Certificates vs. Reality: Why Investors Need Better Metrics Energy labels and green building certificates are widely used in real estate investment decisions and for good reason: green buildings command higher rents and sell at higher premiums than identical buildings without a green rating (Eicholtz et al. 2010). What matters is not only the certificate itself,
Removing regulations doesn’t reduce climate risks Rolling back climate regulations doesn’t remove climate risk. It makes it harder to measure and manage. Recent U.S. policy shifts create uncertainty for real estate investors, undermining incentives, transparency, and long-term planning. Short-term relief may come at the cost of greater future exposure. Stefany Moreno Burbano, PhD Candidate in
Press release: Engagements Prove Effective, but Systemic Barriers Continue to Hinder Sector Progress Toward Decarbonization GREEN’s new report reveals that while member engagements continue to drive measurable improvements in climate risk management, progress across the real estate sector remains slow. Key areas of improvement among listed companies include the disclosure of physical climate risk assessments,
How adaptation can preserve property values Real estate's fixed characteristics make it less adaptable to environmental threats. Extensive literature shows that real estate markets factor in climate risks, as buyers often seek discounts to offset potential future property damage (Clayton et al. 2021). At the same time, more brokers and platforms like CoStar and Redfin
The globe’s leading institutional real estate investors join forces to cut the ESG data spaghetti A group of the largest and leading real estate investors are joining forces to break down the systemic barriers that hinder adequate climate risk management in the industry. A key obstacle is a lack of access to comparable and high-quality
Seeing is Believing: Unlocking the Low-Carbon Real Estate Market Leaders of the Urban Future (LOTUF) in partnership with Systemiq This paper was commissioned by the Leaders of the Urban Future (LOTUF) project that aims to accelerate the decarbonization of unlisted, institutionally-owned real estate by working with and building on existing sector efforts. After the publication
Decarbonisation in a changing real estate investment landscape Institutional investors have significantly increased their allocation to real estate in recent decades, accompanied by a move from traditional property types like offices to data centers, storage, and healthcare facilities. Real estate accounts for approximately 40% of global CO2 emissions, of which 70% comes from operational energy
Real Estate’s Decarbonization Code: The Importance of Enforcing Building Standards Building codes are crucial for reducing energy intensity and emissions in the construction sector, helping meet climate goals. However, inconsistent adoption, especially in developing regions, slows decarbonization efforts. In this article, Linde Kattenberg, a PhD Candidate in Finance at the School of Business and Economics,
Triple Net Leases: Why They Are Falling Behind in Climate Risk Management The U.S. real estate sector is under growing pressure to adopt practices that mitigate the risks posed by climate change. However, one segment remains notably behind: triple net leases (NNN). NNN leases, a common real estate structure, have been among the least responsive
Green Buildings: Premium Valuations and Lending Discounts Developing more energy-efficient buildings or retrofitting existing buildings is an essential strategy for reducing our environmental footprint. Owning or developing these buildings can also lead to higher valuation. A wide literature has discussed the presence of a so-called ‘green premium’, where commercial and residential buildings with higher energy-efficiency
Energy Efficiency Laws in Real Estate: Regional Discrepancies but Inevitable Adoption As the European Union strides towards its ambitious net-zero emissions target by 2050, energy efficiency laws have become a cornerstone of its environmental policy. While crucial for reducing overall carbon emissions, these regulations present challenges and opportunities for asset managers and building owners. With
Press release: Positive Trends in Climate Risk Management ambitions for Real Estate Companies Research by the Global Real Estate Engagement Network (GREEN) reveals a positive trend in climate risk management among listed real estate companies and non-listed real estate funds. 78% of listed companies now have short-term carbon reduction targets, and 40% have adopted Net
Strategic investor engagements in sustainability: Timing matters The Global Real Estate Engagement Network (GREEN) actively drives improvement in climate risk management within the real estate industry by engaging and steering companies toward achieving the Paris Agreement's climate goals. The critical question is: At what point do socially responsible engagements hold the most potential to curb negative externalities
Press release: a.s.r. real assets investment partners strengthens the Global Real Estate Engagement Network As of today, a.s.r real assets investment partners is a participant in the Global Real Estate Engagement Network (GREEN). a.s.r. real assets investment partners is managing more than € 10 billion worth of assets, divided among more than 50 real estate
A price on carbon for building emissions: the EU ETS2 regulation One commonly proposed solution to mitigate CO2 emissions is to put a price on carbon emissions. These prices could be implemented either through a tax on every unit of carbon emitted or in the form of a cap-and-trade scheme. In this article, Linde Kattenberg,
Green Shift in the Market: Navigating the New SEC Climate Disclosure Landscape Investors are increasingly demanding detailed information from companies about how they manage the risks to their real estate portfolios from climate change. This shift isn't just a regulatory trend but a strategic necessity. If implemented, the guidelines from the Securities and Exchange Commission
COP28 Implications for Real Estate Institutional Investors The 28th session of the United Nations Climate Change Conference (COP28) took place between 30 November and 12 December 2023, in Dubai. Representatives of 197 countries attended COP28 in an attempt to make significant steps in the global effort to combat climate change. The conference was highly anticipated
From Desks to Dwellings: Unlocking the Green Potential of Vacant Office Space Given the current challenging market environment with high-interest rates, lower demand, and an urge to mitigate climate risks, there are few options for office owners. In this article, Linde Kattenberg, a PhD Candidate in Finance at the School of Business and Economics, Maastricht
Balancing Housing Affordability and Sustainability - Who Pays for a Just Transition? The bill for a more energy efficient housing market is, however, considerable. A new study from MIT investigating the impact of new energy-efficient building code adoption in the state of Massachusetts, suggests that these codes can induce a nearly 12% reduction in new
Q&A Webinar: Unlocking Climate Insights in Real Estate GREEN recently organized a webinar about Unlocking Climate Insights: Risk Metrics and Collaborative Engagement in Real Estate. During the webinar, our panelists explained how investors assess the environmental performance of real estate companies and demonstrated how GREEN's investor members engage with REITs to accelerate progress toward the
