ESA’s Post

"Green real estate isn’t a trend but a national priority, and the right financial tools are essential to support it." says René Demers, senior vice-president of commercial banking and private banking, real estate, National Bank of Canada. Read our article to learn more about the different measures we take to uphold ESG criteria 🌳👇 https://lnkd.in/ef_siS9b #ESG #environment #social #governance

“The overall aim is to reduce the impact of real estate on the environment. If we stay on the same track as past decades, we’ll hit a wall. Real estate can be either part of the problem or part of the solution." – René Demers, Senior VP of Commercial and Private Banking at National Bank of Canada. In this The Globe and Mail piece, René underscores the urgency of embracing green real estate, framing it as a matter of survival. He warns that non-green assets risk becoming dead assets within a decade. Find out more here 👇 #GreenRealEstate #Sustainability #ESG 🌿

The Globe and Mail interviewed Rene Demers, senior vice-president at National Bank of Canada and his outlook on green real-estate is quite interesting, as he mentions - "that developers, builders and asset owners that ignore ESG do so at great potential risk to their bottom lines." There’s also a strong business case, as one study found green real estate in North America receives higher premiums for rent. Read all about it...

"If you have a green initiative, then there's no lack of funding" Our investor and customer engagements confirm this. As a pioneer in the real estate #SustainabilityIoT space, we routinely engage with the industry including building owners and occupiers to understand their concerns and how we can support their pathway to Net Zero. One challenge is time to impact. Ownership and leases can be too short for green initiatives to make a compelling case. A lot of work is done with #greenleases. And we must continue to balance incentives and regulations while working to maximize time to impact for would be green initiative implementers. Yet another is cost and complexity. There is no lack of green initiatives and solutions in the market for buildings and spaces. However, implementation is often complex requiring integration and additional infrastructure CAPEX, as well as operational disruptions. And the typical approach to #energyefficiency involves equipment replacement, which means writing off earlier investments. Setting aside these challenges, an implemented solution does not guarantee results. This is especially the case where results depend heavily on human intervention. So when it comes to green initiatives that can deliver results fast, we believe in intelligence. For example, embarking on a green initiative like implementing on demand services for ACMV, lighting and plug load using Energetix Sustainability Suite, can be very rewarding, very quickly. Our customers achieve 20-40% energy savings, within a few weeks, at the highest energy savings per green initiative dollar. Because our approach focuses on intelligence, and not installation, there often needs to be no equipment replacement, no programming, and even, no installs. This lowers CAPEX to a minimum, with no disruption to their operations. And above all, you can get setup in weeks, instead of months or years, enabling asset impact right now. Looking for a green initiative that will reduce carbon emissions, increase asset impact and net operating income FAST? Reach out and schedule a visit to a live customer site to see how you can also enjoy the fruits of your green initiative today.

Real estate investors squeezed between falling valuations and pressure to upgrade energy efficiency. Former central banker Mark Carney has warned there will be “significant stranded assets” in commercial real estate as governments push to reach net zero, highlighting the risks to property owners and lenders from older buildings that cannot adapt. [[ We at Savills Vietnam can see this "green premium / brown discount" happening in Hanoi and HCMC. Commercial assets that fail to plan and refurbish risk becoming obsolete as any new Grade A office will certainly have green certifications - which tenants now demand. Some owners have planned such as Pacific Place in Hanoi which has refurbished to the highest LEED level of Platinum. Get in touch with us to discuss your asset management plans, our teams are actively advising owners on these issues. ]] Property investors are facing a double whammy from the sharp fall in asset values caused by higher interest rates, and increasingly urgent demands to invest in energy efficiency. Stranded assets are often associated with fossil fuels that will be phased out through the green transition, but Carney underscored that there are also older buildings that “aren’t going to make it” as countries regulate to cut greenhouse gas emissions across all sectors. “There will be a tail of stranded assets . . . which are going to have to turn over and be refurbished if possible or knocked down and repurposed,” he said. But in some cases, such as older, poorly located office buildings, the upfront cost may be uneconomic due to a lack of demand or low rents for the space. Operating buildings accounts for 26 per cent of global energy-related emissions, according to the International Energy Agency, which has warned that faster progress is needed to put the property sector on track to net zero by 2050. He said adding biodiversity to urban settings was another key challenge for landlords, alongside reducing emissions. Dutch bank ING last month warned 2,000 of its biggest clients, including commercial real estate developers and owners, that it would stop providing them with financing if they failed to make sufficient progress on tackling their climate impacts. It found that commercial real estate was a laggard compared with other sectors when it came to disclosing climate impacts."

Greening residential portfolios: an impossible challenge? Decarbonising portfolios means spending money now and accepting reduced returns, but delaying it could be worse. Xavier Jongen reports. Access the full story now at #realassetinsight: https://lnkd.in/ejP7dBDS

The global surge in green bonds, surpassing $1.5 trillion in cumulative issuance, reflects a growing investor appetite for sustainable assets. Alongside this, green loans are gaining momentum, offering flexible financing options for projects that prioritize environmental criteria. As we navigate the path to a sustainable future, integrating green buildings into green financing frameworks becomes increasingly critical. The "Financing Transformation" guide ( https://lnkd.in/dZS7W83E ) developed collaboratively by the Organizations and Green Building Councils of the US, UK, Singapore, France, and Australia, highlights the pivotal role green bonds and green loans play in driving both environmental and economic benefits. Green buildings have demonstrated significant potential in reducing carbon footprints. Buildings certified under the LEED, BREEAM, and Green Star rating systems are shown to significantly lower greenhouse gas emissions compared to non-certified buildings. adopting these green building practices, we can achieve impressive reductions on a global scale. By aligning our projects with these financial instruments, we can unlock significant capital for sustainable development. Evidence suggests that green-certified buildings can command up to a 13% higher rental premium and an 8% higher sales premium compared to non-certified buildings. This not only drives environmental stewardship but also enhances asset value and resilience. Join us in embracing these innovative financing solutions to accelerate the transition to a greener, more resilient built environment. Together, we can transform our cities and communities for the better. #GreenBuilding #SustainableFinance #GreenBonds #GreenLoans #Sustainability #ClimateAction

Did you know that real estate accounts for 39% of global greenhouse gas emissions? With new net zero targets on the horizon, how can real estate companies finance their ESG initiatives? In this EisnerAmper article, discover how PACE Funding could be the solution: https://okt.to/TDAb8n #Sustainability #ESG #RealEstate #PACEFunding #NetZero #GreenBuilding

Did you know that real estate accounts for 39% of global greenhouse gas emissions? With new net zero targets on the horizon, how can real estate companies finance their ESG initiatives? In this EisnerAmper article, discover how PACE Funding could be the solution: https://okt.to/w5Ioe9 #Sustainability #ESG #RealEstate #PACEFunding #NetZero #GreenBuilding

Greening residential portfolios: an impossible challenge? Decarbonising portfolios means spending money now and accepting reduced returns, but delaying it could be worse. Xavier Jongen reports. Access the full story now at #realassetinsight: https://lnkd.in/ejP7dBDS