This article discusses the growing importance of climate tech and its potential for substantial returns on investment (ROI). The author, an investor at SVB Capital, highlights several key points:
- Market readiness: The real estate industry is beginning to adopt climate technologies, with 58% of respondents in a Nareit Member Survey having already reduced their year-over-year GHG emissions.
- Growing demand for ESG data: Commercial real estate ranks efficient operations and access to ESG (Environmental, Social, and Governance) data points as the #1 and #3 technology priorities in recent years, according to research from E&Y.
- Clear ROI value proposition: Recent research from E&Y suggests that cost and perceived lack of ROI are major considerations in delayed adoption among corporate real estate. However, with a clear ROI, industry stakeholders may be more inclined to adopt climate technologies.
- Emergence of new solutions: Companies like Measurabl, Passive Logic, and Cove.Tool are developing innovative climate-related products that can provide substantial cash flow and a clear ROI value proposition.
The author concludes by emphasizing the potential for a technological revolution in the real estate industry, driven by the need to address climate change. As the world becomes increasingly aware of the importance of ESG data, companies that offer solutions related to energy efficiency and greenhouse gas emissions may see significant growth opportunities.
The article also highlights several key statistics, including:
- 58% of respondents in a Nareit Member Survey having already reduced their year-over-year GHG emissions.
- 53% of these reduced their GHG emissions by 5% to 20%.
- Commercial real estate ranks efficient operations and access to ESG data points as the #1 and #3 technology priorities in recent years, according to research from E&Y.
Overall, the article suggests that climate tech is becoming an increasingly important area of investment, driven by both environmental concerns and financial opportunities.
