JLL’s Hanife Ymer On Sustainability And How ‘Embeds’ Sustainability Into The Very Fabric Of JLL’s MENA Operations.

T2NZ : Can you give us an overview of JLL’s philosophy and approach toward sustainability?

HY: JLL’s sustainability philosophy is to drive disruptive and impactful change through an approach of embedding sustainability into everything we do – this focus is executed through our sustainability strategy called ‘Building a Better Tomorrow’. We are determined to play our part by working with our clients, partners and communities to shape the future of real estate for a better world. Our ultimate goal is to be a renowned leader in sustainability and our ambition is to be the partner of choice for our clients at every stage of their sustainability journey. Through the breadth and strength of our global platform, we enable clients to manage their sustainability needs, and together, move the needle on the real estate’s sustainability efforts.

T2NZ: JLL has announced the European launch of its global Carbon Initiative. Has there been a ME roll-out and if yes, how does that impact your activities in the MEA.

HY: Yes, in May this year, we announced our aim to achieve net zero carbon emissions by 2040. This commitment includes all areas of our operations, including the client sites we manage globally, and JLL became a signatory to The Climate Pledge, a commitment which focuses on achieving net zero by 2040, 10 years ahead of the Paris Agreement. This is global commitment by JLL, and like any global commitment within JLL, all are upheld across our operations, including the MENA region. The process for rolling out JLL’s Net Zero commitment - as well as other public stated mandates - is nothing new for the MENA region. MENA has been feeding into aggregate reporting of various material KPIs, including greenhouse gas emissions, which form part of JLL’s global sustainability disclosures. JLL also provides sustainability advice to its clients, and we can’t do that credibly unless we are focused on the sustainability issues that matter most, whilst doing something about those issues, and adopting global sustainability commitments by JLL across the MENA region – we all do our part.

T2NZ: How does the sustainability and carbon neutrality initiative fit into JLL’s operations and projects in the MENA region?

HY: JLL MENA has been measuring and reporting to global its activities across various KPIs, including greenhouse gas emissions, diversity and inclusion, along with other material areas. This includes contributing to reduction measures to support JLL’s global NetZero commitments. We embed sustainability into all facets of our operations, whether that is dealing with clients, our people, workplaces, and communities. This means embedding sustainability and considerations of carbon and our NetZero mandate not only in our direct operations, but also in the work we do for our clients – be that developing strategies, or developing and delivering products, services, tools and technologies to support their sustainability requirements. We work collaboratively with global colleagues and draw on support where needed. Of course, at the country / regional levels across JLL, sustainability journeys are at various stages, and here in the MENA region there is continued opportunity to do more. In fact, part of my role is to continue to push the normalization of sustainability throughout MENA’s operations, in particular our work with clients.

T2NZ: How are you involved in terms of fulfilling JLL’s sustainability objectives both within the organization and in the region?

HY: As Head of Sustainability Services, MENA (and through leveraging my deep experience), one of my important responsibilities is to embed sustainability across all facets of the MENA operations. That includes supporting and advising JLL’s clients and supporting the MENA team in executing our own sustainability activities and ensuring that everyone within JLL MENA considers sustainability in everything we do. In addition, I am connected to many of the global strategic sustainability developments within JLL, which allows me to not only shape outcomes but also allows me to pull across into the MENA region our global efforts that meet regional and country-level needs.

T2NZ: Sustainability is a relatively new subject in the region. Post pandemic, as sustainability, innovation and technology adoption which have been accelerated we as residents of the region talking about this subject better than we have in the past? Has the spotlight on climate change been one of the factors in moving this conversation in a positive direction at JLL? How do you expect it to impact the rest of the real estate industry?

