A Just and Sustainable Built Environment

by Lionella Pezza, Domini Impact Investments

According to the UNEP, the buildings and construction sector accounts for roughly 32 percent of global energy consumption and 34 percent of global CO₂ emissions. These numbers reveal a simple truth often overlooked in the climate conversation: if we want to secure a livable future, the built environment must be part of the solution. Every home, office tower, school, hospital, warehouse, and civic space we design, renovate, or operate plays a role in determining whether we accelerate toward climate stability or drift further off course.

The encouraging news is that buildings are among the clearest pathways to immediate climate progress. Unlike many hard-to-abate sectors, this area already has decarbonization tools that are increasingly cost-competitive. Electrified heating and cooling, better insulation and passive design, high-performance windows, rooftop solar, advanced controls, and low-carbon building materials are no longer theoretical concepts — they are widely deployed and economically viable. When integrated thoughtfully, they can transform buildings from major emitters into powerful engines of resilience.

At Domini Impact Investments, we invest in public companies and municipal issuers that are actively shaping a low-carbon, climate-resilient built environment. In the real estate sector, we seek companies with robust green building certifications, credible emissions-reduction pathways, and strong practices around embodied carbon tracking and reduction. Alexandria Real Estate Equities, for example, maintains a large portfolio of green-certified buildings, finances additional LEED certifications through significant green bond issuances, and uses scenario modeling to evaluate physical environmental risk and implement resilience measures.

Read Lionella's full article here - https://greenmoney.com/a-just-and-sustainable-built-environment

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