Originally published on October 20, 2023, by Logan Nagel for NAIOP.
As investors and occupiers look to improve the sustainability of their investments and operations, decarbonizing the built environment is an increasingly important real estate decision.
In a panel at this week’s NAIOP’s CRE.Converge conference, sustainable building professionals explored some of the strategies their firms are using to mitigate carbon emissions across their industrial real estate portfolios. Nate Maniktala, LEED AP BD+C, MBA, a principal at building consultancy BranchPattern, moderated the panel and began by addressing the scope of the need for sustainable building methods.
According to Julia Wattick, AIA, LEED AP ND, Fitwel Ambassador, a senior associate and team lead at BranchPattern, there are two broad types of carbon in buildings: Embodied carbon from the building’s entire lifecycle and operational carbon from building use. “There are actually seven years of operational carbon emissions that typically equal that upfront embodied carbon impact,” she said. Out of that embodied carbon, concrete is the leading emissions culprit, accounting for over 11% of global greenhouse gas emissions.
Real estate businesses feel pressure to address carbon from several main sources. According to Josh Hullum, executive director of construction at Affinius Capital, “It’s understanding the impact from our investors. I think that’s the loudest voice in the room, particularly as you go north to Canadian or European investors. For every dollar received, there’s an element of expectation for more responsible design and development.”