城市土地学会（ULI）：2023年全球可持续发展展望报告（英文版）（25页）.pdf

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1、ULI Global Sustainability Outlook2023About the Urban Land InstituteThe Urban Land Institute is a global,member-driven organization comprising more than 45,000 real estate and urban develop-ment professionals dedicated to advancing the Institutes mission to shape the future of the built environment f

2、or transformative im-pact in communities worldwide.ULIs interdisciplinary membership represents all aspects of the industry,including developers,prop-erty owners,investors,architects,urban planners,public officials,real estate brokers,appraisers,attorneys,engineers,financiers,and academics.Establish

3、ed in 1936,the Institute has a presence in the Americas,Europe,and Asia Pacific regions,with members in 80 countries.More information is available at uli.org.Follow ULI on Twitter,Facebook,LinkedIn,and Instagram.About the ULI Randall Lewis Center for Sustainability in Real EstateThe ULI Randall Lewi

4、s Center for Sustainability in Real Estate is dedicated to creating healthy,resilient,and high-performance com-munities around the world.Through the work of its Greenprint,Building Healthy Places,and Urban Resilience programs,the Center provides leadership and support to real estate and land use pro

5、-fessionals to invest in energy-efficient,healthy,resilient,and sustainable buildings and communities.About the ULI Americas Sustainable Development Council The ULI Americas Sustainable Development Council(SDC)aims to accelerate the adoption and implementation of sustainability,resilience,and health

6、 across the real estate industry.The council pro-vides a forum for the exchange of emerging best practices,including planning,financing,entitlements,design,construction,and opera-tional aspects of projects that advance triple-bottom-line benefits while fostering more sustainable built environments.A

7、bout the ULI Asia Pacific Resilient Cities CouncilULI Asia Pacific Resilient Cities Councils mission is to share best practices and gather collective thoughts on how to decarbonize the built environment and win the fight against climate change.About the ULI Europe Sustainability CouncilULI Europes S

8、ustainability Council brings together investors,occupi-ers,developers,public officials,and academics from across Europe to debate and explore best practices in sustainable development.The council examines a wide range of issuesfrom investigating new ways to measure the environmental performance or t

9、he social con-tribution made by individual buildings,through to the longer-term planning considerations of European cities to ensure they are both successful and sustainable.About Ferguson PartnersFerguson Partners is the leading talent management and strate-gic advisory firm for the global real ass

10、ets industries specializing in executive and director recruitment and business advisory services in-cluding organizational,financial,and strategic consulting.Delivering premier solutions to the real assets,infrastructure,hospitality,and health care services sectors,the global boutique has 11 offices

11、 around the world and is dedicated to personalized client services and integrated talent management solutions.For more than 30 years,Ferguson Partners has been a trusted adviser to senior leaders at companies of all sizes and across a multitude of industries.This report was made possible through spo

12、nsorship by Ferguson Partners.Recommended bibliographic listing:Urban Land Institute.ULI Global Sustainability Outlook 2023.Washington,DC:Urban Land Institute,2023.2023 by the Urban Land Institute.All rights reserved.Reproduction or use of the whole or any part of the contents of this publication wi

13、thout written permis-sion of the copyright holder is prohibited.Urban Land Institute 2001 L Street,NW,Suite 200 Washington,DC 20036-4948iiULI Global Sustainability Outlook 2023AuthorLucy A.Scott Deputy Editor,Real Estate Capital,PEIULI Project StaffMarta Schantz Co-Executive Director,ULI Randall Lew

14、is Center for Sustainability in Real EstateEmily Zhang Senior Associate,ULI Building Healthy PlacesLindsay Brugger Vice President,ULI Urban ResilienceSophie Chick Vice President,ULI Europe Research and Advisory Services Lisette van Doorn CEO,ULI EuropeJoey Udrea Manager,ULI Europe Research and Advis

15、ory Services James A.Mulligan Senior EditorSara Proehl Publications Professionals LLC Manuscript EditorBrandon Weil Art DirectorHayley McMillon Graphic DesignerReport TeamULI Global Sustainability Outlook 2023iiiMember ContributorsULI Americas Sustainable Development CouncilMark BhasinNYU Stern Scho

16、ol of BusinessKatie BlumEast West PartnersDavid CropperSan Francisco Bay Area Developer and InvestorCarlos de IcazaCreelJohn EddyArupDavid FordWalter P Moore and Associates Inc.Andy GowderAusten&Gowder LLCJulie HiromotoHKSSonia KhannaForbright BankVarun KohliBattery Park City AuthorityMelissa Kroske

17、yWoodWorksJon MoellerBlocPowerBrandon MorganVulcan LLCBen MyersBoston PropertiesScott ParkerDesignWorks,L.C.Julianne PolancoClimate Heritage NetworkByron RenfroOrchard Commercial Inc.Rob RydelOZ ArchitectureJudi SchweitzerSchweitzer&Associates Inc.John ShardlowStantecJack SmithNelson Mullins Riley&S

18、carborough LLPRives TaylorGenslerPeter TomaiSpecific Performance Inc.ULI Asia Pacific Resilient Cities CouncilChris BrookeLink Asset ManagementMaggie BrookeProfessional Property Services GroupNicolas BrookeProfessional Property Services GroupChungha ChaReimagining Cities FoundationBernie DevineYardi

