Sustainability: Why Bother?
We have been talking about climate change in the built environment for decades. But with global temperatures now surpassing the 1.5 degree threshold set by the Paris Agreement, and a lacklustre political response to the climate emergency, the question is no longer why we should act, but how can we act faster.
This was at the heart of the RLB panel discussion I had the pleasure of hosting at UKREiiF, titled, ‘'Sustainability: Why Bother?' Our expert panel included leaders across asset management, property development and investment and development communities.
The Political and Financial Imperative
It was recognised that one of the biggest challenges to achieving ESG (environmental, social and governance) ambition in the built environment was geopolitical variability. As governments change, so do policies and priorities. Yet despite political volatility, there was a shared recognition that sustainable asset management is no longer optional, it’s the only viable financial path forward.
Investor behaviour is increasingly shaped by occupier demand. People want to live, work and play in healthy, low-carbon buildings, and they’re aligning with organisations that reflect ESG values. Insurers too are factoring in climate risk like overheating and flooding and without sustainable retrofit strategies, assets risk becoming uninsurable and ultimately, unviable.
While major retrofit programmes must be planned around tenancy lifecycles, there are ‘quick wins’ interventions asset managers can take now to optimise building performance. These offer immediate energy and cost benefits while laying the groundwork for deeper transformation.
A Shift from ‘E’ to ‘S’ in ESG
A notable trend was being seen in the growing shift from environmental metrics (the ‘E’) to social impact (the ‘S’) in ESG. This isn’t about abandoning environmental goals but recognising the benefits those goals deliver.
Salford City Council’s integration of Passivhaus standards in its affordable housing developments was given as a powerful example. The outcomes include temperature-regulated, healthier homes, fewer GP visits from tenants, reduced arrears and improved tenant satisfaction, yet these social benefits often aren’t measured on traditional spreadsheets.
Moda also shared how they’re tackling this challenge, partnering with RLB Digital to create a bespoke social value measurement platform. This enables transparent, organisation-wide tracking of social performance, aligned internal teams and informing external stakeholders. However, the panel agreed that authentic social value starts with engagement and that real benefit only comes when communities are part of the conversation, helping define what ‘value’ really means to them.
Transparency around the Challenge
Panellists also called for greater transparency around ESG performance. Many existing assets will struggle to meet current ambitions, and that’s a reality we must acknowledge openly. A strategic, systematic approach is essential to managing this complexity and scaling best practices across the industry. Examples from abroad provided inspiration including how in Melbourne, Australia, black roofs are now banned in planning to reduce urban heat, and in France, reflective white pain is being trialled on industrial sheds to mitigate overheating. But consistent reporting and education remains a challenge, especially across borders with internal standards and governance crucial to ensure global organisations deliver consistently across regions.
Regulation: The Missing Link
I asked whether the industry was doing enough to ensure people can work and live safely? And how do we futureproof for 2040/2050? And do we need the government to do more?The response was unanimous; regulation must play a greater role.
The built environment was compared to a tanker, which, without regulation, won’t change its course. Government intervention, joined-up policy and targeted funding are essential to making retrofit programmes economically viable.
Data will be key in terms of how we support this change. Unlike in France, where asset energy data must be uploaded into a central database, the UK lacks the legislative push to incentivise behavioural or operational change. Working more closely with asset and facilities managers and advocating for data transparency will be critical for cultural change.
Myth Busting Sustainability
Finally, I asked what the one myth was when it came to sustainability the panel felt we need to address. I offered mine, the idea that sustainability was an add-on to design and build. The responses backed my sentiment, that everyone needs to be an advocate for sustainability, that ESG adds value and is core to value creation. We all agreed we do need to bother with sustainability and now.
RLB would like to thank all the UKREiiF panellists for their participation and invaluable insights including:
Peter Runacres
Earls Court Development Company
Head of Urban Futures
Tarry Depledge
Moda
Head of ESG
Emma Williamson
M&G Real Estate
Director and Net Zero Investment Lead
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