Breana Wheeler, U.S. Director of Operations at BREEAM; Tim Smith, real wstate development director at SKS; Anica Landreneau, global head of sustainability at HOK; Tansy Mak, associate VP of design at Related California; Aaron Tartakovsky, CEO at Epic Cleantec; and Michelle Malanca Frey, San Francisco-based mission-driven strategist.
Antenna Group
In a world increasingly driven by environmental concerns and economic realities, the movement for sustainable commercial real estate has only gained momentum, despite shifting political tides.
This message was clearly conveyed during the recent SF Climate Week panel titled “Beyond the Buzzwords: Strengthening Real Estate’s Climate Narrative.” The panel featured prominent experts: Breana Wheeler, U.S. director of operations at BREEAM; Tim Smith, real estate development director at SKS; Anica Landreneau, global head of sustainability at HOK; Tansy Mak, associate VP of design at Related California; and Aaron Tartakovsky, CEO at Epic Cleantec. Michelle Melanca Frey, former executive director of ULI San Francisco, served as moderator.
The language of sustainability
As the panelists discussed, language surrounding sustainability may evolve, depending on the audience, but the core principles remain unchanged. Anica Landreneau offered insight into this phenomenon when she stated, “Instead of ‘sustainability,’ we might say ‘resources,’ but that practice is not necessarily new. When I’m working in the state of Florida, I might not say ‘climate change’ or might not say ‘decarbonization’ . . . but they do care about impacts.”
For Tansy Mak, as well, the language of sustainability changes regionally. Related has offices in West Palm Beach and in San Francisco. “You don’t talk to the leadership the same way in each of those offices, especially with [the] global sustainability lead. So, we’re really trying to internally create standards that allow the boots on the ground to take it in a very localized way and treat it the way that makes sense for their business case.”
Breana Wheeler echoed this sentiment, explaining how terminology is adapted to fit different contexts, particularly in the industrial sector: “In the industrial world, we talk about it differently. Resilience is about, you know, business continuity.” Ultimately, Wheeler affirmed that “this is a business imperative,” demonstrating that, although the vocabulary may shift, the foundational concepts of sustainability remain integral to the industry.
From nice-to-have to must-have
The discussion highlighted a crucial change: sustainability is no longer just a marketing tool or a nice add-on. “We are seeing a greater consideration for what gets published,” Wheeler said. “We [see] legal compliance now involved in what would have been—for a lot of cases—a marketing conversation.” The pressure to present transparent and accurate sustainability metrics has transformed how organizations approach their reporting.
Landreneau highlighted this evolution: “So, we’re not publicly traded, but our clients are publicly traded. They’re driven to [practice sustainability] by local regulations, global financial markets, and their policies.” The shift has been so pronounced that sustainability reports, once seen as simple marketing documents, are now closely scrutinized by legal departments due to the regulatory implications they entail.
Local actions, global impacts
Despite the complexities of federal policy changes, panelists agreed that local initiatives are likely to continue to shape the sustainability narrative in real estate. Aaron Tartakovsky said, “My personal feelings . . . is that there’s a lot of talk about what’s happening at the federal level, but my philosophy for all things climate action is [that] a lot of it is local.”
Tartakovsky continued, “So, I think [that], in many cases, the train has left the station. It’s hard to unwind a lot of the momentum that was built over the last few years, over decades.”
This sentiment resonated with Wheeler, who pointed out that investors are increasingly focused on risk management, independent of political changes. “Investors are putting their money where they are seeing risk being managed, and that has nothing to do with federal policy at all,” she said.
California’s leadership
The panel also highlighted California’s pioneering role in sustainability efforts. Tim Smith said, “In California, we’re particularly lucky, because the state has been monitoring greenhouse gases and coming up with climate action plans for decades.” Smith emphasized that California’s proactive legislation has paved the way for achievable goals, such as achieving carbon neutrality by 2045.
Smith explained how this long-term commitment plays out in practice: “We’re now reaping the benefits of two decades of work on this [effort], with yet more to come.” The ripple effect of California’s policies is significant, as other states often follow its lead, fostering a broader cultural shift toward sustainability, regardless of federal mandates.
The tenant perspective
As the conversation shifted to the demands of tenants, Mak underscored the evolving expectations from commercial tenants, particularly ones in Class A-plus office spaces. “Our tenants in their building in Europe are very sophisticated in what they are looking for in terms of sustainability and wellness in a holistic way,” she said. With this in mind, Related California is exploring green leases that align tenant and landlord interests in emissions reductions—a critical factor in attracting and retaining tenants.
Landreneau mentioned that tenants are becoming savvier about the sustainability of the buildings they occupy. Many jurisdictions allow property owners to pass on carbon-related fines to tenants, making it essential for tenants to understand which buildings meet the necessary standards to avoid unexpected costs. “There’s a greater awareness,” Landreneau stated, “and tenants are hesitant to occupy legacy buildings that lack necessary improvements.”
A new era of corporate responsibility
The panelists also addressed a phenomenon known as “green hushing,” in which companies refrain from discussing their sustainability initiatives for fear of scrutiny. Smith said, “We are censoring ourselves to a certain extent at SKS. We’re having our website reviewed, and we’re pulling words like sustainability initiatives off of our outward-facing [shop front].” Instead, the company is focusing on such phrasing as innovation and minimizing risk.
Tartakovsky added that the landscape has shifted from altruism to business acumen. “To be a successful sustainability company, you have to save your clients money,” he asserted. The focus has transformed from making decisions based on goodwill to ones grounded in financial prudence, thus reinforcing the business case for sustainability.
Tartakovsky emphasized the practical realities faced by clients skeptical of climate change: “We work with clients who believe climate change is a hoax. Ultimately . . . they need water—to produce their beer, to cool their data centers, to carry out virtually every industrial process. That necessity drives many of their decisions.”
Wheeler characterized sustainability initiatives as a “longer play.” She noted that many clients considering certification are focused on their exit strategies, particularly as regulations such as building performance standards begin to assign monetary values to carbon emissions. This shift is noteworthy because it quantifies the impact of emissions and helps clarify the preferences of potential buyers within the market for such assets.
This panel was organized by Antenna Group, BRE Group, and Mind the Bridge for SF Climate Week.
