Institutional Real Estate: The future of green investing in real estate

Actis Partner and Head of Sustainability, Shami Nissan, participated in a round-table discussion for a piece in Institutional Real Estate Inc. on the subject of green real estate. Click here to read the full article and read on below for some of Shami’s commentary.

Shami Nissan, Partner and Head of Sustainability at Actis, commented:

“First and foremost, actors in the real estate sector need to recognize the realities of the sector’s impact on climate and the environment more broadly. By looking at the facts head-on, the industry can take meaningful action that can both increase sustainability and financial performance. In many cases now, it is no longer expensive to build sustainably — it can even be a cost saver and is often a value enhancer.

“There are plenty of steps the industry could take. A first recommended step would be a green design approach to development and the adoption of green building standards like LEED or BREEAM. Green design is key for reducing embodied carbon. But given how building operations represent a large majority of emissions, it’s also important to focus on power source and energy efficiency to truly decarbonize buildings. This means sourcing power from renewables, but also maximizing energy efficiency by making buildings well designed and insulated, incorporating efficient appliances, and utilizing smart cooling and heating systems. These building standards also help select greener materials, incorporate natural space into developments, and foster energy and water efficiency, which are all critical to improving sustainability.”