Investors and businesses appear to be increasingly incorporating information on environmental, social and governance performance into their occupational and investment underwriting decisions. From an environmental perspective, the real estate sector is of specific interest to policymakers and governments given that construction and occupational activities account for an estimated 40% of annual energy consumption and up to 30% of all energy-related greenhouse gas (GHG) emissions across the globe. Importantly, residential and commercial buildings represent an ever-increasing share of global energy consumption. This trend is likely to accelerate as emerging markets gradually shift away from capital intensive growth towards service-based economies which utilize office, logistics and retail buildings more intensively.
Source : UBS AG