Building green and affordable: why real estate is all in for ESG

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01/09/20

PwC’s Alexis Crow explores the opportunities for investing in green and affordable housing around the globe.

While ESG has been designated the greatest investment trend of a generation, some real estate investors are still asking: is this real? Indeed, as we explore below, the risks associated with climate change offer serious long-term investment opportunities. And looking beyond the environmental component, and to the ‘social’ part of ESG, rising income inequality around the world can be partly mitigated with an increase in affordable housing. Against this backdrop, we explore the ways in which the deployment of capital to green affordable housing offers global real estate investors a clear ESG opportunity for their portfolios; has the potential to generate recession-proof returns; and can also provide a safeguard alongside future or existing investments in highly priced cities.

About PwC’s Cornering the globe publication series

Cornering the globe is a publication of PwC’s Geopolitical Investing practice, and is intended to highlight key issues our clients should be considering as they think about expanding into global markets. At the macro level, long-term economic and demographic trends indicate an abundance of opportunities to profit and expand in emerging markets. However, the risks of doing business in these regions—such as exchange rate volatility, political uncertainty, meeting the skills gap and shifts in tax and regulation—often hamper decision-making, forcing companies to react to events, rather than prepare for change and capitalize on potential dislocations.

By critically assessing key geopolitical issues that impact our clients, we provide insight into the ways in which companies can build capabilities to weather political and economic change in their foreign operations. Our Geopolitical Investing team combines rigorous insight into the key macroeconomic and geopolitical issues facing business leaders today with deep industry and sector expertise, helping companies to strategically allocate capital to grow specific business units or assets in markets around the world.

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Dr. Alexis Crow

Lead, Geopolitical Investing practice, PwC US

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