Green Property Investment – as significant value proposition by Matt

Whilst the Hemposite® value proposition is strong from a consumer perspective, perhaps the biggest dynamic at play is how property investment will continue to shift towards green construction.

Climate change represents the major global challenge of our time, with global co2 emissions continuing their upward trajectory. Green or greener buildings may help to solve this pressing issue.

Our planet’s average temperatures are increasing fast. It is very likely that the period 1983-2012 was the warmest of the last 800 years. Over the years, a broad consensus among scientists seems to have emerged: A continued rise in greenhouse gas emissions may put humanity at risk and eventually lead to our extinction. Meanwhile, co2 emissions show no signs of slowing down.

Sustainable property or so-called “green buildings” could make a major difference to this pressing climate change issue as approximately one-third of global co2 emissions stem from the property sector. Additionally, around 40 per cent of all energy generated across the world is used to cool, light and ventilate buildings and more than half of all-natural resources are used by the property/construction sector. Thanks to its considerable potential to mitigate greenhouse gas emissions, the property investment market can significantly influence climate change in both developed and developing countries.

An increasing number of (institutional) investors are now adopting a more responsible investment approach. They are demanding investment solutions that comply with environmental and social governance criteria in order to meet their stakeholders’ expectations. The world is changing. Property investment is changing. For many investors it is not just about investing their capital, they also want to invest in values and their concept of an environmentally responsible economy.

The annual growth rate of the green building market is estimated at 13 per cent over the next few years, according to the study “Global Green Building Market Outlook 2020.” The US remains the biggest market for the construction of green buildings while developing economies in the Asia-Pacific region show significant growth. The consulting firm, Grand View Research, forecasts that the value of the green building materials sector to rise dramatically by 2022, to around 365 billion US dollars.

Investing in green buildings is not only essential for a sustainable future but also makes smart business sense. Sustainable property development has the potential to provide economic returns as well as environmental returns while addressing greenhouse gas emissions and energy efficiency. Green property investments, especially against the backdrop of the low-interest environment, are gaining investors’ attraction. (Image copyright Pixel Architecture LLP)

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