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London has set an ambitious target to become a net-zero city by 2030, requiring a massive infrastructure investment estimated at £75 billion by 2030 and up to £108 billion by 2050.
The Mayor of London has selected the “Accelerated Green pathway” as the preferred route to achieving this target, creating urgency for property owners and developers to align their assets and development pipelines with the city’s carbon reduction goals. Against this backdrop of transformative environmental targets, property development firm Greycoat, under the leadership of CEO Nick Millican, is positioning itself at the forefront of sustainable urban development.
“We are embarking on a journey to transform this 140,000 sq ft space into a beacon of innovation and sustainability,” says Millican, referring to Greycoat’s recent acquisition of DIALS. “Our approach is not just about being at the forefront of design, but about pushing the boundaries of what is possible in sustainable development.”
This ambitious vision reflects a broader commitment to aligning Greycoat’s development strategy with London’s net-zero goals, recognizing that the real estate sector will play a crucial role in determining whether the city’s climate targets can be achieved.
The Scale of the Challenge
The City of London Corporation has established its own net-zero targets, aiming to achieve net zero by 2040 across its value chain, covering everything the corporation buys, sells, invests in, and leases to others. Specific targets include a 24% reduction in emissions from financial investments by 2025, followed by a 55% reduction by 2030.
For commercial real estate, which accounts for a significant portion of the city’s carbon emissions, these targets represent both a challenge and an opportunity. The sector is responding with various approaches to implementation, with investors increasingly setting net-zero emissions targets for their portfolios, pledging to manage them in ways that achieve zero greenhouse gas emissions by specific dates.
Yet, Millican recognizes the scale of this challenge and the responsibility that developers bear in addressing it. “I think there’s more of a need to invest in buildings now than there has been historically, because of the environmental regulations here changing. And so people are kind of forced to make their buildings more energy-efficient,” he observes.
Greycoat’s Sustainable Development Framework
Under Millican’s leadership, Greycoat has developed a comprehensive sustainability framework that guides all of its development activities. This ‘sustainable development brief’ serves as the foundation for ensuring sustainability is integrated into every real estate project from the outset.
“For each new project we begin, carbon budgets are treated with the same level of rigor and importance as financial analyses or cost plans,” Millican explains. Every design decision is evaluated through the lens of long-term sustainability and carbon reduction, ensuring that Greycoat’s projects contribute to London’s broader climate goals.
The sustainable development brief sets out specific, ambitious targets for each project, including benchmarks like EPC A ratings and BREEAM Excellent certifications, as well as goals for reducing embodied carbon and enhancing energy efficiency. Whether the team is refurbishing an office building or developing new residential properties, the same sustainability goals apply, ensuring that Greycoat’s sustainability strategy is maintained across all project types.
This approach aligns with the growing recognition in London’s property market that sustainability is no longer optional but essential for long-term asset value. Properties that align with ESG standards are commanding significant premiums in both rental rates and sales prices—up to 12.3% higher rents for buildings with the highest green ratings in prime Central London.
Retention and Refurbishment: A Core Strategy
Central to Greycoat’s approach to meeting London’s climate goals is a focus on retention and refurbishment rather than demolition and new construction. “It’s extremely hard to demolish a building and then use what you’ve taken to then build a new building,” says Millican. “It’s not really practical. So the more you can retain, the better the carbon footprint of what you’re doing.”
This strategy aligns with emerging evidence that refurbishment offers significant carbon savings compared to new construction. By preserving much of the existing structure, refurbishment can reduce the embodied carbon footprint by approximately half compared to demolition and rebuild.
Here Millican’s emphasis on refurbishment also reflects changing planning regulations in London, where local authorities are increasingly requiring substantial justification for demolition. “It’s becoming increasingly hard to get permission to demolish buildings in London. And planning’s run on a borough by borough basis, but I think Westminster’s probably taken the strongest approach, and it really is very challenging now,” he notes.
This regulatory shift reinforces Greycoat’s strategic focus on refurbishment, positioning the company ahead of the curve as planning authorities across London tighten restrictions on demolition. “I think we’ll see over time more and more focus on retention and refurbishment rather than demolition and rebuild,” Millican predicts.
