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CommentSurvey

European property investors want less disruption to operations and greater certainty regarding returns in order to speed up action on energy efficiency

The research shows that, when asked to choose the two key factors that will accelerate action to improve energy performance, ‘less operational disruption’ and ‘faster payback certainty’ were ranked as the most important. Reducing operational disruption was the most important factor cited by 79 per cent of respondents as the factor they believe will accelerate action to improve the energy performance of their assets. Faster payback certainty was the second most important factor (65 per cent), reflecting the significant upfront investment required to prevent some assets from losing value or becoming ‘stranded’.

Clear regulatory signals came third (55 per cent), highlighting concerns about the complexity of regulations and the need to comply with a variety of local, regional and national codes, as well as policy uncertainty resulting from frequent changes to global climate commitments and unclear enforcement mechanisms.

Verification of improved performance came fourth (40 per cent). Although the majority of respondents (82%) said that the quality of the data collected across their property portfolios is good at helping them identify areas for improvement, only 47% are highly confident when it comes to using it to make capital allocation decisions. Almost half (47%) said they are “quite confident” and 7% said it needs to be used in conjunction with other analyses, rather than on its own.

Crucially, the research also revealed that almost two-thirds (62%) of respondents stated that only 20–40 per cent of their assets have an up-to-date building management system – a vital tool that significantly helps to improve the energy performance of buildings, reduce costs and minimise downtime resulting from costly equipment breakdowns.

Commenting on the research, Katie Whipp, Chief Business Officer at re:sustain, said: “Energy efficiency has evolved from a sustainability objective to a key driver of asset performance and resilience. In a more volatile energy environment, institutional investors are not lacking in intent – they are held back by the perceived complexity, disruption and uncertainty of implementation. What our research clearly shows is that the market is prioritising solutions that deliver immediate, measurable results without disrupting operations or requiring significant upfront capital. That is a fundamental shift.”

“The ability to optimise energy performance quickly, with a high degree of confidence in the return on investment, is now directly linked to net operating income and long-term asset value. The challenge – and opportunity – lies in turning data into action at scale, and doing so in a way that fits within the operational realities of property portfolios.”

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