Thought Leadership

Climate Change and ESG Impacts on Commercial Real Estate

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climate change and flooding
02
Mar

CRE needs to prepare for a shifting landscape.

By Tony Liou, Partner Energy President

As President Biden signs sweeping climate change executive orders, the commercial real estate industry is also ramping up the conversation around Environmental, Social, and Governance (ESG). Just this month, at the virtual MBA CREF21: Lending, Investing, Servicing and Technology Convention & Expo, I was on a CRE Finance Emerging Issues panel to discuss climate change and ESG impact on CRE, moderated by Michael Berman, President & CEO of M&T Realty Capital Corporation. One clear consensus amongst all the panelists was that ESG is here to stay.

The State of Affairs

ESG has been gaining more traction in the last six months, especially with investors who want to mitigate their risks and who see ESG not only as a matter of ROI, but as an evaluation methodology. ESG is now a risk management tool, and they want to mitigate their risks by targeting funds with good ESG performance (I’ll discuss ESG metrics a bit later).

Read the rest on GlobeSt. 

Author

  • Partner Energy

    Partner Energy, Inc. provides integrated energy, sustainability, and portfolio advisory solutions for the built environment. Our team of registered engineers, architects, and certified sustainability professionals delivers energy audits, benchmarking, green certification and design consulting, commissioning, and technology-enabled portfolio management through our SiteLynx platform. We support clients at both the asset and portfolio level with data-driven insights, sustainability strategy, and ongoing performance tracking. By integrating engineering, technology, and advisory services, Partner Energy helps building owners, investors, and developers enhance asset value, reduce operating costs, manage risk, and achieve long-term sustainability and decarbonization goals.

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