Why Sustainable Buildings Mean Smart Business
Philippa Gill
20 years: Real estate investment
Buildings should stand the test of time. Join Philippa Gill and discover why we’re transforming buildings into sustainable spaces.
Buildings should stand the test of time. Join Philippa Gill and discover why we’re transforming buildings into sustainable spaces.
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Why Sustainable Buildings Mean Smart Business
13 mins 57 secs
Key learning objectives:
Define sustainability in the built environment
Identify the drivers pushing the sector towards sustainability
Outline key sustainability regulations for the build environment
Overview:
Sustainability in the built environment is about creating buildings and places that deliver long-term environmental, social, and economic value. The most sustainable buildings integrate lots of elements, balancing environmental responsibility with human comfort and economic viability. Governments and agencies, such as the European Commission, are tightening building performance legislation to reduce carbon emissions and manage energy demand.
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Summary
What contributes to a building’s sustainability?
What is driving the push for sustainability in the real estate sector?
What are the key sustainability regulations and net zero goals in the built environment?
What does sustainability mean in the built environment?
Sustainability in the built environment is about creating buildings and places that deliver long-term environmental, social, and economic value. It goes beyond energy efficiency or recycling, focusing on whether a building can continue to provide value for decades, manage risk, and meet the expectations of regulators, investors, and users.
What contributes to a building’s sustainability?
A sustainable building is not defined by a single factor. The most sustainable buildings integrate lots of elements, balancing environmental responsibility with human comfort and economic viability. It may include:
- Adaptability over time to changing needs
- Use of low-carbon materials and construction methods
- Operational efficiency to minimise energy use
- Certifications like LEED or BREEAM
- Thoughtful placemaking that enhances health and wellbeing for occupants
What is driving the push for sustainability in the real estate sector?
- Regulation: Governments and agencies, such as the European Commission, are tightening building performance legislation to reduce carbon emissions and manage energy demand. Local and national laws, like the Minimum Energy Efficiency Standards (MEES) in the UK, enforce minimum energy efficiency standards and affect leasing opportunities.
- Investors: Institutional investors, particularly long-term funds, are assessing climate risks and demanding that assets demonstrate resilience and alignment with sustainability targets. Non-compliant buildings may face reduced investment or divestment.
- Public awareness: With 80% of buildings that will exist in 2050 already standing, and the built environment responsible for roughly 40% of global carbon emissions, there is growing societal pressure to adopt sustainable practices. Public demand is increasingly influencing market expectations and corporate behaviour.
What are the key sustainability regulations and net zero goals in the built environment?
- Energy efficiency: Minimum energy performance standards, often measured through Energy Performance Certificates (EPCs), set limits on energy use. For example, MEES legislation in England and Wales prevents leasing buildings below an E rating, prompting upgrades in insulation, heating, lighting, and cooling systems. EU-wide directives like the Energy Performance of Buildings Directive (EPBD) will further tighten these requirements by 2026.
- Building materials: Regulations in Europe aim to reduce environmental impact and waste across the supply chain, promoting circular economy practices and repairability standards.
- Renovation: Renovating existing buildings, which make up most of the stock, is crucial. By 2026, EU member states must plan to upgrade the poorest-performing buildings to improve energy efficiency.
- Net zero requirements: While a universal definition is still emerging, net zero pathways are increasingly required by investors and are embedded in planning and building standards. Mechanisms like Nearly Zero Energy Buildings (NZEB) and national frameworks guide compliance and long-term decarbonisation planning.
- Sustainability certifications and disclosure tools: BREEAM, LEED, WELL, ISO14001, and GRESB provide frameworks for measuring, reporting, and communicating performance, helping buildings and organisations demonstrate compliance and progress toward net zero.
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Philippa Gill
Philippa joined EVORA Global in January 2020, initially to focus on the expansion into Europe and our Climate Resilience Services. Given her background in private equity real estate, she brings deep knowledge of investment drivers and associated risk factors. She continues to sponsor our Social Wellbeing and EVOLVE education service lines at Executive level, while also providing senior strategic support to a number of Evora’s key global clients.
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