How Corporate and Real Estate Businesses Can Prepare for the Upcoming Wave of Climate Action Plans

As the world moves towards more ambitious climate goals, Corporate and Real Estate businesses must be ready to adapt. By early 2025, governments across the globe are required to submit their updated Nationally Determined Contributions (NDCs), which are essential climate action plans under the Paris Agreement. These NDCs will outline how nations intend to reduce their greenhouse gas emissions and build climate-resilient economies.

For businesses in the real estate and corporate sectors, these updates are far more than just policy announcements — they set the stage for regulatory shifts, investment opportunities, and increased expectations for sustainability compliance. Companies that are proactive will be better positioned to meet investor, tenant, and stakeholder expectations, while also unlocking financial and operational benefits.

What Are NDCs and Why Do They Matter for Business?

Nationally Determined Contributions (NDCs) are essentially the blueprints for how each country plans to meet the climate goals outlined in the Paris Agreement. These five-year climate action plans specify the emissions reduction targets for each nation, as well as the policies, investments, and regulatory changes required to achieve them.

For Corporate and Real Estate businesses, NDCs signal a clear trajectory for climate policy, investment, and regulation. The UK’s own NDC includes a target to cut economy-wide greenhouse gas emissions by 81% by 2035 (relative to 1990 levels). To achieve this, the government will likely tighten regulations on energy efficiency, building emissions, and corporate sustainability reporting. This poses both risks and opportunities for businesses.

How Will NDCs Impact Corporate and Real Estate Businesses?

NDCs act as a catalyst for stricter environmental policies, and as governments pursue their climate goals, businesses will face new compliance demands. Here’s how these changes could impact the Corporate and Real Estate sectors:

1. New Building Standards and Energy Regulations

Real estate businesses will likely see changes in building energy efficiency regulations. Stricter energy performance standards could mean higher obligations for commercial property owners to reduce emissions from buildings. This may require upgrading HVAC systems, improving insulation, and integrating renewable energy solutions such as rooftop solar. Building certifications like EPC (Energy Performance Certificate) ratings may become more stringent, directly impacting the value and marketability of properties.

2. Changes in Reporting and Disclosure Requirements

Corporate businesses, especially those with large real estate portfolios, may be required to expand their carbon reporting obligations. As more NDCs are submitted, governments are expected to align national regulations with international frameworks like TCFD (Task Force on Climate-related Financial Disclosures). This means companies will need to increase transparency on their climate-related risks, emissions, and net zero strategies. Supply chain reporting will also grow in importance, with pressure on real estate companies to monitor and disclose emissions across their portfolios.

3. Shifts in Energy Procurement and Carbon Pricing

With NDCs likely to push for reductions in fossil fuel usage, businesses will see increased pressure to procure renewable energy. For real estate operators, this could mean revisiting energy contracts for managed properties. Some NDCs are expected to introduce or expand carbon pricing mechanisms, such as carbon taxes or emissions trading systems, which could lead to higher operating costs for carbon-intensive businesses. Property managers and landlords should anticipate rising energy costs and consider Power Purchase Agreements (PPAs) with renewable energy providers.

4. Investor and Tenant Expectations

The real estate sector is already seeing greater scrutiny from investors, stakeholders, and tenants regarding sustainability. As NDCs are formalised, corporate clients will face more pressure to lease energy-efficient and sustainable buildings. For property owners, this means improving building certifications (e.g., BREEAM, LEED) and ensuring assets meet net zero carbon standards. Landlords that offer lower-carbon and energy-efficient buildings may attract higher rental demand, while properties that fail to meet new energy standards risk obsolescence.

5. Adaptation to Physical Climate Risks

Beyond energy and emissions, climate resilience will also feature prominently in NDCs. Governments are expected to introduce measures to protect buildings and infrastructure from extreme weather events like floods and heatwaves. Real estate firms and corporate landlords will need to assess and mitigate physical climate risks across their property portfolios. This may involve flood defenses, stormproofing, and retrofitting buildings to increase climate resilience.

