Topic: real-estate

ESG ratings, ESG benchmarking, ESG reporting, ESG indexing. These terms all sound the same, but they’re not. While there are many similarities between them, they’re also very different. Each of them describes a way that a company or a portfolio scores during an ESG assessment, and how that particular assessment was carried out.

Socially responsible investments are becoming more and more popular. ESG investing is arguably one of the most important forms of modern investment. ESG investors are forward-thinking investors who carefully consider a company’s impact and influence over environmental issues, social cohesion, and governance strategies, as well as financial returns. Of course, financial dividends are also important to ESG investors, however, an ESG investor is more concerned about the long-term sustainability of a company rather than short-sighted financial returns.

ESG is an important topic that measures and assesses the overall sustainability and ethical goals of a business, enterprise, or portfolio, but there’s more to ESG than ideological concerns. If deployed correctly, an ESG strategy can reap significant financial benefits and rewards. Naturally, the heart of any ESG strategy should be a strong focus on social good. However, studies have shown a positive correlation between ESG concerns and lucrative financial returns.

ESG is one of the most exciting topics in the real estate business at the moment. It’s a measurement of how well a company or portfolio performs with regard to environmental, social, and governance issues. There is a direct correlation between high ESG scoring and positive financial performance, with ESG criteria being particularly attractive to modern investors. Here, we will outline how real estate portfolios can harness the power of ESG to drive value.