CBRE (US) has launched a report identifying 10 of the most important current Environmental, Social and Governance (ESG) considerations for real estate investors. The report makes for an interesting read and can be downloaded in full here: https://www.cbre.com/insights/reports/esg-and-real-estate-the-top-10-things-investors-need-to-know
By way of context, 2020 has been hailed as a watershed year for ESG investing in real estate. The outbreak of Covid-19 coincided with heightened awareness of the impact of real estate on the environment, and a general lack of tolerance for the status quo.
60 percent of respondents to CBRE’s 2021 Global Investor Intentions Survey confirmed that they have already adopted ESG criteria as part of their overall investment strategies, with many investors now embedding ESG considerations into every stage of the property lifecycle, from due diligence to acquisitions and from leasing to asset management. The overall analysis demonstrates that as ESG criteria hold, investors are taking steps to implement changes, mitigate risks and returns.
Top 10 ESG Considerations for Real Estate Investors
- Energy-saving/net-zero are the new normal
- The gap between green rental premium and brown rental discount is widening
- Green construction materials are available and viable
- Regulatory requirements will continue to tighten
- Effective risk and cost management can enhance resilience
- Affordable housing offers attractive ‘impact investing’ opportunities
- Health & wellness is influencing building design and operation
- Corporate social responsibility is key to good governance
- Benchmarking and reporting will be essential
- Technology is critical to achieving ESG goals
Here at Standard Access HQ, our focus remains on the use of technology to help owners and operators across the built environment to achieve and exceed their stated ESG objectives. As reinforced by the CBRE report, technology will play a key role in enabling significant and long-lasting change within investors’ practices and portfolios, primarily through the strategic use of data for real-time portfolio reporting and actionable insights.
The distinction between so-called smart buildings and other portfolio stock will need to be eliminated. ESG targets cannot be met if they are not measured, and measurement requires a strategic approach to data collection and management. The result of this data management goes beyond ESG deliverables; it is the very foundation of an enhanced tenant experience for both residential and commercial occupiers.
About Standard Access:
Established in 2014 by Damien Browne, Standard Access is the global leader in IoT digital spine secure data transmission for smart building technologies, providing solutions for contactless building access through the patented Sonic Handshake®, along with a suite of AI-enabled solutions for building owners/operators and their tenants. www.standardaccess.co