Japan and Australia Lead Asia Pacific in Sustainability, According to JLLs Latest Real Estate Transparency Index
Japan has become a leader in sustainable real estate transparency joining France, Australia and the UK in the ‘highly transparent’ group for the first time, according to JLL’s Real Estate Environmental Sustainability Transparency Index.
“Environmental performance considerations are becoming more widely established across Asian markets, but the pace of progress in creating new tools and regulations is still relatively slow,” says Franz Jenowein, director and head of global sustainability research at JLL.
“There are encouraging signs that two cornerstones of environmental performance transparency – minimum energy efficiency standards and green building certification schemes – are available in the majority of key markets. In particular, Japan has made significant strides over the past two years, while Australia continues to maintain its world-leading position in sustainability in real estate.”
Japan’s rise has been realised through the introduction of three new tools over the past two years: a new Building Energy-Efficiency Labelling System (BELS) for the non-residential sector based on primary energy use; the publication of specific guidance for landlords and tenants concerning voluntary green lease clauses; and the introduction of mandatory minimum energy-efficiency design criteria for new non-residential buildings in excess of 2,000 square metres.
These efforts have been reinforced by the Tokyo cap-and-trade programme for large facilities, which includes large office buildings and was introduced by the Tokyo Metropolitan Government in 2010, according to the report.
“Japan’s efforts, formalised through various energy efficiency and green building programmes, have borne fruit. In Asia Pacific, we have seen an increased awareness and adoption of environmental transparency instruments such as energy efficiency standards and market-specific green building certification schemes,” says Dr Megan Walters, head of research, Asia Pacific, JLL. “Market and client demands and government regulations have been critical to the success of sustainability initiatives and we expect these efforts to gather momentum in the foreseeable future.”
Elsewhere in Asia, Malaysia and Taiwan are new entrants into the ‘low transparency’ tier of the index, while Thailand has joined China and South Korea in the ‘semi-transparent’ group. New Zealand, Singapore and Hong Kong are in the ‘transparent’ tier.
The Real Estate Environmental Sustainability Index analyses 37 markets that represent 97 percent of global direct commercial real estate investment volumes in 2015. The index tracks the following sustainability measures:
- Carbon reporting
- Energy consumption benchmarking
- Financial performance
- Green building certification
- Green lease clauses
- Minimum energy standards (existing buildings)
- Minimum energy building standards (new building)
Please click here for an infographic on the future of green building in Asia Pacific
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