A Change for 39 Blog as we enter 2023
“It is good to have an end to journey toward; but it is the journey that matters, in the end.” ― Ursula K. Le Guin
For over two and a half years, each week, I have put out my thoughts on what we, as sustainability professionals, can do to reduce the impact of the built environment. This has been as much a labor of love and passion as it has been my attempt to make a difference.
Through this experience, I have come to appreciate the importance of a professional network. We are a small tribe, those of us who are fortunate enough to work in sustainability every day. While we are starting to see resources to help support our efforts, there is nothing as powerful as being able to pick up the phone and talk to a friend about an ESG issue. This keeps us from reinventing the wheel and moves us all closer to realizing the goals we have set for ourselves and our organizations.
During these past weeks, we have seen ESG emerge from a niche idea - something that is nice to have to something that we must address. To be honest, much of this has to do with money - investors do not invest to lose their funds and are looking to mitigate risk and provide a better opportunity to see a return on their investment. Each month in 2021, we saw increased momentum from the investment community in demanding transparency and risk mitigation. Assets under management in ESG funds grew, and the real estate industry began to realize that aligning ESG with Investor Interests was a proven path to access capital.
While our industry continued to shine into this year, it was inevitable that year after year of rent growth would slow down. We saw inflation rise, but once again, sustainability rose to the occasion. You see, it turns out that operating more efficiently - not buying energy and water that is just being wasted - can positively impact your bottom line. When rent growth is not an option, operational optimization still provides a path toward improved net operating income.
Over the past two and a half years, we have observed that the number of cities and states requiring energy reporting significantly increased. It was inevitable that once these cities and states had data to understand their carbon impact, they would pass laws to reduce that impact. Again sustainability rose to the occasion in identifying strategies to address these new performance regulations. Regulations that require you not only to report but to reduce your energy consumption by a certain percentage by a specific date. To make their point, some pretty substantial fines accompany those new laws.
Landfill diversion laws are following those energy performance laws - targeted to reduce the impact of landfill waste within specific cities and states. California took the lead in 2022 with required composting and, across multiple jurisdictions, has set up financial penalties for contamination in recycling. Cities are auditing waste bins, and when they find a failure to sort adequately, they are forcing properties to sort their waste stream through fines and required sorting services.
It is only a matter of time before we see similar laws around water conservation as well. In particular, in the western states, where water tables continue to dry up, governments are looking for ways to force conservation.
These are but a few of the reasons why it is so essential to build a network of peers to stay abreast of new requirements, new technology, and strategies that can help align our portfolios with the goals of the asset owners and investors.
I have ended every single blog post by pointing out that achieving the reductions needed from the built environment truly will take all of us - working together. If we fail, there is a loser in this quest, and that is the next generation who will be forced to deal with the consequences of what we failed to bring under control. Again, the importance of a network and talking to others who do what we do.
I began this post with the title hinting at 2023 being different for 39 Blog. I have not yet determined the eventual form of this change, but in the interim, I will stop posting weekly in the New Year. This will be the final post for 39 Blog, at least for now. I will keep my archived articles online so they can be leaned on to help, but with my new job requirements, I can no longer post every week. I will decide in the coming weeks if that means simply reducing my posts to a less frequent schedule or stopping blogging altogether.
Regardless of the ultimate decision I make concerning 39 Blog, I remain here both for those in my network and those of you trying to figure out what this ESG and Sustainability thing is. I am always happy to make introductions or just listen and give my opinion if you want it. It has been such a blessing for me to get to know so many of you over the past few years and I hope we can continue to collaborate and learn from one another. Thank you for your friendship and assistance along the way.
In the interim, go out there and make a difference. Take on the challenge of pushing our industry forward. We need leaders to move us toward solutions and continue building the village we have begun to put together. In this tribe, in the words of Gerry and the Pacemakers, “You’ll Never Walk Alone” as we all have each other’s backs….
When you walk through a storm
Hold your head up high
And don’t be afraid of the dark
At the end of a storm
There’s a golden sky
And the sweet silver song of a lark
Walk on through the wind
Walk on through the rain
For your dreams be tossed and blown
Walk on, walk on
With hope in your heart
And you’ll never walk alone
You’ll never walk alone
Walk on, walk on
With hope in your heart
And you’ll never walk alone
You’ll never walk alone
Good luck in the year ahead; I look forward to catching up with you in person when our paths cross again.
You can help reduce the impact of the built environment by sharing this blog with your peers. Together we can impact the 39% of greenhouse gasses attributed to the built environment. It starts with awareness, and we succeed with teamwork.
Stay well!
Chris Laughman is the ThirtyNine Blog author, a blog dedicated to reducing the built environment’s impact. When not blogging, Chris is helping residents, clients, and investors reduce their energy, carbon, waste, and water impact as the Senior Director of Energy and Sustainability for Greystar. Our team’s insight into the utility consumption of our managed and owned portfolios provides insight into opportunities to identify and mitigate risk. We leverage innovation and experience to ignite solutions with real impacts while tracking performance, ensuring the trendline stays laser-focused on the goal. We in real estate have a tremendous opportunity to make a difference in the built environment. Standing shoulder to shoulder, we will get this done. I can be contacted at: chris.laughman@greystar.com for questions, concerns, or collaboration.
The opinions expressed in this blog are my own.
Follow us at:
Twitter: @BlogThirtynine
Instagram: ThirtyNine_Blog
Thanks for a wonderful series of blog posts, Chris. Your practical, and pragmatic, approach to sustainability is refreshing and very much needed if we are to truly engage the investor community. Sustainability professionals that actually consider the triple bottom line, people, planet, and profit, recognize that investors must generate a reasonable return if their investments are to be sustainable. Without the third 'P', there won't be any funding available to accomplish the goals to protect the people or our planet. As I'm sure many others have, I've enjoyed reading your blogs. Hopefully, you will be able to fit in some new blogs going forward within the constraints of your current role. Best wishes to you and yours for a happy, healthy and successful 2023 and beyond.