ESG Investments: US Green Build Voluntary Certification Programs and Regulatory Framework

As sustainable investing continues to grow in popularity, family offices have taken note. Investor surveys indicate that more and more respondents take the non-financial performance of a company into consideration in their investments, which include environmental, social and governance (ESG) strategies. Of the most important ESG criteria to investors, green building certification ranked as the top. In addition to the voluntary green certifications available to companies, a number of regulatory entities have enacted or are in the process of enacting green build requirements. Here, we examine the background and future of green certifications and green build requirements, along with how such certifications and other ESG criteria can be factored into real estate investments.