SAM Curated

Overview of the Most Important Certifications and Ratings Used in the Built Environment

SAM Curated — Thu, 23 Apr 2026 17:17:55 GMT

As our library continues to expand, we have introduced a dedicated entry for Certifications and Ratings. Given the breadth and complexity of this topic, providing an exhaustive catalog of every available certification, rating, or benchmark would offer limited value to most readers. Instead, this section focuses on the most influential approaches shaping market practice today, alongside access to specialist guidance where more tailored support is required.

Recognizing the complexity of this area, we are directing users to one of our subject-matter team members, a specialist with deep, practical experience in navigating, selecting, and implementing the most relevant standards, certifications, and ratings:

Richard Betts

RZB Advisory

Richard.betts@rzbadvisory.com

Richard's advice to our readers is that "in practice, organizations rarely rely on a single standard or certification. The key is understanding how these frameworks interact and which are most relevant to your assets, investors, and regulatory context."

To provide support, we summarize in this post a selection of key certifications and ratings that most directly influence investment decisions, regulatory compliance, and asset performance across the built environment. While not a certification or rating, standards such as those from the ISSB are included, given their role in establishing the global baseline for sustainability-related financial disclosure and their increasing influence on how assets are assessed, managed, and reported.

1. ISSB / IFRS S1 & S2 (International Sustainability Standards Board) | https://www.ifrs.org/groups/international-sustainability-standards-board

Type: Standard ESG Focus: Governance / Reporting Framework Primary Use: UK, Canada, Global

The ISSB, created by the IFRS Foundation in 2021, is establishing a global framework for sustainability‑related financial disclosures. In 2023 it released its first two core standards - IFRS S1 for general sustainability risks and opportunities, and IFRS S2 for climate‑related disclosures, which incorporates the TCFD recommendations. As of April 2026, more than 35 jurisdictions representing over 55% of global GDP have already adopted or started to adopt them including Canada and the UK.

Importantly for the real estate sector, the ISSB’s industry‑based metrics draw on industry-based metrics, including those aligned with frameworks such as from the GRESB Real Estate Assessment, which is explicitly cited throughout the guidance as a normative reference.

ISSB is rapidly emerging as the global baseline for investor‑grade ESG reporting, effectively succeeding TCFD as the primary governance and climate disclosure framework for capital markets in many places.

2. BREEAM | https://breeam.com

Type: Certification ESG Focus: Environmental Primary Use: UK, Europe

BREEAM is widely recognized as one of the world’s longest‑standing and most widely adopted building sustainability certification, established by BRE in the UK in 1990. It provides a comprehensive assessment framework spanning energy performance, water efficiency, occupant health and wellbeing, materials, waste, ecological impact, and overall management practices. Certifications are conducted exclusively by licensed independent assessors. Market analyses generally show that BREEAM‑certified assets achieve notable financial advantages.

3. LEED (Leadership in Energy and Environmental Design) | https://www.usgbc.org/leed

Type: Certification ESG Focus: Environmental Primary Use: US, Canada, Asia

LEED, introduced by the U.S. Green Building Council (USGBC) in 1998, is one of the most widely adopted green building certification system, with more than 190,000 certified projects across 186 countries. It maintains a particularly strong footprint in the United States, Canada, and major international markets.

The system provides a structured, third‑party–verified framework - administered through the Green Business Certification Inc. (GBCI) review process - in which project teams document performance across key sustainability domains including energy, water, materials, indoor environmental quality, and sustainable site development.

Market evidence from CBRE and Cushman & Wakefield shows that LEED‑certified assets consistently outperform peers, with certified buildings achieving an average 3.7% rental premium, and Class A office properties realizing sales premiums of up to 25.3% per square foot (CBRE’s 2022 report “Green Is Good: The Enduring Rent Premium of LEED-Certified U.S. Office Buildings” and Cushman & Wakefield’s “Green Is Good” research spotlight - Part 2).

4. GRESB (Global Real Estate Sustainability Benchmark) | https://www.gresb.com

Type: Benchmark ESG Focus: Portfolio / Governance Primary Use: Global — used by institutional investors

GRESB, founded in 2009, is the leading investor‑driven ESG benchmark for real estate portfolios and funds, used by more than 1,500 property companies, REITs, and investment managers worldwide. Its assessment framework evaluates management practices, strategy, risk oversight, energy and GHG performance, water and waste management, tenant engagement, and broader social impact.

The methodology is closely aligned with major global standards and initiatives - including ISSB, GRI, the Paris Agreement, and the UN SDGs - ensuring consistency with institutional investor expectations. As a result, GRESB has become widely regarded as a leading global benchmark for ESG reporting in the real estate sector, with many pension funds and sovereign wealth funds now requiring participation as a condition of capital allocation.

5. CRREM (Carbon Risk Real Estate Monitor) | https://crrem.org/

Type: Initiative ESG Focus: Environmental / Governance Primary Use: Europe (originated), Global (now)

CRREM is an EU‑developed tool that has since gained global adoption as a leading method for assessing carbon‑stranding risk within real estate portfolios. It provides science‑based decarbonization pathways aligned with the Paris Agreement and the Science Based Targets initiative (SBTi), enabling owners and investors to understand whether individual assets remain on a Paris‑aligned trajectory.

Institutional investors are increasingly using CRREM outputs to support SFDR compliance and to evidence transition‑risk management. By identifying which properties are at risk of becoming “stranded” without significant retrofit investment, CRREM has become a critical input to long‑term capital allocation decisions across U.S., Canadian, and UK real estate portfolios.

6. ENERGY STAR / Portfolio Manager | https://www.energystar.gov

Type: Benchmark ESG Focus: Environmental Primary Use: US, Canada

ENERGY STAR is a U.S. EPA program that benchmarks building energy performance against comparable assets, providing a nationally recognized measure of operational efficiency. Its Portfolio Manager platform is the dominant benchmarking tool for U.S. commercial real estate and is a mandatory component of GRESB reporting as well as many local Building Performance Standards.

