What If The Value Of Your Property Was Affected By Carbon Emissions?
At the moment, the amount of carbon a building puts into the atmosphere doesn’t have an impact on its value. The methodology used by valuers and appraisers has no specific reference to sustainability, just cashflows and comparable recent sales.
But a recent hire by CBRE gives the smallest inkling that things could be about to change. Big investors like giant Dutch pension fund manager PGGM are already taking into account the risk that a building might be impacted by climate change, or might cost a lot to make more sustainable, when analysing their portfolios. And the valuation industry is starting to look at these factors too.
CBRE, the largest valuer of property in the UK, has hired Sam Carson to lead sustainability advisory services within its UK valuation and advisory business, led by Nick Knight.
Carson will be responsible for integrating sustainability benchmarks and consulting services within CBRE’s valuation business, enabling the team to consider the impact of environmental risk on real estate values. Additionally, he will provide a fund valuation service that offers asset-level specific reporting using industry benchmarks and embed best practices and innovation around sustainable working practices within the team, CBRE said.
Carson was most recently director of sustainability at consultancy Carbon Intelligence. In this role, he was responsible for leading and developing sustainability solutions for commercial real estate, overseeing projects for clients including Aviva Investors and Federated Hermes REIM, CBRE said. He is an expert in net-zero pathways with a detailed understanding of operational, embodied and whole life carbon and sits on the GRESB European benchmark committee.