Featured Insights

GLP data centers are designed, built and operated in accordance with GLP’s ESG principles. In China, GLP is one of the largest independent data center operators with assets that will deliver over 1,400 MW of IT capacity. Our full-service data center platform is led by a best-in-class team of over 700 professionals with deep domain knowledge across IT, utilities and mobile communications companies. GLP has committed to ensuring that 100% of its new data center projects in China comply with GB-A/T3 1 standards and ODCC2 2 certification.

Case Study: GLP Beijing Yizhuang Data Center (“GLP Beijing Yizhuang DC”)

GLP Beijing Yizhuang DC is a tier 3 cloud data center with a total GFA of 18,230 sqm and 17.4 MW power capacity. It is located in greater Beijing which is one of the key data center hubs in China. Sustainability was factored in all stages of the asset lifecycle from design to operations and management.

GLP Beijing Yizhuang DC is designed with reflective roofs to reflect solar radiation, reducing the heat island effect and energy required to maintain overall building temperature. The data center is designed to utilize high voltage direct current (HVDC) power supply which is more energy efficient and cost effective than traditional alternating current (AC) power distribution. It also uses a chilled water cooling system which requires less energy than conventional air-cooled chillers.

All server rooms are installed with intelligent lighting systems which are configured to prevent energy wastage and the data center is equipped with sustainable lighting fixtures which are 100% mercury free. These initiatives earned GLP Beijing Yizhuang DC a 96 out of 100 score in its Energy Star evaluation by the U.S. Environmental Protection Agency (EPA). Water usage was reduced by approximately 27% through water-saving appliances and the upgrading of faucets and pipelines, and approximately 62% of the data center’s daily operation supplies are sustainably procured.

In addition to its advanced environmental design features, GLP also enhanced the sustainability of the data center’s day to day operations. GLP Beijing Yizhuang DC is equipped with GLP DC Base, a proprietary multi-data center smart operation and management system which utilizes centralized control model, digital twin, and artificial intelligence technologies to monitor and manage performance parameters such as temperature, humidity, water and air quality to optimize energy efficiency. Through these measures, GLP Beijing Yizhuang DC was able to save approximately 260 tonnes of carbon emissions in 2022.

As recognition of its sustainable performance, GLP Beijing Yizhuang DC received Leadership in Energy and Environmental Design (LEED) v4 Platinum certification for building operations and maintenance. This is the highest level of certification by LEED, the most widely used green building rating system in the world, and GLP Beijing Yizhuang DC is one of the few data center infrastructure projects in China to achieve this level of certification.

¹ GuoBiao (GB) standards are the highest classification of national standards with specifications issued by China for various products and services. A Tier 3 (T3) data center has multiple paths for power and cooling and systems in place to update and maintain it without taking it offline. 

² Open Data Center Committee (ODCC) is formed by key data center industry players with an aim to create an open data center platfor in China and promote the development, acceleration and standardization of the industry.

The Hong Kong Trade Development Council (HKTDC) and Link Asset Management Limited (Link) released a survey study, “Hong Kong Green Capabilities in Real Estate Development and Property Management: RCEP Opportunities”, which highlights seven distinct advantages of Hong Kong in the field of green buildings.

The report also underscores green building challenges across the Regional Comprehensive Economic Partnership (RCEP) countries, with which Hong Kong can strengthen collaboration in four major areas to expand Hong Kong’s and regional green building capacities to create a greener and sustainable future: climate risk assessment and design consulting; green financing; construction and facility management digitalisation; and green material certification and sourcing.

Read the Full Article

The world is in transition. We are seeing the shift towards a low carbon economy. The transition is a response to climate change, technological innovation as well as demographic shifts. The transition to a low carbon economy requires collaboration across all sectors, from investors, regulators and customers.

At BlackRock, we believe that climate risk is an investment risk. By investing in properties that take into consideration financially material physical and transition risks, alongside other information, investors may create a more resilient and valuable portfolio. It supports responsible business practices and leads to risk-adjusted financial benefits in the long term.

Sustainable investing in real estate can be a powerful way to align positive environmental and social outcomes with financial goals. As investors, part of the decision-making process is to incorporate financially material environmental, social and governance considerations, alongside other information to enhance risk-adjusted returns.

Decarbonizing hard-to-abate sectors requires technological innovation. It requires the deployment of clean energy technologies and the decarbonization of heavy industries. Government policies and regulations also play a role in low carbon transition and help provide incentives to invest in clean technologies. It is a complex and challenging task.

Improving property design and operations is crucial to reducing carbon footprint as they become resource efficient and support healthier and livable communities. The use of renewable energy, energy-efficient design, better building materials and smart technologies are some of the ways that asset owners and managers can prioritize to add value to the property. Smart technologies can be used to monitor energy use, water consumption and other aspects of building operations. The use of renewable energy in real estate can be one of the best ways to reduce carbon footprint and reduce energy costs in the long run.

