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Course Details

This CLE webinar will discuss the current uncertain legal and regulatory landscape surrounding environmental, social, and governance (ESG) considerations and sustainability in real estate finance and investment and the issues real estate investment funds should consider in implementing ESG initiatives in their portfolios. The panel will address the business case for ESG and sustainability by highlighting how these factors impact asset valuation and performance, property management, risk mitigation, and access to capital. 

Faculty

Description

The commercial real estate industry is currently navigating a new legal and regulatory landscape relating to ESG and sustainability punctuated by shifts in regulatory and deregulatory policy changes on the state, federal, and international levels. These changes have created uncertainty in the real estate finance industry, leaving investors and developers examining the relevance of ESG and sustainability initiatives and wondering whether and to what extent they should continue to pursue these initiatives going forward. 

ESG and sustainability factors can provide important metrics beyond traditional financial criteria to evaluate how properties and portfolios are performing, providing a strong business case for continuing to pursue these initiatives. 

Pursuing ESG and sustainability initiatives can enhance an asset's bottom line. Building sustainability measures such as energy efficiency is appealing to tenants because it demonstrates that the landlord is engaging in cost savings measures that will likely be passed onto tenants. Investors are also demanding and prioritizing sustainability because they recognize that green properties are better positioned for long-term growth and risk mitigation, leading to higher returns and reduced volatility. 

The Trump administration intends to rollback most ESG and sustainability-related federal laws, but there are regulatory developments on the state and international levels that make compliance strategies in this area complex. Counsel must understand the growing patchwork of laws and regulations to effectively advise their clients in this area. 

Listen as our authoritative panel discusses ESG and sustainability considerations in real estate finance and investment and provides suggestions for investment funds and asset managers navigating the uncertain legal and regulatory landscape.

Outline

I. Overview: ESG and sustainability in real estate finance

II. Current legal and regulatory/compliance framework and how it is expected to change

III. Business case for ESG and sustainability: how ESG and sustainability factors drive value and investment in real estate

IV.  Mitigating ESG and sustainability legal and regulatory risks

V. Guidance for navigating the fragmented legal landscape 

Benefits

The panel will review these and other key considerations:

  • What is the current legal and regulatory compliance framework and what changes are expected over the next few years?
  • To what degree are ESG considerations driving real estate fund investing in today's market?
  • How do ESG and sustainability considerations figure into the valuation of a real estate asset?
  • What are the current litigation risks involving ESG-related claims?