19、Scott DunnAECOMEli KonvitzAtkinsMavis MaGreen GenerationBuds WenceslaoD.M.Wenceslao GroupULI Europe Sustainability Council Clarissa AlfrinkUNStudioStan BertramPGGMEric BloyaertATENORSADaniel ChangHines Julien DaclinAllianz Real EstateBen DaltonOrion Capital ManagersJi Won DaunisAllianz Real EstateSt

20、ephan DeurerECO OFFICE GmbH&Co.KGCharlotte JacquesSchrodersInger KammeraatMVRDVStephen LawlerValue Retail Management LimitedMarie MaggiordomoGoodman Management ServicesElsa MonteiroSonae SierraMonica ONeillImmobel Capital PartnersAyosha OrthBuildingMindsLars Ostenfeld RiemannRambollJorge Prez de Lez

21、a EguigurenMetrovacesa S.A.Manuela RaininiAllianz Real EstateRoger ToussaintLongevity PartnersCees van der SpekEDGEPablo VillarejoTechnical University of MadridMax WalmsleyLaSalle Investment ManagementAdditional ContributorsChristina ChiuEmpire State Realty TrustPeter CosmetatosCommercial Real Estat

22、e Finance CouncilJonathan HannamTaronga VenturesDavid IronsideLaSalle Investment Management Pamela ThomasCPP InvestmentsULI Global Sustainability Outlook 2023iv2 Foreword3 Introduction4 Adjusting ESG Strategy for Macroeconomic Complications7 Embedding Transition Risk in Transactions and Valuations10

23、 Harnessing the Power of Collaboration14 Addressing Global Flood Challenges 17 Responding to Government Influence 20 ConclusionContentsWe are once again proud to sponsor this years ULI Global Sustainability Outlook.It is an excellent opportunity to hear from experts about what to expect in 2023,as w

24、ell as the drive for inno-vation that is clearly underway across markets.This publication reflects the insights from roundtable gather-ings of ULI member leaders from the ULI Americas Sustainable Development Council,the ULI Asia Pacific Resilience Cities Council,and the ULI Europe Sustainability Cou

25、ncil and it highlights the key themes to focus on in 2023 as we make progress toward a more sustainable built environment.The message evident across the five key issues addressed in this report is urgency.For instance,energy efficiency has become even more necessary given the rapid rise in energy co

26、sts brought about by the Russian invasion of Ukraine,and it has prompted the thought leaders behind this report to call for greater focus on creat-ing energy independence.Meanwhile,regulation is requiring greater breadth and depth of disclosures around environmental,social,and governance(ESG)strateg

27、iesfor instance,as of this writing,the European Unions Sustainable Finance Disclosure Regulation is mandatory.As a result,companies are required to provide greater levels of transpar-ency in relation to sustainability risks and adverse environmental and social effects.At the minimum,it is critical t

28、hat the industry meets huge carbon-reduction targets in the coming years to curb the worst of climate change.Contributors to this report see collaboration as vital to the creation of strategies and solutions,particularly around energy security and social sustainability,and it appears that this idea

29、is gaining ground as sustainability now embraces topics such as health,well-being,and community resilience.This report also urges that sustainability must also,as U.S.contrib-utors acknowledge,be accompanied by a sense of environmental justice,especially toward the communities that live near the bui

30、ld-ings that owners develop.This holistic approach will require long-term strategies and citywide solutions for a range of issues in-cluding food security,resourcefulness,and flood mitigation.At Ferguson Partners,we recognize the fundamental ethical and fiduciary responsibility in todays global mark

31、ets that requires a clear purpose and deliberate approach to ESG corporate strategy and leadership design and development.To these aims,we are working with organizations to identify and prioritize key leadership requirements and secure appropriate talent.At the same time,we holistically assess all E

32、SG-related opportunities for an organization,advising across a range of areas from compensation to organizational structuring.Our goal is to help organizations develop,evolve,and manage ESG and sustainability strategies with measurable results that realize their ESG goals.Reports such as the ULI Glo

33、bal Sustainability Outlook and the excel-lent work of ULI to convene experts to raise awareness and share best practices will help bring much-needed progress on all these top-ics amid the growing climate crisis that we face across the globe.Matthew HardyGlobal ESG Lead Head of Australia and New Zeal

34、and Ferguson PartnersGemma BurgessGlobal CEO Ferguson PartnersForeword 2ULI Global Sustainability Outlook 2023The Urban Land Institute is eager to keep its members abreast of the topics and issues mounting in sustainable real estate.In late 2022,ULIs Randall Lewis Center for Sustainability in Real E

35、state held roundtable discussions with members of the ULI Americas Sustainable Development Council,the ULI Asia Pacific Resilient Cities Council,and the ULI Europe Sustainability Council to inform an outlook for 2023.During the discussions,members addressed:What sustainability topics and issues are

36、on the rise,why do they matter,and what actions should the industry pursue moving forward?On the basis of expert knowledge shared by those attending,ULI identified five issues that will shape real estate decision-making in the months ahead and beyond:Adjusting ESG strategy for macroeconomic complica

