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Stoneweg US, Managing Director of Sustainability

Sharing the latest AFIRE podcast featuring Stoneweg US, LLC CEO Patrick Richard and AFIRE CEO Gunnar Branson! They dive into why today's challenges make ESG more crucial than ever in real estate investing. 🟠🎧🔥 Patrick shares his personal insights and experience on how ESG fundamentally drives returns and mitigates risk. 🚀☂️💼 Check out the podcast episode below! 👇

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With all of the other troubles currently affecting commercial real estate, should #ESG still be a priority? That's what Patrick Richard, the CEO of Stoneweg US, LLC, and AFIRE CEO Gunnar Branson explore in the latest issue of the AFIRE podcast. Compliance with established #environmental, #social, and #governance (ESG) standards became a critical measure of #realestate performance over the past decade. But with the current slate of challenges faced by #CRE — everything from high costs to building and infrastructure obsolescence — some investors are feeling inclined to put ESG lower on the punch list. But that would be a mistake, argues Stoneweg's Richard. In this episode of the AFIRE Podcast, Richard builds a compelling case that investors should prioritize ESG investments as a way to generate higher returns—especially now. “One thing that #sustainability does is protect the value of your assets,” explains Richard, who sees ESG prioritization as a way to decrease risk and increase revenue—critical differentiators in the current real estate market. Richard explains how investing in #climateresilience can decrease #insurance and lender interest rates, currently significant cost centers affecting pro formas. By investing with an ESG mindset, despite some current external financial or philosophical pressures, Richard says: “Not only are you protecting your assets, but you’re creating value at the same time." Watch and listen to the podcast episode here: https://lnkd.in/dZqXqXzk Key Moments 00:00 Introduction 01:18 How Stoneweg is approaching ESG in the United States 02:37 How the US approach to ESG differs from Europe’s. 04:21 How does ESG decrease the amount of risk and increase return? 05:43 Having a coherent asset resiliency strategy in rising premium environments (like southern Florida) can help with higher insurance costs. 07:18 What are Europeans most confused about when talking about investment strategies in the US? 9:07 How ESG provides a more holistic approach to investments. 10:36 How does Stoneweg US approach the difficulties that come with measuring sustainable practices in multi-tenant units? 13:06 Driven by risk, Stoneweg US primarily focuses their ESG practices on attainable housing rather than higher-income earners. 15:48 How is the US real estate market achieving a more sustainable environment? 17:09 What do most people get wrong about ESG? 18:24 Are there areas in ESG where Europe could learn from the US?

Patrick Richard

Founder, CEO at Stoneweg US, LLC

1mo

Thanks Gunnar for having me on your podcast. I enjoyed sharing how we anticipate with our investments to meet market expectations of 2030 and beyond. We know for a fact that lenders, insurers, investors, regulators and residents will have different needs and expectations at that time, and it is our job to prepare our portfolio and to be ready. This is how we create value for our investors today and in the future.

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