SAM Curated: Opinions and insights

Sustainable Reality: Positive Returns Offset Outflows During 2H 2025

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

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.

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Quay Quarter Tower as a Global Benchmark for Sustainable Redevelopment

SAM Curated — Thu, 19 Feb 2026 19:00:00 GMT

by Alexandra Faciu

Montréal, Canada

As organizations across sectors confront the realities of climate risk, resource constraints, and shifting stakeholder expectations, the built environment has emerged as a critical arena for meaningful decarbonization. In this context, Quay Quarter Tower in Sydney, Australia represents one of the most significant case studies in sustainable redevelopment globally. Its recognition in late 2025 as a finalist for The Earthshot Prize, in the “Build a Waste‑Free World” category, reinforces its status as a pioneering model for circular design and adaptive reuse at scale. The original entry is included for readers who are interested in the rationale behind the prize’s selection of this project Quay Quarter Tower, the world’s first fully upcycled skyscraper, shows how retrofitting high-rise towers can replace demolition, cut waste and carbon and offer a blueprint for sustainable urban growth.

Although the redevelopment was completed in 2022, the project remains the focus of international attention for its innovative approach to extending the life of an ageing high‑rise asset, as exemplified by its selection in this prestigious competition. Rather than pursuing the conventional path of demolition and new construction, AMP Capital and its design and engineering partners adopted a strategy centred on retaining and repurposing the existing structure. This decision was not only environmentally responsible, but also commercially strategic, enabling the creation of a premium‑grade commercial tower while significantly reducing embodied carbon.

The project retained 65% of the original floorplates and structure, along with 98% of the structural walls and core. This approach avoided approximately 12,000 tons of embodied carbon and positioned Quay Quarter Tower as a global example of circular economy principles applied to commercial real estate. The decision to reuse rather than rebuild also accelerated delivery timelines, reduced material waste, and mitigated the financial and environmental risks associated with large‑scale demolition.

Architecturally, the tower’s transformation was led by Danish firm 3XN in partnership with BVN, marking the most significant Danish‑designed project in Sydney since the Opera House. The design strategy involved cutting away the northern third of the original AMP Centre and expanding the floorplates to create five stacked, rotating volumes. This geometry optimizes views, reduces overshadowing, and enhances tenant experience while maintaining structural continuity between old and new.

From an engineering perspective, the project introduced several world‑first innovations, most notably the retrofit of double‑deck lifts into an existing commercial tower. This solution freed up nine lift shafts and unlocked 120 square metres of additional usable space per floor, enabling the tower to nearly double its net lettable area with only a modest increase in core size. The integration of hydronic mechanical systems, advanced fire engineering, and centralized plant services further improved operational efficiency and occupant comfort.

The façade design also contributes to the tower’s performance, with high‑performance glazing and precisely angled sunshades reducing heat gain by an estimated 30%. Internally, a digital technology platform supports energy‑efficient HVAC operations and provides tenants with seamless access, wayfinding, and workplace management tools.

Quay Quarter Tower has achieved a 6 Star Green Star rating, a 5.5 Star NABERS Energy rating, a 4 Star NABERS Water rating, and WELL Platinum certification. For business leaders, the project demonstrates that sustainable redevelopment is not only feasible but commercially advantageous, offering a blueprint for future‑ready assets that meet environmental targets while delivering premium tenant experiences. For more technical details, the case study from Arup, which was the façade and MEP engineer for the project, is also included: Quay Quarter Tower’s Sustainable Building Design Saves Embodied Carbon. Additionally, the article Upcycling the highrise: Quay Quarter Tower was also consulted.

The office building is currently more than 99% leased and the main tenants are AMP, Corrs Chambers Westgarth, Deloitte, EQT, Johnson Winter Slattery.

Quay Quarter Tower demonstrates that sustainable redevelopment is not only achievable but can be commercially compelling. By proving that high‑rise upcycling can deliver premium performance, strong tenant demand, and major carbon savings, it sets a new benchmark for future‑ready real estate and offers a scalable model for low‑carbon urban transformation.

