Zsolt Kohalmi, global head of real estate and Deputy Chief Executive Officer at Pictet Alternative Advisors, pointed to the “time value of carbon emissions” as an example of the complexities facing real estate companies and investors as they attempt to shift to more sustainable practices.
For an average life of a building, Kohalmi said up to 45 per cent of total emissions occur in the first couple of years – a construction phase of a project that involves extraction of raw materials, manufacturing, transportation, installation, and disposal of waste.
These emissions – otherwise known as embodied carbon – are far greater than those of operational carbon, which is the amount of carbon emitted annually once a building is in use.
The Klosters Forum participants, who included architects, urban planners, green building start-ups, material scientists and investors, shared personal experiences and offered insights on how to tackle real estate’s environmental problem.
A few themes stood out. The role of nature in the built environment was one.
Participants agreed on the need for the built environment to be reconnected with nature.
This would involve a number of novel construction techniques, including incorporating natural and regenerative elements into building designs, experimenting with innovative bio-based materials such as timber and algae and carrying out strategic reforestation, afforestation, and other carbon capture methods.
“As (Italian botanist) Stefano Mancuso says, we’re living in nature and plant blindness. We have to incorporate nature into our culture; culture is not antithesis to nature,” said Mikolaj Sekutowicz, a participant and partner responsible for Strategic Development and Culture at Therme Group, a German resort developer.
The rewilding of cities could also help reduce the environmental impact of buildings. Among the most high-profile projects is Bosco Verticale (Vertical Forest), a residential block in Milan.
Towering 111 metres and 76 metres high, the twin buildings together have 20,000 trees, shrubs and perennial plants, mitigating smog, producing oxygen, reducing energy consumption and sequestering carbon. What is more, residents of the building have expressed a high degree of satisfaction with comfort levels and thriving green areas1. This offers a prime example of biophilic architecture that can connect people and nature.
But the construction of new buildings, even using sustainable techniques, is no panacea, participants were told. In many parts of the developed world, where buildings were constructed during the last decades, retrofitting might be a better way to reduce carbon emissions.
There is a need for the built environment to be reconnected with nature.
Zsolt Kohalmi
Deputy CEO & Global Head of Real Estate
In Europe, for example, some 90 per cent of buildings were built prior to 1990 and 40 per cent before 1960. Studies have shown that refurbishing can result in 70 per cent less emissions than new construction given the issue of the previously mentioned embodied carbon emissions2.
This is not to say, however, that other parts of the world do not need new buildings. Economies in Asia, Africa and Latin America will require more residential and commercial floor spaces to accommodate a growing population.
“A one size fits all approach doesn’t work in promoting sustainable buildings,” said Stephen Freedman, head of research and sustainability for Thematic Equities at Pictet Asset Management.
Instead, he added, a customised approach is essential to develop climate-resilient neighbourhoods in close collaboration with local communities. Location-specific features must be factored in, such as building technologies that are suited for different geographies and reflect the local availability of raw materials.