Benchmarking Real Estate Investment Performance: The Role of ESG Factors (July 2020) Full Report
In recent years sustainability as a concept has taken on increased global importance and awareness for all stakeholders: consumers, community, industry, investors and governments. This move has embraced not just the environmental aspects of sustainability, but also the social and governance dimensions. ESG is now treated by many market participants as a cohesive whole, embracing all three dimensions.
Based on interviews with 60 stakeholders across the globe, this research assesses the use of ESG benchmarking in real estate investment at various levels and for different types of asset. The authors’ investigation of the adequacy of existing ESG benchmarks lead them to conclude that the application of technology and data, coupled with user demand, is likely to result in the development of new ESG benchmarks, using fresh metrics to capture the currently under-represented social (S) dimension of ESG.
A summary of the research findings is also available to download.