PIMCO’s Trausch on the ‘societal responsibility’ to decarbonize

In PERE's latest podcast episode, PIMCO's CEO and CIO of real estate discusses how his firm will not touch new assets if they do not meet the CRREM pathway.


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Real estate is under increasing pressure to address the industry’s carbon footprint and, for PIMCO Prime Real Estate CEO François Trausch, it is a non-negotiable. “We are adapting to what the investors are expecting from us; you can’t do something that investors don’t want to do,” he said during his on-stage conversation at the PERE Network Europe Forum 2024. “I know some people are tempted to throw [in] the towel on decarbonization, but we do have a societal responsibility to decarbonize as the built environment, of which commercial real estate is a big part.”

As part of his keynote address, Trausch discussed his firm’s commitment to Carbon Risk Real Estate Monitor as a decarbonization pathway. “When it comes to new assets, if they are not meeting the current pathway, we don’t touch them,” he said.

In this Spotlight podcast episode, recorded at the PERE Europe this week, Trausch also touches on the refinancing environment, the bid-ask spread narrowing and the behavior of central banks.