The race to net zero is no longer a choice for a sustainable future. The built environment is responsible for nearly 40% of worldwide carbon emissions,1 which means the real estate and construction industry will play a key role in decarbonizing new property development, as well as transforming existing properties toward net zero.
Digitalization will further accelerate the move toward smart buildings and smart cities—transforming the entire real estate sector. Excel spreadsheets (or pen and paper) are being replaced with technologies such as the Internet of Things, virtual and augmented reality, advanced analytics, artificial intelligence and machine learning. This will vastly improve decision-making around properties and portfolios.
As buildings and cities get smarter, they become more efficient. Carbon-neutral real estate portfolios, reduced energy consumption and support for regulatory requirements will guide the real estate industry toward net zero. ESG, however, has a wider scope than carbon neutral transformation, encompassing also biodiversity, circularity and human rights. This larger ESG strategy is becoming an integrated cornerstone of the corporate strategy.
By embracing digital transformation in the real estate sector, buildings and cities will become more sustainable and meet the needs of future generations. In turn, they’ll increase their value, both financially and socially.