Future‑Proofing Real Estate: The New Mandate for Global Markets

SAM Curated — Tue, 27 Jan 2026 15:30:00 GMT

by Alexandra Faciu

Montréal, Canada

Throughout 2025, the OECD brought together a task force of specialists and senior leaders from across member countries to develop a comprehensive assessment of how climate pressures are reshaping real estate investment. I was privileged to be invited to contribute to this initiative. The objective was ambitious yet essential: to provide policymakers and market participants with the insights needed to align investment decisions with the imperatives of decarbonization and resilience, and ultimately support a built environment that is sustainable, adaptable, and future-ready.

The resulting report, Future‑Proofing Real Estate Investment, published in December 2025, synthesizes perspectives from regulators, investors, financial institutions, insurers, developers, and technical experts. It examines the full spectrum of climate‑related risks affecting real estate and outlines practical pathways for aligning private capital with public climate goals. Its breadth reflects the complexity of the sector and the reality that no single actor, public or private, can address these challenges alone.

This industry insight offers a high‑level introduction to the report’s core messages. Future posts will explore each theme in greater depth, helping organizations translate the report’s recommendations into actionable strategies.

Real estate has become a central arena for both climate mitigation and climate resilience. Buildings account for roughly one‑third of global energy‑related CO₂emissions, making the sector pivotal to achieving national and international climate targets. At the same time, real estate, valued at USD 111 trillion across OECD economies, is one of the world’s most climate‑exposed asset classes. As physical hazards intensify and policy expectations rise, protecting the long‑term value and stability of real estate has become a strategic priority for governments, investors, lenders, insurers, and households.

The report represents a new chapter in the OECD Programme on Decarbonising Buildings in Cities and Regions. Earlier phases focused on the role of cities and regions in driving decarbonization, the practical application of multi‑level governance, and the shift from operational carbon to whole‑life carbon, recognizing emissions embedded in construction, renovation, and demolition. This new phase widens the lens to the entire real estate ecosystem, acknowledging that resilience and decarbonization require coordinated action across public authorities, financial markets, and industry stakeholders.

The work builds on the momentum of the Declaration of Chaillot on Buildings and Climate, endorsed by around 60 countries in 2024. That declaration called for a decisive shift in investment flows—from carbon‑intensive, high‑risk assets toward climate‑resilient, near‑zero‑emission buildings. In response, the OECD launched the Future‑Proof Real Estate Investment Project, supported by a task force of regulators, investors, banks, insurers, developers, and climate‑risk specialists. Their collective expertise informs the report’s analysis of how climate risks are assessed, priced, and managed, and how policy can better align private capital with public climate objectives.

The emerging risk landscape underscores the urgency of this work. Climate risk is fundamentally place‑based: exposure to flooding, extreme heat, wildfire, and other hazards varies sharply by geography, land‑use patterns, and community vulnerability. Transition risks are rising as building codes, infrastructure requirements, and climate policies evolve. These pressures are already material, with climate‑related losses estimated between USD 50 and 430 billion annually. The impacts are visible in declining asset usability, shifting valuations, tightening lending conditions, and reduced insurance availability. As these dynamics reinforce one another, they create feedback loops—devaluation, credit deterioration, and insurance stress, that threaten both investment performance and financial‑system resilience.

The OECD identifies four strategic imperatives for future‑proofing real estate:

Integrating climate risk into planning and transactions
Building open, localized, interoperable climate‑risk data
Mobilizing financial tools to support resilience and decarbonization; and
Converging global measurement and reporting standards.

Looking ahead, policymakers and market actors will need to deepen climate‑risk assessment, establish global baselines for tracking exposure, and expand financing solutions, particularly in emerging markets where most new building stock will be constructed by 2050. Stronger partnerships across governments, financial institutions, and international organizations will be essential to closing data gaps, mobilizing investment, and securing a built environment that is both sustainable and resilient for the long term.

Sustainability in Unchartered Geopolitical Landscape: Governance Anchors Progress

SAM Curated — Wed, 07 Jan 2026 18:00:00 GMT

by Alexandra Faciu

Montréal, Canada

Happy New Year to all! With the holiday season now behind us, I am preparing for what promises to be a transformative year for SAM Curated, our curators and me. The first publication for SAM Curated is an Opinion piece. When writing this text, I considered two main anchors: the global outlook for real estate and the issue of governance, which I believe are essential in what announces to be a rather interesting year.

