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The Place Economy: Following the Money

Published on June 28, 2023


Julian Bott in a suit in a park with grass, trees and buildings in background

Julian Bott

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Pale green background with 'Following the money' in vertical text on right and a cartoon image of Julian Bott in the bottom left hand corner

When APAC Managing Director, Julian Bott, was first working with clients to develop environmentally sustainable approaches to the design and delivery of developments, it was often a hard sell. But as he explains in a piece for Hoyne’s Place Economy Volume 3, ESD and ESG are now becoming business-as-usual for any developer or asset owner.

‘Following The Money’ explains how he has seen the market shift to a positive investor appetite for green assets. Short-termism is also on the wane, and the performance of an asset on paper at design stage is not the endgame. What matters now is how a building performs throughout its operational life, and this has changed the discussion between consultants and clients. Insurers are also weighing in, developing new policy and governance measures to capture climate risk.

Net Zero is part of the new ground rules. In the past it may have been considered enough to purchase the cheapest available offsets and declare the goal achieved, but today’s investors are looking to science-based targets and carbon risk and expecting reductions at source.

“The fundamental value proposition recognises that if capital expenditure is deployed to deliver an asset that is as low-emissions as possible, the operational spend on energy and on carbon offsets will be less. Zero carbon starts with shrinking footprints – not just buying offsets.”

The Place Economy Volume 3 spans over 650 pages, with 80-plus stories, featuring over 100 global experts. It celebrates the people, places and ideas that make cities great, but it is also a deep dive into the barriers and challenges still facing communities everywhere. The essays and case studies demonstrate how the best returns on investment - for developers, government and communities – come from a solid vision underpinned by insightful placemaking.

Hoyne are donating 100% of the proceeds from the book to Habitat for Humanity Australia in support of their mission to bring communities together to help families build strength, stability and self-reliance through shelter. For more details of the whole volume, see here.

Download Julian Bott’s article here