The ripple effect of ESG on the future of our buildings

The Emerging Trends Europe survey showed that 9 in 10 commercial property investors believe running an environmentally and socially sustainable business is the most crucial factor for a successful organisational transformation within the real estate industry by 2050. 

And we’d have to agree. The importance of environmental, social and governance (ESG) factors continues to grow throughout our industry. 

Why are ESG factors important?

In two most important themes that will drive real estate investment decisions and strategic planning are ESG factors and the change in occupier demand. Decarbonisation, found at the fifth position, is a near-automatic manifestation of the latter. 

As our society evolves and becomes more conscious of its impact on the environment and social well-being, commercial property investors increasingly recognise the importance of ESG factors in their investment decisions. 

ESG considerations go beyond financial performance; they focus on environmental sustainability, social responsibility, and good governance practices. Incorporating ESG factors into the decision-making process for commercial property investors can lead to long-term success while addressing societal challenges such as the empty floors in Grade-A buildings many of us face.

The future of ESG in commercial property 

Demonstrating how and why we apply ESG principles (and demonstrating how and why we do so) creates a ripple effect and provides more benefits than reaching net-zero targets. It allows us to attract quality tenants, command higher rental rates, and minimise running costs. On top of that, it creates the perfect tool for reputation management, marketing, and creating opportunities for a community-based approach toward a net-zero target.