In 2025, the European Sustainable Real Estate Initiative (ESREI) starts a tour of European countries, in order to map the main publications, regulations, and voluntary initiatives regarding sustainable real estate for the year 2025. We start today with the UK, thanks to the help of Adam Baranowski from the Better Building Partnership.
The Better Building Partnership (BBP) is a collaboration of leading property owners who are working together to improve the sustainability of commercial buildings. They stand out as one the main actors on sustainable real estate in the UK. Their main aims are :
- Enable market transformation through sustainability leadership and collaboration.
- Improve professional understanding through knowledge sharing.
- Develop common approaches with our members, stimulating the property industry to deliver buildings that perform better.
Adam Baranowski has been working on sustainable real estate for a decade, in particular as an adviser on sustainability strategies. He has been working at the BBP for 3 years as Head of Climate Action & Investment.
How do you picture the sustainability landscape for real estate in the UK? What aspects of ESG dynamics are currently the best integrated? Conversely, which aspects remain the least integrated?
Climate change mitigation has been one of the most deeply embedded aspects of ESG in UK real estate, with many firms establishing detailed pathways to net zero carbon. The launch of the BBP Climate Commitment in 2019, with close to 20 real estate organisations setting out their plans at once, was a key driver for this. The Commitment requires signatories to publish net zero carbon pathways and delivery plans, disclose the energy performance of their assets and develop comprehensive climate resilience strategies, towards an overachieving objective of delivering net zero buildings by 2050. To date, the Commitment has brought together 33 signatories, representing more than £360 bn of assets under management.
As in the rest of Europe, climate adaptation is gaining prominence in the UK due to the growing frequency of extreme weather events and record-breaking summer temperatures. An increasing number of commercial real estate firms are now developing climate adaptation plans, with some aligning their strategies with the BBP Climate Resilience Guide.
Biodiversity is becoming an important subject for the sector. The industry is currently still figuring out which impacts to focus on or which indicators to follow. Social impact and the “just transition” are less well addressed but on the rise – climate change will likely bring major social impacts, and attention on this issue should heighten in the coming years.
What are the key regulatory deadlines or development in 2025 that you are monitoring in relation to sustainable real estate in your country?
Firstly, there is the recently concluded consultation on reforms to the Energy Performance of Buildings regime. » These reforms are intended to update EPC (Energy Performance Certificate) metrics, refining requirements for Energy Performance Certificates (EPCs) and Display Energy Certificates (DECs), and revising air conditioning inspection reports (ACIRs).
Then, 2025 is also the year for UK Sustainability Reporting Standards to come into force. These standards are based on IFRS S1 and IFRS S2, which are sustainability standards published by the International Sustainability Standards Board (ISSB), focusing respectively on general requirements for disclosure of sustainability-related financial information, and climate-related disclosures. 2025 could also see a revision of decarbonisation pathways if Minimum Energy Efficiency Standards (MEES), set for 2030, are modified.
Furthermore, UK real estate firms operating in the EU or collaborating with European companies must continue to navigate evolving EU regulations. Recent updates to the Energy Performance of Buildings Directive (EPBD), potential revisions to the Corporate Sustainability Reporting Directive (CSRD), and changes in the EU Taxonomy and Sustainable Finance Disclosure Regulation (SFDR) and EU Omnibus package all remain critical considerations.
And on the voluntary side?
We are currently contributing to the development of UK Net Zero Carbon Building Standards, which should reach its first full version at the end of 2025. The goal is to enable industry to robustly prove their built assets are net zero carbon and in line with UK climate targets.
At BBP, we remain actively engaged in advancing key voluntary initiatives working with our members on topics including green leasing, offsetting procurement strategies, property management, sustainable acquisitions and the development of robust measurement and benchmarking frameworks.
Could you outline the main elements of your events and publications calendar for 2025?
Our flagship publication for 2025, the 2030 BBP Vision, is already available.
The 2030 Vision from the Better Buildings Partnership (BBP) represents a bold roadmap designed to lead the necessary systemic change for the sustainable transformation of the commercial property sector for the remainder of this crucial decade. It outlines the critical steps needed to reduce carbon emissions, build resilience, and value the natural environment in a way that will shape a more sustainable built environment by 2030.
We will also continue to engage the market on key publications from 2024, including our 2024 TNFD publication for UK Commercial Real Estate. This document will support the UK commercial real estate sector to integrate the LEAP (Locate, Evaluate, Assess and Prepare) process – a key part of the TFND methodology – and increase awareness and performance on nature and biodiversity indicators.
Throughout 2025, we will maintain a strong focus on key priorities for our members, including regulatory developments, reporting frameworks, in-use performance metrics, energy efficiency strategies, and strengthening the business case for net zero carbon.
Finally, in your opinion, what are the key trends likely to shape the real estate sector in the coming years?
On the regulatory side, a key question is whether sustainability disclosure regulations will become more fragmented or consolidated, and whether the UK will align or deviate from EU trajectories with regards to regulation such as the UK Green Taxonomy and Sustainable Disclosure Regulations.
Another key issue or trend is the degree to which we will be able to use the increasing availability of sustainability data to drive better monitoring and action towards net zero, whether that is energy utility data, valuation, buildings passports or otherwise.
Beyond regulatory and data-driven transformations, another defining trend will be the increasing emphasis on embodied carbon and whole-life carbon assessments. While operational energy efficiency has been a major focus, the industry is now shifting towards a more holistic approach that accounts for the full carbon footprint of buildings—from material sourcing and construction through to refurbishment and end-of-life disposal. With emerging standards and methodologies, such as the UK Net Zero Carbon Building Standard and the integration of circular economy principles, the sector will need to accelerate the transition towards low-carbon and resource-efficient construction practices. This shift will require collaboration across supply chains, innovative material solutions, and a greater emphasis on adaptive reuse to minimise environmental impact.
ESREI wishes to thank Adam Baranowski and the Better Building Partnership for their availability and the time they dedicated to this publication.
