In an effort to decarbonize supply chains, CBRE Group, Inc. CBRE recently partnered with a leading carbon accounting software provider — Emitwise — and will make a strategic investment in the firm. Through the collaboration, CBRE intends to collect greenhouse gas emissions data from its supply chain and provide carbon accounting capabilities to its suppliers.
Emitwise will help track and reduce Scope 3 emissions in both CBRE’s and its clients’ supply chains, playing a pivotal role in enabling the company to inch closer to its net-zero strategy.
Now the calculation for carbon impacts will become more accurate for suppliers and help them decipher the areas that need attention to accelerate decarbonization. In addition, the exclusive accessibility to precisely accurate data and high-impact decarbonization opportunities will enable CBRE clients to gain better insight into their value chain at scale.
Per Robert Bernard, chief sustainability officer of CBRE, “Decarbonizing supply chains requires breakthroughs in using technology and data in new ways to simplify the challenges of managing complex value chains. We are excited to partner with Emitwise to help our clients reduce their carbon impact and support our efforts to decarbonize our own supply chain.”
CBRE Group offers a broad range of real estate products and services and has extensive knowledge of domestic and international real estate markets. Being the largest commercial real estate services and investment firm (based on 2022 revenues), the company enjoys a robust scale.
Its solid technology platform helps it develop and deliver superior analytical, research and client service tools to meet diverse client needs. Strategic reinvestment in its business, specifically on the technology front, is expected to differentiate CBRE Group from its peers.
In August 2023, the company noted that its Smart Facilities Management Solutions have surpassed a monumental milestone, with deployment across more than 20,000 Global Workplace Solutions client sites, encompassing a staggering 1 billion square feet of space. This achievement reinforces CBRE's position as a pioneering force in leveraging cutting-edge technology to enhance operational reliability and drive efficiency within the management of client portfolios.
Nonetheless, persistent macroeconomic uncertainty and a high interest rate environment have caused a slowdown in the capital markets due to restrictive underwriting assumptions and rising debt costs. This is expected to keep this Dallas, TX-based real estate services company's transaction-based businesses in distress in the near term, stalling its growth tempo.
Analysts seem bearish regarding the company’s 2023 earnings prospects. The Zacks Consensus Estimate for its earnings per share has been revised marginally downward over the past month to $4.39.
CBRE currently carries a Zacks Rank #4 (Sell).
Its shares have gained 6.9% in the past six months compared with the industry’s growth of 14.6%.
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Stocks to Consider
Some better-ranked stocks from the broader real estate market are Welltower WELL, SBA Communications SBAC and Americold Realty Trust COLD, each carrying a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for Welltower’s 2023 funds from operations (FFO) per share has been raised marginally over the past week to $3.55.
The Zacks Consensus Estimate for SBA Communications’ current-year FFO per share has moved marginally northward over the past month to $12.90.
The Zacks Consensus Estimate for Americold Realty Trust’s ongoing year’s FFO per share has been raised 1.6% over the past month to $1.26.
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