Media Coverage
Source: GlobeSt.com
Media Coverage
Press Contacts: Erik Cummins, Matt Hyams, Olivia Thomas
06.02.22
In the past few years, environmental, social and governance (ESG) concerns have moved from afterthought to top priority for most industries. Commercial real estate is no different, where ESG is now viewed by most CRE investors as a matter of risk management. But with this increased awareness has come a new source of risk: increased SEC scrutiny over overinflated or otherwise false ESG claims.
“The SEC’s crackdown could potentially affect access to capital as funds begin more rigorous vetting of companies in their ‘impact portfolios’ in an effort to avoid greenwashing allegations,” said Pillsbury Litigation partner and former federal prosecutor Kimberly Jaimez in Los Angeles.
“Impact investments are typically marketed as ones that create social and environmental benefits. Thus, real estate companies that market development projects as ‘transformative development,’ ‘urban renewal,’ ‘redevelopment’ or ‘sustainable’ real estate should be ready to provide evidence for such statements,” she said. “They should be ready to explain the social and/or environmental benefits generated by their development projects if they want to ensure their inclusion in such impact portfolios going forward.”