For real estate investors, it’s never been easier “being green.”
Environmentalist groups have turned their attention towards the construction industry due to their purported role in climate change. Their current pursuit is backed by the United Nations Environment Program’s claims of buildings and associated construction accounting for 40 percent of worldwide carbon dioxide emissions.
Investors Eyeing Potential in a Changing Industry
The shift to “greening” is in response to large cities throughout the United States strengthening their regulations to reduce carbon emissions. With dire predictions of potential natural disasters that could drive down property values, investors are taking notice of the trend. Adding new, “ground-up” green construction to their portfolios is more desirable investment-wise due to the high costs of updating noncompliant buildings.
The process will be gradual for both builders and those that invest in properties while both traverse the path of “decarbonization.” That road is long in selecting and constructing sustainable structures. Portfolios need to be updated to secure the tools that factor in climate-related risks.
Investors enjoy a certain level of power and influence in the day-to-day operations of construction companies. They could use that power via their greener portfolios. More environmental awareness among stakeholders could see them using their influence to convince companies to employ more environmentally and socially responsible methods.
Sustainable buildings are still in the early stages and a sign of the real estate industry’s evolution. As investors take on new ventures, the help of a skilled attorney staying on the cutting-edge of new trends is paramount to success.