Real estate owners and investors are increasingly focused on climate considerations due to the rising frequency and severity of weather-related events. At Leo Impact Capital, a JBG SMITH subsidiary, they approach sustainability and resilience by integrating climate risk assessments into their investment and asset management processes. They analyze historical climate data, local infrastructure resilience, and regulatory frameworks to understand potential risks and opportunities. Energy audits are a critical component of their approach, helping them identify areas for improving energy efficiency and reducing costs. They have identified over $13 million in sustainability investments that will reduce energy consumption by 60% and result in total annual savings of over $500,000. By leveraging grant funding and private financing options, they have found that incorporating a sustainability lens into their work unlocks new opportunities for growth and innovation, reducing portfolio risks and creating win-win outcomes for residents and investors. By adopting a climate-conscious approach, they aim to maintain affordability, enhance economic mobility, and deliver solid financial returns.
Integrating climate risk assessment into multifamily real estate investments optimizes returns and reduces vulnerabilities.
