Greycoat’s Nick Millican on Implementing a Comprehensive Sustainability Strategy in Real Estate Development

Transforming a centuries-old industry is no easy feat, and the real estate sector, deeply rooted in traditional practices, has been especially slow to adapt. For generations, the focus in property development remained unchanged: build quickly and affordably to meet growing demand. As cities expanded, the goal was simply to provide housing and commercial spaces, with little thought given to sustainability. Energy needed for heating, cooling, and lighting was viewed as a necessary cost, while the environmental impact of these operations was largely overlooked. This long-standing approach shaped an industry where efficiency meant cutting costs, often at the expense of the environment.

The world is changing, and real estate developers are increasingly feeling the pressure to adapt. Growing awareness of climate change, advancements in technology, and the rising demand for sustainable urban environments have pushed the industry to evolve. Once a predictable and stable field, real estate is now being forced to embrace new ways of thinking. What makes this shift especially challenging is the deep-rooted inertia within the industry. Unlike the tech sector, which thrives on constant innovation, real estate is built on legacy systems that are slow to change. From supply chains to regulatory frameworks and financial models, much of the industry is still focused on profit over sustainability, making the transition even more difficult.

A Holistic Approach to Sustainability

With concerns about climate change, resource shortages, and the growing demand for greener cities, real estate has a key role to play in reducing its environmental impact. As one of the largest contributors to carbon emissions, the real estate sector must play an active role in reducing its environmental impact, making comprehensive sustainability strategies essential for future growth and success.

There’s also a growing business case for sustainability in real estate. The global market is witnessing a shift in consumer preferences, with tenants, buyers, and investors all placing greater value on environmentally responsible buildings. Green buildings tend to have higher occupancy rates, command premium rents, and demonstrate better long-term value retention because they align with the growing demand for sustainability. Investors are increasingly applying ESG (Environmental, Social, and Governance) criteria to their decision-making, meaning developers who fail to adopt sustainable practices could miss out on key funding opportunities. Governments are also tightening regulations around sustainability, requiring buildings to be more energy-efficient and environmentally friendly.

A comprehensive sustainability strategy considers every stage of a building’s life—from planning and construction to how it will operate and, eventually, be taken down. This holistic approach goes beyond token measures like adding solar panels or using energy-efficient appliances; it involves a deep integration of sustainable practices across all stages of development.

A prime example of this comprehensive approach can be seen in the work of CEO Nick Millican at Greycoat Real Estate. Under his leadership, Greycoat has embraced sustainability not as a box-ticking exercise but as a core part of their real estate strategy. Focusing on reducing the environmental impact of their projects from the ground up, they have created a model that other developers can look to for inspiration and guidance. Below, we explore how Millican’s approach at Greycoat offers valuable insights into creating truly sustainable development processes.

Establishing a Sustainability Framework

Greycoat’s ‘sustainable development brief’ serves as the foundation for ensuring sustainability is integrated into every real estate project from the outset. Designed as a practical tool, this brief provides design teams with a clear framework to follow, ensuring sustainability goals are embedded at every stage of development. The focus is not just on theoretical goals but on actionable, measurable steps that help Greycoat achieve its environmental objectives. This ensures that every project, no matter the scale, contributes to the company’s long-term vision for responsible development.

The sustainable development brief sets out specific, ambitious targets for each project. These include benchmarks like EPC A ratings and BREEAM Excellent certifications, as well as goals for reducing embodied carbon and enhancing energy efficiency. Whether the team is refurbishing an office building or developing new residential properties, the same sustainability goals apply, a uniform approach that ensures that Greycoat’s sustainability strategy is maintained across all project types, helping to build a consistent, environmentally responsible real estate portfolio.

Evaluating Asset Purchase Viability

For Greycoat, evaluating sustainability early in the asset acquisition process is crucial. They consider environmental impact from the very beginning, ensuring that every investment aligns with its long-term sustainability goals. Early assessment allows Greycoat to identify whether a property has the potential to meet their high standards for energy efficiency, carbon reduction, and overall environmental performance.

One of the core principles of Greycoat’s strategy is their emphasis on refurbishment over demolition. As Nick Millican highlights, retaining existing structures allows for a significant reduction in the embedded carbon that would otherwise be released during demolition. Refurbishing buildings not only reduces the carbon footprint of their projects but also aligns with evolving planning regulations in London, where it is becoming increasingly difficult to justify demolishing buildings.

As noted in the sustainable development brief, Greycoat Real Estate uses clear sustainability criteria and certifications during asset evaluations. These benchmarks ensure that potential acquisitions not only meet current environmental standards but also have the capacity to perform well into the future.

Supply Chain Collaboration and Reducing Carbon Impact

Greycoat recognizes that reaching ambitious sustainability goals requires collaboration with industry experts. They partner with sustainability consultants in order to receive external support in developing and monitoring effective strategies that keep them aligned with their environmental objectives.

A key part of this strategy involves managing both embodied carbon, which comes from materials, and operational energy through the use of carbon budgets. These budgets are applied to each project, guiding choices around construction methods and materials to ensure sustainability is prioritized throughout the project lifecycle.

Additionally, Greycoat places a strong focus on promoting sustainable practices across their supply chain. They work closely with contractors and suppliers, encouraging a sustainability-first mindset in all aspects of construction, from reducing waste to sourcing low-carbon materials. This integrated approach ensures sustainability is built into every phase, from planning to execution.

Tackling Renewable Energy and Offsetting Carbon Emissions

Greycoat is committed to ensuring that any renewable energy they purchase for their developments comes from 100% certified sources, reducing the carbon footprint of the buildings they manage while also supporting the broader adoption of renewable energy by encouraging providers to offer more certified options. In addition, where feasible, Greycoat integrates renewable technologies like solar panels into their projects, further reinforcing their focus on sustainability.

In the view of Greycoat leadership like Nick Millican, carbon offsets should be seen as a last resort in achieving sustainability goals. Their primary focus is on directly reducing emissions by improving energy efficiency and prioritizing renewable energy sources, ensuring the environmental impact of their developments is minimized before exploring offsetting options.

Holistic Integration of Sustainability in Operations

Greycoat’s commitment to sustainability extends beyond its developments and into the company’s own operations. After thoroughly assessing their carbon footprint, they introduced targeted measures to reduce emissions, beginning with a move to a high-performance office that meets the same standards they hold their assets to. Rather than relying on a one-time overhaul, Greycoat takes a steady, consistent approach to sustainability. Each year, they implement gradual improvements, from boosting energy efficiency to refining internal practices. This ongoing progress reflects their long-term vision, as they work toward their 2050 net-zero goal while continuously adapting to evolving sustainability targets.

Shifting the Sustainability Mindset

For too long, sustainability in real estate has been approached with reluctance, seen as a cost center rather than an opportunity for innovation. This mindset results in superficial measures that may satisfy immediate public relations or legal requirements, but fail to address the larger environmental impacts of real estate projects. Real estate developers who prioritize long-term, meaningful sustainability strategies—from planning and construction through to the lifecycle management of their assets—are more likely to thrive in a market that increasingly values environmental responsibility.

Adopting a truly comprehensive approach to sustainability requires a shift in perspective. It’s about seeing sustainability as a value-adding component to the entire organization, not just a hurdle to overcome. Embracing sustainability throughout an organization fosters innovation, attracts environmentally conscious investors and tenants, and future-proofs developments against tightening regulations. It’s this mindset shift—away from seeing sustainability as a burden and toward viewing it as a core strength—that will ensure long-term success in the real estate industry.