‘Some men spend large sums in building houses that are useless, while others build houses perfect in all respects for much less […] [and] some possess many costly belongings and cannot use them at need, […] whereas others, though they possess not more, but even less, have whatever they want ready for use.’ (Xenophon, 427-355 B.C.) [1]
Buildings and construction account for the largest single share in global resource use and pollution emission and among all industry sectors they also have the largest potential for cutting global greenhouse gas emissions. Against this background, buildings have even been called the Cornerstone of Sustainability.
However, we are far from fully tapping this potential and urgent action is required now. Environmental degradation caused by human activity has reached levels at which the ability of the Earth’s Ecosystems to sustain future generations can no longer be taken for granted.
Apart from the environmental and societal benefits, taking sustainability issues into consideration can truly result in real win-win situations for all stakeholders in the property sector: Sustainable buildings not only maximise utilityfor their owners and users, but also serve the wider public due to their reduced environmental impact. These buildings do not tend to be any more expensive to build than conventional ones but their benefits include drastically lower operating costs, improved marketability, longer useful life-spans, more stable cash flows and significantly increased occupant productivity and well-being.
Currently, a review of all available research undertaken in this area leads to two simple conclusions: (1) Implementing the principles of sustainable development in property-related decision making can be a highly profitable exercise. And (2) unsustainable property investment and management practices will sooner or later result in losses with regard to financial performance for both investors and owners.
The RICS EU Advisory Group on Sustainable Property Investment & Management has been set up to address and analyse these issues and to optimise advice given to RICS members and their clients. Its core mission is to advance the transformation towards truly sustainable property markets.
The main objectives of the group include:
- Observing and analysing property related sustainable development paths in policy, legislation, research, education, and standardisation, as well as in business, investment, lending and insurance practices
- Data mining and empirical analyses of the interrelationships between sustainable design features, property performance, prices and loan default risks using advanced valuation and rating methodology
- Reporting on consequences imposed by sustainable development on property professionals, valuation theory and practice
If you are interested in further information or in joining this RICS group, please contact:
Ursula Hartenberger in the RICS EU Public Affairs Office in Brussels (uhartenberger@rics.org)
[1] Xenophon, 427-355 B.C., Economics, Chapter II and III
