ESG Growing in Prominence as an Investment Requirement
ESG sets framework for future investment. Environmental, social, and governance refers to a set of standards a company attempts to follow in order to attract socially-conscious investors, tenants and employees. Environmental criteria considers how a company safeguards climate initiatives, social criteria examines how corporations manage relationships with its stakeholders, and governance deals with a firm’s leadership structure. Recently, this framework has gained attention as people become more aware of the impact companies have on the world around them, and a desire to invest in vehicles that are well-positioned for long-term sustainability. While not all aspects impact the commercial real estate industry, many investors, developers and market participants are beginning to heavily favour properties and organizations that prioritize the environmental factor of ESG.