The program requires 12 consecutive months of verified utility data and is widely adopted across both the U.S. and Canada. ENERGY STAR benchmarking is also foundational for compliance with major city‑level disclosure and performance ordinances, including those in New York, Chicago, and Toronto, making it an essential element of regulatory and investor‑grade energy reporting for building owners.

7. NABERS UK (National Australian Built Environment Rating System) | https://www.nabers.gov.au/about/nabers-international/nabers-uk

Type: Rating ESG Focus: Environmental Primary Use: UK (commercial offices)

NABERS UK is an operational energy performance rating system adapted from Australia’s NABERS framework and now administered by CIBSE. It is the only UK certification that measures actual, in‑use energy performance rather than design intent - a key distinction from BREEAM and EPCs.

The system is gaining rapid adoption among major institutional landlords, with leading owners such as British Land, Landsec, and Grosvenor publicly committing to its use. NABERS UK ratings are also directly recognised within GRESB scoring, strengthening their relevance for investor‑grade ESG reporting.

Its Design for Performance (DfP) pathway embeds energy‑use targets from early design through project completion, helping ensure new developments deliver on their operational performance commitments.

8. EPC (Energy Performance Certificate) / MEES

Type: Rating ESG Focus: Environmental / Regulatory Compliance Primary Use: UK — mandatory for all commercial property

EPCs are a mandatory UK legal requirement for all commercial buildings at the point of construction, sale, or lease. Under the Minimum Energy Efficiency Standards (MEES), it is unlawful to let a property with an EPC rating below E, with substantial penalties for non‑compliance. The regulatory trajectory is tightening: a minimum EPC C will be required from 2027 and a minimum B from 2030.

EPCs are based on design‑stage modelling rather than actual operational performance, but they remain a core regulatory requirement for every UK property owner and investor, underpinning transactions, leasing strategy, and long‑term asset planning.

9. WELL Building Standard | https://www.wellcertified.com

Type: Standard ESG Focus: Social / Health & Wellbeing Primary Use: Global — offices, healthcare, education

WELL, developed by the International WELL Building Institute (IWBI), is a leading global certification focused exclusively on occupant health and wellbeing. Its framework evaluates performance across ten core concepts: air, water, nourishment, light, movement, thermal comfort, sound, materials, mind, and community.

Adoption has accelerated rapidly, with strong uptake across office, healthcare, and education sectors. WELL‑certified environments are increasingly sought after by tenants prioritizing employee wellness, and evidence consistently links WELL‑rated spaces to higher tenant satisfaction and stronger retention outcomes.

10. Fitwel | https://www.fitwel.org

Type: Certification ESG Focus: Social / Health & Wellbeing Primary Use: US, Canada, UK

Fitwel, created in 2017 by the U.S. Centers for Disease Control and Prevention (CDC) and the General Services Administration (GSA), is a health‑focused building certification that advances occupant wellbeing through evidence‑based design, operational practices, and organizational policies. Positioned as a more accessible and cost‑effective alternative to WELL, it has seen strong international uptake.

Fitwel participation contributes positively to GRESB scoring, further embedding it within institutional ESG reporting frameworks.

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Shaping Sustainable Places

SAM Curated — Tue, 21 Apr 2026 14:04:25 GMT

Curators: Ana-Mihaela Faciu and Alexandra Faciu

Westmount, Canada

This post is accessible to all readers.

Why we recommend it: Published in 2026 by Skanska, this report offers a clear, actionable framework for improving long‑term performance in urban development. Its strength lies in combining climate resilience, collaborative delivery, and people‑centered design into a coherent strategy supported by real‑world evidence. By highlighting the financial value of adaptability and the importance of social outcomes, it gives developers, investors, and city leaders practical guidance for creating places that remain relevant, resilient, and economically strong over time.

Key takeaways:

- Urban development, the report argues, must shift from delivering finished projects to creating places that perform over decades. Cities are growing, but planning and delivery systems lag behind climate pressures, demographic shifts, and changing work patterns. Long‑term value is defined by a place’s resilience, appeal, and economic strength. Drawing on international experience, expert insights, and case studies, the report presents four actions that together offer a practical framework for improving long‑term performance in the built environment. Below are the four actions the report proposed to shift urban development from short-term delivery to long-term value creation:
Design for Change to Protect Long-Term Performance - Many buildings are still optimized for completion rather than lifecycle performance, leaving owners exposed to rising climate and regulatory risks. Climate exposure is becoming a direct financial concern — a significant share of European commercial real estate sits in highly vulnerable cities, and insurance costs are rising sharply in the US. Adaptability is presented as a competitive advantage: certified, sustainable buildings demonstrate stronger rental and capital performance. Designing assets to be reconfigured or repurposed extends useful life and reduces future retrofit costs. As regulatory frameworks tighten, resilience becomes a financial safeguard, not just a sustainability ambition.
Work Together to Unlock Long-Term Place Value - Fragmented decision-making is a major source of inefficiency. When planning, development, and long-term management operate in silos, places fail to deliver intended value despite significant investment. A notable share of European construction costs stems from preventable errors linked to poor communication. Misaligned incentives reinforce fragmentation: collaboration’s benefits are long-term and shared, while its costs are immediate and individually borne. The report argues for shared stewardship built on early alignment, transparent risk allocation, and coordinated lifecycle planning — shifting collaboration from coordination burden to value driver.
Design For and With People to Strengthen Relevance and Demand - Places must reflect how people actually live to sustain demand over time. Cities increasingly compete on the quality of everyday life, not employment alone. Weak everyday quality produces higher vacancy, weaker tenant retention, and less stable income. Early community engagement is framed as structured risk management — integrating local knowledge reduces opposition, delays, and redesign costs while producing solutions that are more trusted and adaptable. Insights from Snøhetta reinforce that buildings and public spaces designed as social infrastructure — supporting connection, safety, and belonging — ultimately strengthen economic performance by driving long-term demand.
Measure Holistically to Capture Full-Spectrum Value - Environmental performance is embedded in investment processes; social value measurement is not, creating a blind spot that weakens long-term outcomes. Social value is typically the first element cut under cost or time pressure, despite its influence on attractiveness and occupancy. Regulatory frameworks across the UK, US, and EU are making social value an expectation rather than a voluntary add-on. Skanska’s Social Value Index and Destination Navigator illustrate how structured measurement reduces vacancy risk and strengthens asset performance. Case studies from Stockholm, Copenhagen, Prague, and Houston demonstrate that lasting place performance is intentional — dependent on adaptability, collaboration, people-centered design, and holistic measurement from the outset.

