In light of growing concerns about climate change, investor scrutiny, and regulatory pressures regarding carbon emissions, JLL recommends that the commercial real estate (CRE) industry give serious attention to building performance standards (BPS). These standards are essential tools being adopted globally by state and local governments to address climate issues.
BPS focus on regulating energy use and emissions reductions in buildings. According to the U.N., buildings are responsible for nearly 40% of global carbon emissions, with this figure rising to about 60% in urban areas. This percentage includes not only the energy consumed during the building’s operation but also the energy required to produce the construction materials. JLL emphasizes, however, that operational activities generally contribute more to the overall life-cycle emissions than construction activities.
At present, BPS regulations apply to roughly 25% of buildings in the U.S., with some regions being more proactive. Many cities worldwide are working towards achieving net-zero carbon emissions by 2050. To control operational emissions, local governments are implementing BPS that set limits on emissions or energy usage, often tailored to specific property types.
Adhering to these standards is becoming increasingly crucial as the industry faces more pressure to reduce its environmental footprint.
In response to climate change, investor scrutiny, and regulatory pressures, JLL advises the commercial real estate (CRE) industry to prioritize building performance standards (BPS). These standards, adopted globally to combat climate issues, focus on regulating energy use and emissions in buildings. With buildings contributing nearly 40% of global carbon emissions, and up to 60% in urban areas, operational activities are a significant factor in life-cycle emissions. Currently, BPS regulations affect about 25% of U.S. buildings, with many cities aiming for net-zero emissions by 2050. As regulatory pressures mount, adhering to BPS is essential for reducing the industry’s environmental impact.