JLL’s Global Real Estate Transparency Index charts the evolution of real estate transparency in more than 100 markets across the globe. The Index compares data availability, governance, transaction processes, property rights, and the regulatory/legal environment to reveal which countries provide the most favorable operating environments for investors, developers and corporate occupiers. Sustainability transparency, analysed for 37 markets, is a separate module and looks at seven environmental sustainability tools.
The results are in: JLL’s 2016 Real Estate Environmental Sustainability Transparency Index calls out the markets that are both leading the pack and lagging behind when it comes to sustainability considerations. Take a look at the graphic below to learn more about where your country falls:
France was the top sustainability player in 2016, largely as a result of legislation – targeting specific companies and industries and consistently rolled-out – designed to facilitate the transition to a low-carbon economy:
- Real estate investors, for example, are now required by law to engage in mandatory carbon reporting.
- Similarly, France is also the only country in the world where lease agreements must include mandatory green lease clauses.
France also solidified its commitment to sustainability by hosting the United Nations climate change conference – known as COP21 – in 2015, where the historic Paris Agreement was signed.
Japan emerged as a highly transparent market for sustainability for the first time in 2016, driven by the emergence of 3 key tools:
- A new Building Energy-Efficiency Labelling System (BELS) for the non-residential sector.
- The publication of specific guidance for landlords and tenants on voluntary green lease clauses.
- The introduction of mandatory minimum energy efficiency design criteria for new non-residential buildings over 2,000 square meters.
Dubai improved its transparency score, moving from the low transparency group in 2014 to semi-transparent in 2016. This advance was driven primarily by sustainability-focused legislation, as part of Dubai’s 2015 strategic plan:
- Mandatory green building standards have been established for all new constructions (with some exemptions).
- These regulations also include minimum energy efficiency and energy conservation criteria for new buildings.
Interested in learning more about sustainability transparency in your market? Check out the full 2016 Real Estate Environmental Sustainability Transparency Index.
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Franz Jenowein is Director of Sustainability Research at JLL. In this role, Franz writes about sustainable buildings, energy efficiency, climate change and related issues as they impact the real estate sector.