United Kingdom: Climate Change

Following the UK's hottest summer on record in 2026, extreme heat has emerged as a critical climate risk for the real estate sector. Property owners, developers, investors and occupiers must now assess how prepared their assets are to withstand prolonged periods of extreme temperatures, as overheating presents operational, financial and resilience challenges that extend far beyond traditional flood risk considerations.

The ESG regulatory landscape continues to evolve rapidly in 2026, with significant developments including the EU Omnibus simplification amendments and ongoing UK Sustainability Reporting Standards efforts. This comprehensive timeline tracks key ESG developments across the UK and EU throughout 2026, providing essential horizon scanning support for sustainability practitioners navigating the complex regulatory environment.

The UK government has confirmed that from 2031, all privately rented non-domestic buildings exceeding 1,000 square metres must achieve a minimum Energy Performance Certificate rating of B. This targeted approach, which drops the previously proposed 2027 interim milestone and exempts smaller properties, provides landlords with additional time to plan retrofit investments while leaving several critical implementation questions unanswered pending a full government response later in 2026.

Nature-based solutions are evolving from grant-dependent conservation projects into structured infrastructure investments with contracted cashflows. As mandatory regulatory frameworks create durable demand and institutional investors recognize NbS as both a climate solution and portfolio risk hedge, this emerging asset class is attracting unprecedented capital attention.

A recent report challenges the conventional wisdom about investor-led climate action, arguing that asset managers and owners play only a supporting role in decarbonisation while government policy and technology development lead the way. The analysis examines whether private markets investors face similar constraints or possess greater agency to drive meaningful climate-related change through their portfolio companies.

With trillions of dollars required to meet net-zero goals, states, industry leaders and investors are placing strategic bets on the emerging technologies touted as game-changers in the battle against climate change.

Greenhouse gas removals (GGRs) refer to technologies or techniques that remove greenhouse gases from the atmosphere and capture these on a long-term basis.

Global temperatures are reaching unprecedented levels and action is needed to combat the effects of climate change.

Representatives from nearly every nation have gathered in Belém, in the heart of Brazil's Amazon region, for COP30, which runs from 10 to 21 November 2025.