How sustainable PropTech can transform and save the real estate industry

By Tim Ng
November 27, 2022

The threat of climate change is real, and real estate is one of the most exposed industries to that threat. Rising sea levels put coastal communities at risk of flooding, intense storms damage and can topple everything from homes to highrises, and rising temperatures and drought increase the danger of largescale forest fires.

Clearly, we can’t sit idly by while this happens. Thankfully, an influential and growing segment of the real estate industry recognizes these threats and is embracing various forms of technology to combat climate change and ensure long-term stability.

Canada’s commitment

All levels of government are involved in Canada’s effort. In 2021, the federal government announced a plan to reduce our collective greenhouse gas emissions to 40 to 45 per cent below 2005 levels and, by 2024, we could have a net-zero ready requirement in place in the National Building Code, meaning all new homes would have to be built to rigorous efficiency standards.

The Ontario government, for one, has mandated that new homes have rough-ins for electric vehicle charging stations and solar panels on the roof.

Following the think globally, act locally principle, municipal governments across the country are introducing measures of their own. Vancouver recently required zero-emission heating systems for lowrise buildings and Halifax Regional Council unanimously adopted HalifACT with the target of achieving a net-zero economy by 2050, to cite just two measures.

These programs will encompass a mix of best-practice guidelines and legislated requirements. Wise builders, developers and financiers will be ahead of the curve as these mandates come to fruition.

Consumer demand

As the saying goes, money talks. And most Canadians want their investments to speak to their concerns about climate change. In a 2021 survey by the Responsible Investment Association, 85 per cent of respondents felt Canadian corporations should strive to be net-zero by 2050, and 78 per cent would like at least part of their investment to be with companies that provide carbon reduction solutions.

Another study found that 64 per cent of millennials won’t work for a company that doesn’t have strong environmental, social and governance (ESG) values. In other words, companies that don’t embrace ESG will find an even harder time attracting top talent.

PropTech’s role

With a growing PropTech sector in Canada and a recent boom of investment of $27 billion in the industry, Canada is well poised to develop local solutions to this global concern.

Already, PropTech is helping all areas of the sector meet sustainability goals: AI can monitor energy consumption and identify areas of improvement; CAD-designs can be feed into robotic assembly systems to create fully insulated prefab building panels; BIM programs improve collaboration and expedite construction, reducing waste and damaged materials exposed to the weather; and more.

Developers, REITs, property managers and every other part of the real estate industry will have to embrace technology to combat climate change and continue to thrive.

Key factors aiding sustainable building practices:

• Government enforced laws to increase levels of energy and lower carbon footprints for all types of buildings
• Increased demands from consumers for businesses to support sustainable practices
• Rapid growth in tech, enabling home-grown solutions to global issues
• Improving construction techniques to real-time energy consumption monitoring

About Tim Ng

Tim Ng is the Principal and Founder of ADHOC Studio which builds best-in- class digital products and narratives for urban developments.

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