National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
Deloitte Insights Offer Suggestions for ESG Strategies
There’s little doubt that environmental, social and governance (ESG) issues are impacting business in general and commercial real estate, in particular. One reason why ESG is here to stay is because of investor, tenant and employee expectations.
But what steps should CRE firms take to meet these expectations and improve ESG governance?
Deloitte’s “Real Estate Predictions 2022: Incorporating ESG—Living Up to Stakeholder Expectations and Business Opportunities” provides both an overview and five action steps that those operating within commercial real estate can take to improve ESG initiatives.
First, the overview.
Deloitte analysts note that commercial real estate has a definite role when it comes to combatting climate change and reducing carbon dioxide emissions by paying attention to building operations and using low-carbon materials for building and renovations. Green leasing, involving a commitment from tenants to take on sustainable practices, can also help. Other issues the report addressed include:
- Better alignment of social initiatives with business opportunities
- Preparation for more stringent regulatory requirements
And now, Deloitte’s recommended action steps:
- Put in place processes that hold leaders accountable for achieving specific goals and metrics
- Create a road map to both establish and document ESG strategy as an important part of the business strategy
- Incorporate ESG into a development timeline, from start, to daily management, to post construction
- Regularly communicate the company’s ESG vision and specific plans to all involved stakeholders like employees, investors and the community
- Conduct regular climate risk assessments to help support strategies and mitigate overall risk
The report concluded by noting that ESG is more than doing well to do good. Rather, it also helps CRE firms create a competitive edge, while offering new business opportunities.
- ◦Development
- ◦People
- ◦Economy
- ◦Policy/Gov't
