Andre Shepley, senior director, climate solutions, at Nuveen Asset Management, sat down for a video interview at Nareit’s REITworks: 2024 Sustainability & Social Responsibility Conference, held in McClean, Virginia from Sept. 10-12.
Shepley highlighted that real estate is well-positioned for decarbonization compared to other sectors, offering numerous value-accretive options such as energy efficiency improvements and green building investments. These strategies not only reduce greenhouse gas emissions but also enhance tenant demand and pricing, making them financially advantageous.
Nuveen’s global real estate carbon reduction strategy, launched in spring 2023, aims to achieve long term capital appreciation and current income by investing in listed REITs committed to carbon neutrality and aligned with the Paris Agreement. Shepley noted that proactive climate risk management and decarbonization planning can create significant value for REITs, especially in markets with high demand for sustainable buildings, leading to improved pricing and partnerships.
Shepley acknowledged challenges such as embodied carbon, particularly relevant for developers, but emphasized that the potential for real estate to influence demand for recycled materials and promote a circular economy is substantial.