Jonathan Flaherty, Global Head of Sustainability and Building Technologies, shares Tishman Speyer’s vision for creating better neighborhoods through its ESG goals, community focus and commitment to net zero carbon by 2050.
Climate change is one of the greatest challenges the planet faces today, which is why sustainability and efficient building operations figure so prominently into everything Tishman Speyer does. However, adhering to environmental, social and governance (ESG) principles and being a good steward of the planet involves more than consideration of the environment. It requires listening to communities’ needs and wants, creating neighborhoods customers can be proud to call home and operating with a sense of social responsibility.
Prioritizing the environment
Jonathan Flaherty, Global Head of Sustainability and Building Technologies for Tishman Speyer, explains that ESG has many facets, but sustainability is at its core. When kicking off a project, Tishman Speyer adheres to sustainable practices throughout, from how it produces and uses energy to its material sourcing. The company also considers sustainability as it relates to water, air quality, pollution and more.
According to Flaherty, The Spiral in New York City serves as a great example of Tishman Speyer’s dedication to sustainability. Initially, the property was a brownfield site with soil that had to be removed before construction could begin. Now, the project has achieved LEED Gold Certification.
Water management is another priority of Tishman Speyer and is also a key factor in determining LEED certification. The Spiral’s innovative, twisting architectural design takes rainwater capture into account as part of the design of the building, capturing every drop of rainwater that doesn’t land in a planter on a balcony. This overflow is then collected in tanks and used inside the building or outside to irrigate the landscaping. As a result, the property should save an estimated 4.5 million gallons of water annually.
Operational efficiency
Sustainability in global real estate doesn’t end with a building’s completion. To positively impact the environment, it’s just as important that the building operates efficiently. Flaherty says Tishman Speyer is investing in and implementing new technologies to improve how its properties are managed.
The mixed-use space Q205 in Berlin serves as a good case in point. Embedded technologies and AI continuously monitor and evaluate the functionality of the building, looking for opportunities to reduce energy consumption. When an opportunity is identified, the system can make adjustments to improve performance. This has resulted in an annual operating cost savings of approximately $45,000.
Flaherty points to The Spiral’s lease with one of its largest customers, HSBC Bank of America, as another example. According to the lease, Tishman Speyer and HSBC will work together to comply with New York City’s carbon dioxide emissions guidelines for an expected 60% reduction of the bank’s total energy consumption. Thanks to this lease, Tishman Speyer was recognized as a Platinum Level Green Lease Leader in 2022.
Setting the bar high
Tishman Speyer’s commitment to sustainability in global real estate has earned the company high marks for more than just its green lease. In 2022, the company received GRESB’s 5-star ratings on six of its funds. Additionally, Tishman Speyer was awarded ENERGY STAR Partner of the Year for the ninth consecutive year.
“This prestigious award exemplifies Tishman Speyer’s dedication to producing and maintaining sustainable environments that contribute to the long-term health and well-being of our customers and the broader communities in which we operate,” says Flaherty of the ENERGY STAR award.
The company is also looking to the future. Going forward, all new construction office projects will be certified to a minimum LEED Gold/BREEAM Excellent or local equivalent, and in the U.S., all properties will be ENERGY STAR benchmarked and certified if applicable.
Net zero carbon by 2050
Additionally, Tishman Speyer has set the goal of achieving operational net zero carbon across its global real estate portfolio by 2050 (or sooner where possible). Using its in-house modeling tool, the company can review a building’s current carbon footprint and determine ways to decrease carbon output through operational changes, retrofits or electrification.
“The pressure is clear for real estate that net carbon is coming, and so, we want to make sure we do that on our terms, the right way and the best way for our company,” Flaherty says.
Focusing on communities
While the environment is a major component in ESG, Tishman Speyer realizes it has a responsibility to make the world a better place for the communities it operates in and the people it interfaces with as well. On a larger scale, that means offering affordable housing, creating safe environments and enriching the lives of the people who work and live in the area.
Flaherty believes the process begins by partnering with local government officials, neighborhood groups and others to find out what they need and want. But it also involves investing in the community.
Across Tishman Speyer’s office portfolio, customers benefit from ZO. Launched in 2017, ZO offers amenities like lounge areas, open-air terraces, grab-and-go food, happy hours and special programming. Through the ZO app, customers can also get out-of-office perks like discounts at local retailers and they also gain global access to lounge spaces.
Making the world better
Tishman Speyer is committed to making a difference through adherence to its ESG goals in other ways, too. For starters, the company strives to hire people of all races, ages, abilities, sexual orientations and gender identities and provide them with access to network and mentorship programs. Creating a diverse environment opens the door to new ideas and ways of thinking and models inclusivity for those outside the company.
“Tishman Speyer has ESG at the core of its assets and developments throughout the world, and we consider it to be a key part of our brand identity and what we do every day,” says Flaherty.
He adds that while the company’s commitment to ESG has broadened beyond the environment over the years, the driving force remains the same: to be a good steward of the world. And with each new building, Tishman Speyer is doing just that.
