Technology Helping Investors to Reduce Assets’ Carbon Footprint

The real estate sector holds a significant responsibility for environmental impact, contributing to a substantial 38% of all greenhouse gas emissions. Further, the current global landscape indicates that only a mere 15% of assets worldwide are in alignment with the ambitious 1.5*C target set by the Paris Agreement.

Paul Feinstein, CEO and Founder, Audent Global Asset Management, believes that carbon-neutral properties are the future of real estate.

“As buildings stand as the largest contributor to global warming, the imperative for change is clear,” Feinstein tells GlobeSt.com.

“There’s a unique opportunity for investors to join the sustainability movement, building portfolios aligned with carbon neutrality as the future of real estate gains recognition, shifting focus away from older, environmentally harmful properties.”

He said that investing in carbon-neutral real estate and upgrades helps to mitigate climate change risks by reducing carbon emissions and energy consumption.

“These investments enhance property value and attractiveness to tenants, who increasingly prioritize eco-friendly living spaces,” Feinstein said.

“Financially, such upgrades can lead to long-term cost savings through reduced utility bills and operational expenses.”

According to Audent Global Asset Management, as climate change urgency rises and regulations demand higher efficiency, investors can outperform by anticipating and adapting to evolving standards, ensuring their portfolios are resilient and aligned with environmental goals.

Feinstein said investors may increasingly avoid older properties that are left behind from an environmental perspective primarily because older buildings often lack energy-efficient features and sustainable infrastructure, resulting in higher operating costs and environmental impact.

“Retrofitting such properties to meet modern environmental standards can be prohibitively expensive, making them less attractive investment options,” he said.

As such, investors are prioritizing attributes such as energy efficiency, green certifications (e.g., LEED), sustainable materials, and smart technology integration, he said.

“These features not only align with sustainability goals but also enhance asset value, tenant satisfaction, and long-term viability in an increasingly competitive market,” Feinstein said.

The larger movement of investors is steering money toward sustainable real estate, thanks to new technology and tougher standards that allow for better tracking of a development’s ability to reduce its carbon footprint, according to Audent Global Asset Management.

“Investors are utilizing advanced energy monitoring systems and smart building technologies to track and manage energy consumption, water usage, indoor air quality, and other environmental metrics in real-time,” Feinstein said.

“These technologies provide valuable insights for improving building performance, reducing carbon footprints, and ensuring compliance with sustainability goals and regulations.”