To access the document click 🔗 this link

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Soaring Demand for Low Carbon Offices Will Outstrip Supply

SAM Curated — Wed, 15 Apr 2026 15:30:00 GMT

Curator: Alexandra Faciu

Montréal, Canada

This post is accessible to all readers.

Why we recommend it: The article underscores that investing in low-carbon buildings is no longer optional, but a strategic advantage in a market where demand far exceeds supply. It shows that owners who decarbonize now can command rental premiums, secure stronger tenants, and protect asset value as corporations pursue 2030 climate goals and regulations tighten. By contrast, the article warns that inaction risks accelerated obsolescence, declining income, and lost competitiveness in a rapidly shifting real estate landscape.

Key takeaways:

- JLL’s research indicates that by 2030, demand for low‑carbon workspace across major U.S. markets will exceed supply by 75%, creating a shortfall of roughly 57 million square feet. The imbalance is not uniform.
Washington, D.C. faces one of the most acute gaps, driven by the concentration of federal agencies with stringent sustainability mandates and a slowdown in new development. There, demand for compliant space is projected to be twelve times greater than what the market will be able to deliver.
Chicago’s challenge stems from an aging, inefficient building stock, a constrained development pipeline, and limited access to clean energy.
New York’s market, dominated by finance and professional services firms with ambitious decarbonization goals, is seeing 72% of future leasing requirements tied to carbon commitments. Yet the city’s development pipeline will provide only 8.1 million square feet of potentially suitable space against 23.3 million square feet of expected demand.
- Across six major U.S. markets, only about 43% of existing Class A office buildings are positioned to meet low‑carbon requirements, suggesting a growing premium for compliant assets. Evidence from Europe reinforces this trend: in London and Paris, low‑carbon prime offices are achieving record rents despite muted transaction volumes.
- On the demand side, corporate occupiers are reassessing their footprints with sustainability now a top priority alongside hybrid work and enhanced amenities. Leasing low‑carbon space and decarbonizing real estate operations represent achievable near‑term actions compared to the more complex challenge of addressing Scope 3 emissions. JLL finds that three‑quarters of new lease requirements among major U.S. occupiers between 2023 and 2030 will be tied to carbon commitments. While green certifications remain popular, they often reflect design intent rather than operational performance. Today’s sustainability‑focused organizations are increasingly scrutinizing real‑world building performance, emphasizing energy efficiency, electrification, and clean energy procurement as the defining characteristics of truly low‑carbon space.
- Regulation is adding further pressure. The U.S. now has dozens of benchmarking policies and an expanding set of building performance standards, with more than 35 jurisdictions expected to enforce such standards by 2024. Compliance challenges are significant: if premium office buildings across six major markets were held to New York’s 2030 Local Law 97 thresholds, only a quarter would comply. Compliance rates would be similarly low under Boston’s and Denver’s 2030 requirements.
- This widening gap between demand and supply strengthens the commercial case for owners to invest in decarbonization. Those who act early stand to benefit from higher rents, lower financing costs, and stronger tenant retention. Conversely, inaction risks declining net operating income as tenants migrate toward compliant buildings and regulatory penalties increase. Collaboration models such as green leases are becoming more common as owners and occupiers work together to reduce emissions and share both costs and benefits. In a market already challenged by hybrid work and cyclical pressures, proactive decarbonization offers building owners a critical opportunity to maintain competitiveness and preserve the long‑term value of their assets.

To access the article click 🔗 this link

From Empty Offices to Needed Homes, A Credit Opportunity Emerges

SAM Curated — Thu, 09 Apr 2026 15:56:32 GMT

Curator: Alexandra Faciu

Montréal, Canada

This post is accessible to all readers.

Why we recommend it: Brookfield’s analysis released earlier this year underscores why today’s environment presents such a compelling opportunity for conversion‑focused credit strategies. A rare convergence of sharply discounted office valuations and surging housing demand allows lenders to enter high‑quality urban assets at attractive bases while benefiting from strong, durable renter demand. With only a small subset of buildings truly viable for conversion, returns remain elevated for lenders able to underwrite complexity. Combined with growing municipal incentives and faster delivery timelines, the opportunity offers compelling risk‑adjusted yields in today’s market.

Key takeaways:

