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March 23, 2021

Climate Change and ESG Impacts on Commercial Real Estate

By Tony Liou, MBA

As President Biden signs sweeping climate change executive orders, the commercial real estate industry is also ramping up the conversation around Environmental, Social, and Governance (ESG). Just this month, at the virtual MBA CREF21: Lending, Investing, Servicing and Technology Convention & Expo, I was on a CRE Finance Emerging Issues panel to discuss climate change and ESG impact on CRE, moderated by Michael Berman, President & CEO of M&T Realty Capital Corporation. One clear consensus amongst all the panelists was that ESG is here to stay.

ESG has been gaining more traction in the last six months, especially with investors who want to mitigate their risks and who see ESG not only as a matter of ROI, but as an evaluation methodology. ESG is now a risk management tool, and they want to mitigate their risks by targeting funds with good ESG performance (I’ll discuss ESG metrics a bit later).

To read this article on GlobeSt., click here.

About the Authors

Tony Liou, MBA

Tony Liou, MBA

Chief Technology Officer & President of Partner Energy
Tony Liou, MBA is Co-Founder and President of Partner Energy. The company helps clients identify, capitalize and implement energy efficiency and sustainability projects that meet business goals. As an advocate for energy efficiency programs and sustainable building practices that add value for managers and owners of commercial real estate (CRE) assets, he understands the business drivers behind energy efficiency and sustainability in CRE. He worked for 20 years in real estate acquisition and underwriting, engineering design, start-ups, and sales and marketing. When capital and public policy began to incentivize green project investment, Tony built Partner Energy with a team of professional engineers, architects, and sustainability consultants who know how to apply the technologies and programs that can make these investments profitable. He has guided the company to develop a range of service offerings that have helped clients reduce energy usage and energy costs at thousands of properties nationwide. Tony helped to establish one of the agency green loan programs through Fannie Mae and Freddie Mac. Through his efforts, Partner Energy is now a recognized provider of agency green loan services. Tony also shares his insights and discusses best practices at speaking engagements and in online articles. He presents at conferences and events sponsored by universities, industry groups, and non-profit organizations.

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