EPRA (European Public Real Estate Association)

The risk of not acting now outweighs the risk of retrofitting. (And why the US are doing it better.) The market forces now favour people who upgrade early. Waiting is the bigger risk. I was at the EPRA (European Public Real Estate Association) conference yesterday and Guy Grainger opened with an interesting talk. Across global cities, five forces are now pushing obsolete buildings into a corner: 1. Tenant demand is exploding. Around one in four future leasing requirements will link directly to climate or energy performance. But there is almost no supply of energy smart, low carbon space. 2. Energy economics have changed. Volatility has become structural. Energy efficient buildings are simply better businesses now. Not for “net zero” but for “my operating costs are out of control” reasons. 3. Regulation is waking up. Performance standards already cover around a quarter of global real estate. More cities are adding carbon caps, EPC style rules and minimum energy thresholds. (Unlike sustainable finance regs, none of this is slowing down.) 4. Physical risk is starting to bite. Insurance costs are up nearly 90 percent in five years. In some markets, insurers and grid operators are already pulling back from flood and storm exposure. 5. Investment momentum is back. Capital is flowing into markets where sustainability upgrades generate real returns. Liquidity has returned and investors are rewarding assets that can be made compliant and competitive. Put those forces together and you get a simple conclusion: **Seventy percent of obsolete stock sits in markets where the business case to upgrade is already strong.** And yet… many owners in Europe are frozen. Not because the capex is scary, but because acknowledging the true value of the building requires a write down first. US investors take the hit early and move. Europeans wait…and wait. If you upgrade early, you compete. If you wait, you discount. Obsolescence is a balance sheet event in slow motion. Ignore it at your peril!

Yesterday I had the pleasure of joining the EPRA (European Public Real Estate Association) #Sustainability Summit in London together with my new colleague, Thijs van der Ven. A very successful event, not only in terms of content, but also a great opportunity to introduce Thijs to many listed real estate companies. The opening speech by Guy Grainger (JLL) was particularly inspiring. A few points that stayed with me: • Wherever data centres are built, we see a spike in energy prices. • Why doesn’t every building generate and store its own energy? • Why aren’t you recruiting energy specialists? • And be prepared for tenants like Google asking: “Where are these electrons coming from? Rooftop solar or…? A highlight came from Andrea Palmer (CEO, CRREM Foundation), who shared a term she heard just a day earlier: “#doubleCRREM.” A good reminder that CRREM includes both energy-intensity and carbon-intensity pathways. You are only truly aligned if you meet both. Maybe I’m biased (... yes I am), but #CRREM has become the de facto standard for measuring performance. It came up in almost every panel throughout the day. I shared my vision that CRREM could become the 'Intel Processor Inside' engine in all reporting standards and green building certification schemes. I also had the chance to join a panel moderated by Luc van de Boom (Scaler), together with Stephanie Maier Stephanie Maier (FTSE Russell, An LSEG Business), Sylvain Montcouquiol (Unibail-Rodamco-Westfield) and Aaron Binkley (Digital Realty). We exchanged views on transatlantic sustainability strategies, and I highlighted our global set of 8 engagement asks across listed and private real estate, of which #CRREM alignment and/or #SBTi is the most challenging. I also underlined that we now measure progress on a quarterly basis, and that there is still a significant journey ahead to reach our 2030 targets. Stressed the importance of location based emission factors. Many thanks to the organising committee, and thank you Dominique Moerenhout, Hassan Sabir and Lourdes Calderón for the invitation and a very well-organised event. Thanks to Richard Betts as moderator (he spotted even my bright blue socks). #Sustainability #RealEstate #ListedRealEstate #EURegulation #CSRD #SFDR #CRREM #SBTi

Yesterday, the SFDR review was officially published. The European Commission (EC) has confirmed a proposal that closely aligns with EPRA's ambitions and expectations.    What’s new: · Removal of entity-level PAI disclosures, with streamlined product-level disclosures. · Removal of the “sustainable investment” definition. · Introduction of 3 new product categories, each requiring≥70% qualifying investments: -> Transition category (Article 7) -> ESG basics category (Article 8) -> Sustainable category (Article 9) · Only categorised products may use sustainability-related claims.   The legislative process is expected to continue until the end of 2026. During this period, EPRA and its Working Group will remain actively engaged with European institutions to ensure that the specificities of the listed real estate sector are reflected in the final provisions. 

