Skip to main content

Investors, tenants demanding that managers go green

Investor and tenant demands are pushing real estate managers to make their properties more sustainable. Commercial real estate contributes 30% of global annual greenhouse gas emissions, a recent report noted, despite early and continuing efforts by real estate managers to make their properties more environmentally friendly.
Many investment managers now are accelerating those efforts, notwithstanding the Trump administration's moves to loosen environmental regulations and drop out of the Paris climate accord. But the sustainability movement in real estate is driven more by market forces than regulation or politics, said Jacques Gordon, global head of research and strategy at real estate money management firm LaSalle Investment Management, Chicago.
"The overwhelming majority (of real estate managers and property owners) desires to have green buildings or sustainable buildings … It's true of big companies. It's true of small companies … it's true of Jones Lang LaSalle (LaSalle Investment's parent company) and LaSalle and most Fortune 500 companies," Mr. Gordon said.
Executives at these companies believe the best and smartest workers prefer to work in healthier, more environmentally friendly buildings, Mr. Gordon said. "That's not just in the U.S. but it's global," he added. LaSalle has approximately $60 billion in assets under management.
While many managers began focusing on the environmental impact of their real estate portfolios after the financial crisis, their efforts have not been enough to stem global real estate's affect on climate change. Real estate greenhouse gas emissions continue to grow rapidly and could reach 50% of CO2 emissions by 2050, according to the UNEP Finance Initiative, a partnership between the United Nations Environment Program and the financial sector.
Needed improvements to existing properties aren't cheap. Should the industry decide to embrace the goals of the Paris agreement — keeping the global temperature rise this century well below 2 degrees Celsius above pre-industrial levels — the building sector's energy consumption would have to decrease by at least 30% through building highly energy-efficient new buildings and a deep renovation of the existing stock of buildings by 2050. That would cost roughly $11.5 billion between 2015 and 2050, according to the UNEP Finance Initiative.
Investor pressure
Investors are increasing pressure on their real estate investment managers to make investments more sustainable. In 2017, the $324.7 billion California Public Employees' Retirement System's real asset managers, including real estate, were required to begin reporting into GRESB, formerly the Global Real Estate Sustainability Benchmark, an organization committed to assessing by environmental, social and governance factors real asset performance globally.
CalPERS' real asset portfolio has a net asset value of $31.8 billion and accounts for 10.8% of CalPERS' total assets. The GRESB results are expected to be reported as part of CalPERS' real asset review in November, said spokeswoman Megan White, in an email.
CalPERS adopted carbon footprint reduction goals as part of a five-year strategic plan for ESG approved in 2016. That includes reducing its carbon footprint by 50% by 2021. CalPERS is not alone. Sixty pension plans worldwide are GRESB members. For the full article click here.


Comments

Popular posts from this blog

Amplify By Guardian - PATHOGEN CLEANING & DISINFECTING

PATHOGEN CLEANING & DISINFECTING Introducing our strongest response to pathogen cleaning... Amplify By Guardian.   Our Amplify By Guardian program provides you, your tenants, guests, and employees with the peace of mind needed to return to your daily activities. Developed in conjunction with industry experts, consultants and our in-house Certified Safety professionals, Amplify By Guardian focuses on the importance of proper disinfecting. Cleaning for health is the main focus and we can offer you several options on how to implement the program. Our cleaning technicians are specially trained in the latest disinfecting techniques under the guidance of our authorized and certified trainers. Emphasis is placed on using the latest EPA List N approved disinfectants and cleaners.  Product effectiveness improves daily and we make sure that we are using the best solution for your space. In addition to the chemicals used, we educate the cleaning technicians on proper dwell times to ensure the

Charles A. LoBosco Appointed President of Guardian Service Industries, Inc.

  For immediate release: January 30, 2023 Guardian Service Industries, Inc. New York, NY: Charles A. LoBosco has been appointed to the position of President of Guardian Service Industries, Inc.   Mr. LoBosco has been with Guardian for over ten years where he has overseen numerous business units in both the Janitorial and Security divisions, and provided senior level leadership and advisement across all company lines. Under his leadership, Guardian Security Services has had triple digit growth and is now a formidable and respected provider in the contract security arena. Charles is an industry veteran and SME with over 35 years in the facility services industry. Starting his career in 1986 as a sales and account executive for a large regional service provider, Charles rose quickly in the industry to where he is today after having served in various senior management roles for several companies, including 6 years as President for a national service provider prior to joining Guardian

THINKING ABOUT WINTER YET?

Now is the time to start getting your snow removal equipment ready.  Like with most pieces of equipment, preventive maintenance is the best way to stay ahead of the game by reducing downtime and costly repairs during peak season. The following check list will give you a head start in preparing for our first snow fall. Review, repair or replace the following snow removal equipment and restock your supplies as needed. Make sure you have a designated place for keeping all your snow items and that they are properly maintained. Plows  Snow blowers -  Shovels Ice scrapers Sand & salt Sand and salt spreaders Cover your employees – proper clothing and personal protective equipment: Workers should have durable work boots with slip resistant soles Workers performing snow removal should have gloves and safety glasses Remind workers to dress warmly and in layers Train now – make sure all workers are trained on proper snow removal procedures including: Safe equipment operation and maintenanc Pr