Highlights from Measurabl and FTSE Russell’s NYC panel on how data-backed strategies are shaping the next era of real estate investing.
We were honored to join our partner FTSE Russell for a timely and forward-looking discussion at their New York City headquarters with leaders from WP Carey, Galvanize Real Estate, Norges Bank Investment Management, and FTSE Russell. Together, we explored a defining question for the industry: How do we unlock real value through sustainability?
What emerged was a clear consensus: performance data is now the foundation for value creation, risk mitigation, and capital flow.
Across public and private markets, panelists shared how sustainability is being operationalized as a core investment strategy. Whether through tenant engagement, decarbonization mandates, index design, or risk-adjusted return models, the conversation demonstrated how stakeholders are navigating today’s challenges with increasingly data-driven, outcomes-focused approaches.
Here’s a look at the key takeaways—and how each organization is stepping up.
Key Takeaways:
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- Sustainability is a capital strategy. Efficiency, tenant retention, and data-backed upgrades all drive NOI and asset value.
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- Risks are being priced in. Regulatory exposure, tenant demand, and operational resilience are influencing cap rates and capital flows.
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- High-quality, asset-level data is the new currency of transactions. It enables underwriting, benchmarking, and ESG-linked financing.
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- Capital is flowing to transparency. High-performing, well-documented assets are securing better terms and stronger demand.
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- Investors are doubling down. In an uncertain landscape—and with the impending shutdown of ENERGY STAR—leaders aren’t pulling back. They’re accelerating.
Panelist Perspectives
FTSE Russell | From Scores to Standards: Indexing Real Performance
FTSE Russell, an LSEG company, is reimagining sustainability benchmarks to reflect real-world performance instead of reputational scoring. In partnership with Measurabl, the firm developed a next-generation index built on asset-level ESG data—tracking energy use, carbon intensity, and certifications across more than 124,000 global real estate assets representing $9B.
Thisdata-driven approach moves beyond exclusionary strategies. Instead of removing underperformers, FTSE’s optimization-based methodology reweights portfolios based on measurable improvement—rewarding companies actively reducing emissions and increasing efficiency.
Ali Zaidi, Head of Alternative Indexes, explains this shift
“If your mandate is to have long-term impact, the biggest opportunity doesn’t come from selecting only the top performers—it comes from helping underperformers improve. That’s where the value is, and that’s where the capital should go.”
By connecting sustainability data to investment strategy, FTSE Russell is creating benchmarks that drive both accountability and performance—advancing how capital supports the transition to a low-carbon built environment.
“Lower energy costs show up as improved returns. That’s why we treat carbon metrics as financial metrics, not labels.”
Galvanize Real Estate: Capitalizing on Decarbonization with Data and Incentives
Galvanize Real Estate (GRE) is at the forefront of this transition, with a seasoned investment team that considers sustainability as part of its acquisition process. By integrating sustainability considerations across the investment lifecycle and directly linking the team’s long term incentive allocation to net-zero targets, GRE aligns financial incentives with environmental performance, aiming to drive both value creation and decarbonization.
Nicolette Jaze, Head of Sustainability, emphasized that their strategy is deeply commercial in nature. The firm doesn’t chase certifications or rely on signaling. It uses measurable outcomes—like OpEx reductions, and revenue generation from onsite solar PV installations to generate alpha driven by the implementation of sustainability measures.
“We’re not mission-driven investors in the traditional sense—we’re commercial investors who follow the data. And what the data tells us is clear: retrofitting inefficient buildings creates real, measurable returns.
Lower operating costs, improved tenant stickiness, and monetizable upgrades like rooftop solar all drive bottom-line performance. Decarbonization isn’t about feeling good.
It’s about doing what makes financial sense.”
Norges Bank Investment Management: Pricing Risk and Protecting Long-Term Value
As the world’s largest single shareholder, Norges Bank Investment Management (NBIM) manages $1.8 trillion in assets – including a $60 billion real estate portfolio spanning public and private markets. With a long term time horizon, NBIM brings an institutional owner’s lens to sustainability.
Nina Galbiati, Head of Sustainability, Real Estate Investments, explained how the fund’s long-term horizon shapes their sustainability strategy.
“Our time horizon is really different. We are stewarding these assets for future generations, and when you think in decades, sustainability becomes built into how you think about value and risk.”
“Sustainability is fully embedded in the investment process. Energy intensity, regulatory exposure, and climate resilience are evaluated across every asset with a data driven approach to decarbonization—whether a logistics facility in Europe or an office tower in the U.S. The focus isn’t to only pick green assets, it’s about identifying and pricing these risks accurately so that they are reflected in the value.”
“Sustainability is fundamental to how we generate long-term financial returns, and the equation has flipped: it’s no longer about paying more for green, but the risk of losing value for brown. Properties failing to meet evolving regulatory and tenant standards are seeing discounts. This isn’t future risk—it’s today’s reality driving our investment strategy.”
WP Carey | Unlocking Value Through Finance, Data, and Tenant Alignment
As one of the largest publicly traded net lease REITs, WP Carey owns a diverse portfolio of industrial, warehouse, office, and mission-critical assets across North America and Europe. While the firm doesn’t operate its properties directly, it’s found creative ways to unlock sustainability value through financing innovation and data-led asset management.
Andrew Weakland, SVP and Director of Systems Development, explained how tenant-controlled energy use has historically limited the firm’s ability to execute sustainability initiatives directly. But by focusing on transparency, data partnerships, and sustainability-linked financing, WP Carey is increasingly able to capture indirect value.
“We don’t operate our buildings—our tenants do. That introduces a unique challenge when it comes to sustainability. The energy savings and upgrades are captured by our tenants. But we still see value—whether it’s better lease renewal rates, stronger tenant relationships, or access to lower-cost capital.”
WP Carey’s early success with a sustainability-linked bond demonstrated the real financial upside of sustainability performance. TThe issuance delivered an immediate and material impact— reducing financing costs on $350 million in debt.
“Investors spoke with their dollars. That bond reduced our cost of capital significantly, and it made a real difference.”
The Path Forward: A Market Built on Performance, Not Policy
From public REITs and sovereign investors to index providers and private asset managers, leaders across the real estate ecosystem are taking bold steps to integrate decarbonization, energy transparency, and sustainability alignment into how they do business. With the proposed elimination of ENERGY STAR, the collapse of SEC climate rules, and EU rollbacks, the policy landscape is rapidly retreating from sustainability. But the real estate industry is doubling down.
As Nicolette Jaze put it, “Investing in efficiency is profitable—and failing to act is a breach of fiduciary responsibility. This isn’t about betting on a political cycle—it’s about following the science and the data. That’s how you unlock real asset value.”
The signal isn’t coming from policy—it’s coming from the market.
Watch the full panel discussion below: