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Buildings have a profound impact on the environment—and as climate commitments intensify globally, commercial property owners are increasingly called to action. This November, the 29th United Nations Conference of the Parties (COP29) will convene in Baku, Azerbaijan, bringing together world leaders to address climate finance. This summit, which takes place 11-22 November 2024, is part of the United Nations’ annual climate change conferences and aims to set ambitious new funding goals for climate action. For those in the commercial property sector, COP29 underscores the importance of making sustainability a core priority.
With the recent International Day of Climate Action on 24 October and the annual Climate Action Day online event hosted by Take Action Global on 7 November, this season brings climate action to the forefront. This year’s event features influential speakers such as President Mary Robinson, Princess Esmeralda of Belgium, and filmmaker Adam McKay, each bringing unique perspectives to the urgent climate discussion. For property managers and owners, this period is an ideal opportunity to assess their environmental impact. Beyond meeting regulatory requirements, improving a building’s energy efficiency is a critical step toward safeguarding investments, reducing operational costs, and contributing to climate goals. Karsons Consulting is committed to making these essential changes accessible and effective for commercial properties of all sizes.
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As the climate crisis escalates, the environmental footprint of commercial buildings has become a crucial focus. These properties contribute significantly to greenhouse gas emissions due to their energy demands for heating, cooling, and lighting. According to the IEA Tracking Report on Buildings published in September 2022, in 2021 the operation of buildings accounted for 27% of global energy sector emissions—8% from direct building emissions and an additional 19% from electricity and heat production used within buildings. For property owners and facilities managers, this underscores the urgent need for sustainable operations.
The UK's Climate Change Act of 2008 set ambitious emission reduction targets, requiring net zero by 2050 and a 78% reduction from 1990 levels by 2035. To meet these goals, regulations on building energy performance have tightened, including requirements for properties to attain at least an ‘E’ EPC rating. For commercial property owners, meeting these standards presents both a compliance mandate and an opportunity to lower costs while enhancing property value.
The United Nations Conference of the Parties (COP) consistently emphasizes sustainable infrastructure as a crucial element of its climate finance agenda. This focus serves as a reminder to property sector professionals of the dual responsibility and benefits of adopting sustainable practices.
UN Secretary-General António Guterres has highlighted the need for private sector alignment with net-zero goals, stating:
"We need the private sector everywhere to drive deep and immediate decarbonization. This is why I am calling on all business leaders to present credible and detailed transition plans — in line with the recommendations of my High-Level Expert Group on net zero pledges."
Each COP provides a platform for setting standards and financial objectives that guide industries toward achieving net-zero emissions.
Yet, the challenges within the property sector are complex, especially for older buildings that often struggle to meet modern energy standards.
The UK Green Building Council (UKGBC) notes:
“The existing building stock presents one of the biggest challenges to reaching net-zero. Retrofits and energy efficiency improvements are no longer optional but essential.”
Investing in these upgrades not only future-proofs assets but also mitigates rising costs tied to compliance.
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Energy efficiency is no longer an added benefit; it’s a fundamental requirement in the commercial property sector. The UK’s Energy Performance Certificate (EPC) framework plays a key role in this shift, rating a building’s energy efficiency from A (most efficient) to G (least efficient). As of April 2023, all leased commercial properties are required to achieve a minimum EPC rating of E, with stricter standards anticipated in the future.
Failure to meet these EPC standards can result in significant penalties. According to the Royal Institution of Chartered Surveyors (RICS), property owners in England and Wales who lease or sell commercial buildings with ratings below the required standards may face fines ranging from £5,000 to £150,000, depending on the property’s rateable value and the length of non-compliance. This financial risk adds to the urgency of securing a compliant EPC rating, making energy efficiency upgrades not only a regulatory requirement but also a prudent financial decision. Karsons Consulting assists clients in avoiding these penalties by developing cost-effective, compliant energy strategies for each property.
For property managers, complying with EPC standards not only meets regulatory expectations but also enhances asset value and lowers long-term operational costs. Research from the Department for Business, Energy & Industrial Strategy (BEIS) indicates that higher EPC ratings can improve lease terms and reduce vacancy rates. In a market increasingly focused on sustainability, energy efficiency has become a competitive advantage.
Chris Stark, Chief Executive of the Climate Change Committee, encapsulates the sector’s challenge and opportunity:
“The built environment—buildings, what we do with those buildings—is probably the most important issue in addressing our emissions and in how we tackle climate change.”
By improving a building’s EPC rating, property managers position their assets as more desirable in a sustainability-oriented market.
