CO2 Emissions From the Building Sector: A Reckoning is (Fast) Approaching

In the near future, many buildings will become “stranded assets” and huge cost burdens due to the price regime for CO2 emissions, revealing a significant financial fallout investors and corporations will soon face if they fail to take environmental action. “Climate Change Penalties” will correspond to almost 3% of asset market value. The Carbon Risk Real Estate Monitor project has developed national and segmental decarbonization pathways to identify and quantify environmental risks and actions to mitigate them. This analysis has revealed that many buildings will become “stranded” by as early as 2024. Crucially, real estate owners and operators need transparency to determine the extent of their emissions with structured and systematized data. The industry needs a single platform and Common Data Model to master the complexity of the sector and portfolio management. Sustainable management will reduce risks, mitigate emission levies/punitive penalties, and lead to asset optimization that can increase the profitability of investments.