1、Global Research Retrofitting Buildings to be Future-FitThe journey to decarbonizationNovember 2022Retrofitting Buildings to be Future-Fit|2 Key Messages1Decarbonizing existing assets is critical to avoiding the brown discountWhile economic headwinds,escalating costs and labor shortages are making it

2、 harder to unlock retrofitting opportunities over the short term,progressive owners are doubling down on net zero carbon(NZC)interventions in the knowledge that liquidity,pricing and debt are increasingly influenced by a buildings emissions performance.Rising energy costs will hasten the move toward

3、s efficient buildings and reinforce emerging value trends,with the financial risks of inaction already becoming apparent.Acute shortages of NZC buildings will benefit early adopters of retrofitting by boosting rent,reducing financial risk,improving access to capital at favorable rates,and making it

4、easier to attract and retain tenants.2We must triple the pace of NZC retrofitting collaboration at all levels will be keyAt current rates,decarbonization will not be achieved until the end of the century,which will be too late to align with the Paris Climate Agreement.In the Global North,retrofittin

5、g rates need to triple from barely 1%today to at least 3%of stock per year.An estimated US$3 trillion will be required to meet these targets.Addressing the knowledge gap,upskilling the workforce and scaling technology will be critical to accelerating the pace of retrofitting.3NZC interventions need

6、to be strategically planned and pursued at scale The actions to decarbonize are clear maximizing operational efficiencies,the electrification of heat,incorporating on-site renewable energy and sourcing off-site local renewable energy,with offsetting as a last resort.Retrofitting is complex,and owner