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Description

Climate risk is often discussed as a statistical hypothetical in real estate. But one transition risk has come to the forefront in the last few years by virtue of its objective and calculable risk: Building Performance Standards (BPS) policies. BPS policies have emerged as a way for jurisdictions to meet their carbon reduction targets and often include escalating emission reduction targets. Failure to comply can result in hundreds or millions of dollars in fines. While fees can be a barrier, companies can leverage BPS to make the case for decarbonization by using the BPS fine as the starting budget for operational improvements. This panel will discuss how companies are future-proofing their assets through portfolio-level fine analyses, asset-level decarbonization plans, and engineering assessments that reinvest in properties rather than pay governmental fines

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Track: 

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  Creating Asset Value

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CEU

AIA LU

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Learning Objectives

After the session, participants will be able to:
1. Track and evaluate the passage and development of Building Performance Standards across the U.S. and Canada with an eye on three key components: a). Emissions Measurement Criteria, b). Timing of Compliance Cycles, and c). Calculation of Fee Payments.
2. Communicate the regulatory shift and relative financial scale of Building Performance Standards to the teams involved in acquisitions, dispositions, and capital planning priorities at the portfolio level.
3. Calculate the fines facing an individual building and determine the best course of action through reinvestment, fee-payment, or disposition.
4. Prepare property management teams for audits and energy conservation measure surveys that will outline the building upgrades necessary for future compliance.

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Handouts

• S105 - Leveraging Building Performance Standards PPT