Climate Risk in Real Estate Investing
TheIMPACT focuses on ESG, Impact Investing, and advancing the 17 United Nations-supported Sustainable Development Goals (SDGs).
The show profiles people and companies committed to changing lives and creating a sustainable world.
Sam Adams - Co-founder & CEO, Vert Asset Management -
Join our host, Jeff Gitterman, on TheIMPACT with Sam Adams, Co-founder & CEO of Vert Asset Management.
Sam Adams is an environmentalist and a capitalist (yes, it is possible to be both at the same time!). Sam is passionate about nature, enjoys spending time outdoors, and believes in defending it – whatever it takes.
As an investment professional, he is a believer in [the] markets’ power and ability to solve problems when provided with the right information.
He founded Vert Asset Management to enable investors to accelerate the transition to a more sustainable investment future.
ESG in Real Estate Investing -
To address climate change, we must understand that real estate is a significant driver of our professional lives that map into the higher system at large. As we look at specific considerations in ESG real estate strategies, we must consider the data:
- 40% of energy comes from buildings/offices;
- Typical Americans spend 90% of their life indoors;
- 33% of all greenhouse gas emissions come from real estate.
Mitigating Climate Risk -
Sam launched the ESG Real Estate Strategy about three years ago, which resulted in detailed data maps, layering, and capabilities that amplified their exponential approach alining principles with assets. By looking at, for example, previous rainfall and future assumptions, along with frequencies of flooding events and similar “force majeure” style events, the approach granularity follows.
From the recent acquisition of 427 by Moody’s to companies Vert Asset Management works with to understand real insurance risk, value at risk (VAR), and other metrics, it is clear the advantage lies with those that are ESG focused!
Post-COVID REIT Allocation for ESG Investing -
Jeff states that with the matriculation of risk in the marketplace, the investor can de-risk their portfolios against climate exposure. Sam agrees there exists a clear differential of information that some investors are paying attention to, while others are not at all whatsoever to their eventual peril.
It’s the ultimate arbitrage on knowing what datasets are even available, what should be used, and then the real standards of the future driven by exponential leaders such as Sam and his team at Vert.
To learn more about Sam Adams, Vert Asset Management, and how they are changing the real estate investing game with data-driven ESG modeling, watch the interview exclusively on FINTECH.TV.