“One of the major challenges is the limited supply of green-[certified] buildings,” Helen Amos, JLL’s head of sustainability in Hong Kong, said in a statement on Monday, adding that the shortage in the city will be particularly cute.
“The supply may not be able to meet the increasing demand in the long term. Even including the projects in the pipeline, the majority of buildings in Hong Kong will not [be] green certified.”
However, retrofitting existing buildings can deliver environmental performance on par with, or even exceeding, that of newly constructed buildings, she said.
Only 4 per cent of occupiers boast portfolios that are 100 per cent green certified currently, according to JLL’s survey of 243 senior commercial real estate decision-makers in Asia-Pacific in November. The research covered eight geographies, with two-thirds of respondents belonging to multinational corporations.
“Today, leasing office space in green certified buildings is no longer a differentiator but a minimum criterion for most occupiers in Asia-Pacific,” Kamya Miglani, head of ESG research for Asia-Pacific at JLL, said in a statement.
Seventy-four per cent of occupiers across Asia-Pacific expect half their energy needs to be met by renewables in the future, compared with 9 per cent now, according to JLL.
The transition to renewable energy is a critical step for the real estate industry to redefine and transform buildings from passive energy consumers to active contributors through on-site renewable energy generation, JLL said.
Currently, 65 per cent of occupiers cite investments required for office fit-outs as one of their greatest sustainability challenges, according to JLL’s survey.
Building fit-outs contribute around one-third of emissions, as the average office has changes made to its interior at least 20 times in its life cycle, according to JLL. The lack of focus on fit-out emissions stems from a traditional separation between teams responsible for building development and interior fit-out, JLL said.
“Breaking established silos is key to transitioning towards zero waste in the design phase through to procurement and strip-out, to support the reduction of emissions associated with waste and material use,” Miglani said.
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“In Hong Kong, office tenants, particularly Hong Kong-listed enterprises, are currently placing a significantly greater emphasis [than in the past] on ESG features when making real estate decisions,” said Martin Wong, senior director and head of research and consultancy for Greater China at Knight Frank, in a report last month.
“While Hong Kong aims to achieve carbon neutrality by 2050, multinational corporations are expected to adhere to the standards established by their global headquarters, potentially as early as 2027 to 2030,” said Wong.