- A structural mismatch is reshaping U.S. real estate: millions of square feet of obsolete office space sit vacant while demand for housing intensifies. This divergence is creating a selective but compelling credit opportunity for lenders capable of underwriting complex office‑to‑residential conversions.
- Nationwide office vacancy rates have doubled since the pandemic, with the lowest‑quality 30% of buildings responsible for nearly 90% of empty space. These assets, often more than 50 years old, were built for a workplace model that no longer exists. In contrast, the housing market faces severe undersupply. Homeownership costs have risen far faster than incomes, and the U.S. is short roughly 3 million homes. Population and household formation are expected to continue rising through 2029, further tightening supply. This widening gap between unused offices and needed housing is accelerating interest in conversions, especially in high‑cost, supply‑constrained cities.
- However, the universe of viable conversion candidates is far narrower than the volume of aging offices suggests. Roughly half of lower‑grade buildings are immediately ruled out due to weak local demand, zoning barriers, or inefficient floor plates. Of the remainder, most fail to pencil out economically without public incentives. Ultimately, fewer than 1% of U.S. office buildings, about 7,000 properties, meet the combined criteria of location, design feasibility, and economic viability. This scarcity has kept the field in the hands of experienced specialists, though improving policy support is gradually expanding the pool.
- Cities are increasingly stepping in to unlock feasibility. New York’s “City of Yes for Housing Opportunity” initiative represents the most comprehensive model, combining zoning reform, expanded eligibility, and multi‑decade tax abatements to support as many as 80,000 new homes. Other cities, including Washington, D.C., Boston, and Los Angeles, are pursuing similar, though more limited, programs. As these incentives grow, they help offset construction costs and extend viability beyond only the highest‑rent markets.
- For credit investors, the opportunity is particularly attractive. Office valuations remain roughly 40% below 2022 levels, enabling lenders to enter at reset prices. Because few lenders possess the technical capability to underwrite conversion risk, return premiums remain elevated even for well‑located projects. Unlike equity investors, lenders are not dependent on long‑term rent growth; they are primarily compensated for completion and stabilization risk. Conversions also typically deliver faster timelines than ground‑up development, often by 12 to 24 months, accelerating repayment and enhancing downside protection.
- Selectivity remains essential. Successful projects typically involve buildings large enough to achieve construction efficiencies but small enough to lease quickly; locations with established residential amenities; efficient floor plates that maximize rentable units; and experienced sponsors with institutional‑grade execution capabilities. Strong equity contributions further align incentives and protect the debt position.
- Developers, in turn, seek financing partners with integrated expertise across office and residential assets, the ability to move quickly from approval to closing, and the scale to finance entire projects. For well‑capitalized credit platforms with development insight, this emerging niche offers a chance to deploy capital into high‑demand urban housing while capturing attractive, risk‑adjusted returns.

To access the article click 🔗 this link

Muddled Green: Most Portfolio-Level Energy and Carbon Metrics Are Misleading

SAM Curated — Tue, 07 Apr 2026 13:00:00 GMT

Curator: Alexandra Faciu

Montréal, Canada

Full access to the post is available to paying subscribers only.

Why we recommend it: LaSalle’s March Insights Strategy Analysis (ISA) edition examines the lack of clarity created by today’s energy and carbon metrics and argues for a more reliable way to assess real estate sustainability performance. The paper reco…

Exploring 'Just Transition' within the Context of UK Real Estate.

SAM Curated — Thu, 02 Apr 2026 15:00:00 GMT

Curator: Alexandra Faciu

Montréal, Canada

This post is accessible to all readers.

Why we recommend it: AREF (The Association of Real Estate Funds in the UK) has developed, through its ESG & II Committee, this three-part series to help investors, asset owners, and their advisors understand why a Just Transition is becoming essential to UK real estate strategies. As the sector moves toward net zero, the ability to decarbonize while protecting communities is now a core driver of long-term value. With rising regulatory expectations and clear financial implications, embedding fairness into climate action is critical for resilient, future-ready portfolios.

Key takeaways:

- The concept of a Just Transition is becoming a strategic priority for UK real estate investment managers as the sector accelerates toward net‑zero commitments. With £360 billion in assets under management, the industry faces a dual challenge: decarbonizing buildings while ensuring that the transition strengthens, rather than harms, the communities most exposed to climate and economic disruption.
- Climate change is widely recognized as a global inequity. Those most affected by its impacts have historically contributed the least to its causes, and this imbalance underpins the Just Transition agenda. The principle is straightforward: environmental progress must be delivered in a way that is socially and economically fair. The scale of potential disruption is significant. The International Labour Organisation estimates that 72 million full‑time jobs could be lost globally by 2030 due to heat stress, while climate adaptation costs in emerging markets may reach £240 billion annually by 2030. These figures illustrate the need for transition strategies that mitigate harm while enabling opportunity.
- Momentum around Just Transition is accelerating in the UK. The Transition Plan Taskforce introduced Just Transition metrics in 2024, and institutional investors such as the Local Government Pension Scheme are already requesting disclosures. The agenda also aligns with the UK government’s Levelling Up priorities, reinforcing expectations that real estate investors integrate social equity into climate action.
- It is important to distinguish Just Transition from broader social impact initiatives. While social impact spans health, education, and employment outcomes, Just Transition focuses specifically on fairness within environmental and economic transformation. It includes access to affordable energy, support for local SMEs, and the resilience of local economies. The risks of neglecting these issues are clear. Spain’s 63% rise in electricity prices between 2008 and 2012, partly driven by renewable energy policies, left a quarter of households unable to afford adequate cooling, demonstrating the consequences of poorly managed transition policies.
- For real estate investors, the business case is increasingly compelling. Integrating Just Transition principles can unlock preferential financing, including sustainability‑linked loans. Orchard Street’s Social and Environmental Impact Partnership illustrates how retrofitting buildings can reduce emissions while creating local jobs and developing green skills. Similarly, Thriving Investment’s Mid‑Market Rent Fund shows how energy‑efficient, below‑market‑rent homes can deliver both commercial returns and community benefits.
- Portfolio resilience is another advantage. Developments that engage communities, support workforce inclusion, and strengthen local supply chains tend to experience lower vacancy rates, reduced planning friction, and greater long‑term stability. With 55% of UK construction firms facing skills shortages, investment in workforce development also enhances supply‑chain reliability.
- However, implementation challenges remain. Green retrofits carry higher upfront costs, and passing these costs to tenants risks worsening affordability. There are tensions between financial returns and social outcomes, as well as risks of superficial adoption. The sector lacks standardized frameworks, though emerging guidance from UNEP FI and the Just Transition Finance Lab is shaping early practice.
- A pragmatic pathway is emerging: conducting materiality assessments, embedding Just Transition into existing ESG processes, building measurement capabilities gradually, forming strategic partnerships, and communicating transparently about both progress and trade‑offs. Early adopters are likely to benefit from improved capital access, smoother planning approvals, and stronger sustainability credentials, while laggards may face externally imposed frameworks and reduced strategic flexibility.

To access the articles click 🔗 this link

The Drivers for Supply Chain Decarbonization are Changing… But What Matters is Impact

SAM Curated — Tue, 31 Mar 2026 14:00:00 GMT

Full access to the post is available to paying subscribers only.

Supply‑chain decarbonization has shifted from values‑driven commitments to hard‑nosed financial and risk management priorities. As regulatory timelines soften and early momentum slows, CFOs now demand clear cost savings before approving action. Rising energy volatility, insurance losses, ca…

Property Linked Finance Pathways

SAM Curated — Thu, 26 Mar 2026 16:00:00 GMT

Curator: Alexandra Faciu

Montréal, Canada

This post is accessible to all readers.

Why we recommend it: This report, written by the Global Property Linked Finance Initiative (GPLFI) in March 2026, offers a scalable, transferable way to fund building decarbonization by attaching repayment to the property rather than the owner. This structure unlocks full‑cost upfront capital, reduces friction for borrowers, and provides long‑term, stable returns for investors. By offering a clear, replicable pathway for market design and implementation, the solutions presented in this report enable governments, financiers, and developers to accelerate emissions reductions across the built environment with lower risk and greater market uptake.

Key takeaways:

- The Property Linked Finance Pathways report sets out a structured methodology for developing and scaling Property Linked Finance (PLF) as a tool to accelerate the decarbonization of buildings. The report opens by underscoring the scale of the challenge: the built environment generates 37% of global greenhouse gas emissions, and meeting climate goals will require USD 34 trillion in investment by 2050. Traditional finance has not mobilized capital at the pace required, leaving a persistent gap between ambition and delivery. PLF is presented as a mechanism capable of addressing part of this gap by aligning repayment obligations with the property itself rather than the individual borrower.
- PLF enables up to 100% financing for green construction or building upgrades, with repayment obligations transferring automatically to subsequent owners when a property is sold. This structure ensures that owners repay only while they benefit from the improvements, while lenders gain predictable, long‑duration returns. Although PLF has been successfully deployed in the United States, Australia, and Canada, these markets evolved independently over more than a decade, resulting in fragmented approaches. GPLFI was created to consolidate global learning, provide shared resources, and support new markets through PLF Accelerators.
- The report’s central contribution is an eight‑step pathway that guides governments, financial institutions, and market actors through the process of establishing a PLF program.
It begins with landscape mapping, which involves assessing the real estate finance ecosystem, regulatory frameworks, and supply chain readiness. This step identifies where PLF can be most effective. The Philippines example illustrates how early analysis can shape strategy: limited residential finance capacity redirected PLF efforts toward the commercial sector, where demand and policy alignment were stronger.
The second step focuses on testing market demand through quantitative and qualitative research. Evidence from the UK and Spain shows strong openness to PLF among both consumers and businesses, even where awareness is low. These insights help size potential markets, which in both countries were found to be substantial.
Steps three and four involve parallel streams of analysis and design, beginning with light‑touch exploration and progressing to detailed development. These steps cover the legal mechanism that links the finance to the property, the technical design of the financial product, the legislative requirements, and the early engagement of market stakeholders. Lessons from early markets highlight the importance of robust consumer protections, clear legal structures, and proactive ecosystem engagement.
The fifth step involves running demonstrator projects to validate the operational model and build confidence among lenders and policymakers. The US experience shows how early pilots can establish templates and prove the durability of the underlying legal mechanism.
The sixth step focuses on scaling, emphasizing continuous iteration, expansion into new market segments, and mobilization of institutional capital.
- The report concludes that PLF is an enabling mechanism rather than a standalone driver of demand. Its success depends on supportive policy, market appetite for building improvements, and coordinated stakeholder action. The PLF Pathways framework offers a structured, evidence‑based route for any market seeking to deploy PLF effectively, supported by GPLFI’s Accelerator Programme to help avoid early‑market pitfalls and accelerate implementation.

To access the paper click 🔗 this link

The Delivery Gap: Why Real Estate’s “Paper Targets” Are Becoming a Pricing Risk

SAM Curated — Tue, 24 Mar 2026 13:00:00 GMT

Curator: Alexandra Faciu

Montréal, Canada

This post is accessible to all readers. The paper is gated, but available to download for free.

Why we recommend it: Real estate faces mounting pressure to demonstrate credible decarbonization progress as regulatory scrutiny, investor expectations, and physical climate risks intensify. Yet performance data seem to show the sector is off‑track, with minimal like‑for‑like emissions reductions and widening gaps between design ratings and operational outcomes. In this context, EVORA’s paper is significant because it provides a rigorous, data‑driven diagnosis of these failures and offers market participants a practical framework for delivering measurable, performance‑based decarbonization.

Key takeaways:

- The real estate sector is confronting a widening decarbonization credibility gap. Although ESG commitments are now widespread, actual emissions reductions remain negligible. Like‑for‑like performance shows a decline of only 0.23%, meaning the sector is decarbonizing at roughly one‑twelfth of the pace required to align with global climate goals. EVORA’s whitepaper argues that this is not a reporting failure but a delivery failure. The gap is now shaping asset values, investment decisions, and competitive positioning. Investors increasingly recognize that policy commitments alone do not translate into operational progress, and that the industry must shift from disclosure‑driven activity to measurable, performance‑based decarbonization.
- A major driver of the delivery gap is the persistent mismatch between design expectations and operational performance. Buildings routinely consume far more energy than their design‑stage ratings predict. EPCs measure theoretical regulated loads rather than real‑world consumption, and EVORA’s analysis of more than 2,000 assets shows no meaningful correlation between EPC ratings and actual energy intensity. In some cases, A‑rated buildings perform worse than C‑ or D‑rated peers. This disconnect is reinforced by unregulated plug loads, sub‑metering blind spots, value engineering that locks in inefficiency, and commissioning drift that inflates energy use from day one, undermining regulatory assumptions.
- A second structural issue is the lag in capital allocation. Decarbonization investment remains tied to refurbishment cycles that run 10 to 15 years, while climate pathways accelerate exponentially. Misalignment can occur within a single hold period. The Bank of England’s climate stress testing reinforces that delaying action increases both cost and risk rather than deferring them. As a result, the pace of climate‑driven value erosion is outstripping traditional investment rhythms. Many portfolios now face regulatory tightening, rising compliance costs, and the risk of stranded assets. The industry’s linear planning processes are fundamentally misaligned with the nonlinear nature of climate‑related transition risk.
- Markets have also not fully priced climate risk. Research from MSCI shows that assets with high Climate Value‑at‑Risk continue to trade at similar prices to lower‑risk ones. Historically, markets reprice environmental risk abruptly, not gradually, and signals from insurers, lenders, and central banks suggest that such a correction is approaching. Compounding this is the industry’s overreliance on grid decarbonization. EVORA’s analysis shows most portfolio‑level reductions stem from grid factor improvements rather than active intervention. Grid decarbonization does not reduce energy demand, improve compliance, or mitigate physical risk, and connection constraints already limit electrification strategies in several regions.
- These dynamics are now directly influencing asset values. Green buildings are achieving rental premiums, while brown discounts are increasingly visible in transactions. Regulatory pressure is intensifying, particularly under the EU’s EPBD Recast, which will render the worst‑performing assets un‑lettable without renovation. Physical climate risk adds further pressure, with significant potential revenue losses under higher‑temperature scenarios. Yet the same delivery gap creates opportunity: many carbon‑exposed assets trade at discounts exceeding remediation costs. Investors capable of executing deep retrofits can reposition assets into a market where demand for low‑carbon space will outstrip supply. EVORA’s framework emphasizes aligning cycles, triaging risk, and building investment‑ready cases.

To access the paper click 🔗 this link. There is also a North-American version of this paper, which can be accessed by clicking 🔗 this link.

Sustainable Reality: Positive Returns Offset Outflows During 2H 2025

SAM Curated — Thu, 19 Mar 2026 17:29:00 GMT

by Alexandra Faciu

Montréal, Canada

Morgan Stanley has recently published their latest Sustainable Reality Report and highlights a pivotal shift in sustainable investing. As a long‑running series from Morgan Stanley’s Institute for Sustainable Investing, it draws on Morningstar data covering 110,000 global funds, offering a clear, data‑driven view of how the sustainable funds market is evolving. Its findings - record AUM paired with declining market share, renewed outflows, and increasing regulatory pressure - show a sector moving from rapid growth to more disciplined, performance‑focused scrutiny. These insights help readers anticipate changing investor behavior, refine sustainable product strategies, and compete more effectively for capital in a more demanding market environment.

Key takeaways:

Global sustainable investing closed 2025 in a position defined by both strength and fragility. Assets under management reached an all‑time high, yet the sector’s share of global AUM continued to shrink as traditional funds attracted stronger inflows. The year illustrated a maturing market facing structural headwinds, shifting regulatory dynamics, and evolving investor behavior, even as long‑term performance remained resilient.
By the end of December 2025, sustainable fund AUM rose to $4.13 trillion, a 4% increase from mid‑year and more than 16% higher than a year earlier. This growth, however, did not translate into greater market share. Sustainable funds accounted for just 6.5% of global AUM, down from 6.8 % in June and below the 7.2% peak reached in mid‑2023. The decline was not driven by asset erosion but by the comparatively faster expansion of traditional funds, which benefited from stronger and more consistent inflows throughout the year.
Fund flows marked the clearest sign of pressure. After modest inflows in the first half of 2025, sustainable funds saw a sharp reversal, with outflows of $86.4 billion in the second half. For the full year, net outflows totaled $62.8 billion, or 1.8% of prior year‑end AUM. Europe, long the anchor of global sustainable investing, recorded its first annual outflows at $76.4 billion. Much of this was technical: UK asset owners shifted from pooled sustainability vehicles to bespoke mandates not captured in Morningstar’s dataset. Even after adjusting for this reallocation, Europe still posted slight net outflows, signaling a broader cooling of momentum. North America extended its multiyear pattern of withdrawals, marking its twelfth and thirteenth consecutive quarters of outflows. Asia stood out as the only region with positive flows in the second half, though at a modest 0.6% of AUM.
Regulatory classifications showed a divergence in investor preference. Article 8 funds, which promote environmental or social characteristics, attracted more than $527 billion in inflows, equal to 6.5% of their AUM. Article 9 funds, which must demonstrate sustainability as a primary objective, continued to contract, with outflows of $23 billion and nine consecutive quarters of negative flows. This pattern reflects ongoing regulatory scrutiny and investor caution around the most stringent sustainability labels.
Performance in the second half of 2025 was competitive but slightly behind traditional peers. Sustainable funds delivered a median return of 5.3%, trailing by 22 basis points. The gap was largely attributable to geographic exposure: sustainable funds are heavily weighted toward Global and European assets, both of which underperformed other regions during the period. On a regional basis, sustainable funds actually outperformed traditional peers almost everywhere, with excess returns ranging from 40 basis points in Europe to more than 700 in the Middle East and Africa. Across asset classes, sustainable funds lagged in equities, fixed income, and multi‑asset strategies, yet 89% still produced positive returns, compared with 84% of traditional funds. Over the longer term, sustainable funds continued to lead: a $100 investment in 2018 would have grown to $162 by the end of 2025, versus $152 for traditional funds.
Europe remained the global center of exclusionary screening, with high adoption of restrictions on controversial weapons, thermal coal, and tobacco. In private markets, impact investing surpassed $1 trillion in AUM, though fundraising slowed sharply from its 2022 peak. Venture capital accounted for the largest number of impact funds, while real assets dominated by capital deployed. PitchBook notes that fundraising totals are often revised upward, suggesting 2025’s muted figure may ultimately prove higher.

Where Energy Meets Property

SAM Curated — Wed, 18 Mar 2026 17:00:00 GMT

Curator: Alexandra Faciu

Global Design Perspectives 2026: Four Key Perspectives Informing the Design of Places and Spaces

SAM Curated — Thu, 12 Mar 2026 15:00:00 GMT

Curators: Ana-Mihaela Faciu and Alexandra Faciu

Westmount, Canada

This post is accessible to all readers.

Why we recommend it: Leading organizations are redefining real estate as a strategic performance driver. Future‑proofed, flexible spaces reduce long‑term costs while adapting to evolving business needs. Human‑centered, personalized environments enhance productivity, wellbeing and talent retention across generations. JLL’s 2026 design perspectives recommend that executives align capital planning with adaptive infrastructure, prioritize people‑first design, and adopt holistic performance metrics, ensuring that space investments deliver measurable organizational outcomes beyond traditional utilization measures.

Key takeaways:

- The real estate industry in 2026 is navigating a convergence of technological advancement, evolving work patterns, and deeper understanding of human behavior. Four interconnected design perspectives are shaping how organizations approach their spaces.
Designing for Flexibility and the Unknown: Real estate in 2026 is defined by volatility, from hybrid work adoption to rapid AI integration, compressing change cycles from years to months. Organizations are responding by shifting from surface‑level flexibility to deeply adaptive spatial infrastructure. This includes interchangeable zones, movable partitions, modular pods, and plug‑and‑play technology systems designed to evolve over three months, three years, or even three decades.
Technology is now a core value driver: 93% of investors believe tech‑enabled properties deliver stronger returns. As a result, buildings must support immersive media environments, advanced collaboration tools, and the rising computational load of AI. Retailers are embracing modular fixtures to reconfigure stores quickly, while corporate headquarters increasingly serve as experimentation hubs for flexible spatial concepts. The overarching goal is to treat space as an adaptive platform, a long‑term asset resilient to unpredictable operational and market shifts.
Human Connection as a Counter‑Trend to Technology: Even as AI becomes embedded in workplaces and retail environments, demand for authentic human connection is rising. Sixty‑five percent of people now seek unique, memorable experiences from the places they visit, and 62% want stronger ties to local culture and community. Designers are responding by elevating communal spaces, tactile materials, and sensory‑rich environments that foster belonging.
A notable trend is the emergence of low‑tech or tech‑free zones. With 61% of global consumers seeking digital‑detox spaces, organizations are integrating analog environments into otherwise high‑tech buildings to address burnout and enhance well‑being. Neuroscience‑informed design is also gaining traction, with investments in circadian lighting, biophilic elements, and advanced acoustic systems that support both performance and emotional comfort. These strategies reflect a broader shift toward environments that balance technological capability with human‑centered experience.
Personalization Across Generations: Expectations for personalization, long shaped by entertainment, retail, and hospitality, are now influencing workplace and retail design. However, generational preferences diverge sharply. Younger users embrace AI‑driven tools and digitally enhanced environments, while older generations gravitate toward hospitality‑inspired, human‑led service models. Seventy percent of adults aged 25–44 believe AI improves venue experiences, compared with only 26% of those over 65.
Successful design in 2026 blends these preferences rather than choosing between them. Experience journeys increasingly offer multiple touchpoints, allowing users to select their preferred level of technology engagement. Retailers are balancing digital capabilities with curated events and personal shopper services. Workplaces are adopting AI‑powered concierge apps and sensor‑driven personalization while ensuring inclusive, hospitality‑inspired environments that resonate across age groups.
Connected Workplaces Focused on Outcomes: Organizations are moving beyond designing spaces around discrete tasks and instead creating interconnected environments that support broader business outcomes. With 92% of corporations identifying productivity as a top priority leaders are re‑evaluating what performance truly means.
A JLL study of 12,000 employees reveals a gap between what workers value and what current workplaces provide. Spaces that support recharging, creativity, and inspiration rank high in importance but low in satisfaction, signaling under‑investment in holistic experience design. As a result, organizations are prioritizing “in‑between spaces”: informal zones that build social capital, strengthen team cohesion, and support agile, small‑group collaboration. These environments are becoming essential to organizational resilience and performance.

To access the article click 🔗 this link

RZB Advisory | Sustainability Strategy and Regulatory Advisory

SAM Curated — Wed, 11 Mar 2026 16:00:00 GMT

Sustainability and ESG expectations are evolving at a pace that is reshaping how organisations operate, govern and communicate. Regulatory frameworks are becoming more demanding, investor scrutiny is intensifying, and leadership teams are under pressure to demonstrate credible, decision‑useful sustainability performance. Long‑term resilience now depends on approaches that are practical, defensible and firmly rooted in how organisations actually make decisions.

RZB Advisory (https://rzbadvisory.com) helps organisations navigate this complexity with clarity and confidence. Led by Richard Betts, formerly a Partner at EY and ERM, the firm brings senior‑level expertise and deep regulatory insight to every engagement. RZB works across the UK, EU and internationally, supporting clients as they respond to CSRD/ESRS requirements, align with UK SRS and IFRS S1–S2, strengthen climate and nature strategies, and prepare for assurance‑ready ESG reporting.

The firm partners with organisations across sectors, from built environment and infrastructure to energy, financial services, manufacturing and consumer industries, helping leadership teams translate evolving sustainability and climate expectations into practical strategy, governance and reporting. RZB Advisory’s work is grounded in independent thinking, real‑world implementation experience and a clear focus on board‑level decision‑making. The firm works selectively, prioritising depth over volume, and tailoring its support to each organisation’s maturity, context and objectives.

RZB Advisory’s services span the full sustainability and ESG lifecycle. This includes:

designing data architecture, KPIs and governance for UK SRS and IFRS S1–S2 disclosures
preparing organisations for CSRD through double materiality, gap analysis and disclosure design
strengthening ESG reporting and assurance readiness
developing science-based climate strategies and credible transition plans
assessing climate risk through TCFD-aligned analysis
building nature strategies grounded in TNFD and LEAP frameworks

By focusing on what truly drives organisational resilience, strategy, governance, risk, data and credible reporting, RZB Advisory helps clients build sustainability capabilities that stand up to regulatory, investor and auditor scrutiny while supporting long‑term value creation.

