Barwood Capital was founded in 2009 shortly after the global financial crisis to satisfy demand from high-net-worth individuals for value add returns from real estate investment opportunities.

Today, Barwood is a UK real estate investment and development platform across the commercial, alternative and residential real estate sectors. It runs a Growth Fund series investing in commercial and alternative value add opportunities (currently investing Growth Fund V) as well as two multi-let industrial vehicles, a logistics strategy funded by a single investor, a “build to sell” residential investment platform, plus several joint ventures.

Here, Danielle and Graham distil their strategies and insights on how to drive sustainable change for a competitive advantage.

Barwood Capital's approach highlights the importance of credible, data-backed sustainability initiatives to build trust and deliver on long-term promises.

"Real estate is a huge contributor to greenhouse gases — over 50% of emissions in the sector are attributed to this industry," Danielle says.

Recognising examples of "greenwashing" in their industry, Barwood’s team chose a measured approach, only making public pledges once data backed their claims. “One of the most important decisions we've made recently is to calculate our Scope 1, 2, and 3 emissions, which we now do across the board. I’m not sure many companies our size do that.”

“It allows us to be credible and open about what our greenhouse gas emissions are, but it also allows us to start tracking them. Our main objective is to be able to show a trajectory down to Net Zero.”

In a highly competitive market, Barwood’s proactive commitment to measurable sustainability is proving to be an advantage. "Our mantra is to be leaders in sustainability," Danielle says. "We want others to look at us and think, 'That's a really good idea.'"

This commitment resonates with institutional investors, who increasingly demand sustainability as a “must-have,” not merely a “nice-to-have.” By providing proof of their sustainability progress, Barwood has created a distinctive edge, particularly among high-net-worth investors who value both returns and impact. "Investors want to see that we're walking the walk, not just talking the talk.”

Barwood sees its position in the real estate ecosystem as an opportunity to drive wider change. The business holds construction partners to high sustainability and social standards. Danielle explains:

“When tendering for contracts, we ask about their sustainability credentials and delve deeper into their approach to social impact. We have a questionnaire that we send out to all our suppliers, regardless of their size. We want to know if they support mental health, pay a living wage, and align, as we do, with the principles of the Good Business Charter.”

To reinforce these standards, any contract above £100,000 must pass a review by their Impact Committee. “It’s about using our purchasing power to influence positive change in our supply chain.”

With the UK’s commitment to be net zero by 2050, significant opportunities exist within the real estate sector, particularly in retrofitting older properties. Barwood Capital is actively looking at a "brown discount, green premium" strategy, identifying value in underperforming assets that can be transformed into sustainable properties.

“We see a lot of our competitors focusing on new builds, but there's a major challenge and therefore opportunity in retrofitting the UK's existing built stock,” Danielle points out.

The firm also sees growth potential in sectors with a positive social impact, such as healthcare and life sciences, which align with government strategies and societal needs. “We see a real demand for bed spaces in healthcare and a growing opportunity in life sciences, which ties into the UK’s growth ambitions.”

Collecting energy data across Barwood’s multi-let industrial portfolios has been a major challenge, but one that the company is tackling head-on. “Every new lease we sign includes green clauses for data sharing. We need to know how tenants are using the building and can't do that without their data.”

This grassroots approach is gradually enabling Barwood to incorporate more robust energy and sustainability measures. For two power-managed sites, Telford and Hastingwood, the business is piloting data-sharing technology for more granular oversight. These efforts are part of an incremental approach, starting with data-sharing agreements before investing in costly data infrastructure.

This could help Barwood gain insights into tenant practices and refine sustainability efforts. The more data you collect, Danielle reasons, the better equipped you'll be to optimise energy use, reduce emissions, and enhance building efficiency.

Barwood has embedded sustainability within its organisational culture, ensuring that each employee understands and champions its impact goals. “We want to be seen as leaders in sustainability. We hold monthly training sessions on topics like calculating carbon emissions and biodiversity net gain, and on our strategy days, we engage everyone in discussions around sustainability and social impact,” Danielle says.

The company also aligns recruitment and onboarding with these goals to attract employees who share its values.

With a team of 21 employees, Barwood has grown steadily and remains focused on relevant, value-driven opportunities. By leveraging its network and in-house expertise, Barwood is seeking to maintain relevance with high-net-worth investors, family offices and institutions, as Graham explains: “We want to stay nimble enough to continue securing high-quality, smaller off-market deals, yet large enough to successfully compete for and deliver larger opportunities. It’s about consistently delivering value for our investors, not just pushing capital out the door.”

Azfar Rizvi, the bank’s Regional Director, Real Estate Finance says: “The Barwood management team exemplifies what it means to be Future Fit in real estate. They have taken a strategic, principle-driven approach to lay the foundation for long-term success, carefully evaluating which core values will best position them for the future.

“With a clear commitment to a data-driven approach, Barwood is supporting the UK's net-zero 2050 goal through innovative strategies like their 'brown discount, green premium' investment model.

“They are also setting a high bar by partnering with businesses that uphold sustainable and socially responsible standards throughout their supply chain, enhancing the positive impact across the industry.

“This commitment to sustainability and purpose is deeply embedded within their culture and reflected in their talent — key ingredients that set them up for continued success. We are proud to work alongside such a forward-thinking, future-ready business."

Build credibility with data: Track emissions and disclose results transparently.

Lead with authenticity: Establish sustainable practices that truly differentiate you.

Impact the supply chain: Choose suppliers committed to social and environmental values.

Identify sustainable retrofits: Focus on updating existing stock to meet net-zero goals.

Embed data-sharing clauses: Foster sustainable practices through lease agreements.

Engage your team: Involve employees at every level in sustainability initiatives.

Grow with focus: Prioritise relevant growth to maintain quality and investor appeal.

By acting now to prioritise change, your business could be more ready to boost future resilience, meet market demand, reduce costs, or access capital.
Find out about how we could support you.  

For more information on making your business premises more energy efficient, visit: Retrofit.

For more insight on how to future-proof your business in the Commercial Real Estate sector, visit our Future Fit hub.

Speak to your Relationship Team about our new Buildings Efficiency Assessment Tool.