Birdhouse in the tree

ESG in real estate: five questions organizations should consider

A more strategic and holistic approach to environmental, social and governance issues is helping to create long-term value for real estate organizations.


In brief:

  • An effective ESG strategy is built on an understanding of key internal and external stakeholder needs that are then prioritized by what will have the most material impact.
  • Establishing measurable ESG performance outcomes and an organizational support structure that contributes to and governs ESG initiatives is critical to enabling ongoing progress.
  • ESG-related reporting requirements, including the expected finalization of the Security and Exchange Commission’s proposed climate disclosure rule, the International Sustainability Standards Board’s exposure draft on sustainability-related disclosures, and public company reporting requirements already established by other rulemaking entities around the world are moving companies towards action.

Environmental, social and governance (ESG) efforts among many real estate companies have been focused on specific environmental initiatives and voluntary disclosures — but, in our experience, that almost always becomes a catalyst for rethinking strategic priorities, business processes, risks and opportunities.

Among leading companies, this more strategic “next-level” approach is being viewed as a business imperative to drive long-term value for all stakeholders, including employees, customers, shareholders and society at large. The following five questions are important to consider as your real estate organization takes a less reactionary and more strategic approach to ramping up its ESG efforts to remain resilient and competitive in the marketplace.


Summary

Leading real estate companies are taking a more strategic and holistic approach to environmental, social and governance issues and view it as a business imperative to drive long-term value for all stakeholders.

How EY can help

ESG and sustainability

EY teams can help address ESG and sustainability issues, investor concerns and improve ESG performance. Find out how.

28 Feb 2023

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