Mayors' Investment Resolution to Speed Green Building
The U.S. Conference of Mayors adopted a Resolution of Support for the Sustainable Investment Initiative of the Capital Markets Partnership at its 76th annual meeting in June. San Francisco Mayor Gavin Newsom, Chicago Mayor Richard Daley, San Jose Mayor Chuck Reed, and Miami Mayor Manuel A. Diaz, sponsored the resolution.
"I'm very pleased to work with all mayors to accelerate green building and sustainable product investment," said Newsom, a Capital Markets Partnership leader and officer. "Like San Francisco, many other cities that have adopted LEED are extending it to the private sector. Wall Street's Sustainable Investment Initiative makes private-sector LEED requirements even better for business, and I know San Francisco's business leaders are enthusiastic about Wall Street's investment support."
The Initiative's Sustainable Investment Underwriting Standards were expected to be made public at the July 22 meeting at Wachovia's Park Avenue Office in New York City. They provide a CMP Green Value Score for buildings, homes, and portfolios.
"These are international consensus Standards for financial institution and investor adoption," says Mike Italiano, chief executive officer, Capital Markets Partnership, the non-profit behind the underwriting standards. "This is a clear signal that investors and cities want to shift to sustainable investment to improve the economy, the environment, the impact of climate change and energy security while fulfilling their fiduciary duty."
The Sustainable Investment Initiative is facilitating both equity and debt investment opportunities in certified green buildings and sustainable products through these Underwriting Standards. Based on successful precedent and quantified benefits, investment actions taken by the capital markets are expected to stimulate the economy, combat climate change, and counter long-term rising conventional energy costs.
These Underwriting Standards are based on the Capital Markets Partnership's completed due diligence with investment banks, rating agencies, and the investor community, which concluded that green buildings and certified sustainable products are more valuable than conventional. This provides the basis for investment products with higher value collateral, reduced risk, while increasing investor confidence and liquidity.
Capital Markets Partnership members Wachovia, Citi, JPMorgan Chase, Bank of America, Wells Fargo, and Goldman Sachs committed more than $12 billion in reducing their environmental footprint and operating expenses by greening/certifying their buildings.