The UK retail sector has been given a boost on the eco front with a new report revealing it enjoyed a “significant drop in carbon emissions” in 2023.

The sector has seen the biggest average drop in carbon emissions per real estate unit over the past year of around 17.6%, the report by ESG data intelligence platform Deepki.

This is followed by housing, where average carbon emissions per unit had fallen by 13.2%. Of the six real estate sectors reviewed, only the hotel industry saw a rise in average CO2 emissions.

The report said one key reason for a fall in carbon emissions from UK real estate is that average final energy consumption had fallen by 2.86% between 2022 and 2023. It was down 13.2% in the retail real estate sector, which is the biggest drop of the six categories reviewed.  However, the average final energy consumption per real estate unit in the UK hotel sector increased by 9.5%.

We’ve had plenty of reports in recent periods from companies opening new fashion and beauty stores or investing in revamps and these usually come with details about the emissions-reducing steps they’re taking.

Commenting on the findings, Lindsay Taylor, Head of UK Delivery at Deepki, said: “We have undertaken detailed analysis to create the only Index of its kind. The findings show that key typologies across commercial real estate in the UK are embracing the path to net zero and moving in the right direction.

“Measures that are being implemented to improve the carbon footprint of assets through greater energy efficiency such as improving insulation and ensuring better regulation of equipment such as lighting, heating, ventilation, and air conditioning so that they are in tune with use patterns and seasons, are starting to pay dividends, although we must bear in mind the effect of the climate itself.”