Can Property Giant CBRE Use its Size to Push Sustainability?
Global commercial real estate services and investment company CBRE will “leverage its size and scale” to influence the industry to adopt sustainable practices.
Its 2023 Corporate Responsibility Report outlines a host of positive steps to cut carbon in its own business – and the intention to be a sustainability influencer.
Highlights from 2023 include:
- 24% Scope 1 and 2 carbon emissions reduction since 2019
- 46,500 buildings managed for energy and sustainability
- US$124m savings from identified energy efficiency and decarbonisation projects for clients
- US$3.2bn spent with small and diverse suppliers
- 3rd most sustainable US business, according to Barron’s.
The report says: “With nearly 500 corporate offices and more than 7 billion square feet of managed property globally, CBRE has a significant opportunity to decarbonise the built environment.
“CBRE’s strategy to achieve net zero carbon emissions by 2040 focuses on energy efficiency, renewable energy and electrification to help transition to a low carbon future.”
Building from a large base
The built environment is responsible for 40% of the world’s carbon emissions, which means the commercial real estate industry plays a critical role in the transition to a low carbon economy.
The report says: “CBRE has both an opportunity and obligation to decarbonise the built environment through our own operations, for our clients and for the industry overall.
“As the world’s largest manager of commercial property, overseeing more than 7 billion square feet, we are positioned to leverage our size and scale to drive progress.”
It adds: “In 2023, CBRE provided energy and sustainability-related services and consulting for nearly 46,500 buildings under management, generating over US$385m in revenue globally.
“In total, CBRE helped drive sustainability outcomes across over 1.3 billion square feet of buildings under management.”
Sustainability is a ‘strategic factor’
While the intention to leverage change is praiseworthy, the reality is that it is also rooted in business nous. Sustainability is increasingly being recognised as a sound financial choice.
Patricia Garcia de Ponga, CFO & Head of ESG, Spain, said: “Value is no longer exclusively based on financials. Sustainability is a strategic factor for clients, investors, financers, partners and employees.
“Stakeholders need transparency to understand opportunities and risks associated with ESG aspects and identify the real value and positive impact.”
Stephanie Greene, MD, Sustainability, Advisory Services, Denver, CO, said: “Sustainability is not only a growing priority but, increasingly, a basic expectation for investors and occupiers of real estate.
“We support our clients with proactive, end-to-end solutions that help them achieve their sustainability goals and protect and enhance value.”
The CEO says
Writing in the introduction to the report, Robert E. Sulentic, Chair & CEO, said: “One area of significant progress is improving our energy efficiency, space optimisation and renewable energy while also growing our business.
“We have reduced emissions from our own operations by 24% since 2019, even though our employee headcount is up 17%. This is a notable marker on the road to achieving net zero carbon emissions by 2040.”
He added: “Our work with clients is essential to reaching our net zero goal while helping them achieve their own sustainability aspirations.
“Both investors and occupiers are increasingly tapping into CBRE’s expertise to deliver strategic roadmaps, optimise resources and decarbonise buildings.”
The report says emissions intensity from buildings that CBRE manages for occupier clients have decreased by 11% and emissions intensity from buildings that it manages for owners and landlords have decreased by 15% since 2019.
CBRE estimates that it generated about 890 tons of waste across its corporate office portfolio in 2023, approximately 302 tons (34%) of which was recycled.
Sustainability in the procurement pathway
The report says 131,000 suppliers affect CBRE’s operational emissions through the products and services it buys.
It adds: “CBRE’s global scale and more than US$33bn procurement spend provides an opportunity to influence change across our supply chain, deliver low carbon services to our clients and drive economic growth and innovation in communities.”
The report also talks about sustainable sourcing, saying CBRE is, together with its suppliers, “working in new ways to drive progress toward our net zero commitment.
“In 2023, CBRE identified 2,630 significant Tier 1 suppliers representing US$5.6bn in spend and engaged with over a third of them to drive action in support of their role in our net zero journey.
“We also initiated discussions with selected non-Tier 1 suppliers to help accelerate their understanding of decarbonisation initiatives.”
About CBRE
CBRE traces its origins to 1906 when Colbert Coldwell founded a real estate company in San Francisco. It later merged with Benjamin Arthur Banker to become Coldwell Banker.
CBRE expanded through acquisitions and mergers and was renamed CB Richard Ellis in 1998 and later simplified to CBRE Group, Inc. in 2011.
It’s services include:
- Advisory & transaction: Includes tenant and landlord leasing, property sales and occupier services
- Capital markets: Investment sales, debt and structured finance
- Global workplace solutions: Facilities, project and transaction management
- Property management: Manages real estate assets for property owners
- Valuation & advisory services
- Investment management: Through CBRE Global Investors, the firm manages investment funds and portfolios.
******
Make sure you check out the latest edition of Sustainability Magazine and also sign up to our global conference series - Sustainability LIVE 2024
******
Sustainability Magazine is a BizClik brand
******