Real estate climate risk management collaborative engagement (GREEN)
GREEN invites PRI signatories to join the collaborative engagement initiative on climate risk management in real estate. The built environment is responsible for ca 30%-40% of total emissions and is not on track to meet the Paris agreement goals. Currently, investor and legislative pressure is lagging, and urgent action is needed.
GREEN invites PRI signatories to join the collaborative engagement initiative on climate risk management in real estate. The built environment is responsible for ca 30%-40% of total emissions and is not on track to meet the Paris agreement goals. Currently, real estate companies underinvest in sustainability due to lack of legislative and investor pressure. Although high level commitments to the Paris agreement goals and science based targets are not uncommon, implementation plans are often lacking, and when available often over-rely on offsetting or green energy purchase.
Legislative and regulatory requirements for curbing emissions to ensure net-zero compliance by 2050 at corporate level are ever more likely, while at the other end of the spectrum there is increasing focus on measures that target tenants and owners. Real estate investors too are increasingly required to demonstrate and report on the sustainability of their investments. These developments coupled with the physical risks associated with global warming mean that real-estate portfolios are becoming increasingly vulnerable to climate change on a range of levels.
In light of the impact of these factors on the risks and returns of real estate companies, a collaborative engagement initiative, called GREEN, was set up, to make sure that real estate companies are managing their climate risk properly. The investor statement which forms the basis of all collaborative engagements of GREEN members can be found in the attachement, and a high level overview in the objectives
Interested in joining this engagement? For more information please contact [email protected].
GREEN has defined its call for action in its investor statement. In this statement investor call for action for increased climate risk management of (listed) real estate companies. Four actions are requested of real estate companies:
- Action 1: Provide enhanced disclosure on the robustness of companies’ business plans in different climate scenarios to aid investment decision-making
- Action 2: Implement a strong governance framework for climate change and sustainability
- Action 3: Develop science-based transition pathways to help meet Paris Agreement goals
- Action 4: Promote certified data across the portfolio, such as building certification
This investor statement forms the basis for the collaborative engagements of this initiative.
More elaborate description of the above action points can be found in the attachments.
- 20240109 - Investor statement (GREEN format).pdf
- 11 - Sustainable cities & communities
- 13 - Climate action