Turning Sustainability Ambition into Action: Verdani’s Insights from IMN
AUTHORS: PAULYNN CUE, WITH INSIGHTS FROM VERDANI IMN ATTENDEES: DANIELE HORTON, DANA WEISS, JAMIE BEMIS, TIM SWANEY, ZACH BROWN, AND SHUBHA MAHESHWARI
FEBRUARY 11, 2025The 2025 IMN ESG and Decarbonization Forum, held in in Nashville, TN, on February 4–5, gathered industry leaders to discuss practical strategies for transforming sustainability commitments into tangible results. As sustainability consultants, we focus on helping real estate owners and managers implement effective programs that drive value, mitigate risk, and enhance resilience. Here are the most relevant takeaways from our team.
1. Moving Beyond Reporting: From Data to Action
Collecting quality data is not just a compliance necessity—it is the foundation of meaningful sustainability action. Many real estate properties lack efficient data collection systems, leading to flawed reporting and missed opportunities for operational improvements. To address these challenges, industry leaders emphasized several key strategies:
Automation and AI: Reducing the reporting burden through automation enhances data accuracy and frees up resources for strategic decision-making.
Standardization Matters: Ensuring consistency across ESG frameworks allows for better benchmarking and portfolio-wide insights.
Strategic Integration: Embedding sustainability into capital planning helps real estate firms align sustainability efforts with long-term financial performance.
Strategic Insight: Sustainability reports are only as good as the information that feeds them, making automation and verification critical to ensuring accurate tracking, benchmarking, and goal setting. Further, reporting is only the starting point—real impact comes from using data to inform decisions, drive action, and create long-term value. Without a shift toward implementation, companies risk compliance fatigue while missing out on opportunities to optimize performance and enhance portfolio resilience.
“Decarbonization isn’t just about compliance — it’s about future-proofing assets and staying competitive. Investors who think beyond quick paybacks will be better positioned for long-term value creation. Buyers are starting to factor sustainability into pricing, and as energy costs rise, efficiency is becoming a key driver of investment decisions. Real estate firms that take a strategic, portfolio-wide approach now will have a stronger market position when the next transaction comes.”
TIM SWANEY
SENIOR DIRECTOR OF BUSINESS DEVELOPMENT, VERDANI PARTNERS 2. Decarbonization and Net Zero: A Staged Approach
The consensus among industry leaders at IMN was clear: most firms are implementing net-zero strategies gradually, rather than committing to an immediate, full-scale portfolio transformation across all properties. Financial and technical feasibility, regulatory requirements, and market realities necessitate a staged, asset-level approach to decarbonization. By piloting strategies, measuring impacts, and scaling successful initiatives over time, organizations can implement practical, effective decarbonization efforts while aligning with long-term financial and operational goals. Key strategies include:
Energy Efficiency First: Before investing in renewables, optimizing existing building operations through energy audits and efficiency upgrades is key.
Electrification and Renewable Energy: Transitioning away from fossil fuels and integrating on-site renewables enhances resilience and cost savings.
CRREM and Science Based Targets: Utilizing frameworks like CRREM (Carbon Risk Real Estate Monitor) and SBTi (Science Based Targets initiative) ensures companies are on a credible decarbonization pathway.
One of the biggest hurdles to decarbonization has been the perception that comprehensive net-zero plans are too costly or unrealistic. Historically, real estate owners have lacked the tools to accurately assess carbon risks and prioritize cost-effective solutions. Now, with science-based frameworks and emerging financial incentives, a staged approach allows companies to take manageable, data-driven steps toward achieving meaningful reductions in carbon emissions.
Strategic Insight: Achieving net zero is not about sweeping commitments—it’s about taking strategic, incremental steps that align with financial and operational realities. A staged approach allows real estate owners to implement cost-effective solutions, measure impact, and scale successful initiatives while maintaining business viability.
