Paying attention to sustainable real estate development is important for business investors because there’s a growing demand for commercial properties that have attractive ESG ratings. Analysis of company systems and processes affected by people and technology can improve the three pillars of ESG ratings – Environment, Social and Governance -. Here’s a look at how to measure sustainable real estate for the business community.
One of the organizations that measure a company’s ESG performance is GRESB, which serves the investment community. This organization was launched in 2009. Now it is considered the leader in delivering ESG data for the real estate and construction industries. GRESB represents developers, funds, property management firms and real estate investment trusts (REITs).
Environmental Concerns for Businesses
Achieving sustainability in the real estate sector requires staying up to date on local building codes and environmental issues for a particular community. Saving energy and water are enormous concerns of a commercial business owner. It’s possible to measure sustainable real estate development based on the three broad categories broken down into more detailed factors.
A company can gain a competitive edge by driving business towards the sustainable development goals that eco-friendly advocates expect. These environmental goals include conserving resources, cutting greenhouse gas emissions and innovating new products that don’t put as much strain on the environment. Construction project planners can substitute toxic materials for safer options. Those options can emphasize protecting the earth, air and water, as well as human safety.
Toward More Socially-Responsible Companies
The path to sustainable real estate requires a commitment to human rights and fair practices that affect the workforce. Investing in a business and its commercial property involves community concerns. That includes employment opportunities, how workers are treated and how much new traffic comes to the neighbourhood. Factories must show their commitment to making products that do not worsen the pollution problems associated with toxic waste at massive landfills.
Achieving sustainability in the real estate sector closely depends on a real estate firm’s association with one or more communities. Many real estate agents work independently and constantly meet new people in their target communities. So there already exists a friendly spirit in the business. A major catalyst in the real estate industry driving business towards sustainable development goals is the need for the greater workplace and community diversity.
Strengthening Corporate Governance
A big part of sustainable corporate governance involves government compliance. An enterprise that stores and shares confidential data, such as a hospital, must meet strict federal regulations on protecting privacy. Associated with this issue is cybercrime, which now threatens all organizations. One of the emerging requirements of sustainable corporate governance is implementing multiple layers of data protection on top of getting cyber insurance.
Looking ahead to sustainable real estate in the future, today’s investors should already be thinking about how ESG ratings are changing society, particularly the construction industry. Corporate governance contributes to sustainable real estate development in numerous ways. When a new factory is built, for example, it must comply with all levels of government, the local community and be accountable to its shareholders.
Achieving sustainability in the real estate sector comes down to modern management principles. Supervisors must treat workers fairly as individuals, not statistics. The firm must use recruiting techniques that allow for equal opportunities and attracting the most appropriate talent. Understanding sustainable corporate governance deals largely with administrative and management concerns.
How to achieve your sustainable development goals
The goal of any business owner is to earn more than spend money, as cost efficiency has become one of the main catalysts to driving business towards sustainable development goals. Shayp is a leader in improving water efficiency in buildings to reduce water loss. If you are interested in learning how environmental, social and governance issues impact your organizations, contact the experts at Shayp.