While economic headwinds and the political rhetoric around the effects of climate change may have sown some seeds of doubt over the future of the sustainability agenda, the message from industry leaders attending the recent British Property Federation’s (BPF) Annual Sustainability Conference was clear – the business case for sustainability remains as strong as ever.
I attended the conference and the BPF Futures Roundtable which preceded it. Both brought together a diverse group of professionals from across the real estate and built environment sectors to discuss how our industry is evolving in response to the climate crisis. In this blog, I reflect on my four key takeaways from the day.
Sustainability and creating value
The central role sustainability plays in creating long-term value in developments was a key theme throughout. Case studies of King’s Cross, Brent Cross Town and Eden Dock in Canary Wharf showed how embedding sustainability from the outset of a project can enhance environmental, economic and social outcomes.
Sustainability is not just about complying with regulatory frameworks. It is about shaping places that people genuinely want to live and work in, and success is dependent on achieving this. Ultimately, the key question we should ask is ‘is this a place people want to be’.
It was also interesting to hear the importance of planning to securing and delivering meaningful community benefits and social value that are embedded in development proposals, not bolted on or provided elsewhere. Impactful measures that can be secured through s106 obligations include affordable housing and workspace, public realm improvements and local employment and education initiatives.
Market incentives to go greener
The growing influence of investors in driving the transition to more sustainable real estate was another key takeaway. We heard discussions around new data continuing to back the so-called green premium, where high-performing, energy-efficient assets are holding their value better. Conversely, less sustainable building stock is experiencing the brown discount, reflected in lower rents and more voids. For many developers and asset owners, futureproofing new and existing buildings through sustainability upgrades is now a priority.
Some local planning authorities have taken a progressive approach to planning policy, although progress is uneven geographically, with the London Plan leading the way. As is often the case, a balance must be struck between policy requirements and viability of new development. The weight of policy requirements, including those relating to sustainability, has undoubtedly slowed down the number of new homes being built in London in recent years.
The emerging role of AI
The rapid expansion of the use of AI in helping the built environment sector meet its sustainability goals was also explored. AI is a powerful tool to gather and analyse data to inform more efficient, responsive design and development decisions. One standout example showcased how data on the use of clinical spaces by doctors was analysed to design healthcare environments that better support real-world workflows and requirements. It will be interesting to see how AI continues to evolve and influence every stage of the planning and development process in the years ahead.
Simplification
The need for simplification across the sustainability landscape was a recurring theme. With a growing number of frameworks and certification schemes, there is a real risk of fragmentation and confusion, both within the industry and for the wider public. We need to streamline and unify where possible.
The forthcoming Net Zero Building Standard is a step in the right direction. However, it remains to be seen whether it will become a universally adopted benchmark or simply add to the existing mix. What was evident from discussions is that data plays a critical role in achieving clarity. Robust, consistent data allows us to measure impact, make better decisions, and communicate sustainability outcomes more effectively. And this applies not just to regulators or investors, but to the people who live, work and move through the places we create.
While the sector is progressing in a positive direction, if the business case for sustainability is to remain, simplification will be key to success.
Concluding thoughts
The conference was a powerful reminder that, despite wider political and economic uncertainty, momentum around sustainability in the real estate sector is being maintained. From regeneration projects in London to innovations in data and AI, the day showcased the number of people, across disciplines and career stages, committed to sustainable outcomes in their work.
The sector is now better equipped to demonstrate its value through access to quality data, deeper knowledge and more credible evidence of impact. The business case for sustainability remains as strong as ever.
The full agenda of the day can be found here.