37、tions Embedding transition risk in transactions and valuations Harnessing the power of collaboration Addressing global flood challenges Responding to government influenceThe world is in“climate chaos,”as U.N.secretary-general Antonio Guterres said at the 2022 U.N.climate summit,COP27.This means that

38、 creating a sustainable built environment is mission critical.What it also means,however,is that owners are required to think more about how to mitigate the physical risks that climate hazards and extreme weather are posing to real estate assets and the dam-age that has already occurred.Today,extrem

39、e weather events are frequent,causing tangible physical damage to people and property.Energy prices have sky-rocketed.Transition risks are adding pressure for climate action.Meanwhile,as ULIs Emerging Trends in Real Estate Europe 2023 report reflects,responsible capitalism is seen as a path real est

40、ate companies must takenot only for the sake of investors and oc-cupiers,but for society at large.The climate crisis is now a humanitarian crisis that the real estate industry has a role in addressing.Thus,the social dynamic of ESG poses challenges for owners,such as shifting to cleaner forms of ene

41、rgy so those with the lowest incomes are protected from the burden of high energy prices,and ensuring that lower-value assets are not left behind by the economics of decarbonization.Only urgent systemwide transformation can avoid climate disas-teraccording to the United Nations,which stated in Octob

42、er 2022 that“no credible pathway”is in place to avoid global warm-ing of 1.5 degrees Celsius this century.Accenture has found that nearly all(93 percent)of companies with net zero commitments will fail to achieve their goals if they do not double the pace of emissions reduction by 2030.Against this

43、backdrop,the Global Sustainability Outlook roundtable participants urged real estate companies to not let the short-term pressures of recession and a downward market cycle detract from these wider realities.The roundtable discussions raised concern that recession threatens to take attention away fro

44、m environmen-tal,social,and governance(ESG)efforts and to delay,for instance,the capital expenditure necessary to decarbonize buildings and work toward net zero.For the industry,rising interest rates have created conditions for sizeable capital value declines and difficulty raising debt,mean-ing the

45、 year ahead is likely to be a difficult ESG landscape for many companies to navigate.But as the distinguished Canadian cli-mate scientist Katharine Hayhoe recently said,climate change is a“threat multiplier,”meaning while it does not necessarily create new problems,it makes the problems we have much

46、 worse.In regard to real estate,that means capital value declines owing to the debt crisis will only be exacerbated by the climate crisis.For example,to secure leverage today,a lender that is already nervous about providing finance due to the macroeconomic un-certainty will be further dissuaded if a

47、n asset has no clear path to decarbonization.Therefore,regardless of the economic climate,transition risks remain a critical issue for 2023.These risks to an assets value result from a shift to a lower-carbon economy and using new,non-fossil-fuel sources of energy.These risks can come,for instance,f

48、rom regulatory changes,economic shifts,and the changing availability and price of resources.Lenders,insurers,buyers,and occupiers all now require more detail on where an asset stands in relation to these risks,momentum that will only accelerate,especially as there are better tools,clearer industry s

49、tandards,and benchmarks to provide transparency.Introduction3ULI Global Sustainability Outlook 20231Adjusting ESG Strategy for Macroeconomic Complications The big challenge is how to balance the pressure we are now feeling for short-term returns with the investment that needs to be done to achieve s

50、ustainability goals.”ELSA MONTEIROHead of Sustainability Sonae Sierra Lisbon,Portugal41Adjusting ESG Strategy for Macroeconomic ComplicationsBalancing the pressure to remain profitable through economic difficulties against the need to dedicate capital for long-term envi-ronmental gains will be one o

51、f the biggest challenges for real estate in 2023.Ongoing high inflation,construction costs,and energy prices,in addition to looming recessionary conditions across the globe,threaten progress around sustainability in the coming year by stealing real estate companies focus and deteriorating the busi-n

52、ess case for any sustainability upgrades.Contributors to this report worry that the increased finance costs that will prevail across markets in 2023 threaten to detract capital from essential retrofitting initiatives and upgrades.But this is not an excuse for inaction.As a result,those contributors

53、urge market participants to ring-fence capital for environmental progress and resist pressure to cut corners to save moneya coping mechanism some say is already in evidence.The temptation to limit action on sustainability is at oddsand runs parallelwith a growing sense of urgency over the need for s

54、olutions.The sustainability agenda is also being shaped by the Russian invasion of Ukraine.Disruption in the energy markets means occupiers will be hyper-focused on cutting costs.Higher gas prices are likely to increase competition for energy-efficient assets because businesses will seek to reduce c

55、osts and,during the process,they will look to collaborate with active landlords on finding ways to optimize energy costs.The critical issue for investors to consider over the coming months will be maintaining capital provision for ESG upgrades and innovation.Roundtable participants urge the industry

56、 to consider that high energy prices mean landlords without plans to make energy upgrades could see customers seeking more energy-efficient spaces elsewhere at lease renewal.Real estate owners often cite the ability to link rents to inflation as a way to ensure income keeps pace with rising prices.B