The recent news paints a clear picture of what’s to come: geopolitical and trade uncertainty, alongside momentum on sustainability, even if not as enthusiastic as other years. Clean energy may be encountering political resistance right now, yet I believe that the overall direction of travel suggests robust development activity. For experienced real estate investors and asset managers, this mix of volatility and long‑term structural shifts creates a landscape where well‑informed, disciplined strategies can uncover meaningful opportunities.

A good piece on the subject of real estate opportunities and risks comes from Hines. Its newly released 2026 Global Investment Outlook offers a useful lens on how the year may unfold. The company believes that commercial real estate has moved beyond its most volatile phase and is now progressing into a steady, disciplined recovery. Growth is expected to come from targeted opportunities that reward strategic focus and operational rigor. A major shift shaping this environment is the new geography of capital. Deglobalization has evolved from a discussion point into a structural reality, driving investment decisions toward more localized, hyper‑granular market insight. At the same time, the lines between asset classes are blurring as living, working, logistics and technology increasingly converge. Investors who recognize these intersections and position their strategies around them will be well placed to capture the next phase of market growth.

A healthy governance framework is, in my view, the anchor for what experienced asset owners and investors aim to achieve in 2026. It helps absorb shocks from the geopolitical and trade tensions already shaping the year, and it provides the structural stability needed for both short‑ and long‑term strategies. As I step into my new role with the RICS Governing Council, even with the organization operating under a Royal Charter and supported by a strong governance model, revisiting the fundamentals of corporate governance felt like the responsible way to prepare for my mandate with RICS and my work with asset owners and professionals in the built environment.

The 2023 G20/OECD Principles of Corporate Governance report is my go‑to reference. They set a global benchmark for how companies should be directed and controlled, calling for a coherent, law‑based framework that blends regulation, listing rules and voluntary codes while keeping pace with evolving markets and technology. The Principles reinforce core shareholder rights, equal treatment and strong protections for minority investors, while promoting low‑friction participation in general meetings. They also raise expectations for stewardship among institutional investors and intermediaries, emphasizing transparency, conflict‑of‑interest management and accountability.

High‑quality, timely disclosure aligned with international standards is central to the framework, supported by independent audits. Boards are expected to provide strategic oversight, manage risk and ensure the integrity of reporting. Importantly, sustainability and resilience are fully embedded, requiring clear governance of climate‑related risks, opportunities and stakeholder interests.

A safer, more stable world is within reach when we influence what we can and address risks and opportunities with intention as they emerge. With that mindset, 2026 has every chance to be a prosperous and constructive year!

Canada’s Sustainable Investment Guidelines

SAM Curated — Thu, 18 Dec 2025 18:17:39 GMT

by Alexandra Faciu

Montréal, Canada

The Government of Canada has reaffirmed its commitment to mobilizing both public and private capital in support of the transition to a net‑zero economy. Budget 2025 reconfirmed the government’s support for the arm’s‑length development of made‑in‑Canada sustainable investment guidelines, known as a taxonomy, and pledged to select an external organization to lead this work by the end of the year. That milestone has now been reached with the announcement by the Honourable François‑Philippe Champagne, Minister of Finance and National Revenue, that the Canadian Climate Institute will spearhead the initiative in collaboration with Business Future Pathways. This partnership will bring together representatives of major financial institutions and technical experts to ensure the guidelines are credible, science‑based, and aligned with global best practices.

The Canadian sustainable investment guidelines will serve as a voluntary market tool designed to identify “green” and “transition” investments. They will be built on strong and independent governance and structured to be compatible with other major international taxonomies and frameworks. By providing clarity and credibility, the taxonomy will become an essential resource for investors, lenders, and stakeholders seeking to align capital flows with Canada’s climate objectives. The government views this as a critical step in accelerating the growth of net‑zero aligned activities, particularly in sectors with higher emissions, where new technologies and processes can deliver significant reductions.

Canada is well positioned to seize this opportunity. With abundant resources, technical expertise, and a growing demand for low‑carbon goods and services worldwide, the country can leverage sustainable finance to strengthen competitiveness and attract private capital into priority economic sectors. The Canadian Climate Institute, working with Business Future Pathways, will establish a robust governance structure to oversee the development of taxonomy criteria and ensure broad stakeholder engagement. Immediate next steps include the creation of an independent Taxonomy Council tasked with reviewing and approving the guidelines. This council will be supported by advisory groups composed of independent experts, academics, financial sector leaders, civil society representatives, climate scientists, and Indigenous voices. Specialized working groups will also be formed to provide sector‑specific expertise and inform recommendations.

