According to GlobeSt.com, an SEC proposed rule will require SEC-registered companies to include climate-related disclosures in their registration statements and periodic reports to investors, including information about climate-related risks, such as greenhouse gas emissions, that are reasonably likely to have a material impact on their businesses.
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$9.2 trillion in annual investment will be required globally to support the net-zero transition. (Mckinsey & Co.)
Green buildings have an increased return on investment of more than 9% over conventional buildings. (Green Building Law Update)
The buildings sector accounts for about 76% of electricity use and 40% of all U. S. primary energy use and associated greenhouse gas emissions. (energy.gov)
Cities are also moving to require CRE owners and landlords to measure and reduce carbon emissions while converting to renewable energy. These requirements, as well as mandates by ESG-conscious investors, are making startups that specialize in monitoring and certifying decarbonization efforts a red-hot commodity.
“The challenge for CRE, as with many industries, will be in compliance and measurement,” Michael Moran, chief markets officer at Microshare, a provider of smart building data systems, told GlobeSt.com. “Already, market pressures are forcing landlords to take greater notice of ESG matters, particularly carbon footprint. Now, regulators will demand empirical data to back these — often greenwashed — claims.”
Proptech innovations that allow landlords and owners to meet these requirements efficiently and economically will be in high demand.