This case study was published in the 2022 REIT Industry ESG Report, which details the REIT and publicly traded real estate industry's environmental, social, and governance (ESG) performance and features 32 case studies showcasing REIT leadership and ESG innovation from a variety of sectors. The report serves as a practical tool for shareholders and stakeholders to assess the scale and impact of the REIT industry's ESG commitments and initiatives. Applicable footnotes and/or citations for this case study are available in the full report.
Addressing the Climate Crisis Through Investments in Climate Tech
Hudson Pacific Properties, Inc. is actively investing in climate tech innovation to drive future returns as part of its proprietary ESG platform, Better Blueprint™. This platform and the company’s investments bring to life Hudson Pacific’s vision of vibrant, thriving urban spaces and places built for the long term.
Every year, Hudson Pacific sets three to five innovation priorities and acts to drive change in those areas. Partnering with Fifth Wall, a fast-growing real estate tech venture firm, and investing in its Climate Technology Fund, is part of this process. The fund, launched in December 2020, aims to “decarbonize the built world” by investing in technologies that could have a direct impact on reducing the carbon footprint of the real estate sector.
Hudson Pacific has made strategic contributions to this fund, with an eye toward finding new ways to minimize its carbon emissions. As the company aims to reduce its reliance on renewable energy certificates (RECs) and offsets in its carbon neutrality strategy, Hudson Pacific is expanding use of innovative technologies that support energy efficiency, on-site renewables, and/or energy storage. Fifth Wall has created the only fund that is focused solely on climate tech for the built environment and Hudson Pacific is excited about the opportunities and technologies it may have a hand in shaping through this partnership.
Hudson Pacific was also an early investor in Crown Electrokinetics, a smart glass technology company that produces solar-powered Smart Window inserts. These inserts can be retrofitted to existing window frames and allow tenants to transition windows from clear to dark in seconds. The result reduces energy consumption and carbon emissions from heating and cooling systems.
“Hudson Pacific is committed to leadership in sustainability, and a key component of that is investing in innovative prop tech solutions that can reduce our carbon footprint.”
-Natalie Teear, Senior Vice President of Innovation, Sustainability & Social Impact, Hudson Pacific Properties, Inc.
Hudson Pacific believes in the long-term benefits of climate innovation and is hopeful that the fulfilment of their responsibility to pilot solutions to climate change will lead other companies in the commercial real estate space to do the same.
Hudson Pacific Properties acquires, redevelops, and develops creative office and studio properties in global epicenters of innovation, media, and technology. HPP is the leading publicly traded owner of office space in Silicon Valley, one of the largest independent owners/operators of studios in Los Angeles, and its portfolio totals over 20 million square feet, including land for development, in core markets.