The timeline for delivery is ambitious but achievable. By the end of 2026, the council is expected to finalize investment guidelines for three priority sectors, laying the foundation for the made‑in‑Canada taxonomy. By fall 2027, guidelines for three additional sectors will be completed. Selection of these initial sectors will be based on where taxonomy guidance can deliver the greatest emissions reductions and enhance Canada’s low‑carbon competitiveness. Collaboration with government, industry, and stakeholders will be central to ensuring the guidelines are practical, credible, and effective in mobilizing capital.

Minister Champagne emphasized that clear, common standards are essential for financial markets and that the selection of the Canadian Climate Institute accelerates Canada’s ability to provide that clarity. Parliamentary Secretary Ryan Turnbull highlighted the importance of attracting private capital in the global race to a low‑carbon economy and underscored the role of Indigenous and civil society leaders in shaping definitions of “green” and “transition” finance. Jonathan Arnold of the Canadian Climate Institute stressed that the guidelines will not only define clean technologies but also provide pathways for emissions‑intensive sectors to transform and remain competitive. Barb Zvan, Chair of the Financial Advisory Committee of Business Future Pathways, noted that globally aligned, made‑in‑Canada guidelines will unlock economic potential and direct investment toward opportunities that will shape Canada’s future.

Together, these efforts mark a significant step in positioning Canada as a leader in sustainable finance. By establishing clear, credible, and science‑based definitions of sustainable investment, the government aims to mobilize capital at scale, strengthen competitiveness, and ensure that Canada’s economy is aligned with its 2050 net‑zero target.

To access the press release click 🔗 this link

From ESG Option to Core Strategy: What 2025 Investor Surveys Reveal

SAM Curated — Tue, 16 Dec 2025 13:00:00 GMT

by Alexandra Faciu

Montréal, Canada

2025 proved to be a defining year for sustainability and ESG. In its early months, many countries were preoccupied with the disruptive effects of new tariff policies introduced by the US Administration, which shifted immediate priorities toward economic resilience and survival, seemingly at the expense of climate and sustainability goals. Yet this proved temporary. As the year progressed and governments adjusted to the new landscape, sustainability reasserted itself as a central theme in both policy and investment discussions. By the latter half of 2025, ESG considerations were firmly back on the agenda, shaping strategies across industries and reinforcing their role as a cornerstone of long-term value creation. To illustrate this renewed momentum, I have drawn on two investor surveys, one spanning all asset classes and another focused specifically on real estate, that capture both the prevailing sentiment and the trajectory of sustainable investment in the years ahead.

The Morgan Stanley Institute for Sustainable Investing’s Sustainable Signals survey, published in late 2025, shows that 84% of institutional investors expect the proportion of sustainable assets under management to rise within two years. This is not a marginal uptick but a decisive shift, with asset owners in particular reporting a six-point increase in expectations compared to last year. North America leads the charge, with more than 90% of asset owners planning to expand allocations, while Europe and Asia-Pacific follow closely. Financial performance and a maturing track record are the primary drivers, underscoring that sustainability is now seen as a pathway to resilience and profitability rather than a branding exercise.

Yet optimism is tempered by growing concerns. More than one third of the respondents flagged challenges as “very significant,” up sharply from 25% in 2024. Data availability, regulatory uncertainty, and political volatility remain obstacles. Even so, more than 80% of investors view sustainability as integral to managing risk, with one-quarter citing portfolio risk reduction as their main motivation. Climate adaptation is rising rapidly on the agenda, moving from sixth to third place among investment priorities. Over 75% of investors expect physical climate risks to affect asset prices within five years, prompting capital flows into adaptation strategies such as water infrastructure, advanced analytics, and grid modernization. Half of global investors now embed climate resilience into their risk-return models, signaling a fundamental recalibration of investment logic.

Energy efficiency and renewable energy continue to dominate as the top two priorities, reflecting their dual appeal as financially viable and environmentally critical. Together with climate adaptation, they form the backbone of institutional strategies. The momentum is unmistakable: sustainability is being woven into the fabric of investment practice, not as a moral choice but as a financial imperative.

