Climate-Aligned Buildings and Financial Performance: What the Evidence Means for Real Estate Lending

Affine Climate Solutions’ Executive Director, Michaela Neuberger, joined BMO’s Alma Cortés Selva and James Burrow, on the Sustainability Leaders podcast to discuss evidence linking climate performance with stronger real estate financial outcomes. Drawing on more than two decades of research (2002–2024), the conversation highlights how climate-aligned buildings can deliver measurable value to lenders, owners, tenants, and fund managers through improved operational efficiency, stronger asset performance, and reduced credit risk.

The episode explores how these findings are reshaping real estate finance, including:

  • Why operational efficiency and emissions performance increasingly matter for long-term asset value

  • The distinction between “green” buildings and truly climate-aligned assets

  • How lenders, appraisers, and valuation practices can better integrate climate-related performance into financial decision-making

  • Practical examples and scalable approaches for advancing climate-aligned real estate investment and lending

Looking ahead, the discussion considers what is needed to scale climate-aligned lending across Canada, including broader participation from financial institutions, continued market pilots, and stronger alignment between finance, valuation, and policy frameworks. The conversation reinforces a growing market opportunity: integrating climate performance into real estate lending is becoming increasingly important for understanding both risk and long-term value creation.

Listen to the podcast episode: Banking on Buildings: Green and Climate-Aligned Real Estate Performance

Read the Research Report: Financing the Future

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Financing the Future: How Financial Institutions Can Lead in Climate-Aligned Real Estate