How Corporate and Real Estate Businesses Should Prepare for NDC Changes

To stay ahead of upcoming regulatory shifts and investor expectations, Corporate and Real Estate businesses need to adopt a proactive approach. Here are key steps to prepare for the impact of NDCs on your operations and strategy.

1. Upgrade Building Energy Efficiency

For real estate investors, asset managers, and property operators, improving energy efficiency is essential. Buildings are responsible for around 40% of total emissions, and with stricter government targets on the horizon, reducing operational carbon emissions is a priority. Consider initiatives such as:

• Retrofitting properties with energy-efficient systems like LED lighting and smart HVAC controls.
• Improving insulation to reduce heating and cooling demand.
• Installing on-site renewable energy solutions, such as rooftop solar or heat pumps.

Energy efficiency improvements may soon become a compliance requirement rather than a ‘nice to have’. Acting now can avoid future penalties and reduce exposure to rising carbon taxes.

2. Strengthen Data Management and Reporting Capabilities

Regulations around climate disclosures and Scope 3 emissions are expected to become stricter. Companies should prioritise developing a data-driven approach to emissions tracking, using tools such as:

• Energy performance monitoring software.
• Supply chain emissions tracking systems.
• Tenant engagement platforms to promote sustainable occupancy practices.

The capacity to measure and report on emissions is becoming a regulatory necessity. For Corporate and Real Estate firms, this means moving from ad hoc data collection to a structured approach that integrates emissions tracking into daily operations.

3. Review Carbon Procurement and Energy Contracts

Energy procurement strategies will need to evolve as governments phase out fossil fuels and ramp up renewables. Corporate real estate operators and landlords should consider securing long-term Power Purchase Agreements (PPAs) to lock in renewable energy at competitive rates. This provides price certainty while supporting ESG goals. Companies should also explore on-site renewable generation for larger assets.

4. Align Sustainability Strategy with Paris Agreement Goals

Companies must align their operations and sustainability goals with the Paris Agreement’s 1.5°C target. To do so, Corporate and Real Estate businesses should set Science-Based Targets (SBTs) to reduce emissions in line with the latest climate science. The introduction of NDCs is likely to accelerate regulatory requirements for emissions reduction, so it is crucial to set ambitious targets now

5. Engage with Stakeholders and Tenants on Climate Action

Tenants are increasingly seeking greener, more energy-efficient spaces. Corporate landlords can strengthen tenant relationships by providing sustainable workspaces. Property owners should consider creating tenant engagement programmes to encourage energy efficiency measures, such as behavioural change campaigns and smart energy monitoring tools.

Engaging with stakeholders on climate action builds brand reputation and strengthens relationships with investors, lenders, and customers.

What’s at Stake for Corporate and Real Estate Businesses?

As NDCs become more ambitious, Corporate and Real Estate businesses face a pivotal moment. Stricter regulations are inevitable, and those that fail to act may face higher compliance costs, stranded assets, and reputational risks. But for those that prepare, there are significant opportunities to reduce costs, attract tenants, and meet investor expectations.

The Cost of Inaction:

• Properties that fail to meet new energy standards could lose value.
• Rising energy costs and potential carbon taxes will impact operating expenses.
• Inadequate data reporting could result in non-compliance penalties.

The Opportunities of Proactive Action:

• Future-proof assets through energy efficiency upgrades and net zero alignment.
• Attract environmentally conscious tenants who seek green, energy-efficient spaces.
• Demonstrate ESG leadership to investors and stakeholders, gaining a competitive edge.

Get Ahead of the Curve with Inteb’s Expertise

As global climate action accelerates, Corporate and Real Estate businesses must adapt to changing regulations, investor demands, and market expectations. The introduction of new NDCs presents both challenges and opportunities — and businesses that act now will be better prepared for the transition to net zero.

At Inteb, we understand the complexities of energy management, carbon compliance, and sustainability strategy. We offer a range of services to support your business, including:

• Energy Audits and Building Performance Assessments
• Carbon Tracking and Scope 3 Emissions Analysis
• Sustainable Building Management
• Net Zero Strategy Development

Our tailored approach helps you navigate the regulatory landscape, reduce your carbon footprint, and increase asset value. Contact Inteb today to learn how we can support your clean energy transition and position your business for sustainable growth.