Real estate innovation-focused venture capital firm Fifth Wall announced today that achieved certification as a B Corp, highlighting the firm’s commitment to sustainability practices in its investment business.
B Corp certification is administered by the non-profit group B Lab, following an assessment of a company’s overall positive impact, including social and environmental performance, transparency and accountability. To reach certification, a company must achieve a minimum score based on its impact on its workers, customers, community, and environment, and its legal governing documents must require the board of directors to balance profit and purpose.
Commenting on the company’s achievement, Brendan Wallace, Co-Founder and Managing Partner at Fifth Wall, said:
“It is incumbent upon all of us to take actionable steps towards building a more equitable and sustainable society. We’re grateful to the resources and community offered by B Lab to help our firm as we continue to educate ourselves and make changes within our own organization. We recognize that today’s announcement is a small step and that there is a lot more work to be done. As a member of the venture capital and technology ecosystems, we’re hopeful this commitment will be shared by our peers and ultimately catalyze an industry-wide shift in mindset.”
Fifth Wall recently announced the launch of a Carbon Impact Fund to help build a consortium of real estate companies address the environmental impact of the industry, and invest in sustainability technologies. Fifth Wall notes that the real estate industry accounts for 40% of the world’s consumption of energy, 30% of total global GHG emissions, and using 40% raw material usage
Commenting on the opportunity for investment in sustainable solutions to address the impact of the real estate industry, Tyson Woeste, Partner at Fifth Wall, said:
“Over the next few years, sustainability and decarbonization issues will be a dominant theme for every company in real estate and the technology companies that support the industry. So, we believe new building materials, new approaches to operating assets, and sources of carbon-neutral power will need to be created, and funded. Becoming a Certified B Corporation was a natural step as we prepare to launch our Carbon Impact Fund.”