“The conversation around net zero is shifting — it's no longer about setting goals, but about taking real, measurable action. Companies that integrate decarbonization into CapEx planning, leverage science-based tools like CRREM and frameworks such as SBTi, and engage stakeholders early will be best positioned for long-term success. The tools exist — it’s time to move from abition to execution.”
JAMIE BEMIS SENIOR DIRECTOR OF ESG, HEAD OF DECARBONIZATION, VERDANI PARTNERS3. The Business Case for ESG: Value Creation and Risk Management
Decarbonization is no longer just about compliance—it’s about financial performance and long-term value preservation. As market expectations and regulations evolve, real estate owners and investors must proactively address sustainability risks to maintain asset value and competitiveness. Key considerations include:
Fiduciary Responsibility: Investors and asset managers must prioritize sustainability initiatives that drive risk-adjusted returns.
Building Performance Standards (BPS): As regulations tighten, properties with low energy efficiency and high carbon emissions risk potential fines and devaluation.
Future Buyers’ Perspective: Energy efficiency, emissions profiles, and exposure to climate risk are becoming key factors in real estate transactions and valuations.
Discussions highlighted that despite anti-ESG and anti-DEI rhetoric, many commercial real estate (CRE) leaders remain committed to environmental, social, and governance principles because they align with fiduciary responsibilities. While some firms may adjust terminology to avoid political pushback, the focus remains on financial prudence, risk mitigation, and long-term asset performance.
Additionally, climate change is significantly impacting the insurance industry, with rising premiums making it harder to insure properties in high-risk regions. As insurers transition from backward-looking models to forward-focused risk projections, real estate owners must proactively mitigate climate risks to protect asset values and maintain insurability.
Strategic Insight: Sustainability is now a key driver of real estate valuation and financial resilience. Owners and investors who integrate sustainability into their long-term strategy will not only mitigate risks but also enhance asset performance, liquidity, and tenant demand.
“The commercial real estate industry remains committed to social and environmental responsibility as a core fiduciary responsibility, regardless of nomenclature. True impact requires more than just making commitments — it demands comprehensive execution. Beyond implementing upgrades, ensuring operational follow-through, upskilling, and stakeholder alignment is critical to long-term success. Organizations that proactively adopt frameworks and initiatives to stay ahead of evolving regulations and industry standards will be best positioned for resilience, risk management, and value creation.”
DANA WEISS
SENIOR DIRECTOR OF ESG, HEAD OF RESILIENCE, VERDANI PARTNERS4. Resilience and Risk Mitigation: Preparing for Climate and Market Shifts
Navigating rising insurance costs and evolving regulations requires a proactive approach to resilience. By anticipating risks and adapting early, real estate portfolios can enhance long-term stability. Key strategies include:
Water Management and Biodiversity: While not yet widely seen as material financial risks, proactive water leak management and biodiversity policies can position assets for future success.
Insurance Premiums and Climate Risk: Strong asset resilience measures can help push back on rising insurance costs.
Regulatory Uncertainty: Fragmented policies across different regions create compliance challenges, making proactive adaptation crucial.
Operational Follow-Through: Maximizing sustainability investments requires ongoing oversight at the property level. Without proper training and follow-up, efficiency projects—such as smart irrigation systems—can fail to deliver expected benefits if maintenance teams override settings due to lack of familiarity.
Embodied Carbon and Material Selection: As sustainability strategies evolve, addressing embodied carbon has become a priority. Selecting lower-carbon materials—such as mass timber, bio-based insulation, and recycled steel—can significantly reduce lifecycle emissions. Additionally, future scope 3 reporting will likely include emissions from material transportation, further reinforcing the importance of sustainable sourcing and procurement strategies.
Climate-related risks have intensified in recent years, with extreme weather events, water scarcity, and shifting regulations disrupting asset performance. Additionally, the growing importance of embodied carbon in sustainability strategies is driving real estate firms to rethink material selection and construction methods. New approaches are helping reduce emissions and meet long-term environmental targets.
