For champions of sustainability in the real estate sector, expectations are high as Broll Properties adopts monitoring, reporting, and verification (MRV) approach to sustainability consulting and advisory for its clients. The company has also adopted future-focused methodologies in advising its clients.
MPV is a heavily data-driven approach which ensures that investors can make informed decisions about their energy, water and waste management strategies.
Sustainability is, increasingly, driving day-to-day decision-making for many investors and occupiers in the real estate market.
This is following from the contribution of real estate to global carbon dioxide (CO2) emission estimated at 39 percent. The contribution, according to Broll, is causing shifts towards more sustainable buildings and investments.
‘’Our findings show that green buildings outperform conventional buildings in both cost, usage and emission rate considerations. In other words, the data, which is generally non-existent in the market, illustrates the superiority of green buildings when looking at energy efficiency,’’ Bolaji Edu, the company’s CEO, said.
Read also: Half of Africans without electricity live in Nigeria, four others
Edu noted that comparing energy cost intensity (ECI) in conventional and green buildings shows that sustainability is the way to go. He explained that ECI which is a measure of energy cost efficiency is higher in conventional buildings at 19,167 units than green buildings where it is 7,726 units.
Similarly, he said, energy use intensity (EUI), which is a measure of energy efficiency in building design and operation, is higher in conventional building at 212.3 units than green buildings where it is 142.3 units.
‘’We utilise three key metrics to assess the energy efficiency of any building over a period of time. These include Carbon Intensity (CI), Energy Use Intensity (EUI) and Energy Cost Intensity (ECI),’’ Edu said, noting that, ‘’this is especially important for climate change-sensitive investors that found it difficult in the past to find data to justify their portfolio requirements to build in more sustainable designs and operational models.’’
He disclosed that, at Broll, they utilize emission intensities to derive estimates of air pollutants or greenhouse gas (GHG) emissions based on the amount of fuel (diesel) combusted in the generators for electricity generation (Scope 1) and emissions from purchased electricity (scope 2).
Based on weighted averages for the sample of buildings considered, he added, green buildings have a cost intensity that is over 70 percent less than conventional buildings.
According to him, EUI standardizes energy use data based on critical criteria for practical comparative assessments, adding that the data shows that green buildings are efficient by over 30 percent relative to buildings with conventional designs and operations.
‘’ECI mirrors the EUI; however, it focuses on cost efficiencies from increased energy efficiency in buildings. The data shows that green buildings are more energy cost-efficient by almost 60 percent when looking at the sample of buildings in our analysis,’’ he said.
Continuing, he said, ‘’with many governments, institutions, investors and occupiers being more sensitive to and proactive about sustainability, exposure to transition risks (business risks that follow changing stakeholder preferences following shifts towards more climate favourable practices) are inevitable.’’
