QuadReal targeting net zero for entire portfolio by 2050
Net zero strategy builds upon QuadReal’s founding sustainability mandate to reduce carbon emissions from real estate
As the real estate and development industry continues to navigate global demands to reduce greenhouse gas emissions, QuadReal Property Group (“QuadReal”) is advancing an updated strategic pathway to decarbonize its portfolio by 2050. There are also several key milestones in advance of this date, especially a 50 per cent carbon reduction of its global portfolio by 2030.
QuadReal’s net zero strategy builds on its original 2016 mandate to achieve an 80 per cent carbon reduction goal across its Canadian operations. Since 2016, QuadReal has demonstrated leadership in reducing carbon emissions across its Canadian portfolio and will use key learnings to accelerate and deepen its sustainability goals in both its Canadian and international assets.
“Sustainability has always been a key component of QuadReal’s investment and management strategies and is becoming more and more of a precondition for the long-term financial feasibility of our programs,” says Lucy Fletcher, Managing Director, Global Portfolio Management, QuadReal. “As active managers, expanding our carbon reduction targets to net zero across our entire portfolio will allow us to meet and exceed our fiduciary responsibility to all our stakeholders and clients, and help lead the market in innovation and execution.”
QuadReal’s office portfolio comprises more than 18.5 million square feet across Canada. Examples of QuadReal’s commitment to sustainability can be seen in their retrofits of existing office assets, including 200 King Street in Toronto which has had a 62.6% reduction in greenhouse gas emissions since 2007.
QuadReal’s net zero targets align with leading global carbon commitment programs including The Climate Pledge and The Race to Zero Campaign. The measurement framework for QuadReal’s net zero target also aligns with the science-based carbon reduction goals set by the International Panel on Climate Change (IPCC). QuadReal’s strategy includes reductions of scope 1, 2 and 3 carbon emissions, with Canadian property-level plans to be in place by 2025.
“Just as green-certified buildings have outperformed in the past decade, we believe net zero buildings will outperform the market in the coming decade,” says Jamie Gray-Donald, Senior Vice President of Sustainability & Environmental, Health & Safety, QuadReal. “Our pathway to net zero includes very specific interim targets to help inform next steps at the property level and will be applied to all the real estate we manage. We are also committed to being transparent in our approach and measurement tools so we can help lead the real estate industry in the transition to a net zero economy.”
To achieve interim targets and ensure accountability, carbon audits will replace energy audits and will inform property-level net zero transition plans. Carbon reductions at the property level will be driven by two strategies: replacing fossil fuels with low-carbon electricity options combined with building upgrades that allow energy to be used more efficiently. QuadReal expects building efficiency upgrades to provide a 40 per cent reduction in emissions, based on previous retrofits. The company’s commitment will also allow offsets or credits to cover a maximum 10 per cent of baseline emissions.
QuadReal’s Pathway to Net Zero – Timeline at a Glance
|Year||Target and How We Measure Progress|
|2025||Net zero property-level plans in place for global portfolio|
|2030||50% carbon reduction of QuadReal’s directly managed portfolio (tracked emissions include all landlord utilities and QuadReal’s corporate emissions)|
|2040||All Canadian offices achieve net zero emissions, 50% carbon reduction of QuadReal’s international portfolio (tracked emissions to include all tenant utilities and embodied carbon from new development and refurbishment)|
|2050||Global portfolio is net zero carbon (tracked emissions to include all property emissions, both landlord, tenant and resident)|
QuadReal’s World Exchange Plaza in downtown Ottawa is going through a major revitalization and will be a strong energy performer when completed. The property includes two “triple A” office towers anchored by a dynamic pedestrian friendly outdoor plaza and connections to Ottawa’s new LRT line. A carbon audit will be completed in the next two years, which will inform the property’s technical pathway to net zero.
In addition to focusing on its own net zero targets, QuadReal plans to continue sharing its tools and programs with international partners and industry peers. By aligning with and supporting groups such as The Canadian Climate Institute, the Net-Zero Advisory Body, the Canadian Green Building Council, the Center for Active Design and Fitwel, QuadReal hopes to help propel the real estate industry forward in mitigating climate risk and achieving net zero.
Learn more about QuadReal’s net zero commitments and progress below.
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About QuadReal Property Group
QuadReal Property Group is a global real estate investment, operating and development company headquartered in Vancouver, British Columbia. Its assets under management total $67.1 billion. From its foundation in Canada as a full-service real estate operating company, QuadReal has evolved its capabilities to invest in public and private debt and equity markets. QuadReal invests directly via programmatic partnerships and through operating companies in which it holds an ownership interest.
QuadReal seeks to deliver strong investment returns while creating sustainable environments that bring value to the people and communities it serves. Now and for generations to come.
QuadReal: Excellence lives here.