The concept of an asset becoming 'stranded' or facing a
'stranding risk' has become a hot topic of conversation in
the real estate industry in recent times – this is largely
being driven by the global 'drive to net zero'. As called
for in the Paris Agreement, global emissions need to be reduced by
45% by 2030 and reach net zero by 2050.
As the built environment accounts for a significant percentage
of global carbon emissions, the real estate sector needs to
significantly reduce emissions resulting from the development,
ownership and management of assets.
New legislation, currently in progress through the EU
legislative process aimed at achieving this net zero goal, coupled
with market demands for clean and green properties, mean that
assets which do not keep up with the required pace of change are at
risk of becoming obsolete or 'stranded' in the years
ahead.