DIALS: Aligning with Net-Zero Goals
Greycoat’s commitment to London’s net-zero ambitions is exemplified by its recent acquisition of DIALS, a 6-story office building in the City of London. In partnership with Goldman Sachs Asset Management, Greycoat is undertaking a comprehensive refurbishment of the building with sustainability at its core.
The project targets the complete overhaul of the building’s infrastructure to elevate it to the highest standards of environmental sustainability. “Our goal is to achieve BREEAM Outstanding, EPC A, and WELL Platinum ratings for DIALS,” says Millican. “These certifications are not just badges of honor—they signify our commitment to setting benchmarks in sustainable building practices that prioritize both environmental impact and occupant health.”
The design strategy for DIALS incorporates a full renovation that retains the building’s structural and aesthetic integrity while integrating state-of-the-art sustainable technologies. Greycoat’s Director of Development explains: “We’re improving the thermal qualities of the envelope because we’re replacing all of the windows, and we’re insulating the existing facade.”
The project also includes upgrading heating, ventilation, and air conditioning systems to energy-efficient models, implementing advanced water conservation practices, and using sustainable materials in all construction retrofitting. These comprehensive upgrades will significantly reduce the building’s operational carbon emissions, contributing to London’s net-zero goals.
Supply Chain Collaboration and Innovation
Achieving London’s ambitious climate targets requires collaboration across the entire built environment supply chain. Greycoat recognizes this imperative and has developed partnerships with sustainability consultants and construction firms to ensure that its projects meet the highest environmental standards.
“We’ve been putting a strong focus on reducing embedded carbon and operational energy,” says Millican. This holistic approach encompasses not just the design and construction of buildings but also their ongoing operation and maintenance.
Greycoat places a strong emphasis on promoting sustainable practices across their supply chain, encouraging a sustainability-first mindset in all aspects of construction, from reducing waste to sourcing low-carbon materials. The firm has also incorporated innovative approaches to material reuse, such as repurposing materials from a building’s old facade by grinding them down and transforming them into tiles for reuse.
This integrated approach ensures sustainability is built into every phase, from planning to execution, maximizing the environmental benefits of each project.
Renewable Energy and Carbon Offsetting
Greycoat is committed to ensuring that any renewable energy purchased for their developments comes from 100% certified sources, reducing the carbon footprint of the buildings they manage while also supporting the broader adoption of renewable energy.
In line with London’s net-zero ambitions, Greycoat integrates renewable technologies like solar panels into their projects where feasible, further reinforcing their focus on sustainability. This approach aligns with the significant push in London’s property market toward integrating renewable energy sources, including solar and wind power, into new developments.
However, Millican emphasizes that carbon offsets should be seen as a last resort in achieving sustainability goals. Greycoat’s primary focus is on directly reducing emissions by improving energy efficiency and prioritizing renewable energy sources, ensuring that the environmental impact of their developments is minimized before exploring offsetting options.
The Future of Sustainable Development in London
As London progresses toward its net-zero goals, the commercial real estate sector will play a crucial role in determining whether these ambitious targets can be achieved. Companies like Greycoat, under Nick Millican’s leadership, are helping to shape a greener, more sustainable future for the city.
By focusing on refurbishment rather than demolition, integrating renewable energy sources, and setting high standards for energy efficiency and carbon reduction, Greycoat is demonstrating how commercial property development can align with and contribute to London’s climate ambitions.
Looking ahead, Millican is optimistic about the role that sustainable development can play in creating a more resilient, low-carbon built environment. “I think we’ll see over time more and more focus on retention and refurbishment rather than demolition and rebuild,” he predicts.
As both developers and policymakers embrace this approach, companies like Greycoat are helping to shape a greener, more responsible future for London’s real estate landscape. In this evolving market, sustainable development is not only an environmental necessity but also a smart business strategy, offering lower risks and shorter project timelines while meeting the growing demand for low-carbon spaces.
Through its strategic focus on sustainability and alignment with London’s net-zero goals, Greycoat under Nick Millican’s leadership is positioned at the forefront of the capital’s green building movement, setting a high bar for sustainability standards in the industry and contributing to the city’s broader climate ambitions.
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