Addressing climate change impacts and ESG demands: The intensifying impact of climate change is altering the dynamics of where people want to live. The combination of rising temperatures and drought may soon limit where we can build, and some cities are already pausing new developments for this reason.
Stakeholders are actively seeking greater environmental, social, and governance (ESG) disclosures and given the investors’ market size and current capital demands, the industry cannot ignore ESG protocols. Investors and other stakeholders are calling for voluntary action, and the SEC has proposed regulations that would require greater disclosure, transparency, and enhanced consistency in reporting. The demand from investors is pushing the market toward establishing newer, greener, and more energy-efficient buildings and seeking ways to limit greenhouse gas emissions (GhG). The Inflation Reduction Act of 2022 also includes programs designed to reduce GhG and reverse or slow climate change.
Infrastructure spending to develop smarter, fairer cities: Initiatives such as the Bipartisan Infrastructure Law, the Reconnecting Communities Pilot, and the Inflation Reduction Act provide billions of dollars towards advancing economic and environmental justice in underserved communities. These initiatives address accessible transportation, broadband internet access, environmental remediation, and reconnecting black neighborhoods and other communities of color that were previously displaced by decades-old urban renewal programs. These programs are significant for increasing remote employment opportunities, enabling access to jobs, advancing economic opportunities, boosting social interactions, and rebuilding once-thriving communities.