Prove it: Just saying you are ESG focused is no longer enough for investors
These days, it would be challenging to find a firm that does not have an environmental, social and governance (ESG) target, or is planning to implement one.
Sustainable building is not a new idea. Many property owners and operators have retrofitted and renovated assets by implementing green incentives, and buildings have been awarded LEED standings by the Green Building Council since 1993. What has changed since then is the added threat of climate risk. And ESG considerations have become a more important part of investment decision making and portfolio construction.
Investors seek to improve risk and cost management, strengthen resilience to climate-related risks, and take measures to address vulnerabilities in each asset. In other words, the purpose behind ESG investments is not only to meet financial objectives, but to make a positive impact environmentally and socially.
ESG is recognized as something important. Everyone knows this, but how do we do i