RICS Unveils Global Climate Change Strategy


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11/17/2009 23:06

Latest Climate Change Series Event Investigates ‘Why Do Companies Rent Green?’

NEW YORK – November 17, 2009 – The Royal Institution of Chartered Surveyors today announced its commitment to taking concrete action in response to the challenges of global climate change. RICS chose to launch this important policy measure and member guidance in the United States due to this country's position as one of the most important real estate markets globally that will need to incorporate green and sustainable measures into its property development and valuation.

The new policy document was announced at a special panel discussion that is part of RICS' ongoing Climate Change Series. The panel, “How Much Value Does Green Add to a Deal?” explored the cost and value that green or sustainable clauses add to commercial real estate deals in the United States. Also announced at the event was the ground-breaking academic study commissioned by RICS, “Why Do Companies Rent Green? Real Property and Corporate Social Responsibility.”

The panel speakers were Professor John Quigley, Professor of Economics at the University of California, Berkeley; Ursula Hartenberger, RICS Global Head of Sustainability Policy; Rick Recny, Director of Asset Management, Time Equities; and Paul King, MRICS, a leading sustainability expert.

After signing the Copenhagen Communiqué* on Climate Change and urging world leaders to agree on an ambitious, credible and equitable climate deal, RICS is committed to taking concrete action globally to stress the value of an emerging low-carbon property market.

Among the key priorities of its climate change strategy, RICS, with the help of its members working in all fields of the real estate sector, will:
  • Provide standards, guidance and information to enable qualified professionals to understand climate change and promote best practice.
  • Work toward improving and standardizing sustainability measuring and reporting.
  • Continue a program of engagement with governments across the globe in line with the priorities set out in the strategy.
  • Undertake a review of sustainability competence to ensure that professionals have the skills and capacity to meet consumer demand, comply with existing and forthcoming regulation as well as to take advantage of new markets.
  • Commit to a research program and monitor and advise on sustainability issues.
  • Consult with its members on including climate change measures and guidance into its Royal Charter.
The initial focus of action will be on buildings while other property assets will follow in a second stage. RICS will study how to reduce the impact on the environment, as well as to better adapt buildings and property assets to the effects of climate change.

According to Ms. Hartenberger:
“RICS supports the scientific evidence of climate change and the associated risks both for the planet's ecosystems and societies. It is extremely encouraging to see the level of personal engagement and activity of both RICS members and staff in the world regions in this important field. Climate change is a global issue and as such needs to be addressed globally – but it is the local action that can make a real difference.

“With the creation of new regulatory frameworks beginning to establish a market for low carbon rated property in both commercial and domestic sectors worldwide, RICS members are ideally placed to deliver practical solutions and thus claim a first mover advantage.

“However, any success will depend on the development of harmonized standards for measurement and further analysis of what policies are needed to create value for sustainable buildings. These two areas will be the key priorities of our work in the coming months.

“The strategy is being launched in conjunction with an RICS research paper titled ‘Why Do Companies Rent Green? Real Property and Corporate Social Responsibility.’”

The study, undertaken by Maastricht University in The Netherlands and the University of California, Berkeley, in the United States, analyzes why specific firms and industries may be more likely to lease green space in the U.S. market.

According to Professor Quigley, co-author of the study:
“Real estate provides a tangible element of a Corporate Social Responsibility policy to stakeholders. For developers and investors, the findings of our study have important implications. With its climate change strategy, RICS is ensuring that the property profession is addressing issue in a pragmatic way.”

The RICS climate change strategy action plan will be implemented across all world regions and will be revised regularly. A report on the results of this strategy will be published in 2010.

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Notes for editors:
RICS Global Climate Change Strategy is available at: www.rics.org/sustainability

*The Copenhagen Communiqué on Climate Change is the definitive progressive statement from the international business community ahead of the United Nations (UN) climate change conference in Copenhagen this December. It has already secured the support of over 600 companies, from the US, EU, Japan, Australia and Canada, to Brazil, Russia, India, China and South Africa; ranging from the world’s largest companies and best known brands, to Small and Medium sized Enterprises (SMEs). Please visit www.copenhagencommunique.com

About RICS & RICS Americas
RICS (Royal Institution of Chartered Surveyors), with headquarters in London, is the leading organization of its kind in the world for more than 100,000 professionals in property, land, construction and related environmental issues.

RICS Americas, based in New York and covering North, Central and South America and the Caribbean, has more than 3,000 members in commercial and residential development, construction and project management, brokerage, planning and finance, valuation and fine arts appraisal. For further information visit www.ricsamericas.org or e-mail ricsamericas@rics.org.