Real estate is responsible for 39 per cent of carbon emissions – operational emissions account for 28 per cent with the remaining 11 per cent attributed to embodied carbon  – that is, emissions associated with materials and construction processes throughout the whole building lifecycle. [Statistic from the World Green Building Council.]

While much attention is given to constructing new energy-efficient buildings, retrofitting existing buildings is often cast out of the limelight. Although not as headline-grabbing, a retrofit can often have a more positive impact on climate change than a new build because it is not subject to the embodied carbon associated with the construction of a typical new building. 

So what is retrofitting? 

Retrofitting involves upgrading elements within a building to improve efficiency and reduce carbon emissions such as improving insulation or replacing heating systems. The reasons behind a retrofit and the extent of the retrofit can vary, and it is important to keep these in mind throughout each stage of the process. Not only does retrofitting seek to improve carbon emissions and the lifespan of a building, it is also likely to improve the occupier experience and make the space more marketable - it is not surprising to see that brown discounting is becoming increasingly evident in the current market. 

The top 5 issues that owners, occupiers and investors should consider when retrofitting:

1. Understand the building, its construction, lifespan, its occupiers and any statutory constraints which may impact the viability of a retrofit.
2. Look to industry guides and certifications for current industry standards and innovative ideas. 
3. Consider the retrofit hierarchy. For example, prioritise minimizing energy demands through insulation improvements and efficient control systems before replacing boiler or lighting systems. Once these are in place, consider introducing energy generation technologies like solar panels. By reducing the energy demands first, before installing new technologies this is likely to help lower both capital costs and operational costs as you move through the hierarchy. 
4. A deep retrofit is recommended. Fully exploring every option at each stage of the hierarchy is crucial to ensure the best overall outcome at the end, aiming for as close to new-build net zero carbon performance as possible. 
5.  Take account of occupier's needs - sustainability is not just a target, but can improve the comfort and the marketability of the building too. See our recent article on the importance of the "tenant experience" here. 

The challenge of reducing carbon emissions requires accelerated change and the proactive involvement of investors, building owners, and occupiers. Whether by way of a sustainable new build or retrofitting, it is time to change.