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].