The Knight Frank ESG Property Investor Survey, published in June 2025, illustrates how these dynamics are playing out in real estate. With GB£300 billion (more than US$400 billion) in assets represented, the survey shows offices remain the dominant asset class, but logistics, retail, living sectors, and hotels are also significant. Financial performance again tops the list of motivators, with green-certified buildings commanding premiums of up to 18% in cities like London, Sydney, and Melbourne. Retrofitting has emerged as the leading ESG property strategy, with 76% of respondents prioritizing upgrades to existing assets. This reflects both necessity, 80% of today’s buildings will still be standing in 2050, and opportunity, as retrofits deliver higher rental values and exit premiums. Renewable adoption lags, with less than 10% of assets using renewable power, though regulatory changes in Europe are poised to accelerate uptake.

Net-zero commitments, cited by 69% of respondents, are shaping procurement and competitiveness, while ESG due diligence grows increasingly data-driven. Tools like CRREM are being deployed to assess stranding risks, and whole-building energy data is becoming standard. Social impact is gaining traction, though frameworks remain inconsistent, with only 48% of investors measuring it systematically. Aligning strategies and standardizing metrics will be crucial as social value becomes a mainstream expectation.

Taken together, these surveys reveal a decisive transformation. ESG is no longer optional in real estate or broader institutional portfolios. Financial performance, risk management, regulatory compliance, and stakeholder expectations are converging to embed sustainability at the core of investment practice. Retrofits, renewables, net-zero commitments, and climate resilience are not side projects but central pillars of strategy. The question is no longer whether sustainability matters, but how quickly and decisively investors can act to embed it into every decision.

Women Shaping the Future of Real Estate. Leadership, Strategy, and the Built Environment

SAM Curated — Tue, 09 Dec 2025 16:30:21 GMT

by Alexandra Faciu

Montréal, Canada

A few weeks ago, I had the privilege of participating in a panel hosted by the Jonathan Wener Centre for Real Estate at the John Molson School of Business of Concordia University, in Montreal, Canada. I joined two well-known academics, Avis Devine and Erkan Yӧnder, for a thoughtful discussion on a topic that has been relatively muted over the past year yet remains critically important to the future of our industry.

The panel Women Shaping the Future of Real Estate: Leadership, Strategy, and the Built Environment explored how leadership diversity influences corporate strategy, sustainability, organizational culture, and performance outcomes. The discussion began by acknowledging the persistent challenge in real estate: despite commitments to diversity, women remain underrepresented in senior leadership roles. Token appointments, such as a single woman on a board, rarely deliver meaningful impact. Research shows that when a woman CEO is supported by multiple women on the board, firms demonstrate more disciplined risk management, greater investment in sustainable buildings, and clearer strategic focus. This underscores the importance of moving beyond symbolic inclusion to achieve real representation that drives measurable benefits.

We have reviewed insights drawn from both academic research and executive practice. In August 2023, Avis and Erkan published How Gender Diversity Shapes Cities: Evidence from Risk Management Decisions in REITs, a study that I found particularly valuable. My own entry into real estate differed from many of my peers, as I was fortunate to have several female managers and role models, including my mother, who influenced and supported my career path.

Diverse leadership teams approach risk, capital allocation, and sustainability differently, leading to stronger long-term outcomes. Decision-making dynamics improve when multiple perspectives are present, fostering richer debate and more balanced strategies. Yet, many firms continue to act as though one woman at the table is sufficient, revealing a disconnect between evidence and practice.

Turning to organizational realities, the conversation highlighted that mentorship alone does not create advancement pathways; advocacy and sponsorship are critical for ensuring underrepresented talent gains visibility and opportunities. Effective practices include transparent role definitions, stretch assignments that build leadership capacity, and leadership cultures that reward diverse contributions. Barriers remain in how teams are structured, how decisions are escalated, who gains visibility with senior leadership, and how incentives are tied to ESG and diversity goals. Culture and incentive systems were identified as high-return areas for immediate improvement.

We have also focused on practical actions the industry can take. Firms should adopt deliberate board composition practices, succession planning, and measurable diversity targets. Progress requires tracking metrics such as representation across leadership tiers, ESG-linked performance, and promotion pathways. For women navigating advancement, confidence, resilience, and the ability to act fearlessly in male-dominated environments are critical, alongside skills in strategic thinking, adaptability, and stakeholder management.