57、ut if energy prices are escalating to such an extent,then those new rents cannot be realistically met.Therefore,the recession does not alter the urgency of decar-bonizing real estate assetswhich account for 39 percent of carbon emissions on a global basis.Extra effort must be made to ensure commitme

58、nts to raising the energy efficiency stan-dards of buildings remain intact to help uphold future asset values and the push for net zero carbon that will help nations meet the Paris Agreement,an internationally binding treaty that aims to limit global warming to well below 2 percent.Already,the real

59、estate industry is not moving fast enough.For example,according to real estate consultancy Savills,in Europe,around 85 percent of the total stock,equivalent to more than 220 million buildings,was built before 2001 and is now considered in-efficient compared with current energy efficiency standards.5

60、ULI Global Sustainability Outlook 2023To meet Europes 2030 climate target,3.5 trillion(US$3.7 trillion)of investment is needed in the coming decade to de-carbonize buildings through renovation.However,the Green Finance Institute reports that today,only 1 percent of buildings undergo energy efficienc

61、y renovations each year.Public/private partnerships such as the Empire Building Challenge in New York have been positive case studies to overcome perceived barriers,but low-income,low-resourced owners will still be hard-pressed to meet the targets.Policymakers across the globe are expected to contin

62、ue to push landlords and owners to net zero carbon regardless of macroeconomic gloom.Equally as prominent an issue is that with climate“chaos”becoming ever more apparent,it is becoming difficult for investment managers to ignore ESG as an ever-important tenet of fiduciary duty.Investor pressure for

63、ESG is also a driving factor.David Ironside,fund manager of Encore+at LaSalle Investment Management,re-inforces the case for action despite economic conditions,noting,“Certainly our most engaged and informed investors recognize that investment is required,otherwise properties run the risk of obsole-

64、tion.It basically comes down to a decision of short-term erosion to avoid longer-term,deeper erosion.”Roundtable participants reflected on the frequency of extreme weather events:the damaging heatwaves in parts of Europe during the 2022 summer;the record-breaking rainfall levels in Hong Kong;and a m

65、egadrought in the United States that has led to the driest two decades in at least 1,200 years.At a property level,these in-cidences are exposing assets to a range of risks;physical damage;the inability to attract capitalfunding or buyers,as well as ten-ants;and jeopardizing the affordability and av

66、ailability of insurance.Jonathan Hannam,cofounder and managing partner at Australian-based Taronga Ventures,which invests in technical innovation for the built environment,notes,“It is becoming more apparent that sustainability matters when it comes to an exit strategy,influenc-ing values,the abilit

67、y to attract funding and potential buyers.We are now seeing global institutional investors willing to pay a premi-um for green,clean,and connected buildings and at the same time,many tenants are demonstrating that they too are willing to pay a higher rent to be associated with these types of assets.

68、”Meanwhile,escalating energy costs are further increasing the cost of structural building materials such as steel,concrete,glass,and aluminum.As roundtable participants acknowledge,the energy crisis could help draw attention to issues such as the energy con-sumption of material production,which is a

69、 contributing factor to the total lifetime energy consumption of a typical building.This could encourage the industry at large to“dig deeper”around solu-tions for more sustainable materials.As Max Walmsley,assistant portfolio manager at LaSalle Invest-ment Management puts it:“Theres a moral hazard.Y

70、ou have to carefully balance your fiduciary responsibilities to investors and your ambitions to protect the planet.There is a sweet spot where decarbonization and value creation are harmonious.”Learn more:Emerging Trends in Real Estate United States and CanadaEmerging Trends in Real Estate Europe6UL

71、I Global Sustainability Outlook 20232Embedding Transition Risk in Transactions and ValuationsThe idea that risk needs to be priced in and risk needs to be mitigated is growing among valuers and funders.”SCOTT DUNNChief Strategy Officer AECOM Asia Singapore72Embedding Transition Risk in Transactions

72、and ValuationsTransition risks are business-related risks that follow so-cietal and economic shifts toward a low-carbon and more climate-friendly future.These risks can include policy and reg-ulatory risks,technological and resource risks,market risks,risks to reputation,and legal risks.In the comin

73、g months,real estate companies must pay greater attention to these risks,following the lead of those that are already prioritizing them.Roundtable participants reflected that much work is underway to design mitigation and exit plans around transition risks,with the roundtable in Asia citing the exam

74、ple of the pub-lic sector in Hong Kong now wanting to see decarbonization strategies in bids for government facilities.Regulation will continue to push the industry to address transition risk,the transparency of which will be reflected in transactions and valuations.The Task Force on Climate-Related

75、 Financial Disclosures(TCFD)provides a voluntary framework for reporting climate-related financial risks,and countries such as the United Kingdom have begun making it mandatory footing for certain sectors of their economies.In late 2022,the European Union adopted the Corporate Sustainability Reporti

76、ng Directive,which will require businesses to report on a broad range of ESG matters;this requirement will come into effect in phases starting in 2024.In the United States,the Securities and Exchange Commission is expected to finalize its proposal to require TCFD-aligned reporting for U.S.-listed co

77、mpanies in early 2023,which will come into effect in phases.Banks are also under increasing regulatory pressure.In November 2022,the European Central Bank said it wanted banks to improve the way they assess climate-related risk and to set new targets of compliance for 2024.Insurers,meanwhile,are ask

