GREEN LIVING

NREP was founded on the simple idea that real estate was ready for a change, accounting for a staggering 40% of global CO2 emissions. Today, recognized as the leading investor and innovator in the Nordics, NREP is showing us the way to a more sustainable future. Head of Urban Development, Lærke Hein, elaborates on the concepts that take sustainability to the forefront of how we live, work, & play.

Where do you see urban living headed?

Fundamentally, there is conflicting interest at play. On one hand the promise of a sustainable city, in stark contrast to the general economic model and framework for city development on the other hand.

I believe that there is a need for systemic change from the state side, and in the private sector. Land prices are too expensive, and construction rates are too rapid. A model, where we establish neighborhoods over longer periods of time, could be the solution. Let’s say we had a model, where those, who develop the land, borrow them for free for eg. 50 years in exchange for establishing districts we can live in, even if the population is not uber-wealthy. Housing is becoming far too expensive as it is now, as both sellers, contractors, and developers all have to make a lot of money. These changes would have to include support from the highest political level.

However, signs of a new green ambition are appearing in the Danish real estate market. More projects are coming up taking a more holistic and broad sustainable approach from the social to the environmental. I see a renewed focus on the creation of places, cities, and experiences with unique narratives and quality at heart.


How can NREP overall make a difference?

Big scale. Real estate holds a massive sustainability potential, e.g. the sector is responsible for 40% of the energy and resource consumption in Europe. International real estate, however, has for decades been a laggard industry, dominated by a short time horizon, and driven by a narrow focus on profit maximization.

In NREP we truly believe that by applying a broader long-term perspective on value creation with a holistic sustainability approach, where both social, environmental, and economic qualities are addressed, we can make a difference for our end-users, and the sustainable transition of real estate.

From our perspective, the most effective way to accelerate this urgent sustainable transition is through a customer-centric product approach to real estate. To be specific, we embed those sustainable qualities in our real estate products that make a difference for our customers, and societal challenges thus align commercial value, sustainable impact, and customer satisfaction.

This modus is applied on all our platforms, e.g. our affordable student housing concept, “UMEUS”, where we have a great focus on affordability and diversity among our residents. Another example is our family housing concept, “Plushusene”, where we strive to create homes with a healthy indoor climate and facilitate a strong sense of community between neighbors across generations.

The common denominator is that we design our concepts according to the specific social, environmental, and economic qualities that make the biggest difference to the respective target group for each platform. For our UMEUS platform, e.g. the student wants larger common areas to reduce loneliness and smaller but more affordable rooms. This is a good example of how we strive to make a sustainable difference by serving unmet needs, and address social challenges thus driving impact by holistic sustainable value creation.


What are some of the NREP sustainable concepts you are most excited about?

I would say that I am most excited about the fact that NREP embeds sustainability at the core of our products, and sustainability is a key part of our product development. Sustainability can sometimes be considered a “sidekick concept” or “check the box exercise”. We do not want that approach in NREP, but we strive to equate sustainability with classic business development. The UMEUS concept, that I mentioned previously, is a great example of a result of this sustainable business development approach.

Where do you see sustainability going in the next few years?

The signs from the national legislators, the EU policy frameworks, and the Paris Agreement all point in the same direction. Sustainability will become mainstream in the real estate sector in the coming years and those who are best at sustainability will also grow their commercial business.

One trend that, from my point of view, will be dominating in the years to come, is the decarbonization of real estate. We have some of the answers with renewable energy supply, but there are also still many unanswered questions for the future on topics, like embodied carbon in building materials. We would like to drive this important agenda by taking on this challenge to solve the decarbonization of real estate and unlock a more sustainable impact.

And the longer term vision?

Ultimately, urban living will have to be based on not using more resources than available, by building a vibrant ecosystem of sustainable urban growth, built on a common goal of "complete" sustainability.

We want to ensure that the social foundation of humanity's well-being, and the environmental pressure on the planet, are in harmony and create the right circumstances for mankind.

We must create landscapes that will support a healthy and resilient environment for its residents. Areas must create biodiversity habitats that support rich nature experiences. We must engage people in active and playful ways. We must ensure a balance between humanity and the planet.

What inspires you?

I would say overall I am truly proud to be part of an organization like NREP that sees a moral imperative and allocates so many resources to act and systematically scale sustainability impact, thus taking responsibility for addressing some of our society’s most complex and urgent challenges. I get inspired by seeing my colleagues fighting for this course every single day. And mostly, I’m driven by doing a positive change for us and the planet!

How do you drink your coffee?

Filter + any kind of milk.