In this environment — a confluence of investor demand, higher valuations and greater rent premiums for sustainable real estate investment — it is no wonder that many real estate investment managers have shifted their focus so publicly to decarbonization. The terms and the frameworks are seemingly endless, with distinctions between “carbon neutral,” “climate positive,” “net-zero carbon,” “net-zero energy” (ad infinitum) rarely made. Investors (and, frankly, the asset managers themselves) are drowning in the alphabet soup of acronyms such as CRREM, SBTi, PCAF, and CDP, while promises of reaching net zero in 5, 10, 20 years are widely touted.
The mood is almost frenetic, and this author would observe that the “race to zero” has perhaps become more: “Can investment manager promises of real decarbonization catch up before they hit their target net zero timelines?” The key is transparent action with a structured approach that focuses on real results rath