78、ing for more granular assessments around physical risk.Among the other kinds of transition risk to consider are how well adapted an asset is to regulatory requirements.And Scope 3 emissionswhich are the indirect emissions that occur in the supply chain of a reporting companyare becoming increasingly

79、 acknowledged as a crucial aspect of transition risk.In November 2022,for instance,the International Sustainability Standards Board voted unanimously to require company disclosures on Scope 1,Scope 2,and Scope 3 greenhouse gas emissions.Establishing how to assess a buildings transition risk and adju

80、st-ing return expectations accordingly will be a major topic of 2023.That there is currently no set way,no common standard,to incor-porate that risk is a talking point in and of itself;there is also no disclosure,which is holding back progress.There are two camps:those that are informed and are doin

81、g their homework in-house,and those that are not aware or do not yet think it is important.8ULI Global Sustainability Outlook 2023To date,very few in the industry have considered decarbonization costs,and even fewer have started to act on it.But awareness is growing that decarbonization comes at a p

82、rice,and risks need to be reflected in the value of an asset.However,“C Change”is a major initiative launched by ULI Europe to ensure those in the industry have access to practical solutions and education on decarbonization.In October 2022,ULI Europe launched this standard valuation methodology to h

83、elp make the assessment of transition-risk costs more transparent and consistent.The organi-zation is urging for widespread adoption of the methodology to fend off what ULI Europe chief executive Lisette van Doorn describes as a“carbon bubble”in the pricing of real estate.Current building values,she

84、 argues,are“too high”because they are largely not being valued in relation to their decarbonization status.Max Walmsley of LaSalle Investment Management,agrees,noting,“We believe carbon-adjusted returns are the future.Put this into your underwriting model.”One roundtable participant raised the issue

85、 of exit strategies,not only from the perspective of salability but also simply from the perspective that transition risk is being passed on to the next buyera reflection that the moral imperative around the climate crisis is established over the long-term outlook of assets.Roundtable participants e

86、mphasized that 2050 is not that far away,given that those with relatively long-term hold periods could be the same owners looking to sell ator nearthat time.However,Mavis Ma,program manager,Asia,at Green Generation,notes even short-term owners need to plan ahead:“Soon,it is going to get challenging

87、if an owner does not have a long-term net zero business plan in place for potential buyers.Because already that buyer will probably be taking it on near the time wider net zero targets need to be met.”On the acquisition side,buyers due diligence processes are evolv-ing to be more sophisticated aroun

88、d transition risk when seeking ESG information on a prospective asset.Ben Myers,vice president of sus-tainability at Boston Properties,explains the depth of their processes:“In acquisition due diligence we look for Energy Star Portfolio Manager accounts,LEED certification status.And now ESG complian

89、ce is quite expansive with two weeks to figure out whether an asset meets local building performance standards.This further includes physical risks of climate change with scenario analysis and tools.”Interviews conducted for this report acknowledge that significant steps need to be taken to understa

90、nd the risks at asset level,as well as how to mitigate while adapting.Pamela Thomas,managing direc-tor of U.S.real estate investments for CPP Investments,affirms and notes,“We see operational,valuation,and exit risk associated with our sustainability goals.We continue to develop the analytical ca-pa

91、bilities,to consistently assess both physical and transition risks,that will encompass both direct effects on assets and indirect effects on the markets,systems,and societies with which assets interact.Understanding the climate risk of assets,including stranding risk,is a crucial tool for our real e

92、state team.”Participants are enthused about the development of technology to aid these assessments,as reliable data and analytics tools become more accessible to assist in this process.Climate modeling tools,for in-stance,are currently undergoing rapid transformation in terms of how accurate they ar

93、e in predicting particular weather patterns.Meanwhile,building operating systems are gaining traction at the building and port-folio level to help guide decarbonization pathways.And contributors are excited about exploring the potential of artificial intelligence modeling to help the industry meet i

94、ts net zero goals faster.The hope is,however,that poor market conditions do not deter the in-dustry from embracing the need to assess and address transition risk.As capital values fall due to higher funding costs,participants warn that it could be an uncertain time to undertake transition risk asses

95、sments.Christina Chiu,executive vice president,chief operating officer,and chief financial officer at Empire State Realty Trust,says of the companys strategy:“There are both short-term and long-term climate-related investments that we can make with the objective that we see a return on our investmen

96、t.We build upon our longstanding leadership and commitment to reduce energy use and greenhouse gas emissions in our buildings.”Learn more:C Change:Transition Risk Assessment Guidelines for Consultation Embedding Sustainability in Real Estate Transactions9ULI Global Sustainability Outlook 20233Harnes

97、sing the Power of CollaborationSaving the planet is not something we should compete on.”INGER KAMMERAATManaging Director MVRDV Rotterdam,The Netherlands10The real estate sector cannot sufficiently address climate change on its own.Individual assets are only as resilient as their communi-ties;contrib

98、utors to the report point out there is much to be done to protect cities exposed to increases in sea levels,storm activity,ex-treme heat,and floods and that efforts to mitigate and adapt must stay on track in 2023.Meanwhile,roundtables noted real estate practitioners must help to ensure that the tra