Filip Elland from Castellum and I attending the EPRA (European Public Real Estate Association) sustainability committee yesterday and sustainability summit today in London. A highly informative day at the summit, with discussions on how real estate leaders can drive sustainable value creation and whether net-zero strategies truly generate market value. Guy Grainger (Global Head of Sustainability at JLL) argued that leaders should drive value by facing up to structural change such as: * Obsolescence: Properties risk losing relevance if they don’t adapt to sustainability and technology demands. * Energy Cost & Security: Volatile electricity prices and the need for resilient energy systems make efficiency critical. * Building Regulation: Stricter compliance requirements are reshaping investment priorities. 💡 My Perspective:
I fully agree with these points. The future of real estate hinges on creating strong business cases for energy efficiency and property optimization. As societies electrify, energy will remain a scarce and volatile resource. Demonstrating ROI through efficiency measures isn’t just good for sustainability—it’s essential for resilience and long-term value creation. In the panel discussing whether net zero strategies drive market value, opinions were divided. Supporters argued that it’s not about immediate value but about being attractive and future-proof. The very concept of net zero was also questioned, and it was argued that achieving net zero is impossible since the definition should also include embodied carbon not only operational carbon. 💡 My Perspective: Operational emissions are only half the story—materials and construction can account for up to 50% of the footprint. The World Green Building Council’s dual recommendation (operational by 2030, embodied by 2050) make sense to me, but I believe it also raise a bigger question: how do we drive collaboration between landlords and tenants to tackle the full lifecycle impact? Thank you Dominique Moerenhout Hassan Sabir Lourdes Calderón for a valuable few days!

An incredibly timely discussion to close our Sustainability Summit, especially given today’s news from the European Commission. The EU says it’s simplifying sustainability rules, but what does “simpler” really mean, especially for real estate? Our last panel took this head-on, breaking down the Omnibus package and what’s coming next. One thing everyone agreed on: alignment is everything and the real challenge now is making existing frameworks work in practice. Getting reporting right genuinely matters, it’s not a box-ticking exercise, but none of this happens without better, joined-up data. The real value is in opening up transparency and creating a common language that the financial sector can actually use. And when combined with industry standards like EPRA’s BPR, we finally start moving towards data that is clearer, comparable and genuinely decision-ready. The #Omnibus won’t solve the complexity of the issues overnight, but it is a meaningful step towards a system that real estate companies can actually navigate. #Sustainability #RealEstate #ListedRealEstate #EURegulation #CSRD #SFDR #Taxonomy #ESG #EPRA2025 #TransitionFinance Rob Greenberg SEGRO plc , Christiane Conrads PwC, Melville Rodrigues Apex Group Ltd, Amélie Woltrager Arendt & Medernach, Dr Sophie Taysom.

I had the pleasure of moderating a great discussion today at the EPRA (European Public Real Estate Association) Sustainability Summit in London with Derk Welling (APG), Stephanie Maier (FTSE Russell), Sylvain Montcouquiol (URW) and Aaron Binkley (Digital Realty). We covered the growing gap between regulatory expectations and the data the industry can actually deliver. Data fragmentation, inconsistent boundaries, and spreadsheet driven workflows continue to slow progress. Yet we also discussed real momentum. Smart metering is expanding, automation is improving, CRREM Foundation is becoming the common reference point, and collaborations across investors and managers are strengthening. The need for aligned top level strategy and detailed bottom up planning was a recurring theme, with asset teams using real consumption data (in an easy to use platform like Scaler 😉 preferably) to shape credible pathways. Cultural change at the asset level, tenant engagement, and cross regional education are becoming the norm rather than the exception. A clear message emerged: the industry needs fewer spreadsheets, less and more focused KPIs, better accuracy, and platforms that help turn data into action with AI. With physical climate risk accelerating and reporting frameworks converging, alignment and automation will define the next phase of progress. Thank you for a honest and forward looking discussion. The direction of travel is unmistakable and the opportunities for real impact are significant.

