By integrating natural capital into an ESG strategy developers and landlords contribute to environmental sustainability whilst also enhancing the long-term value and resilience of their asset or portfolio.
Rebecca Burton in our Natural Capital team shares five ways you can incorporate natural capital into your real estate strategy.
Site selection and development
- Biodiversity and Ecosystems: Choosing sites that minimise disruption to local ecosystems and incorporating green spaces that support biodiversity.
- Water Resources: Ensuring sustainable water management, including rainwater harvesting, efficient use of water resources, and protecting natural waterways.
- Soil Health: Preserving soil quality to support landscaping and reduce erosion.
Design and construction
- Energy Efficiency: Using natural capital to enhance energy efficiency, such as passive solar design, green roofs, and natural ventilation systems.
- Materials: Selecting sustainable building materials that minimise environmental impact and are sourced responsibly.
- Green Infrastructure: Incorporating elements like permeable pavements, green walls, and rooftop gardens to manage stormwater, reduce urban heat islands, and improve air quality.
Property management
- Sustainable Landscaping: Maintaining landscapes that use native plants, reduce water consumption, and support local wildlife.
- Resource Management: Implementing systems for efficient water and energy use, waste reduction, and recycling.
- Health and Well-being: Creating environments that enhance the well-being of occupants through access to natural light, clean air, and access to nature.
Valuation and investment
- Risk Management: Assessing risks related to natural capital, such as flood zones, water scarcity, and climate change impacts.
- Value Creation: Recognising the added value of sustainable features and natural amenities in property valuation and marketing.
- Regulatory Compliance: Adhering to environmental regulations and standards that protect natural capital.
Community and stakeholder engagement
- Community Benefits: Enhancing community resilience and quality of life through the preservation and enhancement of natural capital.
- Transparency and Reporting: Disclosing natural capital impacts and management practices to stakeholders, including investors and tenants.