99、nsition to a low-carbon economy is just and does not leave poorer communities behind.Collaboration across the real estate value chain is proving essential to achieving global sustainability goals.This collaboration includes real estate working alongside governments,community mem-bers,tenants,and sup

100、ply chains.It is an indication that the social element of ESGprotecting communities from climate crisisis genuinely being addressed.Increasingly,market participants are embracing the holistic ap-proach as an important driver of change,particularly with respect to the“S”in ESG.This approach is the ne

101、xt level of sophistication in terms of managing assets.Investors are aware that creating a single building that is net zero carbon amid a city where the majority of stock requires major investment to decarbonize is too myopic in the face of current challenges;interviewees talked a lot about the need

102、 to help meet net zero obligations at the city level via public-and private-sector partnerships across the real estate value chain.In Minnesota,for instance,such a partnership is working on the development of a 115-acre(47 ha)site into a transit-orientated,net zero district that includes a district

103、energy plan.The project is one of seven in the ULIs inaugural Net Zero Imperative cohort,which is a program that brings together the public and private sector to address local challenges around decarbonization to give real es-tate owners(and others)ideas and strategies to accelerate carbon emissions

104、 reductions.Local authorities,such as Battery Park City Authority in New York,are exploring combined benefits to individual properties via a dis-trict energy system,shared energy purchasing,and so on.With such cooperation,the roundtables highlighted,the industry should not ignore the necessity of mo

105、bilizing large-scale behavioral shiftsa scale equivalent to the one undertaken during the COVID-19 pandemicto help mitigate carbon footprints in a meaningful way across neighborhoods and cities.3Harnessing the Power of Collaboration11ULI Global Sustainability Outlook 2023the surrounding community ra

106、ther than build anew.“We need a major rethink of how empty or obsolete buildings should be managed and used,”urged David Cropper,a developer and investor in the San Francisco Bay area and chair of ULIs Sustainable Development Council.Cropper also commented that this would be a topic for 2023 and bey

107、ond.Contributors reported that one emerging topic is to view build-ing utilization as one solution to sustainability in the built environment.One part of that vision is to explore the way the surrounding community can use spaces,for instance,not doubling up on amenities that already exist in an area

108、 and op-timizing assets to help create more vibrant places.Developers are diversifying the offerings and amenities in a given area,while keeping options to adapt spaces for changing needs.Another way that real estate actors are helping to improve com-munity sustainability is by going beyond the boun

109、daries of their own buildings and investigating how they can work with commu-nities to help support food and energy security.One example is the Hines“aer”office building complex in the Munich district of Neuperlachwhere a building that was vacant due to reclassifi-cation has become an interim commun

110、ity center,which includes a community kitchen that can serve up to 10,000 meals a day(using food that was close to its expiration date).Healthy buildings that focus on tenants well-being are becoming integral to the holistic approach to sustainable buildings.Referring to the use of healthy building

111、certifications,Stephen Lawler,retail In Europe,many city governments,including those in London and Brussels,will not grant permission for new construction until all options for reuse,renovation,and repurposing have been exhausted.In the U.S.roundtable discussions,participants reflected on social and

112、 economic sustainability as an emerging issue and urged the industry to consider how buildingsparticularly empty onesare repurposed to better provide for 12ULI Global Sustainability Outlook 2023development director at Value Retail Management summarized,“When you do that,you include everybody.You bri

113、ng tenants to the table.In the end you have an optimal result and create a huge understanding of everybody involved in the process.”“How do we create places that connect to communities and cre-ate cohesion?”asked Juli Polanco,cochair and steering committee member of the Climate Heritage Network.Pola

114、nco added that join-ing up with partners outside of real estate that can help translate developers concepts and strategies to different community groups is an important step in finding those kinds of solutions.Julie Hiromoto,a principal and firmwide director of integration for HKS Inc.,agrees and to

115、ok it further.She framed the ho-listic approach in the context of real estate companies taking responsibility for environmental and social justice and argued that more needs to be done to mitigate the impacts of climate change on the poorest people in society.“We need all of us to reach our collecti

116、ve and shared goal,not just the innovators and leading edge,”noted Hiromoto.“Our underserved and margin-alized populations are less informed about the risks of climate crisis to their families,about the incentives available to make adaptation and resilience strategies more accessible,and then there

117、are the systemic issues of distrust.”Working with occupiers on behavior change is not only a way for owners to lower transition risk but also a way to help them meet their own ESG goals.Participants acknowledged that real estate owners need to educate tenants about how to lower car-bon footprint in

118、operation;however,they also acknowledged that hand-holding is often needed to explain the innovations in an asset.For instance,some participants reported that buyers of residential assets often do not(yet)understand the environmen-tal value of an all-electric building.Perhaps one positive outcome of

119、 the rapid rise in energy costs is that it is a catalyst of the col-laboration between occupiers and landlords to align on operating buildings more efficiently and reducing energy consumption.Another strong theme is that work is underway by some real estate practitioners over the sustainability of t

120、heir supply chains to sup-port wider decarbonization drives.Contributors are keen to source low-carbon materials,such as mass timber,and are looking to companies to help provide information on embodied carbon.Large manufacturers,for instance,are beginning to put carbon numbers to products via enviro