HY: There is no doubt there is an increase in prominence and focus when it comes to sustainability in the region. The more sustainability is given a focus, the more people are talking and thinking about all thing’s sustainability, the better. By providing increased opportunity for sustainability to be considered in the day-to-day, it gets normalized and it gets valued. The increased focus is great, but the concern is the need for action! Talking and thinking is great, and we are seeing a pledge a week (well almost) but what do these pledges / commitments mean – we need to move beyond statements to real actions. Those companies taking a proactive approach, have a first-movers advantage in the region, with an opportunity to help shape outcomes rather than having to increasing requirements in relation to sustainability. The increased regulation by governments, including the EU taxonomy for sustainable activities and supporting regulations focused on preventing ‘greenwashing’, along with actions such as those recently implemented by the SEC where they established a taskforce to ascertain misconduct relating to environmental, social, and governance (ESG) issues. These activities, as well as social media, which is what I like to refer to as the new accountability model, should drive corrections and accountability to ensure sustainability claims are being supported by tangible actions. There is no doubt that COVID has shone the light on societal issues, and movements focused on social equity have accelerated sustainability efforts and pushed it into the limelight. Through this we are seeing capital markets really putting pressure on corporates to do more, or risk increased costs of capital or challenges in securing capital. JLL is not immune to the heightened focus on sustainability issues including climate change. We also need to respond to our stakeholders. Clients want us to help them with all things related to sustainability, so this is also seeing us continue to look at how best to do that – be that developing a NetZero approach and helping them quantify what this means in terms of a carbon footprint, emissions reduction opportunities against a potential organizational strategy focused on growth, versus offsetting strategies including forecasting costs and/or exploring opportunities to develop / generate offsets and new revenue streams. And these sustainability issues especially climate change are very much being considered across the real estate industry. We all know the built environment makes up 40 percent of greenhouse emissions globally, so it is a sector that has to play a pivotal role in reducing emissions and responding to the concerns of climate change. The corporates each week announcing their carbon neutral / net carbon commitment (in most cases) will look to the built environment as a main area for emissions reduction – we need to help them with this where possible.

T2NZ : What steps have you taken to ensure that sustainability concerns, such as efficiency and environmental impact, are considered early in any new projects or ventures, rather than being tacked on at the end?

HY: Again, embedding sustainability in everything we do is how we ensure sustainability concerns are addressed early. Regardless of where we are engaged in the real estate / property lifecycle, whether it be the master planning stage or construction or the role we play in leasing, we always look to consider sustainability in our advice, whilst also understanding the wider implications of our work and support across the organization’s value chain. For example, if an organization comes to us to conduct an energy audit or explore opportunities for energy efficiency, we automatically try to understand the broader sustainability drivers sitting around such a request and therefore our advice and support is delivered with this broader context in mind. We need to do this because our clients are demanding it. So regardless of where we play in the lifecycle and the role we play, we try to keep sustainability considerations front and centre. Don’t forget the built environment is at the centre of market forces – investors, occupiers, regulation, employees and customers. The majority of corporates are needing or wanting to make it to NetZero and they can’t do it without addressing buildings. ShareAction, a London-based charity that aims to improve corporate behaviour on environmental, social and governance issues, found that “for existing buildings, five percent of stock will need to be retrofitted annually, to ensure net zero operational and embodied carbon by 2050” .

T2NZ : Where do you see the widest panorama of sustainability & innovation within the region?

