Lowenstein Sandler LLP

Climate Impact & Sustainability Data (2021, 2022, 2024)

Cost and time associated with vetting data
Data security
Privacy concerns
Risk of acquiring material non-public information
Ability to extract meaningful insights from unstructured data
Shortage of staff with skills and capabilities needed to handle and analyze alternative data sets
Lack of tools and techniques to store alternative data
Existing models not advanced enough to process alternative data
Lack of confidence/trust in deriving value from alternative data sets
Increased compliance burden
Monitoring for/managing third-party cybersecurity risks

Inconsistent, incomparable, and unreliable information concerning ESG investments.
Difficulty for investors to assess which ESG factors are considered and how they are analyzed.
Risk that ESG incorporation is not sufficiently aligned with investor expectations.
Exaggeration of ESG strategies in marketing materials.

Proposed SEC rules to enhance and standardize ESG disclosures by Advisers and Registered Funds.
Expansion of the Names Rule to prevent misleading use of fund names.

Confusing and varied regulations across different markets regarding sustainability in real estate.
Determining who pays for retrofitting and compliance with new sustainability metrics in landlord-tenant relationships.
Difficulty in measuring and tracking energy consumption and emissions at the tenant level.
Lack of clear standards and metrics for sustainability across different asset classes (e.g., hotels, office buildings).

Collaboration between landlords and tenants to measure and reduce energy consumption and emissions.
Development of clearer standards and metrics for sustainability across different asset classes.
Utilizing consultants and experts to help companies measure and improve their sustainability performance.
Adopting a risk-based approach to sustainability, considering future scenarios and potential impacts on investments.