ESG Investing – What’s All the Buzz About?

We know our valued client base is laser-focused on the viability of a property and income potential or payback of their investment dollars when purchasing a property for their business. Already these savvy investors have had their investment advisors ask them about their stance on ESG. It’s part of the Responsible Investing Trend. Typically, ESG is not recognized in a real estate investment transaction, but it should be. ESG is hot topic for investors and at Maven Commercial Real Estate we want to treat your investments with absolute respect.

You know and understand capital, and you have the market knowledge, and technical expertise, but we also want to know how important ESG is in your purchase priority list so we can highlight properties and communities that go above & beyond the standard.

Here are 5 Points You Should Know About ESG 

• Environmental, social, and governance (ESG) is used to screen potential investments based on a set of criteria that take into consideration a multitude of factors including building products, location, LEED certifications, social landscape, labour force options etc.; all of which affect the property search.
• Environmental criteria consider how a company safeguards the environment, including corporate policies addressing climate change, for example. This means having the ability to take measures to lower pollution, CO2 output, and reduce waste. Will your client need a property that allows them to excel in these areas?
• Social criteria examine how a company manages relationships with employees, suppliers, customers, and the communities where it operates. It also means having a diverse and inclusive workforce, at the entry-level and all the way up to the board of directors. Will your client need access to a diverse or skilled labour force or local suppliers?
• Governance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. It’s out of scope for a property search per se, however, when you are dealing with a company that is guided by ESG principals knowing and understanding ESG importance, you’ll immediately recognize that stakeholder.
• Real estate and infrastructure are closely related; the real estate industry is a major consumer of energy. Therefore, the construction of more sustainable buildings, e.g., by means of new eco-friendly materials or smart technological heating or ventilation, not only helps the environment, but it also boosts the return of the respective real estate investment, improving investment performance in the long run. The social and governance of real estate holdings might be equally as important to the investor so ask.

If you want to see the criteria take a peek here: ESG Reporting Insights.

When you are looking for the right property for your business, there may be factors about a property that fit your ESG mandate. Now you can highlight them because you are in The ESG in CRE know!