ESG and Real Estate: Understanding Impact

What Real Estate Firms have to do to work within the ESG framework?

By:

Alessandro Bigolin

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Real Estate firms must understand how their supply chain, construction, and architecture impacts climate change and pollution. They must also understand how investment policies and construction operations impacts health and safety of workers and the public, how it impacts local communities, how it manages executive pay properly, and how it promotes diversity amongst board members.

It should be reinforced, however, that ESG in Real Estate does apply to various aspects of operations within the business. However, a significant focus of the ESG policy in Real Estate does indeed focus on two key areas: development and investment.

Development primarily applies to the sourcing of materials, deals sourcing, architecture, and construction of properties and homes in Real Estate. Investment, on the other hand, includes ensuring that investments both to and from a company comply with the various environmental, social, and governing principles.

In other words, in the two key applications of the ESG model, businesses must ensure that each aspect of their business complies with and is adherent to environmental, social, and good governance (which often implies legal business activities).

ESG in Real Estate does apply to various aspects of operations within the business. However, a significant focus of ESG in Real Estate is on two key areas: development and investment.

HOW AB ARCHITECTS CAN HELP

Our holistic design approach extends beyond the impact of a building on its environment to address people’s health and wellbeing, and creating inclusive, resilient social communities.

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