AUTUMNNEWSLETTER | 2025

Decarbonizing the Built Environment

by Meagan Dietz, edited by Teri Mendelsohn

On behalf of Columbia Business School's Women's Circle, and Columbia and London Business Schools' Sustainability Clubs, my colleagues Teri Mendelsohn Brad Pickar and I were thrilled to share highlights from our NY Climate Week panel on "Decarbonizing Built Assets" in September.

Panelists included moderator, Stijn Van Nieuwerburgh, professor of real estate at Columbia Business School and co-director of the Paul Milstein Center for Real Estate; Dan McGee, Redbrick LMD; David Davenport, NY Green Bank; and Shanta Tucker, Atelier 10. They unpacked the intersection of zero-carbon standards, financing strategies, and the long-term value of resilient buildings.

The impetus of decarbonizing the built environment is the urgency of climate impacts, in particular, rising sea levels as well as increases in flooding, precipitation and wild fires. To mitigate these factors, Stijn set-up four themes:

• Building Science of Decarbonization: Shanta shared that designing new buildings with lower carbon materials, specifically mass timber, carbon-smart concrete, and glass-based replacements aren’t just sustainability wins; as Dan validated, these materials reduce embodied carbon while making buildings easier to run and more rentable. For NYC, both David and Shanta recommended multi-family and commercial managers to start with lighting as the low hanging fruit and then progress to more complicated mechanical solutions to meet LL (97, 84, 133,154) Climate Mobilization Act of 2019 compliance requirements.
• Financing the Transition: David discussed how, with options from weatherization and heat pumps to full-scale retrofits, sequencing upgrades is as much about how to fund them (ESCO models, revolving loan funds, incentives) as what to build. Financing design is now central to climate resilience. David also emphasized the importance of timing: he urged real estate owners/REITs to take advantage of refinancing moments, property sales, or end-of-life system replacements. These are all critical decision points for deploying capital into energy efficiency and can positively impact NOI, insurance, and appraisals.
• Investment Case and Ownership Lens: Dan led a discussion with all three panelists on how electrification, climate resiliency, and on-site water capture aren’t “costs”—they’re opportunities. Buildings that embrace sustainability deliver operational resilience, regulatory compliance and strong portfolio performance. As evidenced from one of their developments, and specifically one with a brewery anchor tenant, buildings that align with tenant values consistently drive higher returns and improved exit value.
• Scaling and Policy Levers: All panelists shared their optimism, specifically generational and global momentum; increasingly younger tenants and investors demand sustainable alignment, while global pressure—especially from China’s role in renewables—sets the pace for costs and adoption.

As long as the cost of energy continues to increase, sustainability isn’t just about values—it’s about long-term returns.

Photo: Teri Mendelsohn, Bonsai, Portland, OR, 2023

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Mendelsohn Coaching and Consulting, Inc.

Coaching and consulting at the intersection of

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