Knight Frank signs £180m green energy mega-deal with TotalEnergies
Knight Frank, a leading global real estate consultancy, has entered into a landmark three-year renewable energy supply agreement with TotalEnergies, valued at over £180 million (approximately RMB 1.6 billion). This represents the largest single energy procurement transaction in Knight Frank’s history and underscores the firm’s commitment to accelerating decarbonisation across both its own operations and its client portfolios.
The agreement extends across an extensive scope, encompassing all Knight Frank-occupied offices in the UK, the entirety of its directly managed commercial property portfolio, and a substantial proportion of properties where the firm acts as retained energy and sustainability adviser. In essence, virtually every commercial building under Knight Frank’s management or advisory influence in the UK will transition to green energy procurement over the next three years.
Under the contract, TotalEnergies will supply three core renewable and low-carbon energy products:
- Hourly-matched, 100% REGO-backed renewable electricity, with every kWh fully traceable to specific wind or solar generation assets and supported by official UK Renewable Energy Guarantees of Origin (REGO) certificates;
- Access to competitively priced green electricity through long-term Corporate Power Purchase Agreements (CPPAs) directly with renewable generators;
- Green gas with a high proportion of biomethane blending, substantially reducing carbon emissions associated with natural gas consumption.
Independent modelling indicates that the initiative will deliver cumulative CO₂ savings exceeding 100,000 tonnes across the three-year term — equivalent to the carbon sequestration of approximately 5 million mature trees — setting a new benchmark for decarbonisation within the UK commercial real estate sector.
David Goatman, Global Head of Energy & Sustainability at Knight Frank, commented:
“For more than 15 years, we have been guiding clients worldwide on the development and execution of optimal sustainable energy procurement strategies. This agreement represents Knight Frank practising what it has long preached. Partnering with TotalEnergies on a transaction of this magnitude and breadth not only validates our technical and commercial expertise, but also demonstrates unequivocally that large-scale renewable energy procurement is now both environmentally essential and economically superior to conventional sources.”
He added that long-term, high-volume green power and gas contracts of this nature have become one of the most cost-effective and impactful levers available to the real estate sector in pursuing net-zero objectives. They deliver material reductions in Scope 1 and Scope 2 emissions while directly enhancing performance in leading ESG frameworks, including GRESB submissions, CRREM carbon risk pathways, and broader institutional investor and regulatory requirements.
Michael Lewis, National Head of Property Management at Knight Frank UK, highlighted the scale of the managed portfolio:
“We currently manage commercial real estate assets in the UK with a total capital value exceeding £20 billion. This agreement covers the overwhelming majority of that footprint, meaning some of the country’s most prominent office buildings, retail destinations, logistics parks and mixed-use schemes will collectively shift to near-zero-carbon energy supply over the coming three years. The demonstrative effect on the wider industry is profound.”
The transaction is widely regarded as a defining moment for the UK commercial property sector, occurring against a backdrop of mandatory climate-related financial disclosures and rising carbon pricing. With renewable energy now consistently undercutting fossil-fuel equivalents on price, while green finance and supply-chain preferences increasingly favour low-carbon assets, continued reliance on “brown” energy no longer represents a cost-optimal strategy — it constitutes a tangible carbon-related financial and reputational risk.
For Knight Frank, the agreement serves both as a powerful client reference case and as the fullest expression to date of its long-standing “advise first, then implement ourselves” philosophy in the field of energy transition and sustainability.