Given the three of us have a naturally positive outlook on business and life in general, we shared our optimism about growing investor expectations, governance reforms, and educational pipelines that emphasize diversity, despite current headwinds. We believe that the next generation of leaders will bring strengths in collaboration, sustainability focus, and innovation, which could reshape organizational norms. The key message was clear: the industry must move beyond tokenism and embed diversity as a driver of performance, resilience, and transformation in real estate.

Financing Solutions to Accelerate Low Carbon, Resilient Real Estate

SAM Curated — Wed, 19 Nov 2025 13:00:00 GMT

by Alexandra Faciu

Montréal, Canada

At the end of October, I participated in a workshop hosted by Affine Climate Solutions, focused on accelerating the net-zero transition in Canada through innovative financing strategies. The event brought together a range of market participants to share progress and to engage wider support from the industry.

Research over the last twenty years shows that climate-aligned buildings deliver strong financial returns and lower risks for lenders, owners, tenants and fund managers. These buildings consistently outperform conventional assets by maintaining income and asset values, resulting in a lower risk of default. However, sector-wide adoption continues to be limited by high upfront costs, short-term incentives, and valuation practices that do not reflect the demand for green buildings. The need for targeted financing solutions, like preferential loans and mortgages, is clear, as these tools help bridge the gap and support broader market uptake.

The Banking on Buildings Program, launched in 2025, embodies a national effort to embed climate resilience and low-carbon performance into real estate financing. Backed by leading financial institutions including Bank of Montreal, BDC, Coast Capital Savings Federal Credit Union, and Vancity Credit Union, this program is designed to align lending practices with long-term asset value and climate objectives. Its aims include:

Accelerating the transition to climate-aligned real estate by linking financing tools to long-term building performance, supporting both emission reductions and resilience to extreme weather.
Equipping financial institutions with consistent frameworks and data to reward leadership on climate performance, with better financing terms.
Improving risk assessment and pricing to favour climate-resilient, low-risk assets in lending portfolios, boosting portfolio returns and managing downside risk more effectively.

The program is helping to build institutional capacity for integrating sustainability into risk assessments and lending decisions, positioning financial institutions as leaders in Canada’s net-zero transition.

Advancing Tools Through Industry Engagement

The event in October provided a forum for sharing and validating three core tools developed under the program:

Business Case Report: Analysis of market evidence since 2002 shows that green buildings maintain financial performance where conventional assets lose value. The next frontier is aligning assets and valuations with net-zero targets for a strategic, competitive advantage.
Low Carbon Financing Framework: This framework standardizes metrics for assessing low-carbon and resilient buildings, with compliance options through robust performance criteria or selected third-party certifications. It aims to simplify the process and encourage consistent adoption across institutions.
Financing Pilots: Pilot projects across asset classes and regions will test the framework and incentive models, offering preferential financing terms to buildings that meet the criteria and inviting wider industry participation for validation and scaling.

Through this initiative, the industry is building the tools and collaboration required to accelerate investment in climate-resilient and low-carbon real estate. It is encouraging to note that the recently approved Federal Budget 2025, which outlines Canada’s strategic priorities for the coming years, should pave the way for this and related programs to accelerate the net-zero transition across the built environment.

270 Park Avenue: Redefining the Sustainable Skyscraper

SAM Curated — Thu, 23 Oct 2025 22:00:32 GMT

by Alexandra Faciu

Montréal, Canada

I would be remiss not to cover the grand opening of a new landmark in New York City, which was this week’s real estate news. I took this photo during my visit to Climate Week last year. By then, I had already gathered sufficient knowledge about the building from various business partners and existing literature, but most importantly, it was very difficult to miss the building on the already fascinating New York skyline.

While the project has already received extensive media coverage, a particular analysis from August is noteworthy for its depth and clarity: the case study published by Parametric Architecture. This piece offers a compelling insight into the building’s design philosophy, sustainability features and urban impact, so I am summarizing it below. I encourage those interested to explore the original article here.

The new 270 Park Avenue, designed by Foster + Partners for JPMorgan Chase, represents a major milestone in sustainable skyscraper design and corporate real estate innovation. Rising 434 meters above Midtown Manhattan, the all-electric tower integrates environmental responsibility, technological advancement, and architectural excellence to redefine the modern workplace.

