Defining value in a sustainability paradigm 

The times they are a-changin’, Bob Dylan famously sang in 1964, and our times and collective conscious have unquestionably become increasingly defined by global warming, or the ‘climate crisis’, as it’s referred to by pressure groups.

As property sector professionals, how does this new paradigm shift affect us? How do property companies react? There are two choices: to see it as a threat or as a huge and relatively untapped opportunity.

At Creative Oates, we see the challenges thrown up by the heightened pressure on the property industry as a tremendous opportunity for those willing to be bold and willing to act fast. 

The landscape is further shaped by precedent setting government targets, with the UK becoming the first major economy to set a net zero emissions law, making sustainable builds far more than a ‘nice-to-have’.

Now putting sustainability at the very core of your operations and branding is essential to long-term success and profitability.

 

Meeting Exceeding sustainability regulations 

With the government’s ambitious targets to reach net zero emissions by 2050, the stage is set for sustainability regulations to become more and more stringent imminently. Meaning it pays to be prepared.

Indeed, all political parties have made bold policy pronouncements in their respective manifesto pledges ahead of the upcoming 2020 general election.

With the proliferation of new regulations and recommendations regarding environmental protection, it’s incredibly important for property developers to meet existing regulations. However, simply meeting regulations is not enough.

The property industry has been slow to adapt to change, as compared to other industries. The automotive industry, for instance, with the rise of electric cars has transformed itself in just a few short years. The increasing depth of choice now available for consumers wishing to buy environmentally friendly cars and reduce their impact on the environment is heartening.

Yet, the rising demand for carbon zero sustainable housing isn’t being met at such a large scale. In fact, eco or carbon zero build houses are currently at a premium, which simply isn’t widely affordable for the average mortgage applicant.

Exceeding sustainability regulations will not only ensure your organisation is compliant today, but tomorrow as well. Moreover, by going above and beyond requirements, placing sustainability at the centre of your brand, you’ll attract a new generation of environmentally conscious customers and take a step towards becoming industry leaders.

 

Sustainability as a competitive advantage

Non-financial factors have always been implicated in a business’s profitability, and the green credentials of your brand can have a huge impact.

Just think back to the Volkswagen emissions scandal of 2015, where the brand’s image and credibility were almost damaged beyond repair by their defeat devices policy – which aimed to skew the results of emissions tests to show that their diesel cars were within allowable limits.

In terms of the property industry, pursuing sustainable practices as part of an organisational strategy can offer significant competitive advantage. 

The environmental movement represents a change in market conditions. By identifying profitable market niches, savvy property companies can turn this opportunity into a strategic competitive advantage.

As consumers become ever more conscious of their environmental impact, putting sustainability at the forefront of your brand image and services will increasingly help win you new customers.

Of course, it’s important to balance your bottom line with the need to evolve in these changing market conditions. For some companies with investors to answer to, pursuing long-term sustainability can be hard to reconcile with the need for short-term profitability.

However, to remain competitive property brands can’t afford stand still – the time to differentiate your brand is NOW. 

Stand out from the crowd and seize that competitive advantage. 

 

Brands as catalysts for social change

Brands have been catalysts for significant social change throughout history. In 2019, more and more organisations are waking up to the idea that consumers value brands that act ethically. Actually, consumers demand that organisations have a strong moral compass. 

Research from media business brand Campaign highlights that the public expects brands to drive social change.

A few notable examples of brands powering social change include Iceland banning the sale of palm oil-based own label products in their stores, to Heineken launching their ‘Open Your World’ campaign. This was aimed at encouraging Brits to be more open minded in these politically divisive times and have a conversation with someone with different views.

The secret to brands engaging in social activity successfully is authenticity and relevance.

Rather than just a brand slapping a rainbow flag on its products or shopfronts in support of LGBTQ rights, a brand’s social activism should be highly relevant to their industry. For example, Heineken’s campaign encouraging open conversation fits its brand perfectly, as beer is often used to get conversation flowing.

Coming back to the property industry, your brand absolutely has the right to drive social change through sustainable practices. Sustainable, environmentally friendly houses are only going to dramatically increase and with regulations becoming stricter by the year, it’s time to act.

Brands are powerful instruments of change and their behaviours are interlinked with their day-to-day. There is a need to accept change in practices – although sustainability isn’t new, property developers need to do more, and early adopters will benefit the most.

 

Sustainable property brands 

Leeds-based property developer Citu has been hailed for its innovative zero-carbon, energy efficient communities. From front to back they place sustainability at the heart of everything they do, from their brand to their housing developments.

Sustainability is rooted throughout everything they do. A key example of this is that the wooden frames of their houses are all crafted on-site at their developments, so zero carbon emissions result from the builds. Additionally, when residents move in, they find that Citu developments are powered entirely by solar energy – the panels across all their sites are sufficient to power 200 electric cars.

Sustainable properties are not only better for the environment; they can drive value for consumers too – a sure fire way of attracting interest in your property developments in an era where first time buyers are progressively struggling to get a foot on the slippery property ladder.

Citu has developed 700,000 affordable low-carbon homes in its Climate Innovation District development in Leeds – the UK’s largest sustainable urban development – which offers environmentally friendly four-bedroom homes at low asking prices, starting from £150,000. 

 

Applying sustainability principles to your brand

Applying sustainability principles to the core of your brand drives down energy use, meaning through the implementation of sustainable materials, brands can minimise their carbon footprint.

Citu is a case in point, as their brand is driven by innovation and brave decision making. Citu’s timber-framed housing doesn’t just meet emissions guidelines, it doesn’t just produce zero CO2 emissions – it goes one step further, by removing CO2 from the atmosphere. Each Citu house removes 23 tonnes of CO2 from our atmosphere and stores it in its timber frame. 

The point is that by going further than current regulations, the property industry can make a real difference, drive social change and build a powerful brand which resonates with people’s heartfelt passions about the climate.

 

Building a sustainable future

Buying into sustainable property development principles will not only allow your company to construct environmentally friendly houses for the future but also enable you to build your brand image to new heights in your customers’ eyes.

It will also enable you to tap into the emerging green consumer demographic, a market without a ceiling in terms of future growth.