121、nmental product declarations.Interest in embodied carbon is still new,and,therefore,investors are beginning to think about how to measure italthough full understanding of how to do that and of the product data and tools that are needed to properly assess it remains a long way off.Learn more:Social S

122、paces,Resilient Communities:Social Infrastructure as a Climate Strategy for Real EstateSocial Impact:Investing with Purpose to Protect and Enhance ReturnsULI Net Zero ImperativeEmbodied Carbon in Building Materials for Real Estate Tenant Energy Optimization Program13ULI Global Sustainability Outlook

123、 20234Addressing Global Flood Challenges I want to remind people that we have a great deal to do to make sure that places like Hong Kong dont drown.”MARGARET BROOKEChief Executive Officer Professional Property Services Group Hong Kong SAR,China14Intrinsic to the work of mitigating against physical c

124、limate risk factors is understanding flood risk,and how to protect assets from inundation will be a major topic for 2023.While sea-level rise and storm surge will threaten coastal areas,global warming is also,in many places,heightening the chances of extreme precipitation eventseven for inland commu

125、nities.The devastating and deadly floods in Pakistan;in Dallas,Texas,and New York City in the United States;and in parts of Western Europe are just a few recent examples of the havoc flood waters wage against people and property.Such events are becoming more regular and commonplace,and as a result m

126、arket participants are realizing that the cost of repairing flood damaged buildings,or mitigating flood risk,is real.Participants report that more skilland dataare needed within the industry itself to help analyze and quantify such risks.Among the key tasks for the real estate sector for the immedia

127、te future is to encourage local and national authorities to establish and provide detailed and forward-looking flood risk information and updates to existing flood maps.Such data are critical to understanding asset and market-level risk.Using that data,investors can establish annual reviews for thei

128、r flood risk assessments and they can plan to improve the flood resilience of their real estate portfolios as necessary.Asset owners can also conduct enhanced flood due diligence assessments for new investments that have high flood exposure.Many investors are already putting in place such measures.A

129、s Elsa Monteiro,of Sonae Sierra,pointed out,her company is re-viewing each asset to assess its vulnerability to flood risk(among other physical risks)so mitigation measures can be implemented.Stan Bertram,associate director of ESG at PGGM,notes that companies are no longer simply measuring an assets

130、 physical climate riskthey are measuring the asset-level mitigation ac-tivities against such hazards to go from“gross risk to net risk.”This also includes considerations of local policy and govern-ment actions to mitigate such risk.Government actionor lack thereofto mitigate flood risk can be a deci

131、ding factor for investment.Accordingly,local authorities across the world are investing in nature-based solutions,such as green infrastructure,to mitigate the im-pact of flooding and to deliver a range of important cobenefits for urban residents.Urban flood park projectswhich,for ex-ample,are underw

132、ay in New York City,Dakar,Copenhagen,Singapore,and across Chinaare being tried and tested as one solution in the fight against flooding.However,participants note more work needs to be done.4Addressing Global Flood Challenges 15ULI Global Sustainability Outlook 2023Sonae Sierras Elsa Monteiro emphasi

133、zed that more collabo-ration with infrastructure firms and municipalities is needed to help plug gapsfor example,readying sewage systems to cope with large amounts of water.Roundtable participants in Hong Kong,a coastal city,are acutely aware of rising water levels,as local climate groups demand gov

134、ernment investment in flood-defense programs.As noted by Margaret Brooke,chief executive officer at Professional Property Services Group,“I want to remind people that we have a great deal to do to make sure that places like Hong Kong dont drown,because we arent very high above sea level.”Learn more:

135、Harvesting the Value of Water:Stormwater,Green Infrastructure,and Real EstateNature Positive and Net ZeroCloudburst infrastructure lookbookHow to Choose,Use,and Better Understand Climate-Risk Analytics Climate Risk and Real Estate InvestmentWater Wise:Strategies for Drought-Resilient DevelopmentMiti

136、gating Climate Risk Impact to Real Estate Value in the Greater Bay Area16ULI Global Sustainability Outlook 20235It is time to choose the target,then take action on that.It is about choosing the right indicator and really engaging on it.”JI WON DAUNISSenior Manager of South&West Europe PortfolioAllia

137、nz Real Estate Paris,FranceResponding to Government Influence17The industry is still dealing with an alphabet soup of regula-tions and policy,which can hamper progress.But waiting for consistency is not an option.The matter is being complicated by regulators at various levels within markets and acro

138、ss markets increasingly focusing on sustainability.Peter Cosmetatos,CEO of CREFC Europe,a trade association for real estate lenders,stated,“There needs to be economic rationale for ESG strategy.it is hard to build this unless regulation,and its future trajectory,set clear compliance requirements for

139、 buildings,from which valuations can be inferred.”Ji Won Daunis,senior manager,south&west Europe portfolio,at Allianz Real Estate,pointed out,“I see a lot of labels treating sustainability topics and it is creating a lot of confusion among market participants.For us it is about reducing carbon footp