In addition to these strategies, asset owners can also focus on creating more sustainable communities. Building designs that connect to public transportation and cycling paths and incorporating amenities such as green spaces can promote a healthier lifestyle.

Overall, real estate has a significant role to play in sustainability, and by adopting sustainable practices and technologies, real estate owners can future-proof their assets by reducing their environmental impact, improving their communities, and creating a more sustainable future.

Wincel Kaufmann

Head of Sustainable Investing
APAC Alternatives
BlackRock ×

Wincel Kaufmann

Head of Sustainable Investing
APAC Alternatives
BlackRock

CDL’s Integrated Sustainability Report 2023 is their sixteenth sustainability report since 2008. Themed “Zero in on Positive Impact”, the digital report communicates CDL’s progress towards their material ESG goals and targets, established under the CDL Future Value 2030 sustainability blueprint. External assurance is key to enhance data credibility and instill confidence in readers. CDL’s external assurance of their sustainability report started in 2009 and has continued to expand. ISR 2022 and ISR 2023’s external assurance has been further elevated in its scope against the GRI Standards, SASB Standards, as well as the TCFD and CDSB frameworks.

This report was originally published in https://cdlsustainability.com/

This report was originally published in https://cdlsustainability.com/

MSCI has tracked board gender diversity every year since 2009. The Women on Boards report highlights trends across markets and sectors for publicly listed companies. The annual review provides companies, researchers, and policymakers with an objective overview of the changing share of female representation at the board level as well as among CEO and CFO roles.

Key findings

• Overall, the percentage of director seats held by women continued to increase in 2022, reaching 24.5% among constituents of the MSCI ACWI Index, up from 22.6% in the previous year. The percentage of index constituents with at least 30% female directors increased in 2022 to 38% compared with 33% a year ago.
• After a noticeable slowdown in 2020, the rate of growth of women on boards rebounded in 2021 and continued to recover in 2022 in both developed markets (DM) and emerging markets (EM), with the exception of the U.S. While the overall percentage of director seats held by women among U.S.-domiciled constituents of the MSCI World Index continued to increase and passed 30% in 2022, the rate of increase has slowed for the last three years.
• In 2022, health care surpassed other sectors both in terms of the total percentage of director positions held by women (27.3%) and the percentage of companies with at least 30% director seats held by women (45.4%).
• The percentage of female CEOs increased to 5.8% (up from 5.3%) in 2022 among companies in the MSCI ACWI Index, while the percentage of CFO positions held by women increased to 16.9% (up from 15.8%) among the same peer set. The percentage of women CFOs was the highest among EM companies (19.9%).

This report was originally published in https://www.msci.com/research-and-insights/women-on-boards-progress-report-2022

A recent CBRE survey of more than 500 commercial real estate professionals worldwide revealed these key findings:

• Focus on ESG Intensified in 2022: Nearly 70% of survey respondents reported a heightened focus on ESG strategies in 2022, mostly due to higher energy prices and government-imposed ESG disclosure requirements.
• Reducing Energy Consumption a Priority: Three-quarters of all respondents say that reducing energy consumption and carbon emissions is the top ESG consideration most likely to impact property value.
• Emphasis on Tenant/Employee Well-Being: More than 80% of respondents indicate that proximity to public transit (or lack thereof) impacts property value as easier commutes are associated with better employee well-being.

This report was originally published in https://www.cbre.com/insights/books/strengthening-value-through-esg

This report aims to engage occupiers in their ESG journey, allow landlords to better align and develop stronger partnerships with their tenants, and guide occupiers to maximise their green potential through their real estate.

This report was originally published in https://apac.knightfrank.com/esgmattersapac

The large-scale trends shaping the ESG investing world have become well recognized: climate change risk and the road to net zero, the growing existential threat of biodiversity loss, social inequalities, regulation and, lately, debate and controversy over greenwashing and what ESG should be.

Against a backdrop of a war in Europe, inflation, energy markets in turmoil, political uncertainty and an unending stream of climate-induced disasters, MSCI’s ESG and Climate Trends to Watch for 2023 report takes a closer look at how some of the major developments may shape the investment environment and impact the challenges and opportunities for companies.

This report was originally published in https://www.msci.com/research-and-insights/2023-esg-climate-trends-to-watch

At a time when many mature economies are reaching peak carbon, emissions in Asia Pacific remain on an upward trajectory as the region continues along a path of rapid urbanisation and economic growth.

Asia Pacific accounted for 53% of global carbon emissions in 2021, and has been responsible for more than 80% of global growth in carbon emissions over the past decade.

To improve transparency around the role that cites and the built environment play in carbon emission reduction, CBRE has developed the Asia Pacific Sustainable City Ranking, which measures current and future environmental resilience and its impact on commercial real estate across 28 cities in the region.

Cities are evaluated according to a range of environmental factors including greenhouse gas emission reduction, physical climate risk, water stress, air pollution, renewable energy use, green bond issuance, and green office building adoption.

