NEW YORK--(BUSINESS WIRE)--ACRE, a global real estate private equity firm, today announced its commitment to reduce its carbon emissions to net zero by 2050. The pledge comes as part of the firm’s evolving Environmental, Social & Governance (ESG) strategy, led by Partner and Head of ESG & Impact, Linda J. Isaacson.
ACRE will undertake a number of measures to chart its path to net zero across its entire portfolio, including a complete Greenhouse Gas (GHG) inventory and assessment of available data to understand the sources of emissions. ACRE is already pursuing the development and implementation of a comprehensive decarbonization strategy in order to align with climate change mitigation and adaptation goals identified in the Paris Agreement.
“Commercial and residential buildings are among the largest contributors to carbon emissions and climate change across the U.S. and the world,” said ACRE Founding Partner Michael Van Der Poel. “We have always considered ourselves to be leaders in investment, as well as in the creation of healthy, sustainable communities. We are proud to lead the charge for the industry as we incorporate a variety of responsible, cutting-edge ESG practices and pursue a truly carbon-neutral future across our growing portfolio.”
Last year, ACRE was welcomed as a strategic partner of the Urban Land Institute (ULI) Greenprint Center for Building Performance, which is dedicated to leading the global real estate industry towards improved environmental performance, focusing on energy efficiency and reduced carbon emissions.
ULI Greenprint will play a key role in ACRE’s path to net zero through measurement, benchmarking, knowledge sharing, and the implementation of best practices that will guide the firm as it decarbonizes its portfolio and continues its success as a leading global real estate investor. ULI defines net zero in line with the World Green Building Council, as a building portfolio that is highly efficient and powered by on- or off-site renewables, including offsets. The goal is also in line with the Paris Agreement, and findings from the Intergovernmental Panel on Climate Change report to limit global warming to 1.5 degrees Celsius. The baseline net zero goal is based on the CDP scope 1 and 2 greenhouse gas emissions, and direct operational control, excluding occupant operations.
“Our formal commitment to be Net Carbon Zero by 2050 is a natural evolution of ACRE’s core principles, which are focused on value creation for all of our stakeholders, and a better, more sustainable future for our residents and the communities they call home,” said Isaacson. “We have already taken many of the early steps that will pave our way to carbon neutrality, and we could not be more excited to stand alongside our peers in ULI Greenprint as we do our part to create a positive, lasting impact on the built environment.”
Isaacson was hired as Partner and ACRE’s first-ever Head of ESG & Impact in February 2022. In addition to guiding the firm’s path to net zero and other ESG initiatives across its portfolio, Isaacson will also play a leading role in its forthcoming venture capital vehicle, guiding investment activity in early-stage companies and technologies aimed at creating social impact and disruption related to the built environment, sustainable communities, climate tech, health tech, and other emerging priorities. ACRE’s unique approach to managing its diverse portfolio of multifamily properties includes an intentional focus on creating added value for residents that extends beyond the four walls of their homes. By establishing a sense of community among residents through socially impactful investments and environmentally conscious measures, ACRE effectively improves tenant retention and generates stable, cash-flowing properties.
Founded in 2011, ACRE is a global real estate private equity firm managing capital for institutional and family office investors through a series of private equity and debt funds and currently has more than $2.9 billion in assets under management. Since its inception, ACRE’s acquisition, development and lending efforts have spanned 22,000 units across 82 properties in 32 cities. ACRE’s strategies focus on direct real estate equity and credit investments and are concentrated in high growth markets in the United States, with additional properties currently in development in Southeast Asia and the United Kingdom. ACRE manages a global multifamily housing portfolio with offices in Atlanta, New York and Singapore.