Lauren Pesa, partner and U.S. real estate sustainability leader at Deloitte, sat down for a video interview during Nareit’s REITwise: 2025 Law, Accounting & Finance Conference in San Antonio on March 25-27.
Pesa discussed the rapidly shifting regulatory landscape surrounding sustainability disclosures. She emphasized that real estate companies are facing mounting pressure from a complex web of global mandates, including updates from the U.S. Securities and Exchange Commission (SEC), the European Union’s Corporate Sustainability Reporting Directive (CSRD), and emerging state-level legislation.
Pesa noted the SEC's climate rule has faced delays and de-prioritization under the current administration, while the European CSRD may also see implementation delays and simplifications. The CSRD, once expected to be a sweeping mandate, now proposes raising thresholds—such as the 1,000-employee requirement—which could exempt some U.S.-based REITs from certain obligations.
“There’s just so much change…in a very, very fast-moving environment,” Pesa said, highlighting the challenge of keeping up with overlapping and evolving regulations. She pointed out that U.S. states like California, Illinois, and New York are introducing their own rules, further complicating compliance for real estate firms operating across jurisdictions.
Pesa stressed that amid the complexity, companies should use this moment to align regulatory compliance with long-term value creation.
“Real estate is exposed to sustainability risks and creates sustainability risk,” she said, referencing the sector’s role in global emissions and its high visibility in environmental policy discussions.