HY: Climate change has been one of the key areas without a doubt, and specifically NetZero. Our research shows that globally from 2019 to 2020 global businesses that made NetZero public commitments grew from 500 to 1541. In addition, it has been encouraging to see a focus by the financial services sector on ESG-related financing. We are starting to see more ‘green / sustainability’ financing arrangements across MENA. This includes Egypt with the issuance of the first ever sovereign green bond in MENA (released last year); Aldar’s sustainability linked loan; and more recently Majid Al Futtaim’s sustainability-linked loan, along with HSBC’s Global Equity Fund in the Kingdom of Saudi Arabia. It’s important to note that buildings make up a great deal of the focus in these financing structures. Diversity is also another area growing in profile – an area dear to me – to that end, the United Arab Emirates’ Securities and Commodities Authority has put in place requirements for all UAE listed companies to have at least one female board director. Energy is also dominating the MENA landscape, and we believe there is a lot of opportunity here. Water is also a topic that cannot be avoided in MENA, especially when you consider that the Middle East is the most water-stressed region on earth, according to the World Resource Institute’s Aqueduct Water Risk Atlas. Areas where we would like to see greater focus include: • Many organizations, along with the Sustainability Manager, are drowning under and ever-growing number of initiatives. Sometimes the hardest thing to do is say ‘no’ to another initiative. My advice to those grappling with this is to always bring it back to organizational value and your strategic objectives – how is what you doing moving the organization forward? • Moving beyond certifications and ESG-labels – I often say ‘you can’t do pockets of good’. Have a holistic approach when applying sustainability considerations to your business and even if you have challenges that will take time to resolve, have the courage to talk about the challenges and how you are responding in a transparent manner. • Have long-term mindset, and don’t treat the ESG or EES (economic, environment and social) separately. We need to break the myth that sustainability is ‘environment’ only, it is so much more than this. For example, we are building more efficient vehicles and houses but what about the broader challenges? Are we replacing the 8am traffic jam from diesel cars with a traffic jam of electric cars? Are we thinking about the diminishing resources that go into solar panels and EVs – again thinking beyond the immediate needs is critical.

T2NZ : Within your industry and peer group, which brands are setting the same global standards for carbon neutrality? How do you feel this can be taken to the next level?

HY: I would prefer to speak to the elements that demonstrate leadership in sustainability – they include (but not limited to):

• Senior leaders taking a long-term view when making decisions

• Strong levels of accountability and governance for sustainability – starting with the Board

• Transparency and balance – leading organizations have the courage to talk about the bad and the good – this balance is important

• Short and long term ‘meaningful’ goals with clear and regular reporting – leadership comes from stretching your efforts

• Innovation – this doesn’t always have to be technology lead, it could be challenging the norm and turning a problem on its head to find the right solution to support sustainability principles

• Strong mechanics to identify, listen and manage all stakeholders

• Putting sustainability at the core of business models and strategy

• Clearly articulated sustainability values and purpose – and everyone in the organization can talk to these values / purpose

• Supply chain management and sustainable products and services

• Strong diversity and inclusion approach – across gender, age, background and ability

• Strong engagement and communication – reporting that is assured – why should sustainability information disclosed to the market be treated any differently to other statements / reports (ie. financial reports) into the market.

T2NZ : In the region, who do you think is a rising star within the sustainability industry? Refer answer to previous question T2NZ: What does it mean to you, watching JLL on the global stage in the context of commitment to sustainability?

HY: Firstly, it makes me incredibly proud to work for an organization that doesn’t just get sustainability but backs it up with real, tangible actions across its global footprint. This make it easier for me to sit in front of senior members across MENA and talk with credibility on what it takes and why it is important to have a focus on sustainability. This leadership in turn creates an internal culture where everyone in JLL want to get involved and support our direct efforts and are also thinking about what they can do in their day-to-day advice to clients.

T2NZ: Please tell us what you love most about your current role?

HY: The diversity of support required and the ability to connect with people (it’s a southern Mediterranean and Australian thing!) and to truly understand the challenges and bring them real tangible solutions – not fluff! Those who know me, know I’m passionate about all thing’s sustainability, but even more passionate about being real and pragmatic in the support provided.

T2NZ : Tell us about your favourite city and book of all time and why?

HY: There are so many wonderful cities to choose from, but my decision is purely based on the number of visits. Two come out in front – New York City and Paris. I think because both are walking cities (and I originate from the walking city of Melbourne). It helps to get my steps up and walking around without a map is the best way to discover every corner of a city. Both of these cities never fail to provide a new discovery or ‘wow’ moment with every turn of a street corner. It also doesn’t hurt that both these cities have sustainability at the heart, both putting in place ambitious climate related targets. For my favorite book, I would like to go with one I read time and time again – that is Jane Austen’s Pride and Prejudice, followed by a close (and stark contrast) second book - George Orwell’s 1984. I would also add Responsibility (out of print) by Frank Fischer – one of my former sustainability lecturers - who was invaluable in showing me that applying systems thinking and understanding social constructs often provided better understanding of the ‘real’ problem and helped to arrive at better sustainability solutions.