A new white paper from NAREIM member LaSalle Investment Management argues that the rapid expansion of sustainability metrics is yielding more complexity than clarity for investors.
In "Muddled Green: Most Portfolio-Level Energy and Carbon Metrics Are Misleading," LaSalle authors write that while frameworks have multiplied, “more information isn’t translating into better insights…despite more involved and complex reporting outputs.”
The issue, the firm contends, is not a lack of data but how it is used.
Portfolio-level metrics often obscure key differences across property types, geographies and energy grids, making comparisons unreliable and limiting their usefulness for decision-making.
LaSalle instead calls for a shift toward metrics that are “simplified, standardized and financially material.”
The paper highlights two approaches with greater relevance: measuring distance from appropriate benchmarks and tracking year-over-year improvement.
These methods better capture performance across diverse assets and markets while offering investors clearer, more actionable insights.