Let’s talk about ESG. It’s currently the biggest buzzword in the investment world, especially given all the events around COP26 and the climate crisis. But what exactly is it?
Let’s take a closer look…
What is ESG and how is it relevant to the property industry?
In a broad sense: ESG refers to the Environmental, Social, and Governance factors that can affect how a company or industry performs.
Bringing that back to the property industry specifically, this can refer to the environmental sustainability of buildings and developments, the direct and indirect experiences of the property’s occupants, and whether a development project can provide opportunities and benefits to its local community.
Globally, both climate change and COVID-19 have sparked significant changes within the real estate industry. The increased awareness of the impact of global warming means that ESG is now a major part of planning, discussions, and due diligence in the property industry and elsewhere.
How does that translate to property development?
Fund managers are moving towards including more responsible investments in their portfolios. Now that the focus is moving from short-term to long-term investments, the bigger picture of ESG doesn’t just relate to managing natural resources and green construction – it’s also about building healthy and happy communities with longevity in mind.
On a smaller scale, increasing your investment in effective property management can be a key method of reducing your carbon footprint, creating a responsible culture of sustainability, and making a positive impact on the surrounding environment by creating opportunities for local businesses and service providers.
As society continues to move towards a more environmentally conscious and sustainable way of living, there are lots of ways you can get involved in promoting social and environmental justice…