Real Estate Sectors Leading the Conversation on the Environment

As the climate crisis unfolds, some sectors are leading, others retreating. Is the built environment taking a lead in advocating the need for change, adaption and resilience?

ING’s latest research unearths how players within real estate are communicating environmental concerns and opportunities, with analysis showing that some sectors have work to do to demonstrate they are in the race towards a Net Zero future.

We used our digital listening tool to track environmental conversations across the UK and within specific built environment sectors. We define conversations as digital mentions across online media, including “X” (Twitter), forums, blogs, Reddit, Facebook, Instagram, Instagram, YouTube, TikTok, Twitch, comments and reviews.

The Built Environment is upping its game

The built environment has been talking more about the environment over the past twelve months. Over that period the sector’s conversational volume around the environment has increased 18%, compared to the overall UK's, which has decreased by 8% from a year ago.

1. The Built Environment has been talking more about the environment over the past twelve months

01/10/2022 - 31/10/2023

The Built Environment is less polarised than the UK

Analysing sentiment reveals that as a whole the UK speaks more positively about the environment than real estate. However in keeping with these polarised times, it also speaks more negatively.

Unfortunately among the wider public, the proportion taking a negative view of today is higher than the number who are positive. Reading that optimistically, that’s a clear indication of the demand for change.

The same is true of the built environment. This tells us that despite the efforts of real estate leaders sectors, overall sentiment in the sector is more negative than positive, the revealing element of this chart is what is hidden. There is clearly a greater percentage of content that is rated either neutral or unknown within the built environment, suggesting the argument is there to be won.

It also suggests that while the built environment is talking more about the environment, it is doing so in sweeping terms; neutral, factual statements are more willingly deployed than optimistic, positive solutions. It’s perhaps no surprise, as real estate players become more concerned about threats of greenwashing.

2. The Built Environment is less polarised than the UK in terms of sentiment towards the environment

The language used by the Built Environment is asset based

You can see that the public leans as expected toward wider systemic changes, those which have been affected most visibly by climate change over the past twelve months - food security, rising sea levels, droughts and unpredictable weather, with family and children featuring highly as the UK airs concerns that the impact climate crisis will have on future generations.

The built environment is talking more in asset specific terms - site, building, development and investors being some of the key words appearing, as stakeholder attempt to position themselves as creators of change within the climate crisis.

3. UK bespoke word cloud

4. Built Environment bespoke word cloud

Local Authorities/Cities and Investors are talking the most about the environment

We have broken that Built Environment search down into five core groups - Local Authorities and Cities, Architecture and Design, Engineering and Construction, Developers and Asset Managers and Investors.

Local Authorities and cities and Investors are talking the most about the environment, with architecture and design and engineering and construction following. Local authorities and cities are under extreme pressure from Governments globally to adapt to new environmental regulations, and cities have been real leaders in addressing the issues around the race to net zero. Meanwhile investors equally can now longer operate without adopting clear risk mitigation when it comes to deploying capital.

5. Local Authorities/Cities and Investors are talking the most about the environment

Not only are Local authorities/Cities and Investors talking more about the environment, but they have also increased their environmental output the most - up 12.4% and 26.5% respectively. Developers and Asset Managers have increased their share by 8.5%, Engineering/Construction up 3.9% and Architecture and Design has risen by 1.3%.

But Architects, Engineers and Asset Managers lead on positive sentiment

As we did with the UK and the built environment as a whole - we can also view how that content is perceived.

As you can see despite a smaller volume of overall output, Architecture/Design, Engineering/Construction and Developers & Asset Managers lead on positive sentiment.

This tells us that these groups are better at communicating their positive contributions to climate change.

Compare that to Local Authorities/Cities and Investors, both groups with the highest percentage of negative sentiment. Both those groups will naturally attract greater criticism from the UK and the industry that those other real estate groups.

6. But... Architecture/Design, Engineering/Construction and Developers & Asset Managers lead on positive sentiment

Different sectors talk about their specific practice in environment conversations

The table above shows the top five words that appear in environmental base searches attributed to each sector. Some expected patterns emerge, showing that the built environment is not aligned in its messaging. Investors and Developers and Asset Managers speak broadly within the financial lexicon, Architecture/Design and Engineering/Construction speak more about specific asset design and construction and Local Authorities and Cities speak more about regeneration, homes and families.

The language used within conversations around the environment evolves quickly

We are all accustomed to the industry jargon used in the built environment. The charts below illustrate some of those key terms and analysed how frequently they are used in the UK. Despite a surge in popularity of the concept of retrofitting and reuse within real estate, the term demolition is being used more by the public. A strong indicator that the language used by our industry sometimes fails to cut through to a consumer audience.

7. Demolition used more than Retrofitting

Just as the demolition is used more widely than retrofitting, the same is true when we analyse the terms embodied carbon and operational carbon. Interest in the latter peaked in August this year, as the M&S story hit the national headlines. Embodied carbon as a term is more highly charged than operational carbon, as it is often linked with demolition of older, historic andculturally sensitive buildings. As the operational performance of real estate becomes ever more important, the challenge will be to educate the public on environmental sustainability, not just of their homes, but commercial stock too. A tall order.

8. Embodied Carbon used more than Operational Carbon

While in its infancy, the term green hushing is becoming more widely used by the UK public. It – and its enabler, greenwashing - are illustrated on separates axis, but the movement in volumes is evident.

While these terms are not built environment-specific, they both present challenges to real estate stakeholders. Communicating without been seen as greenwashing, and avoiding green hushing, is vital to communicating ESG-relevant credentials to the public.

9. Greenhushing trajectory vs. Greenwashing

Taking all this into account we can draw some conclusions on how communications experts should consider messaging and positioning across this subject.

Despite the built environment increasing its conversational output around the built environment, sentiment towards some sectors is more negative than positive. Challenging these perceptions through solutions-based communications will help close the gap.
Some built environment stakeholders are talking more about the environment than others. More consumer facing sectors are actively addressing environmental concerns in their conversations; others must continue to communicate their work to avoid being accused of greenhushing in the future.
There is a stark difference in language used by real estate and the UK public. National conversations around the environment reveal concerns about the future of the health of the planet; the built environment continues to talk in asset and site-based terminology. This does not resonate with the wider public. Using language which connects with individuals about the opportunities and value of real estate within environmental conversations is achievable through engaging and solutions-based content.

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