'There is no evidence to suggest that the rise in the adoption of environmental sustainability polices will falter, but there is evidence that some areas require enhanced industry engagement and/or collaboration to maintain the momentum of positive change in their implementation' ( Jackson and Orr 2018).
Sustainability has risen significantly on the property investment agenda in the past few years. In recent research Jackson and Orr (2018) indicate that green premia exists and that both property investors and tenants are willing to pay a higher price for properties with sustainability attributes.
Jackson and Orrs recommendations are:
Improvements in the EPC system are investigated for the industrial sector in order to enable full engagement across owners and occupiers.
It is suggested that further and ongoing attempts are made to research and calculate the contribution individual sustainability features make to value.
It is suggested that RICS continues with the promotion and enabling of collective action to drive collaboration across the industry to increase real estate market engagement and thus transparency.
It is suggested that RICS takes steps to engage with occupiers to encourage collaboration in resource efficiency monitoring and initiatives.
It is suggested that the further development and design of sustainability initiatives is prioritised to increase the accessibility of steps towards conversion to self sufficiency in buildings across the real estate sector, targeting current issues of reliability, cost and prohibitive repairing obligations, to enable greater take-up and achievement of sustainability targets and thus benefits.
It is suggested that steps are taken to contractually require sellers to provide environmental performance information and to reinforce that buyers should request such information. Smaller firms are less likely to have specialist sustainability schemes
In line with the identified rise in importance of sustainability for investors Tiwari et. al. (2018) found that in India the majority of developers, investors, occupiers and employees prefer green buildings over conventional buildings. This is a significant finding particularly in light that it is estimated that 66% of building stock by 2030 is yet to be built.
What is clear from both pieces of research is that there needs to be a firmer engagement from industry, government and regulatory bodies to accommodate the increased importance of sustainability criteria.