Nuveen Real Estate has committed to making the global property portfolio it manages, worth US$133 billion, net zero carbon by 2040. The ambitious target exceeds the commitment that the World Green Business Council deems necessary to meet the Paris Accord, by a decade.

“We believe this is essential to create a better world for future generations, but it will also help mitigate climate risk across our real estate strategies and future-proof our investments,” says chief executive officer Michael Sales.

The company says it will review each asset and create a net zero business plan for every building, ensuring buildings operate as energy-efficiently as possible and work alongside occupiers to guarantee tenant emissions are aligned and included in a building’s net zero carbon strategy.

“Although some measures are relatively easy to implement, there are still some big challenges for the real estate industry in reaching net zero, particularly in the standardization of measurement and the collection of data. Landlord and tenant collaboration will be key to overcoming these hurdles,” says Abigail Dean, the company’s global head of strategic insights.