Karsons Consulting offers specialised guidance to help clients navigate the often complex journey to achieving higher EPC ratings. Services may include feasibility studies, thermal modelling, and retrofit strategies tailored to each property’s needs. For older buildings, meeting the minimum E rating requires strategic and targeted improvements, which Karsons delivers through bespoke roadmaps that exceed regulatory requirements.
Beyond compliance, these improvements contribute to the UK’s broader environmental targets. Reducing a building’s energy consumption and emissions supports national climate goals and aligns with the COP29 agenda.
Paul King, Managing Director of Sustainability and Social Impact at Lendlease, aptly highlights this approach:
“To create places that are truly fit for the future, we need to think and act fundamentally differently across the built environment sector.”
As property managers embrace energy performance improvements, they unlock both economic and environmental benefits.
Achieving meaningful energy savings and reducing emissions can feel overwhelming, but practical upgrades to lighting, heating, and ventilation systems can make a significant difference. Karsons Consulting works with clients to identify solutions that are both cost-effective and impactful, helping property owners achieve better EPC ratings and advance their sustainability goals.
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One of the simplest ways to improve energy efficiency is through upgrading lighting systems. Switching outdated lighting to LED technology can cut energy consumption by up to 75% and reduce maintenance costs due to LEDs’ longer lifespan. This cost-effective upgrade not only lowers energy bills but also enhances a building’s EPC rating.
For older properties, improving insulation and air permeability can yield substantial energy savings. Reducing air leaks and upgrading insulation decreases heating and cooling demands, enhancing comfort and energy efficiency.
The UKGBC underscores this value, stating that:
“Improving the thermal performance of existing buildings is essential for meeting our climate targets.”
Renewable energy installations, such as solar panels, are another effective measure. While the upfront costs may be higher, Karsons assists clients in evaluating renewable options that align with both budget and regulatory demands, providing tailored solutions for sustainable energy integration.
COP29 highlights the importance of sustainable building upgrades as part of the broader climate finance agenda. For Karsons Consulting, these improvements represent a future-proofing investment, empowering clients to manage operational costs, stay compliant, and contribute actively to climate action.
Investing in energy efficiency goes beyond compliance; it’s a strategic decision that adds long-term value. Higher EPC ratings increase property appeal, reducing vacancy risks and enhancing asset value. For property managers, this competitive advantage grows as the market shifts toward sustainable investments.
Energy-efficient upgrades—such as HVAC improvements and LED lighting—provide resilience against rising energy prices. These upgrades lower energy use, delivering significant cost savings over time.
Sustainable investments also contribute to positive market positioning. Properties with environmental credentials boost brand reputation, attracting eco-conscious tenants and investors. This appeal is further supported by alignment with ESG goals, making sustainable properties a desirable asset for impact-driven investors.
Finally, energy upgrades support future compliance. Investing early in sustainability initiatives prepares properties for evolving regulations and aligns with global climate finance goals emphasised at COP29. For property owners, this proactive approach safeguards compliance while building a resilient, future-ready portfolio.
The urgency for meaningful climate action continues to grow with each passing year. The United Nations Conference of the Parties (COP) series builds on the momentum of previous summits, such as COP26's focus on coal reduction and COP27's emphasis on climate adaptation. These global gatherings consistently aim to accelerate climate finance, prioritising funding for energy efficiency projects that support national climate goals. The ongoing dialogue and commitments made during these conferences underscore the critical role of the built environment in addressing climate change.
As the global community intensifies its focus on climate action, the commercial real estate sector stands at a pivotal juncture. Energy efficiency is no longer just a regulatory requirement—it's a strategic imperative that drives value enhances competitiveness, and contributes to our collective environmental goals. By embracing sustainable practices and investing in energy-efficient upgrades, property owners and managers can future-proof their assets, reduce operational costs, and play a crucial role in the transition to a low-carbon economy. As we move forward, the challenge of creating a sustainable built environment offers unprecedented opportunities for innovation, growth, and positive impact. The time to act is now, and the benefits of doing so extend far beyond the bottom line—they reach towards a more sustainable and resilient future for all.
Karsons Consulting remains dedicated to helping clients navigate this transition. With expertise in energy performance improvements, regulatory compliance, and sustainable building strategies, we empower property managers to reduce emissions, enhance property value, and contribute meaningfully to a sustainable built environment.
Whether you’re seeking to improve your EPC rating, conduct an energy audit, or explore sustainable building solutions, Karsons Consulting is here to support you. Contact us today to begin your journey toward a more sustainable future. Call 020 3282 7605 or email info@karsonsconsulting.com.
Karsons Consulting are members of the Chartered Institute of Building Services Engineers, The Association of Consultancy and Engineering, British Institute of Facilities Managers and the Building Services Research and Information Association.