Replacing the original Union Carbide Building designed by Gordon Bunshaft and Natalie de Blois, the project reflects a strategic shift toward future-ready, high-performance buildings aligned with evolving workplace models and climate objectives. The tower’s distinctive diamond-patterned diagrid façade, tapering glass form, and 80-foot elevated fan-shaped base create a refined architectural identity while expanding public space and improving connectivity between Park and Madison Avenues.

Designed to accommodate 14,000 employees, the 2.5 million-square-foot workplace supports hybrid models through flexible layouts, open collaboration spaces, and wellness-driven design. High-performance glazing enhances efficiency and comfort, while landscaped terraces and widened sidewalks foster a connection between the building and its urban context. Structurally, a 280-ton tuned mass damper mitigates wind motion, and modular construction with extensive material recycling underscores efficiency and environmental stewardship.

The tower stands as New York City’s largest all-electric skyscraper, achieving net-zero operational emissions fully powered by renewable hydroelectric energy. It targets LEED v4 Platinum, WELL v2 Pilot Platinum, Fitwel 2.1 2-Star, and WELL Health-Safety certifications. Intelligent systems powered by sensors, AI, and machine learning optimize energy and water use, delivering projected reductions of more than 40% in water consumption.

270 Park Avenue operates as both a corporate headquarters and a civic landmark. Its transparent base, public plaza, and contextual design express an integrated approach to sustainability, accessibility, and urban resilience. The project exemplifies how contemporary architecture can merge corporate ambition with public benefit, shaping a model for the next generation of high-performance, climate-aligned towers.

Powering On: New York Climate Week Signals a Renewed Commitment to Real Assets and Decarbonization

SAM Curated — Tue, 07 Oct 2025 18:47:47 GMT

by Alexandra Faciu

Montréal, Canada

A few weeks ago, New York City was the place where people from all over the world came together to talk about global issues, climate and sustainability. Heads of state, industry leaders, and sustainability advocates gathered for the United Nations General Assembly and the 17th edition of New York Climate Week. This year’s theme, “Power On”, was more than just a slogan. It was a call to action that showed the growing support for clean energy, climate finance, technology and green jobs.

My primary objective in attending this landmark event was to engage in conversations surrounding the built environment, while also paying close attention to emerging trends that could potentially accelerate decarbonization in our industry. As a sustainable asset and portfolio management professional, my primary focus is on identifying optimal strategies for retrofitting existing assets and developing new sustainable buildings, both strategies designed to achieve net zero targets within portfolios by leveraging the financial aspects behind value creating and protection of assets and portfolios. I have attended a couple of sessions on these topics, one organized by the International Code Council , RICS , AIA New York | Center for Architecture and Gensler , and the other by the Empire State Realty Trust . I will be detailing these themes further in upcoming posts for SAM Curated, but two broader signals from Climate Week deserve to be highlighted.

First, I share the sentiment expressed by a business partner in one of his LinkedIn posts: there is a quiet determination among market participants to pursue net zero strategies, irrespective of headwinds. At last year’s CREtech Conference, I heard leaders from local and state agencies affirm their commitment to climate plans, with or without federal support. Nearly a year later, Climate Week confirmed that those promises weren’t just rhetoric. Market participants with high conviction, including these agencies, have stayed the course and will continue to stay the course.

Second, we are witnessing the rapid convergence of real estate and infrastructure investment. Major asset managers such as Blackstone, BlackRock and Brookfield are investing heavily in clean energy portfolios and sustainable financing instruments. Brookfield recently closed its $20 billion Global Transition Fund II, reportedly the world’s largest private fund dedicated to the energy transition. (Link to the article here.) Meanwhile, BlackRock and CPP Investments’ acquisition of Allete, the parent company of Minnesota Power, signals a growing interest in utility-scale assets. (Click here for the full article.)

This shift is not just about capital; it’s about strategy. Institutional investors, particularly pension funds, began merging their real estate and infrastructure teams into unified Real Assets divisions years ago. Now, the rest of the market is catching up. The benefits of treating real assets as a cohesive investment class are becoming increasingly clear, especially in the context of climate resilience and long-term value creation.

At SAM Curated, we will continue to track these developments across the built environment. The convergence of infrastructure and real estate, coupled with unwavering net zero commitments, will redefine our collective approach to sustainability, investment and impact. These themes are not only relevant to the present moment, but they also have the potential to be transformative in the near future.