The New York City chapter of CoreNet Global, in collaboration with the organization’s London chapter recently presented a transatlantic luncheon program, entitled “Profiting from Sustainability: Why Is London Outpacing New York?” Via teleconference, experts in corporate real estate and sustainability on both sides of the Atlantic debated similarities and differences between environmental initiatives and government regulation in New York and London, and their impact on companies’ bottom lines.

Robert Hallman, a partner at law firm Cahill Gordon & Reindel LLP and an authority on environmental law and related energy matters, served as moderator for the program. He began the discussion with a comparison of carbon emission reduction goals in both cities, noting that London’s Sustainable Development Commission has a goal of reducing carbon emissions by 60 percent by 2025, while New York’s PlanNYC intends to reduce emissions by 30 percent by 2030.

This comparison served a starting point a compelling discussion between Peter Miscovich,  managing director at Jones Lang LaSalle in New York and a leading business consultant in Workplace Transformation and Workplace Sustainability, and Stuart Bowman, who heads the energy and sustainability division at Hurleypalmerflatt in London. Their conversation covered topics such as the relevance of sustainability in corporate real estate, the impact of environmental initiatives on companies’ bottom lines, the real policy drivers in sustainable initiatives and how they are implemented, and lastly the challenges related to sustainability that corporate real estate professionals face.

In the current economy, with building owners now holding onto assets longer and focusing on retaining tenants, owners are paying more attention to operational costs, particularly rising energy costs, Bowman said. As a result, refurbishing and refitting older buildings to meet new energy standards are becoming more common, especially as more tenants require facilities with superior efficiency ratings.

Along the same line, Miscovich added that “green leases” are gaining popularity. As capabilities to monitor building efficiency and measure “carbon footprints” expand, green leases requiring buildings to meet certain energy criteria will become part of the norm, he believes.

The panelists also explored incentives and policy drivers, and discussed which methods have been the most effective. Miscovich believes that taxing companies with high carbon outputs is what will successfully motivate them to change behaviors. He also feels that these kinds policies need to emerge on a federal level to have success, rather than solely on the local level like New York’s failed congestion pricing initiative.

Bowman noted that the UK has “whole-heartedly” adopted the European Union’s Energy Performance of Buildings Directive (EPBD), which requires all EU countries to enhance their building regulations and to introduce energy certification schemes for buildings.

Both panelists agreed that a convergence of public policy and a shift in individual behaviors are both essential to making real progress in carbon reduction and achieving broader sustainability.

“Ultimately it comes down to living smaller, closer, driving less,” Miscovich said. “Young people will drive that shift. They want flexibility, mobility, and want to work for the greenest company.”