Shaping a Sustainable Future: Decarbonization Planning in Real Estate

As the push to de-risk high carbon investments intensifies, real estate investors are looking to decarbonization strategies not only to reduce emissions but to gain a competitive advantage. Audette CEO Christopher Naismith recently held a discussion with Melissa Baker, Senior Vice President of Technical Development at the US Green Building Council; Chris Pyke, Chief Innovation Officer of GRESB; and Lane Burt, Managing Principal at Ember Strategies. The insights discussed underscored a crucial point: decarbonization is no longer just an extension of energy efficiency–it’s an entirely new strategy for real estate.

Why Decarbonization Requires a Different Approach 

Energy efficiency focuses on incremental improvements–getting more out of what is already there. Decarbonization is different. It demands a forward-looking approach that reimagines the systems driving energy use in the first place.. Audette’s Christopher Naismith notes, “Efficiency is about trying to get things to operate within their design parameters. What we have to do in decarb is think about how we redo that design in a cost-effective manner.”

Lane Burt stressed the importance of long-term planning: “Every building needs a plan. Now, an energy audit might contain elements of those plans or it might not...But the planning element is thinking about how this building needs to function in the future.” Without a decarb plan, buildings risk locking in high-carbon systems for decades, missing the window to implement low-carbon solutions, and destroying asset value.

Decarbonization isn’t about just tweaking the current state–it’s more about creating a roadmap that aligns with long-term business goals, many of which far outweigh saving money on utility bills. This shift demands a new way of thinking, one that prioritizes strategy over short-term fixes. 

Standards Evolve to Support Decarbonization

Industry standards are catching up to this shift. LEED, the globally recognized green building certification, is emphasizing decarbonization in Version 5 of its standard.

LEED v5 introduces standards that incentivize building owners to pursue electrification, reduce embodied carbon, eliminate refrigerant emissions, and align with decarbonization goals from the start. Platinum standards in the upcoming version will require buildings to demonstrate significant progress, ensuring the market moves toward zero carbon. “If LEED can’t support [strategic decarbonization planning], can’t move the market in the right direction, we’re going to really be missing the mark,” said Melissa Baker, who leads technical development at USGBC.

For real estate leaders, these updates will offer a clear framework for decarbonization planning. Following standardized decarbonization pathways enables owners to meet regulatory requirements while strengthening their market position.

Driving Value with ‘Brown to Green’ Strategies

Investors are now embracing the idea of transforming low-performing buildings into low-carbon assets. Known as “brown-to-green” strategies, this approach focuses on repositioning assets to drive long-term value. “Today...the desire to reposition assets, what folks are beginning to call the kind of brown to green strategies…is increasingly a viable, distinct niche in the real estate industry,” Chris Pyke observed.

This strategy is gaining momentum as real estate investors seek to capitalize on a decarbonizing economy. “Investors are psyched for this new brown-to-green strategy,” Chris noted. By acquiring high-carbon assets and aligning them with zero-carbon goals, portfolios can deliver significant returns while addressing emissions reductions. 

The market rewards early movers. For those willing to find, acquire, and reposition assets through decarbonization before the ‘low hanging fruit’ is picked, the opportunity to drive value while mitigating risk is substantial. 

Asset Level Planning: The Foundation of Decarbonization

Achieving decarbonization requires actionable plans at the asset level. Lane emphasized that successful planning starts with understanding each building: “Knowing what’s in the building and how it’s functioning…that’s kind of step one to both the audit exercise, the optimization exercise.”

With this foundation, owners can align capital planning with decarbonization goals. Replacement cycles must integrate electrification and other low-carbon solutions. It’s not about reactive decision making, but about ensuring the next capital upgrade supports the long-term emissions trajectory. Melissa explained, “We put in place for the first time, in this version, platinum standards that really require buildings to be most of the way, if not all the way there.” Practically, this means existing buildings need to have a pragmatic plan for decarbonization, while new construction projects are expected to meet these standards from the start.

Audette simplifies this process with scalable decarbonization plans tailored to large real estate portfolios. These plans combine cost analysis, cash flow projections, and actionable steps to guide owners in eliminating carbon emissions over time. By embedding decarbonization into each asset’s lifecycle, owners can meet emissions goals while maintaining operational efficiency.

Smarter Data for Smarter Decisions

Data collection is important, but it’s not necessarily about gathering every available data point. It’s about targeting what matters. “Data plus context equals information… when we move into decarb planning, we actually need the conclusions,” Lane noted. 

Chris echoed this sentiment: “We need smarter data—not just quantity, but insights that drive actionable decarbonization plans.” High-quality data helps owners identify which systems need upgrading, when to prioritize electrification, and how to phase out fossil fuels. The goal isn’t data for its own sake. It’s actionable insights that guide capital decisions.

Audette’s ‘graduated intelligence’ approach helps real estate portfolios to move beyond static audits incrementally, using operational data already embedded in an organization’s day-to-day. By focusing on meeting a user where they are, developing achievable end states, and attaching cost-to-decarbonize estimates, data is easily turned into a roadmap for long-term success.

The Future: Decarbonization and Resilience

The real estate industry is at a turning point. Melissa predicted a growing integration of physical asset resilience into decarbonization planning:  “I think this decarb conversation is going to see a lens of resilience start to be added into the discussion, and that is going to deeply affect asset value.”

Physical and transition risks aren’t separate challenges–they are two sides of the same coin. Aligning both ensures assets remain viable in the face of regulatory changes and climate risks. For investors, this dual focus provides a path to protect and grow portfolio value. 

Chris is optimistic about the industry’s shift: “I think we’re going to see an uptick in brown-to-green investing…we’re going to cheer all these people who are suddenly on the brown-to-green bandwagon.” Early adopters of decarbonization strategies will not only meet compliance standards but also position themselves as leaders in a zero-carbon future.Blog

Audette’s solutions are purpose-built for this moment. By enabling real estate portfolios to develop budget-ready, property-level net-zero plans, Audette ensures owners are prepared to navigate the complexities of decarbonization with confidence. The future of real estate is low-carbon, and the leaders will be those who act decisively.

Contact us today to learn how we can help you turn net-zero goals into actionable plans and protect your portfolio’s value for the future.

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