The real estate industry, the largest carbon emitter accounting for 39 percent of global emissions[1], is a key player in the fight against global warming. To achieve carbon neutrality by 2050, all European countries must work to reduce the carbon footprint of new and existing buildings.[2]
At MIPIM, the main European players in the sector have come together to support the first pan-European certification label for low-carbon real estate. The founding members of the Low Carbon Building Initiative hail from numerous European countries: BPI from Luxembourg, Belgium and Poland, NSI from the Netherlands, WO2 and ICAMAP from Luxembourg, France and the UK, Generali Real Estate, BNP Paribas Real Estate as well Covivio and Ivanhoé Cambridge with a pan-European approach, and Struan Robertson.
The French association BBCA provides the necessary technical support for this initiative, which aims to promote the reduction of the carbon footprint of buildings throughout their life cycle. A scientific commission was established to ensure an independent approach. Co-led by Artelia and Elioth, a brand of the Egis Group, the commission brings together experts in life cycle analysis and decarbonization strategies for the real estate sector. The European methodology is to be developed by summer 2022, so that the first exemplary buildings in Europe can receive the label by the end of the year. In a first step, offices, residential buildings and hotels are analyzed.
Since 2016, around 300 projects in France with a total area of over 2 million square meters have applied for or have already been awarded a BBCA label. Implementing carbon reduction best practices can reduce a building’s carbon footprint by 30 to 50 percent compared to traditional construction methods, depending on the label tier. The BBCA label was also a precursor to and has contributed to the implementation of the new environmental regulation “RE2020” for new builds in France.
Christophe Kullmann, Chief Executive Officer (CEO) at Covivio, explains: “Aware of its impact on the environment and its role in the ecological transition, the real estate industry is once again demonstrating its ability to come together in the face of a structural challenge. In line with its longstanding strategy on the matter, Covivio is delighted to join this pan-European initiative. It includes partners with different profiles. This diversity is a real asset in creating this standard and, in turn, in tackling the climate and energy challenges we all face together.”
Olivier Terrenoire, Global Head of Asset Management, Property Management and Sustainable Investing at Generali Real Estate, comments: “The decarbonization of the real estate portfolio is a key priority in Generali Real Estate’s ESG strategy. This is also reflected in the goal to which the Generali Group has committed itself by contributing to the Net Zero Asset Owner Alliance created by the United Nations. We are proud to work alongside key European market players with the support of the BBCA and to be a founding partner of this important initiative. In doing so, we are tackling one of the most important issues for our industry and creating further synergies on this demanding path.”
Stéphane Villemain, Vice President, Corporate Social Responsibility (CSR) at Ivanhoé Cambridge, states: “We are proud to support this European initiative, which represents an important step towards decarbonising the real estate sector. Emissions from buildings need to be taken more into account throughout their life cycle, including during the construction phase. This initiative represents a real opportunity to scale up low-carbon practices in our sector and position our portfolio attractively over the long term.”
Stanislas Pottier, Senior Advisor to the General Management of Amundi and President of the French association BBCA, adds: “If we want to reach net zero by 2050, we have to do everything right in terms of CO2 emissions over the next 15 years. To do that, we need to change practices over the next two to three years. This means that we need to create a real carbon accounting and analysis framework for buildings, cities and portfolios. BBCA is pleased to support this European low-carbon building initiative and to bring the technical expertise it has acquired over the past six years to align with ongoing work at EU level (Green Taxonomy, CSRD, NFRD etc.) and beyond (ISSB) CO2 indicators and euro reach European labels.”