140、rint.We set a short-term target to reduce our carbon footprint by 25 percent by 2025 and aim to reach net zero emissions by 2050.For example,we assess carbon emissions against 1.5 degrees Celsius CRREM GHG Carbon Risk Real Estate Monitor greenhouse gas pathway.It is time to choose the target that ma

141、kes an impact and build the structured framework to measure the performance to assess and improve the portfolio,and engage partners and tenants to make a difference.”One worry in all of this,however,is that despite the confu-sion,it appears regulators are becoming more exacting over green claims.Reg

142、ulatorsfrom the U.K.Financial Conduct Authority to the U.S.Securities and Exchange Commissionare cracking down on companies over greenwashing claims.But the real estate industry in Europe,for instance,is con-cerned that current requirements in frameworks(such as the E.U.Taxonomy),are not necessarily

143、 well designed for most real estate companies.For example,despite an urgent need to improve existing build-ings,such policy is resulting in an unintended consequence,that is,capital is being directed toward assets with the high-est level of green standardsnet zero new builds.In addition,market press

144、ures from the U.S.federal government are ris-ing due to the new requirement that suppliers must disclose climate risk and resilience data to protect the governments supply chains from climate-related financial risks.5Responding to Government Influence18ULI Global Sustainability Outlook 2023Beyond re

145、porting requirements at the company level,gov-ernments are also enacting performance requirements at the operational building level.The European Unions EPC regula-tions,which vary by country,require certain energy grades to lease a building;in the United States,building performance standards in loca

146、lities across the country set fines and other penalties for not complying with certain thresholds of building energy or carbon performance.It is perhaps no surprise then,given the wealth of policy,that participants report that keeping track of regulation around sustainability is a huge draw on human

147、 resource,and that participants note they are hiring people to focus entirely on this issue,including hiring people to follow procedures across different countries.In the United States,the roundtable participants recognized a strong push around sustainability at a local level,including in-centives t

148、o improve attractiveness of new builds and retrofit.In Asia,contributors mentioned the increasing recognition of sustainability within the public sector,as bidding for key gov-ernment land sites must be driven by sustainability to succeed.Also in Asia,the Hong Kong government is looking to position

149、itself as an issuer of green bonds,which have been well received by the public.The Government Green Bond Programme is an initiative to promote the development of green finance,with proceeds raised being used to finance government projects with environmental benefits.Some of the capital is being chan

150、neled to fund green buildings and energy efficiency projects as Hong Kong pivots to a low-carbon economy.During the U.S.roundtable,environmental justice as an integral feature of sustainability was a discussion point and reference was made to the Biden administrations establishment(of the first ever

151、)White House Environmental Justice Advisory Council.The aim of the council is to bring greater visibility regarding how certain communities in America bear the brunt of climate change,with sustainable infrastructure in the built environment being one of the councils key areas of focus.This area will

152、 continue to rise as an important issue in sustainability and the built environment,with real estate being part of the solution.Learn more:Decarbonizing the Built Environment:10 Principles for Climate Mitigation PoliciesEnvironmental Justice and Real Estate19ULI Global Sustainability Outlook 2023Dur

153、ing the European roundtable,Charlotte Jacques,head of real estate sustainability and impact investment at Schroders,reflected,“There are so many things that so many people have to do.How do we achieve this at scale,and how do we mobilize?Theres a huge amount of skills-building and behavioral change

154、needed.How do you communicate all of this so that people understand their role and responsibility?How do we touch all the right people with one building,and how do we replicate that across all buildings?”Leaders in the field understand that while urgency is critical to ac-tionable solutions,so,too,i

155、s cooperation.No one benefits from competition in this arena.Gone are the days when it was enough to hang a green certificate on a building and move on.One net zero building amid a city of brown assets will neither provide a basis for thriving cities nor will it move the needle on decarbonization.As

156、 we head into 2023,sustainability is a collective issue,as Jacquess comments reflectbe it at an occupier/landlord,sup-ply chain,community,or city level.It is this approach that perhaps represents how the most mature and innovative real estate compa-nies interact with sustainability challenges.There

157、is an increasing convergence of the“E”and“S”elements of ESG in the market,in part due to the stress of higher energy prices disproportionately affecting lower-income communities,as well as the necessity to decarbonize all assets no matter their value.In the months ahead,it will be imperative to reta

158、in this growing commitment to action through collaboration as financial head-winds threaten to pull companies focus inwards to the exclusion of all elseparticularly the(arguably)long-term picture because the benefits of environmental investment might take a while to pay off.At the same time,2023 wil

159、l require real estate companies to gain greater,granular insights into the risks contained within their own assets.Currently,only a handful of market players have started to consider the costs of decarbonization.The problem is that decar-bonization activity is mainly focused on high-value assets own

160、ed by the best-resourced companies,predominantly in higher value locationsprime offices and high-end residential where the cost-to-value of retrofitting is lower.What happens to the rest?To remove transition risks as a point of competitive advantage for the market requires sharing knowledge and info

161、rmation on how to account for the cost of raising standards,to help all owners,lend-ers,and valuers create a framework for understanding a buildings worth through the lens of carbon reduction.Conclusion20ULI Global Sustainability Outlook 2023Urban Land Institute2001 L Street,NWSuite 200Washington,DC 20036-4948uli.org