Real Estate & ESG

Key Takeaways

when we first started our climate fund at fifth wall we were kind of lumped into ESG strategies and I think ESG has a lot of Merit to it I mean it was originally conceptualized as a risk mitigation strategy for companies but when you atomize ESG you get environmental social and governance and the challenge I think is by industry you can't apply equal waiting to each meaning the real estate industry is responsible for 40% of global CO2 emissions but is a relatively small employer of people and so correspondingly e is way over indexed and much more important as a part of ESG than S is for the real estate industry it's not to suggest that theg are not important it's just on a relative basis the real estate industry has a much more serious more imminent more grave problem around decarbonization and so I think what ESG has done is it's forced Industries to Grapple with what are the components of this that are most relevant for us and I think unequivocally for the real estate industry it is e the imperative to decarbonize is a forever problem of the US and Global real estate industry and I think ESG has focused the spotlight but now we have to focus even more onto this Grim reality that real estate is the hardest to mitigate industry and E is going to be the core of where it needs to lean into ESG