World’s most influential property and architecture companies failing on climate

Transport for London (TfL), Stantec and Unibail-Rodamco-Westfield have ranked highly in a new global Urban Benchmark of 300 companies making a significant impact on cities in a report that warns the private sector is failing on sustainability and climate resilience. 

 

The Urban Benchmark of 300 real estate, construction, architecture, transport, energy and waste companies, which includes firms such as The Crown Estate, Airbnb and Uber, is the first undertaken by World Benchmarking Alliance, an organisation launched by Aviva, Index Initiative and the United Nations Foundation in 2018 to develop free, publicly available benchmarks that rank private companies on their contributions to achieving the UN Sustainable Development Goals.

 

Analysis of the rankings reveal that fewer than 6% of companies have set science-based targets to lower their emissions. In addition, less than half of benchmarked companies disclose their emissions data. As for climate resilience, the report warns that organisations located in high-risk urban areas are unprepared for natural disasters, with two thirds not having undertaken risk assessments and 69% not disclosing any emergency plans.

 

 

The rankings emphasise the importance of transparency, being based on publicly accessible data on an organisation’s governance and strategy, and measurements related to inclusive cities, healthy cities, climate proof and resilient cities and core social indicators.

 

The report is critical of the lack of science-based sustainability targets: “The results show clearly how companies are failing to take adequate responsibility for their role in ensuring affordable, safe and inclusive urban environments for all,” it reads. The authors suggest increased government pressure through regulation is key to mobilising the private sector:

 

“To safeguard net-zero goals, local authorities should integrate decarbonisation into public procurement, licensing, and building permits. This would push companies to boost transparency and reduce their carbon footprint in line with climate targets,” said Tony Widjarnarso, World Benchmarking Alliance’s Urban Transformation Lead.

 

Unibail-Rodamco-Westfield came second among real estate companies and 10th overall in the ranks. The company, which operates 78 shopping centres in 12 countries, is noted for having made progress against its sustainability targets which are aligned with the 1.5°C pathway.

 

City Developments Limited, the Singapore-based organisation whose UK living portfolio includes thousands of private-rental homes in Leeds, Birmingham and Manchester, achieved a ranking of 13 overall and came fourth in the property sector. The company has set short-term emissions targets aligned with the Science Based Targets initiative.

 

Further down the rankings, Mitsui Fudosan, developers at Television Centre and White City, ranked 79 out of 300 with its scorecard noting it has assigned sustainability oversight and accountability to its board of directors and sustainability committee. The company also promotes disaster-resilient neighbourhoods and has a committee responsible for disaster risk management. However the organisation was seen to lack transparency on measures to improve affordability and quality, “a crucial concern” given its work in housing.

 

 

Prologis, a developer focused on storage and logistics, is ranked 82/300 for having linked executive remuneration to environmental, social and economic performance criteria. The organisation has aligned its scope 1, 2 and 3 emission targets with the 1.5°C trajectory and is “consistently making progress towards energy efficiency goals.”

 

In contrast, The Crown Estate ranked 124/300 for its lack of disclosure of management plans and sustainability targets: “In relation to environmental impacts, the company lacks regular reporting on air and discharge water quality. Next to reporting on these impacts, it should implement measures to achieve consistent reductions in its waste generation and water consumption. Lastly, the company should conduct risk assessments for all types of natural disasters relevant to its operations to improve its resilience in times of emergency.”

 

Greystar’s performance in the ranking was described as poor, coming in at 221 out of 300 organisations and near the bottom of the real estate rankings with a total score of 1.2 out of 100. The property company manages half a million residential units globally and is the largest apartment manager in the US. “The company faces substantial risks due to its lack of disclosure on critical issues. Greystar should conduct a materiality assessment to identify relevant sustainability priorities… additionally, the company should enhance its reporting on environmental issues.”

 

 

Just 24 architecture, urban design and engineering companies were assessed to have a global influence on cities, with Stantec, HDR, AECOM, Sweco and Arup scoring highest in the sector.