Richard Betts

SAM Curated — Wed, 11 Mar 2026 13:00:00 GMT

🔗 LinkedIn

Richard is the Founder of RZB Advisory and a senior sustainability and ESG advisor with more than twenty years of experience supporting organizations across the UK, EU, Türkiye, MENA, and the Americas. He works with boards, executive teams, and investors on sustainability strategy, regulatory and assurance readiness, climate risk and transition planning, nature strategy, and broader ESG transformation. His sector experience spans the built environment and infrastructure, energy and industrials, financial services, and consumer-facing sectors including FMCG, retail, and telecommunications, with a strong emphasis on practical, decision-ready advice for leadership teams.

Richard previously held senior roles in global advisory firms, where he supported corporates, investors, and policymakers in the development and implementation of sustainability and climate frameworks.

He also serves as a Trustee and Council Member of the Lancashire Wildlife Trust, part of the UK Wildlife Trust federation, one of the UK’s leading conservation organisations focused on habitat restoration, species recovery, and connecting communities with nature.

Richard holds an MPhil from the University of Cambridge and is a Fellow of the Institute of Chartered Accountants in England and Wales (FCA). He is also a Fellow of the Royal Geographical Society (FRGS).

Climate Adaptation and Resilience Financing

SAM Curated — Tue, 10 Mar 2026 14:46:58 GMT

Curator: Alexandra Faciu

Real Estate Decarbonisation Playbook: a Practical Guide to Futureproofing and Adding Value to Real Estate Portfolios

SAM Curated — Thu, 05 Mar 2026 15:00:00 GMT

Curator: Alexandra Faciu

Montréal, Canada

This post is accessible to all readers.

Why we recommend it: The Real Estate Decarbonisation Playbook offers a structured roadmap for sovereign wealth funds and institutional investors to future-proof their portfolios against growing climate-related financial risks. With 94% of European asset managers viewing brown discounting as a high financial risk, and green buildings commanding rent premiums and lower vacancy rates, the case for action is clear. The Playbook guides organizations through internal alignment, stakeholder engagement, portfolio prioritization, target-setting, and practical decarbonization levers, from electrification to occupant engagement. Underpinned by strong governance, aligned incentives, and structured communication, it enables investors to simultaneously reduce emissions, protect asset values, and capture the financial opportunities of the green transition.

Key takeaways:

- With sovereign wealth funds directing over 25% of investments into real estate, decarbonization is a strategic priority. Green buildings command an 8% rent premium and 13% lower vacancy rate, while climate-conscious funds have historically outperformed peers. However, 94% of European asset managers view brown discounting as a high financial risk, with half reporting significant portfolio misalignment. Challenges include data gaps, limited in-house expertise, and the need for cross-stakeholder collaboration.
- The playbook tackles decarbonization in four distinct steps:
Laying the Groundwork: Decarbonization is a strategic change management exercise, not merely a technical one. Success begins with board-level buy-in, cross-functional working groups, and organization-wide education. Formal KPIs and incentives help embed sustainability into day-to-day decisions. Navigating the diverse priorities of stakeholders, from sovereign wealth funds and asset managers to tenants, developers, and lenders, requires deliberate communication and compromise. Decarbonization should be integrated early into the investment process, with governance structures and contractual commitments tailored to the level of control within each investment structure.
Setting the Terms: Portfolio decarbonization potential depends on ownership type, wholly owned assets offer the most flexibility, while funds and minority stakes require negotiation. Transition risks span six categories: regulatory, market, valuation, reputational, obsolescence, and financing. A phased approach prioritizing the most carbon-intensive, high-influence assets is recommended. On valuation, despite climate factors being increasingly material, 77% of RICS respondents believe current valuations fail to reflect them adequately. Teams should embed net-zero pathway analysis and physical climate risk assessments into pre-acquisition due diligence, and engage external valuers post-acquisition to ensure ESG factors are explicitly reflected in asset values. A key structural challenge is incentive misalignment, most investment roles lack direct financial motivation to pursue sustainability. The solution is linking long-term incentives to climate performance metrics across all functions, from acquisitions to executive management, creating shared accountability and embedding sustainability as a value-creation priority.
Into Action: Organizations must first establish an emissions baseline across Scopes 1, 2, and 3, using actual data or estimation benchmarks where needed. Paris-aligned targets, set via frameworks such as SBTi or CRREM, should then be established, with interim milestones at three-to-five-year intervals aligned with investment cycles. Due diligence must integrate climate considerations for both direct assets and indirect fund investments. Seven core decarbonization levers then drive implementation: electrification, energy demand reduction, on-site renewables, capital planning alignment, occupant engagement, embodied carbon reduction, and hour matching, shifting energy use to cleaner grid periods.
Communication: Misalignment between owners and managers is rarely intentional, it stems from poor communication structures. For new investments, sustainability expectations must be formalized in legal agreements, embedded in due diligence, and supported by clear governance from day one. For existing portfolios, regular dialogue, proactive management of underperformance, and robust governance frameworks keep sustainability a live priority. Across all stakeholders, the document recommends that sustainability be treated with the same rigour and accountability as financial performance.

To access the document click 🔗 this link

ULI’s Global Sustainability Outlook 2026: Five Issues to Watch

SAM Curated — Tue, 03 Mar 2026 19:00:00 GMT

Curator: Alexandra Faciu

Why Insurers Have a Critical Stake in Greener Buildings and Landscapes

SAM Curated — Sun, 01 Mar 2026 16:10:00 GMT

Full access to the post is available to paying subscribers only.

Europe’s recent floods underscore how differently natural and built environments absorb climate impacts, intensifying pressure on cities with hard surfaces and aging drainage. As extreme weather grows more frequent, insurers and urban designers share a common conclusion: resilience depends…

Preserving Property Value and Managing Insurance Costs in a Changing Climate

SAM Curated — Sun, 01 Mar 2026 16:00:00 GMT

Full access to the post is available to paying subscribers only. The paper is gated on its original site, but available to download for free.

Climate risk is becoming a defining factor in real estate value and investment strategy. As extreme weather intensifies and insurance and lending costs rise, investors are reassessing assets at the location level. …

Retrofitting Historic Stock Requires a Pragmatic Approach

SAM Curated — Thu, 26 Feb 2026 20:00:13 GMT

Curator: Alexandra Faciu