The Urban Land Institute (ULI) Europe is starting to bring out a free interactive tool that it says the real estate industry could use to integrate climate transition into financial models at the heart of investment decision-making.
The organisation is working with sustainability analytics specialist, Synergetic, to create “ULI Preserve” as part of an ongoing programme to ‘mobilise’ the European real estate industry to ‘urgently speed up decarbonisation, seeking to understand and eliminate the barriers'.
Preserve should enable real estate companies to quantify financial impact of opportunities and risks linked to net zero transition such as future energy costs and demands, potential rent increases, carbon pricing, and capital expenditure.
The previously published ULI C Change Transition Risk Assessment Guidelines will be adopted at scale in the industry via the tool.
ULI and Synergetic said they were working with Mott MacDonald and CBRE UK Valuations Advisory to develop the scalable tool.
To ensure that the tool will add value for the industry, ULI and its development partners said they were seeking ‘input and feedback’ from ULI’s membership and the wider industry.
The real estate industry is struggling with a lack of consistency in the way transition risks and opportunities are being integrated into business plans, according to Sophie Chick, VP, ULI Europe.
Derek Wilson, CEO of Synergetic, said: ‘The industry is at a crossroads and needs to balance the dual objectives of financial performance and climate action. Doing so successfully requires data-driven insight into the financial risks – and just as importantly, opportunities – of the net zero transition.’
Lisette van Doorn (pictured), CEO, ULI Europe, concluded: ‘We believe that this will enable the industry to drive real transformation and create lasting industry-wide change in addressing decarbonisation, all facilitated by an intuitive, easy-to-operate, interactive tool.’
