I recently wrote about how data shows the global real estate industry is not on track to meet decarbonization goals by 2050. New research from Van Lanschot Kempen, a Netherlands-based wealth manager, gives another glimpse into how the industry is behind the curve on decarbonization. Van Lanschot Kempen’s analysis shows that only 10 percent of listed real estate companies worldwide have comprehensive, externally verified net-zero targets for all three scopes of emissions.
The research showed that most real estate firms have taken an incomplete approach and set net-zero goals that are light on details. For example, among the companies that have acted, 13 percent publicly aligned themselves with the Paris Agreement but gave no details on how they would achieve carbon reductions. Another 17 percent of real estate firms have publicly stated an aim for carbon neutrality but not for all material GHG emissions.
Van Lanschot Kempen’s research was based on a close look at the net-zero pledges of 92 percent of the total listed real estate market capitalization, that’s worth almost $2 trillion worldwide. The company said their “data and dialogue with the sector shows the real estate industry still has a long way to go.” In the U.S., real estate firms may not be able to afford to delay more detailed ESG policies much longer. The SEC Climate Disclosure law will increase pressure to get much more specific on carbon emissions very soon.