Venture firm Fifth announced it has raised $500 million for a climate fund that will help the real estate industry reduce its carbon footprint.
Real estate accounts for around 40% of the world’s carbon emissions, indicating a need for significant changes to how the industry constructs and operates buildings.
The fund aims to give landlords more access to the software, hardware, renewable energy, and smart building capabilities that can help alleviate their carbon footprint. This also encourages tenants to implement their own environmental strategies, which have become increasingly important for retention rates.
Fifth Wall adds that the real estate industry has injected just $94.6 million into carbon-friendly technology over the last decade despite emitting nearly two-fifths of greenhouse gases.
“This is really the first time the industry, acting collectively, has come together to invest in this critical tech to help decarbonize real estate,” said Brendan Wallace, cofounder and managing partner at Fifth Wall. “Real estate is the single-biggest lever we can turn on to mitigate climate change.”
In recent weeks, regions around the world have hit unprecedented temperatures, with climate experts warning that neglecting these changes now could have dire consequences in the near future.
