Shearman & Sterling LLP Impact Investing in Commercial Real Estate | 41
THE WAY FORWARD
While the initiatives noted above are
commendable and bode well for the
future, there is no doubt much more
work to be done. The ultimate goal
is, in effect, to eliminate the need for
"impact investing," to create a market
place where positive community
impact and climate change and other
environmental concerns are no longer
on a separate checklist, but rather
ingrained in investment culture.
Each participant in the commercial
real estate community has a role to
play in achieving this goal. The roles of
developers and builders are perhaps
the most apparent — to plan projects
that enhance the life of the local
community and to do so with materials
and protocols that are environmentally
efficacious. They should not stand
alone. Public companies can use their
platforms to disseminate information
about their initiatives to the investment
and broader communities — to
make sustainability and community
benefit core parts of their investment
analyses (whether in connection with
new development, commercial real
estate acquisitions or lending) and to
further public dialogue on these issues.
Pension funds and other investors
have been and should continue to be
a force behind the scenes, by targeting
ESG-conscious investment funds or
partners and thus to promote impact
Commercial space users can drive
the market by demanding a product
that is both environmentally friendly
and community sensitive
investing throughout the investment
chain. Commercial space users can
drive the market by demanding a
product that is both environmentally
friendly and community sensitive. The
guiding principle should, of course,
be to continue to "walk the walk."
