ULI conference: 'Industry needs consistent sustainability metrics'

A consistent approach to measuring the environmental performance of buildings and real estate investment portfolios is needed to engender real progress in the field of sustainability, the ULI trends conference in Amsterdam heard last week.

The past few years have seen a proliferation in the number of green benchmarking systems and indices but they are underpinned by different metrics, Jon Lovell, head of sustainability at Drivers Jonas Deloitte, said during a panel discussion entitled 'Carrots or Sticks? Are Incentives or Penalties More Effective in Driving Action on Sustainability?'.

'I'm concerned about the real estate sector's inertia on sustainability,' Lovell said. 'There is a plethora of benchmarking systems and indices but what are companies doing with all that information? They are quick to identify the problem and its cause but not to implement the changes needed to engender real progress. Industry-led measurement is fine, but we need consistency in the underlying metrics,' he said, noting that the World Green Building Council was trying to foster a discussion on greater consistency.

Commercial interests are also hampering progress, he said, pointing out that in many cases, the benchmarking systems are being led by the vested interests of the proprietary organisation. Nor are things made easier by the 'very rapidly moving regulatory framework', Lovell said. 'There is huge confusion about what is actually going on.'

Panellist Jaap Gillis, chief operating officer of Dutch property company Redevco and co-chair of the International Sustainability Alliance, said that companies should measure their portfolios precisely as a way of pre-empting legislation from Brussels. Under EU legislation, all new buildings have to be nearly zero energy by 2020. Gillis: 'Failure to act will result in penalties. We need to tick the boxes.'

Asked by moderator Alex Notay, vice-president of strategic programmes at ULI Europe, whether the sustainability agenda is being led by property owners or occupiers, Lovell said that investor and legislative pressure was driving the momentum. 'Tenants are not prepared to pay for sustainability in terms of higher rents,' he stressed. In answer to the question posed by the panel title, Lovell concluded by saying that a 'stronger legislative framework plus incentives' were needed to engender change in the industry.