Risks & Rewards in Real Estate and Infrastructure: FII6

This panel discussion at the FII6 conference focuses on the risks and rewards of ESG and sustainable investing in the real estate and infrastructure sectors. Experts from JLL, Bentall GreenOak, and PIF discuss the challenges and opportunities of creating a sustainable real estate market, including the need for retrofitting existing buildings, the high cost of sustainable materials, and the importance of aligning investor and operator interests. The panelists also touch on the role of governments in promoting sustainable practices, the growing importance of green bonds, and the need for consistent global ESG standards. Overall, the discussion highlights the significant shift towards ESG considerations in real estate investment and development, while acknowledging the complexities and challenges involved in transitioning to a more sustainable future.

Highlights

🌍 Global Carbon Footprint: The significant contribution of real estate to global carbon emissions (40% overall, 70% from building operations) is emphasized, highlighting the urgency for sustainable practices.
🌱 Sustainable Building Practices: Retrofitting existing buildings is presented as a more sustainable and cost-effective approach compared to constructing new ones. The panelists also discuss the use of sustainable materials, though acknowledge the higher cost.
💰 ESG and Valuation: ESG considerations are becoming increasingly important in real estate valuations, impacting investment decisions and requiring significant capital expenditure for retrofitting older buildings.
⚖️ ESG and Regulation: The panel discusses the need for more consistent global ESG standards and regulations to combat greenwashing and promote transparency. The politicization of ESG is also addressed as a hindering factor.
🚀 Investment Trends: The growing availability of green bonds and the increasing demand for sustainable investments are presented as positive drivers for the transition to a more sustainable real estate sector.