Strategic Insight: Risk mitigation is no longer just about operations—it extends to insurance, construction choices, and long-term regulatory positioning. Firms that act now will be better positioned to manage future risks and enhance resilience.
“Fiduciary responsibility should guide ESG strategy—focus on value creation, not just payback. Liquidity at exit, higher rental rates, and minimizing downside risk should all be considered in addition to simple ROI. Building Performance Standards are increasingly material for U.S. stakeholders, while rising costs linked to climate hazards reinforce the need for detailed physical risk assessments, mitigation strategies, and a stronger push for insurers to recognize and reward asset-level resilience.”
ZACH BROWN
EXECUTIVE DIRECTOR OF ESG, VERDANI PARTNERS 5. Strategies for ESG Leaders
To successfully implement environmental, social, and governance initiatives, industry leaders must take a strategic, results-driven approach that integrates sustainability into core business operations. Speakers emphasized the importance of balancing innovation, collaboration, and financial sustainability to drive measurable impact. Key strategies discussed include:
Leverage AI and Automation: Streamlining ESG data management with AI reduces manual workload and enhances reporting accuracy, allowing teams to focus on actionable sustainability strategies.
Integrate ESG into Capital Planning: Embedding decarbonization and risk mitigation into investment planning ensures alignment with long-term financial goals.
Standardize and Scale Best Practices: Organizations should document and share successful sustainability initiatives to drive consistency and efficiency across portfolios.
Upskill and Engage Stakeholders: Providing sustainability training for facility teams, asset managers, and tenants fosters buy-in and accelerates integration of sustainability strategies.
Prioritize High-Impact Initiatives: Industry leaders must focus resources on strategies that yield measurable results while phasing out ineffective efforts.
Align ESG with Value Creation: A strong ESG strategy supports risk-adjusted returns, enhancing liquidity, rental rates, and occupancy while meeting regulatory requirements.
Strategic Insight: By implementing these focused strategies, ESG leaders can bridge the gap between compliance and action, ensuring sustainability initiatives contribute to long-term resilience and profitability.
“The cost of inaction on decarbonization far outweighs the cost of taking incremental steps forward. Instead of waiting for mandates or a perfect plan, companies should focus on staged investments — piloting, measuring, and scaling what works. Using evolving regulations as a proactive roadmap, rather than reacting under pressure, will position organizations for long-term resilience and success.”
SHUBHA MAHESHWARI
VP OF GLOBAL ESG, VERDANI PARTNERS
Paulynn Cue
CHIEF COMMUNICATIONS & BUSINESS OFFICER (CC/BO)Paulynn is the Chief Communications Officer for Verdani Partners, bringing over 25 years of experience in sustainability and ESG, business development, communications, design, and regenerative development. She has been instrumental in shaping Verdani’s programs since 2014. Paulynn studied architecture at Carnegie Mellon University, advertising at New York University, and environmental design at Parson’s School of Design, and has worked with leading organizations such as Gensler, the World Building Institute, and the Intergovernmental Renewable Energy Organization Sustainable Development Commission.
Copyright © 2025 Verdani LLC. All rights reserved. The information contained within this publication was developed using Verdani’s general professional judgment. This publication was prepared without reference to any specific property or scenario and is not intended to substitute for the professional advice of an attorney, engineer, or other climate change professional. Content and data subject to change. Similar outcomes are not guaranteed based on prior results. Neither Verdani LLC nor its employees or agents can be held responsible for the use or misuse of the information contained herein, and Verdani LLC hereby disclaims any liability for damages arising from the use of this information, including without limitation, direct, indirect, or consequential damages including personal injury, property loss, loss of revenue, loss of opportunity, or other loss. Verdani Partners has over 25 years of expertise and manages nearly two billion square feet of real estate, delivering proven strategies that help firms lead in sustainability and outperform benchmarks. We help our clients turn sustainability commitments into action through ESG planning, energy management, decarbonization, compliance, and strategic communications. Partner with us to drive real impact and lasting value.