This report was originally published in https://www.cbre.com/insights/reports/asia-pacific-sustainable-city-ranking-dec-2022

GDI Property Group (GDI), an Australian listed REIT headquartered in New South Wales, Australia, is currently constructing Perth’s first hybrid mass timber and steel frame office building. GDI will utilize a mix of cross laminated timber and steel to construct WS2, an 11 story, 9,500 square meter office building with the goal of creating a best-in-class, sustainably focused asset.

GDI underwent extensive research to understand both the environmental and economic impacts of developing what they’re calling Perth’s most environmentally friendly premium grade office building. Upon completion in late 2022, WS2 will boast a 5-star NABERS Energy Rating, a 5-star Greenstar Rating and will show a reduction of carbon by approximately 50% over the building’s lifespan vs. a similar al concrete/steel-based building and a reduction of 80% embodied carbon during the construction phase. This reduction will be captured through a combination of offsets, renewable energy systems within the building, and significantly lower embodied carbon during the construction phase. Ultimately, the goal is to achieve net zero operation, lowering scope one and two emissions, while achieving a better economic outcome as timber construction is “quicker and cheaper to build on a Total NLA Basis” according to the company in their 10 November presentation.

What Is Mass Timber Construction?

Mass timber, sometimes referred to as Cross Laminated Timber, consists of multiple layers of dried lumber stacked in alternating directions and bound together with structural adhesives and pressed to form a single panel. The panels are specifically engineered to meet the high strength ratings of load bearing walls, floors and roof trusses and are often produced on-site. The resulting mass timber panels are significantly lighter than both concrete and steel (on average 1/5th the weight of steel beams) while maintaining a stronger strength to weight ratio.

Current building codes for mass timber projects vary across  different countries, but recent legislation in the United States and Canada has allowed for construction of mass timber buildings up to 18 stories tall. Other markets, such as parts of Europe and Australia, are seeing even more progressive mass timber building requirements with a new 40-story mass timber building in Sydney being designed and scheduled to start construction in 2023.

Building and Environmental Advantages of Mass Timber

Environmental Impact:

• Mass timber decomposes at a natural rate when discarded as opposed to waste from concrete or steel. 
• One cubic meter of mass timber sequesters roughly one ton of CO2. 
• In a full lifecycle analysis of mass timber vs reinforced concrete on a mid-rise building, mass timber represented a 26% reduction in global warming potential. 
• Mass timber construction as an alternative to steel reduces CO2 emissions by 1.9 metric tons per cubic meter of wood product

Tensile Strength: Timber supports its own weight at a higher degree than both steel and concrete.

Electrical & Heat Resistance: Natural resistance to electrical conduction when dried to standard moisture levels. Strength and dimensions are not significantly affected by heat, providing stability to the finished building.

Sound Absorption: Acoustic properties make it ideal for minimizing echo in living or office spaces. Wood absorbs sound, rather than reflecting or amplifying it.

Economic Feasibility of WS2 and Mass Timber Construction

David Ockenden, GDI’s Head of Development, explains the similarly robust economic benefits of the mass timber build due to the expedited construction timeline and relatively light material. Namely, the tensile strength of mass timber allowed for a larger construction footprint than previously thought on the WS2 building:

“When we initially started looking at traditional concrete structures it [could] only be two stories, but timber, when we started exploring that we could build a lot more and reinvest in the precinct to upgrade it.”

The demand for sustainable assets is especially high in Perth, a city known for commodity extraction, where companies are often seeking ways to improve their ESG impacts. GDI is already seeing strong leasing interest from potential full-building, multi-floor and single-floor tenants, claiming overwhelming praise and popularity of the WS2 project. When fully completed, the WS2 building will be a flagship office space within GDI’s portfolio and will serve as the basis for continued mass timber development throughout Western Australia.  As mentioned above and in their recent Managing Director’s update, GDI has identified other projects where they plan to use timber construction in their recent update and are exploring redevelopment opportunities at 1 Mill Street and the Wellington car park. Their presentation cites that development approvals have been lodged or are in the process of being lodged.

Benefits of Investing in Mass Timber Projects

At B&I Capital, an Asset Manager with offices in Zurich, Singapore and Austin focused on listed real estate investing, we strive to integrate Environmental, Social, and Governance criteria throughout our investment process and company operations. We believe mass timber construction projects, such as WS2, align directly with our aim to minimize environmental footprint by lowering scope one and two emissions as much as possible. Moreover, given timber construction permitted significant increase in net leasable area and has a quicker construction time, timber construction led to a better economic return. The strong reduction in carbon emissions due to their construction will lower their need to purchase green power or carbon credits to achieve net zero for WS2. Our investment in GDI follows our support of their drive to build environmentally friendly projects and belief of their viability as strong real estate investments. It is through our investments in companies like GDI we actively participate in the creation of a sustainable future.