When it comes to the net $33.4 billion in real estate it manages, Prudential Real Estate Investors is serious about green.
Last year, Prudential saved $56.4 million, surpassing its $50 million goal on global sustainability projects in its portfolio, noted David DeVos, vice president, sustainability, at PREI. Prudential's new goal is to save $100 million through sustainability measures in the next 12 to 24 months.
“We are not environmentalists. We are investment managers. We look at things as an investment manager would, and so all the things we put forward have paybacks,” Mr. DeVos said.
At the end of 2011, certified green buildings accounted for close to $8 billion of Prudential's global portfolio and executives had assessed 450 buildings for future sustainability efforts. “We picked the low-hanging fruit already,” he said.
Prudential plans to perform more green building assessments this year, and executives hope to win the coveted Platinum LEED rating — the U.S. Green Building Council's highest sustainable building award— for its new headquarters in Madison, N.J., Mr. DeVos said.
“Some people snicker and say (Prudential's savings) is a rounding error, but it's real money and we didn't spend $50 (million) to get $50 (million),” he said.