An Interview with Carolina Thompson, Co-founder of Thompson Real Estate and the former Director of Sustainability Strategy and Initiatives at Freddie Mac
In an era of heightened environmental awareness, Carolina Thompson stands at the intersection of sustainability and real estate, where she's pushing boundaries through her own business initiatives and extensive industry experience. As the co- founder of Thompson Real Estate Consulting and a former sustainability leader at Freddie Mac, Thompson has a rich background in environmental strategy, sustainable finance, and real estate, which she now channels into creating sustainable housing. Thompson's journey reflects a blend of practical ambition and a deep understanding of the complex relationships between real estate, sustainability, and market forces.
“I think sustainability in real estate is more than a trend; it's about creating efficient, resilient homes that meet both energy and comfort needs,” Thompson asserts. Now focusing on the Home Energy Rating System (HERS), she explains that homes with lower ratings are more efficient, reduce greenhouse gas emissions, and are cost-effective in the long run. This efficiency, she notes, comes from retrofitting old homes with updated insulation, HVAC systems, and windows, as well as building new, eco-friendly units. “When a home is HERS-rated, it means a third-party has assessed its energy efficiency," she says. "HERS rated homes with lower scores save on utilities and can reduce stress on the grid, which ultimately translates to lower greenhouse gas emissions.”
Her consultancy firm follows a “buy and rent” model, focusing on eco-conscious renters who prioritize sustainability. “It's about providing renters with a choice,” she says. “They may not be ready to buy, but they can choose to live in homes that meet high energy efficiency standards, knowing they’re contributing to sustainability.” She believes that these properties attract a unique tenant who appreciates the blend of safety, comfort, and environmental responsibility.
Reflecting on her time at Freddie Mac (Federal Home Loan Mortgage Corporation), Thompson describes the transition to sustainability as gradual but impactful. “Freddie Mac was always doing social and governance work,” she recalls, “but the environmental piece was where the real effort went.” Thompson contributed to leading the organization in developing initiatives and protocols that addressed both environmental and social governance, setting a benchmark for sustainable finance. Her team was tasked with reporting on various ESG topics to include climate-related risks, especially as they may impact Freddie Mac’s portfolio, as well as the physical properties the company managed nationwide. “We needed to tell the climate story from a collateral and investor risk perspective,” she says. “It wasn't just about how we handle the purchase of loans and securitizations; it was about how these properties withstand extreme climate conditions.”
Sustainability reporting, however, presented its own challenges. Investors demanded transparency, but the standards were varied and complex. “There are so many standards – SASB, GRI, ICMA – it can be overwhelming,” she admits. Thompson and the Freddie Mac team ultimately chose the Sustainability Accounting Standards Board (SASB) and the International Capital Market Association (ICMA) standards, which provided a framework for measuring sustainability that aligned with U.S. and European markets. “At the time leadership didn't want to be the leader in an ever evolving space,” she recalls. “Our leadership wanted to stick to the most fact-based, third-party vetted reporting, and that approach was successful.”
Beyond real estate, Thompson recognizes the emerging role of artificial intelligence (AI) in sustainability, though she admits there is a trust gap. “Artificial intelligence was identified in our materiality assessment; it’s impossible to avoid,” she says. “But internally, there was reluctance to share information that may put consumer data at risk. Tech teams are careful about what they share because of security concerns.” Despite these challenges, she sees AI as a powerful tool for capturing data on home energy efficiency, monitoring renewable energy outputs, and analyzing the sustainability impact of various upgrades in both single-family and multifamily real estate.
The push toward green building also brings up economic factors, with Thompson noting federal incentives such as the Inflation Reduction Act, which benefits both consumers and builders. “Federal and state incentives really help,” she says. “For example, if you’re a builder and your home is Energy Star-certified, there’s a significant subsidy. For the consumer, it’s a win too – it can boost the home’s value.” Freddie Mac research suggests that energy efficient certifications can increase home value by three to five percent, making it easier for eco-conscious homeowners to justify the investment.
However, Thompson is candid about the broader challenges of the sustainability movement, particularly around issues of “greenwashing,” where companies may promote their eco-friendly credentials more aggressively than their actions justify. “Sometimes I felt it wasn’t genuine,” she reflects. “A lot of energy went into measuring emissions when more investment could have gone to initiatives to reduce those emissions.” Thompson sees the disconnect between idealism and reality, suggesting that greater emphasis on practical solutions would yield stronger environmental impact.
As the conversation turns to generational wealth transfer and shifting priorities, Thompson notes that millennials, often more environmentally conscious, are starting to influence investment decisions. “Millennials want to know where their money is going,” she observes. “They’re outspoken and care about sustainability, which pushes investment managers to provide more data and transparency.” This influence, she believes, is driving large investment firms toward sustainable initiatives, especially as millennials are set to inherit significant wealth in the coming years.
In wrapping up, Thompson offers advice for those in other sectors facing the challenge of implementing sustainability. “Start by benchmarking. Understand what your competition is doing and where your company’s appetite for transparency and innovation lies,” she advises. “Not everyone needs to be leading, but that doesn’t mean you can’t establish one or two ambitious goals.” By setting realistic goals and understanding where her organization stood within the industry, Thompson was able to help develop a sustainability strategy that balanced growth with responsible practices.
Her journey in sustainable real estate is far from over, as she continues to develop her consultancy with a mission that blends eco-conscious property investment with data-driven decision-making. “I don’t just want to help people buy/sell a property and move on,” she says. “I want to understand their goals, whether it’s a first-time home buyer, military transfer or investor that sees the value in investing in efficient properties. Nearly 40% of global carbon dioxide comes from the real estate sector, with AI we can find new ways to leverage data to improve positive environmental impact.”
As Thompson reflects on her goals, her commitment to sustainability and innovation in real estate remains clear. In a world where climate concerns are increasingly at the forefront, her work demonstrates that practical, sustainable choices can make a significant difference – one home at a time.
You can reach Carolina at her website: https://www.carolinathompson.realtor/
