Jones Lang LaSalle China Connects With VeChain To Explore Blockchain Adoption In Sustainable Proptech
Jones Lang LaSalle Incorporated (hereinafter referred as JLL) is a global commercial real estate services company, founded in the United Kingdom with offices in 80 countries. The company also provides investment management services worldwide, including services to institutional and retail investors, and to high-net-worth individuals. With sustainability becoming a critical pillar of business success in the Chinese market, JLL has been seeking innovative solutions to accelerate carbon emissions reduction of real estate. With this in mind, JLL China connected with VeChain to release an article on potential blockchain adoption scenarios in this area. Below are translated key takeaways for the VeChain community.
The ‘3060’ carbon target has undoubtedly created new challenges and opportunities for companies and individuals. According to JLL’s latest survey report “Sustainable Real Estate: From ambitions to actions — Where does China stand?”, 66% of Chinese corporations have incorporated carbon emissions reductions into their real estate strategy. The vast majority of occupiers proactively plan to prioritize locations that would help them reduce carbon emissions in the future.
The report also pointed out insufficient technological infrastructure is a major barrier to achieving de-carbonization goals. Presently, the lack of consistent and validated carbon data poses a huge reporting challenge. At least two-thirds of Chinese corporations are looking to invest in new and emerging technologies to bridge the gap.
Blockchain technology — the ideal tool to deliver consistency and transparency in data — has immense potential to help drastically improve measurement and reporting standards and accelerate progress towards the net-zero carbon goal.
Imagining The Blockchain-enabled Management Of An Entire Office Building
Scenario 1: Real Estate Developers and Owners — Easy Traceability Of Full Lifecycle Carbon Footprint
The authenticity, consistency and integrity of carbon emissions data generated during the construction, operation, maintenance and renovation/demolition phases of a building are critical metrics for achieving sustainability goals. Blockchain technology has the ability to help real estate companies record and manage the carbon footprint of a building’s lifecycle in a more effective and secure manner. This data can then be utilized for other systems such as ratings and certification, or even form part of a company’s digital asset basket.
Scenario 2: For Enterprise Tenants — Better Choice Of Green Office Space With A ‘Carbon Label’
Blockchain technology can record data from the raw material and production stages of development in a trustless manner. Manufacturers can also track the complete carbon footprint of each product and create a branded and trusted carbon label. For corporate tenants with sustainability goals, choosing green office space with a transparent carbon label will help companies demonstrate responsibility to reduce associated carbon emissions.
Scenario 3: For Enterprise Employees — Incentives For Low-carbon Behaviour
Blockchain technology, combined with computing models provided by third-party services, can effectively and authentically record individual behaviours and transform data into value.
Evidence of carbon reduction initiatives can then be rewarded, for example, with gifts provided by the business/owner or any kind of incentive as seen fit. In this way, companies can incentivise action, increase employees’ pride in their individual contribution to sustainability efforts and strengthen bonds with their respective business. Meanwhile, business owners can strengthen their connection with tenants and office space users, demonstrate their own carbon efforts and build a ‘green circle’, creating an environmental positive feedback loop.
As an advocate and leader of sustainable real estate, JLL has been developing strategies to help clients achieve net zero carbon emissions as a key pillar of their future strategy. VeChain has devoted itself to assessing and developing new ways for blockchain to transform existing spaces and infrastructure, ultimately making them more sustainable and less carbon intensive.
The future is bright at the intersection of property and technology. The above is another example of many in how blockchain can drive meaningful environmental action. VeChain continues to strive towards delivering technologies for all those niches.