The Enhancement and Standardization of Climate-Related Disclosures for Investors
Today, heightened attention and scrutiny from U.S. and global regulators regarding complying with evolving environmental laws makes buying, selling and redeveloping property difficult to navigate. Investors seeking to purchase or redevelop real estate in the U.S. for hotels or other mixed residential and commercial uses must also consider the emergence of Environmental Social Governance (ESG) standards, thus involving an experienced environmental firm is even more critical.
The U.S. Securities and Exchange Commission (SEC) has recognized the increasing demand from investors for information about how climate conditions may impact their investments.
In March 2022, The SEC had proposed for public comment amendments to the U.S. Securities Act that would mandate disclosure of climate change risks in annual reports. As part of President Biden’s climate change initiative, the new corporate disclosure rules would require companies to disclose energy usage, greenhouse gas emissions, and other environmental metrics that may be material to a company’s business and financial performance.
Under the proposed requirements, companies would have to disclose certain information on risks that climate change poses to its business operations, as well as which environmental goals it has set and how it intends to achieve them. Investor initiatives have emphasized the need for improved disclosure by companies regarding climate-related impacts.
A contemporary term that’s currently popping up in a variety of communications involving buildings and energy is ‘resiliency’. It’s meant to convey the concept that buildings and their associated environmental control systems should be able to maintain near normal operation under abnormal conditions such as extended power outages, temperature extremes, strong storms or supply chain interruptions. Resiliency is a very desirable and rational concept.
Identifying and understanding the necessary environmental metrics will be crucial for companies to integrate ESG into business strategy, maintain compliance, and set environmental goals.
Hotel Solutions Partnership can assist with identifying teams of economists, environmental engineers/scientists, and regulatory experts uniquely qualified to help companies, insurers, and investors understand the SEC’s proposed regulatory framework.
Vice President Americas, Hotel Solutions Partnership Limited is a Fellow of the Institute of Mechanical Engineers, UK, and a Chartered Mechanical Engineer (C.Eng.F.I.MechE). He is a Senior Member with the Construction Specification Institute, USA, American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) and a Charter Member of the Energy Managers Society, USA.
Ranjit brings unique cross border experience and a broad range of multi-disciplinary skills to play in advising clients on all aspects of sustainable smart design in Architecture, MEP, Technology Systems for Mixed-Use Buildings.
He has recognized the quick pace of change in devices and systems powered by ever-advancing technology and has successfully taken a holistic approach to integrate the many siloed software solutions in hotels that would work with a single browser application. This technology delivers increased efficiency, optimized operations and enhanced building occupant experience.