What happens when you ask the industry’s leading thinkers a simple question: Are net-zero strategies actually delivering market value? We continue our sustainability summit with more honest views and the third panel made it very clear: the story is more complicated than the slogans. On stage, Olivier Elamine (alstria) cut straight through the noise: Net-zero isn’t a magic value-creation tool. Most of the time, climate action protects value, it doesn’t create it. If the opportunity were as big as we like to think, the market wouldn’t need convincing. On the other side of the coin, occupiers want future-proofed buildings, strong data, and transparency, and they’ll leave assets that don’t deliver. But they’re not always prepared to pay more for it. Expectations are rising while premiums are not at all times there. Sitting in the middle of this are investors, often targeting 2040, while major occupiers aim for 2030. A mismatch that is shaping leasing decisions and asset competitiveness. The main message is that net-zero strategies matter, but not because they guarantee upside. They matter because without them, the downside is enormous. Resilience isn’t a trend. It’s the line between assets that stay investable and those that don’t. Matt Webster British Land Andrea Palmer CRREM Foundation, Laurent Lavergne AXA Investment Managers Linda Kjällén CBRE Sweden #sustainability #decarbonisation #NetZero #climate

We are excited to share EPRA’s new European GHG Emissions & Net-Zero Target Disclosure Analysis infographic. Based on the disclosures of 150 listed EPRA European property members, this analysis provides a clear factual snapshot of how our sector is advancing climate transparency and aligning with the GHG Protocol, SBTi and TCFD.   Key findings: 91% of the companies in scope report GHG emissions 76% report across Scopes 1, 2 and 3 The 7 most reported Scope 3 categories are identified  75% have established a clear emission-reduction plan   Explore the full visual breakdown in the infographic below.

When climate hits home, it reshapes how we value, insure, and design real estate. Our panel on “Valuing resilience in LRE portfolios” explored how physical climate risks are influencing listed real estate today, not in the future. Key discussion points: - Climate risk is happening now, not in 2050, and it’s already driving insurance and valuation pressures. - The cost of inaction is a missed opportunity; communication and data quality are critical. - Resilience isn’t just physical upgrades, behavioural adaptation by landlords and tenants can deliver a fast impact. - We don’t have time to wait for perfect metrics; adaptation must begin with the data we have. - New assets must be designed to withstand current and future climate scenarios. Physical climate risk now directly shapes value, insurability, and long-term performance, making resilience a core part of LRE strategy. Thanks for all the great content to Amar Rahman, PhD, MBA Zurich Insurance; Fernanda Amemiya Landsec, Sarah Brayshaw Savills, Olivia Jones Janus Henderson Investors, Suzy Glass!

Just wrapped our first power panel at the EPRA Sustainability Summit, and it set the tone for the whole day. What stood out most wasn’t the differences between EU and US sustainability approaches, but the honesty in the room. Everyone agreed: this transition is hard work. There’s no quick fix, no overnight solution. Reminding us all that we approach the 10 year mark of the Paris Agreement, Unibail-Rodamco-Westfield's Sylvain Montcouquiol shared how their long-term climate commitments are on track across both Europe and the U.S., stressing again that real progress comes from discipline, not headlines. The others were equally frank: we all want simplification, but a single global reporting standard is unrealistic at this point. The real opportunity lies in industry collaboration and making systems compatible, not identical. Proud to see EPRA members leading with transparency and realism, and proving that even the toughest transitions can move forward with collective effort. A big thank you to Scaler for being a trusted partner of this Summit! #EPRASummit #Sustainability #ListedRealEstate #Transition #ESG #EPRA #Leadership #RealEstateTransition Derk Welling, APG Asset Management, Stephanie Maier FTSE Russell, An LSEG Business, Aaron Binkley, Digital Realty, Luc van de Boom