Property professionals may think climate change has little relevance. But, the industry is at the forefront of mitigating impacts. From residential homes to commercial properties, the truth is simple: the sooner you address climate change, the better your business—and the planet—will fare.
Here are five reasons for acting now:
1. Rising Demand for Sustainable Properties
Environmental awareness is growing rapidly. Demand for sustainable properties is soaring. Buyers, tenants, employees and investors are increasingly concerned about the emissions of their homes and workplaces. Energy-efficient buildings, green certificates, and eco-friendly designs are no longer niche markets—they are mainstream necessities.
Businesses that fail to understand climate change risk losing out on a key customer base – those seeking properties with a lower carbon footprint.
From solar panels and heat pumps to sustainable materials, buildings contributing to a cleaner, greener world are increasingly popular—and those who understand, market and meet these needs gain a competitive edge.
2. Regulations and Incentives
The UK Government is legally bound to reach net zero by 2050 and the pathway for achieving this is pretty steep. Buildings account for 30 per cent of domestic emissions, so the Government is increasing regulations to achieve this aim.
The UK’s Minimum Energy Efficiency Standards (MEES) mandate that rental properties meet energy efficiency criteria. Companies with 250+ staff have to report on annual emissions – and demonstrate what they’re doing to cut these too.
Such legislation is increasing and not just in the UK. Companies worldwide are being tasked the same.
Staying ahead of these regulations is key. Properties failing to meet energy efficiency standards will struggle to attract tenants, buyers, and investors. Professionals who understand these laws and help property owners upgrade their homes, can help avoid penalties and provide benefits for improving emissions too.
3. Climate Change Impacts Property Values
The effects of climate change are increasing around the world. From flooding and rising sea levels to wildfires, droughts, and storms. In coastal or flood-prone areas, properties risk not being able to gain insurance due to climate-related change.
Agents, property managers, and developers need to know that physical risks will increasingly impact property values and insurance premiums. Proactively advising clients on climate-resilient properties—those designed to withstand extreme weather or located in less risky areas—can help protect investments. Sustainable buildings and energy-efficient homes often retain higher values, making climate-conscious investments a good strategic move.
4. Attracting and Retaining Ethical Investors
With growing consumer awareness, ethical investing is increasingly the norm. Investors are looking for properties aligning with their values – those with reduced footprint or eco-friendly features. This is particularly true for millennials and Gen Z’s, many of whom prioritise climate-consciousness as much as they can.
Staff who can discuss these issues and offer properties meeting environmental, social, and governance (ESG) needs will attract and retain more ethical clients. This opens up new potential revenues from those supporting socially responsible themes.
5. Motivating Staff and Building Reputation
As the world grapples with climate change, businesses are being held to higher account. Those incorporating sustainable practices – offering green credentials, cutting their own emissions, encouraging energy-efficient upgrades, and supporting climate-positive projects – can bolster their reputation, as well as attracting and retaining the very best staff.
In today’s competitive market, promoting environmental responsibility is attractive to customers and staff. Seventy per cent of UK adults are either fairly or very concerned about climate change, so companies embracing sustainability gain a raft of benefits, in terms of positive perception and brand. This can be particularly important in securing long-term loyalty in an increasingly eco-conscious world.
Conclusion
The time to address climate change in property is now. Businesses have a unique opportunity to influence the way buildings are built, bought, marketed, managed and sold. By embracing sustainability and helping clients understand the regulatory, financial and environmental benefits of climate-conscious choices, businesses can position themselves as leaders in the field.
In doing so, they will motivate, attract and retain staff, remain relevant to customers, increase profitability, and, most importantly, help address climate change.
Incorporating sustainability into your practices isn’t just about helping the planet—it’s seriously beneficial for your business too.
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