Sustainability and Climate Change from a People Perspective

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Nov 16

Image of a city facing climate change issues.

Reflections and Takeaways from COP27

We all understand climate change as it relates to physical properties, but we sometimes overlook how climate change affects people in the buildings.

When we think about climate change, we naturally think of rising temperatures and harmful carbon emissions impacting the environment. But at the end of the day, climate change is also a health crisis, affecting human and planetary health.

This health-centered lens of climate change has gained momentum at the Conference of the Parties under the UN Framework Convention on Climate Change (COP27), where global leaders from all sectors of society are discussing and, more importantly, committing to real action to mitigate climate change risks.

“The word sustainability isn’t looked at the same anymore. We now talk firmly in terms of ESG, and those conversations are pushing what the “S” stands for — diversity, equity, and inclusion plus health and wellness. With so many pressing issues, from climate change and the pandemic to addressing systemic inequities, we can’t think in silos. We are focused on the holistic picture.”

– Eric Duchon, Global Head of Real Estate ESG, Blackstone, Investor Consensus 2022

Redefining Sustainability

Today, sustainability has evolved from a narrow focus on the environment to a broader, more holistic view that encompasses social dimensions. While climate change is considered a dimension of "E” in ESG, it impacts “S” aspects in many profound ways.

Research by the Center for Active Design has shown that there is an inextricable link between the health of the planet and the health of people.

Global warming has increased natural disasters and reduced access to safe air, water, food, and shelter. As sea levels rise, changes in precipitation cause flooding and drought, heat waves, more intense hurricanes, and storms, and poor air quality. In addition to the toll on human health, these factors carry a financial weight as well; the World Health Organization (WHO) estimates that by 2030, climate change could cost $2-4 billion per year in health care.

The good news is many of the sustainability movement's strategies can also have a profound and lasting impact on human health. Healthy building certifications like Fitwel have helped realize the full potential of ways to reduce energy use, improve air quality, add green space, and manage stormwater, all of which affect the health of both people and the planet.

Retrofitting to Create Decarbonized Buildings of Tomorrow

The challenge of climate change presents a critical opportunity for real estate leaders to impact the triple bottom line – planet, people, and prosperity. In essence, the built environment is at the forefront of combating climate change; carbon-zero buildings reduce emissions, slow climate change, improve people’s health, and improve financial performance.

Discussions about the role of real estate in combating climate change – an industry responsible for 40% of global carbon emissions – are in the limelight at COP27, with more than 140 events focusing on real estate and construction.

One such event was Retrofitting and Resilience, co-hosted by Fitwel Provider JLL and the World Economic Forum. The takeaway: Given that around 80% of today’s buildings in the developed world will be here in 2050, retrofitting existing buildings is the smartest and most cost-effective way to reach net-zero and decarbonization targets.

This topic was also echoed by Joanna Frank, CEO of the Center for Active Design at the recent climate-tech conference, VERGE 22: "We can’t build our way out of the issues that we have today, and nor should we. While many people might want to focus on new buildings, existing buildings are the biggest opportunity to create the next-generation healthy built environment.”

Fitwel’s Role in Sustainability and Climate Change

Fitwel’s evidence-based strategies for healthy buildings go beyond just green and net-zero tactics. Instead, we focus on the intersection of human health and well-being, where people thrive in the built environment and, at the same time, drive strong financial performance for real estate.

To future-proof portfolios, all aspects of the real estate industry will include a renewed focus on the individual as well as societal health. Fitwel offers more than 100 strategies that have a measurable impact on all aspects of ESG, with an emphasis on human health, spanning Location, Operations and Performance, Amenities, Design, and Programming and Evaluation.

Examples of design elements that have climate and health co-benefits include bicycle and pedestrian infrastructure, street connectivity and density, mixed-use zoning and buildings, and green building and housing design, construction, and remodeling. Communities that incorporate these strategies are healthier, contribute less to climate change, and are more resilient to changes in the local climate.

To get more in-depth insights on Fitwel strategies, including how they align with GRESB and additional guidance around measuring the “S” in ESG, visit our ESG resources page by clicking here.

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