Role of property in climate change solutions

Real estate owners and operators need to start thinking about risk differently. We tend to focus on the immediate causes of disasters—wildfires, floods, extreme weather—but often miss the bigger picture: resilience is just as important as risk. I recently spoke with Dr. Parag Khanna (Founder & CEO AlphaGeo) about how cities can better prepare for climate threats, and one thing stuck with me: we don’t just need better risk models—we need better adaptation strategies. His company AlphaGeo uses advanced machine learning techniques to downscale projections of heat, storm, flood, fire, drought, sea level rise and other climate risks. A few takeaways: 1. It’s not just about location—it’s about preparation. High-risk areas like LA or Phoenix aren’t inherently doomed. The issue is a lack of investment in adaptation—fire detection, water management, and infrastructure designed for long-term resilience. 2. We need to shift from reactive to proactive. The cost of rebuilding after a crisis far outweighs the cost of preventing it in the first place. Yet time and time again, cities fail to take obvious steps until it’s too late. 3. Real estate plays a massive role in future-proofing cities. The industry can’t wait for government action—we need to lead in deploying technology, investing in resilient infrastructure, and designing cities that can withstand climate stress. Some cities are getting this right. Singapore has been planning for rising sea levels for decades. The Netherlands pioneered water management systems hundreds of years ago. In the U.S., we still treat climate events as surprises rather than inevitabilities. There’s an opportunity here—not just to mitigate risk, but to rethink how we build, insure, and invest in real estate for the future.

Kenya achieved a significant milestone at COP16 in Riyadh by securing approval for #landtenure rights, which is crucial for advancing sustainable land management. This approval highlights the importance of recognizing and securing land rights for communities, enabling them to engage more effectively in restoration efforts. Land tenure is crucial in climate action, particularly in Africa, where insecure land rights significantly hinder sustainable practices. Secure land tenure enhances community commitment to sustainable #landmanagement. Research by TMG Think Tank for Sustainability and the Kenya Land Alliance in Taita Taveta and Narok revealed that when communities have recognized rights to access, utilize, and manage their lands, they are more likely to invest in rehabilitating degraded areas and preventing further #deterioration. The link between land tenure and #restoration is vital. In sub-Saharan Africa, less than 20% of occupied land is registered, and up to 60% is held under #customaryownership. This lack of formal recognition creates uncertainty for smallholders, who often operate informally. Without secure #landrights, these farmers are less inclined to implement long-term #sustainablepractices or invest in restoration initiatives. Only 4% of African countries have mapped and titled private land in their capital cities. This absence of formal #documentation complicates #landgovernance and stifles investment in #climateresilient practices. Insecure tenure leads to #vulnerability against climate-related hazards since communities without secure rights are less likely to engage in #adaptive measures or restore degraded lands. The risks associated with Africa's poor land governance become even more pronounced in the context of #carbontrading. 🛑 Unclear ownership rights and fragmented systems complicate the determination of #carbonrights, leading to potential land grabs. 🛑 Local communities may be excluded from decision-making processes regarding using their lands for carbon trading initiatives, undermining local livelihoods and exacerbating existing inequalities. 🛑 Communities are often evicted from their ancestral lands for #carboncredit schemes without proper consultation or compensation. 🛑 Such dynamics threaten community stability and jeopardize the integrity and effectiveness of #carbonmarkets in addressing #climatechange. As Washe Kazungu observes, the approval in Riyadh is an excellent opportunity to consolidate restoration activities under the UNCCD land tenure focal points and improve reporting on the progress towards the global goal of restoring one billion hectares of degraded land. More climate & sustainability insights in the Sunday Nation pullout, #ClimateAction: https://lnkd.in/dw5uvGQs  More on Kenya’s win at COP16, Riyadh: https://lnkd.in/dETgbh-P 

$4.5B has already been deployed to catalyze markets for cleaner construction materials. And it’s going to keep growing 👇 This comes from the Federal Buy Clean Initiative — a program that ensures federal projects will prioritize construction materials that are both American-made and produce fewer carbon emissions during manufacturing — and it could unleash unprecedented change in U.S. construction. Why does this matter? The public sector is the largest buyer of U.S. construction materials. When governments change how they buy, the whole industry shifts. $4.5 billion has already been deployed, which is still just a fraction of the federal government’s $630 billion total purchasing power. The potential for change is huge. But the fascinating part isn't the big numbers; it's the ripple effect, especially at the state level. This funding is creating opportunities throughout the entire supply chain: Regional suppliers are now getting recognized and rewarded for their environmental performance. Local manufacturing shops can compete for major infrastructure projects by measuring and improving their climate impact. Even small, family-owned operations are becoming key players in the climate solution. One example: • Port Authority of NY/NJ gets funding for low-carbon infrastructure • They need suppliers who can measure their footprint • Local concrete suppliers must adapt to compete • Local Family owned businesses suddenly enter the climate conversation Small manufacturers are becoming unexpected climate leaders. For many, it's their first step into sustainability, which is now a lot more possible because it comes with real economic opportunity. In other words, it’s a win-win. It creates market demand for green materials. It gives small players access to bigger projects. It turns local manufacturers into climate innovators. And perhaps most importantly, it helps democratize climate action. // The climate solution isn't just in Silicon Valley. It's in your local concrete plant. #construction #sustainability #manufacturing #climate

This one feels different. After nearly a decade co-founding and helping scale Ethic to $7B+ AUM, I kept asking myself: where are the climate solutions that don’t just meet the market, but can outperform while driving systemic climate impact? For scale, nothing matches real estate. It’s the largest asset class in the world,3x public equities. It’s also one of the most carbon-intensive, and right now it’s undergoing the biggest repricing in history as insurance markets retreat, lenders pull back, and climate risk reshapes values. At the same time, America faces an urgent affordable housing shortage. That’s why I've co-founded Resilience Investments: a platform built to marry massive economic opportunity with systemic climate action by solving three crises in one strategy: 🏘 Affordable housing supply ⚡ Decarbonization and resilience retrofits 📈 Institutional-grade returns in climate-resilient markets Resilience fits into my broader portfolio of work, like THE NAT and nature finance, where I focus on systemic, markets-driven solutions that create scalable, self-sustaining capital flows to solve the climate and nature crisis. This isn’t just about impact. It’s about positioning capital where the future is already moving, and proving that resilience is both investable and scalable. I couldn’t be more excited to share this next chapter. If you want to learn more, DM Resilience Investments. 🔗 Realtor.com / WSJ study: https://lnkd.in/e3uwKgPn #climatefinance #realestate #resilience #sustainableinvesting #adaptation #insurancecrisis To my amazing partners: Ashby Monk Hunter Maats Andy Boyum Mandi Ainslie Brooks DiPaula Caleb Neumeyer Sean Watson Kristie Cole

As we analyze the rising insurance costs in the property sector, I'm struck by the clear connection to our sustainability challenges.    Insurance premiums in climate-vulnerable states have nearly doubled since 2019, now representing over 10% of operating expenses. This trend tells an important story: #climate risk is becoming #financial risk. While we often focus on reducing energy consumption and emissions, this data reinforces why proactive resilience must be equally central to our #sustainability strategy. Smart real estate investors are already integrating climate risk assessment into acquisition due diligence. The question for all of us: how can we design and manage properties to be more resilient to climate impacts while simultaneously reducing our carbon footprint? Read more from CBRE: https://lnkd.in/ey2Yz9nU