nature of the built environment’s net zero journey is different from other sectors.”

Thompson describes CBRE’s mission as focused on ‘the real estate solutions of the future’. “We believe that the future of real estate has to be sustainable, resilient and adaptive to climate change,” she says. The company’s goal is to achieve net zero by 2040, which encompasses emissions from its operations, the properties managed for clients and its supply chain.

Thompson points out that over 95% of CBRE’s Scope, 1, 2 and 3 emissions are directly connected to client services, so CBRE’s success in meeting its net zero goal is very much linked to its clients’ progress in reducing emissions.  With this responsibility comes an opportunity to create change at global scale: “With over 7 billion square feet of managed property, we have an outsized opportunity to help reduce greenhouse gas emissions across the building sector. It's not just about what CBRE does in our own office space, but for the industry overall.”

“We have to be committed to change and act as a catalyst for others, we aim to lead by example in our own office spaces.”

CBRE’s Scope 1, 2 and 3 emissions were just over 30 million metric tonnes in 2023. Thompson acknowledges the scale of the challenge can be daunting and many companies ‘don’t know where to start’ which is why having a strategic roadmap is so important, to help approach the challenge in manageable parts and drive progress.  With 5 million square feet of occupied space globally across 500 offices, CBRE’s net zero strategy for corporate operations organises into four pathways: buildings, energy, transport and procurement, which addresses the supply chain. There are defined strategic objectives for each pathway.

 

Driving Change with Data and Collaboration

Thompson identifies another key area on the net zero journey around the use of data: “We need to manage our carbon reporting with the same rigor that we put toward our financial accounting. We need timely access to accurate and comprehensive data to enable good decision-making and drive actions. This is an important point where technology can serve as an enabler to accelerate change.”

Thompson reflects on how companies can approach Scope 3 and suggests collaboration should be central to progress: “Every company needs to be accountable for Scope 1 and 2 and is in control of making decisions every day to reduce these emissions. On the other hand, Scope 3 is about influence and being a partner across your value chain. Collaboration across the value chain can deliver progress beyond what any organization can do on its own.”

As a global organisation working across different markets, CBRE navigates a ‘complex’ regulatory landscape, says Thompson: “It’s a challenge for us and our clients. It’s moving very quickly and can be overwhelming to fully understand how new climate- and sustainability reporting rules will impact your business.” 

“Regulation can play an important role in promoting energy efficiency, and requiring greater transparency around emissions to enable stakeholders and investors to make informed decisions and assess risk. Regulation can be effective in driving action and creating a level playing field across organisations and sectors.”

Thompson adds that CBRE recognises the role it can play working with partners in its supply chain: “We've got a supply chain of over 130,000 suppliers, representing about 5 million metric tonnes of total emissions. A lot of our suppliers are small and medium enterprises so we really need to be a supportive partner and help them build the capacity and capability to be able to make changes in their own organisations.”

“Our suppliers are at different places in their sustainability journey. What's exciting is the opportunity to help them advance quickly by sharing what we've learned over the past decade." 

Within this complexity, Thomson highlights the benefits of using technology to manage large data sets. “The internal data sets that we manage are extensive so being able to leverage technology to look across large swaths of data helps bring forward key insights that prioritise action and next steps. Technology can certainly be an accelerator and a real catalyst for advancing progress towards net zero.”

At the heart of this change, Thompson also recognises that CBRE’s employees are crucial to drive it forward: “Enabling our people to speed up the transition to net zero requires empowered thinking. For example, we've focused on equipping our employees with knowledge and tools to help them effectively manage energy use, allowing them to think about buildings in a very systematic way.”

“Collaboration is fundamental to our success. While we aim to lead by example, we also know that we can't do it alone. Our clients, supply chain and industry partners, regulatory bodies – we all need to come together, take down barriers to accelerate progress and help guide our industry through what's poised to be transformative change over the next decade.”
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