The correlation of ESG and real estate is one where we can see a growing awareness among the general public of the factors which can significantly impact the real estate industry via the rehabilitation of public spaces, affordable housing, social housing, and care centers, as well as green building investments. Read more @ https://tinyurl.com/2rtfvm98

1. Real Estate Industry
ESG
The correlation of ESG and Real Estate is one where we can see a
growing awareness among the general public of the factors which can
significantly impact the real estate industry via the rehabilitation of public
spaces, affordable housing, social housing, and care centers, as well as
green building investments.
MJ by Manisha Jadhav

2. Introduction to ESG in Real Estate
What is ESG?
Environmental, Social
and Governance (ESG)
covers climate change,
pollution & waste,
natural resources, labor
management, health &
safety, diversity,
business ethics, tax
transparency and anti-
competitive practices.
Why ESG Matters
ESG issues have
become paramount for
businesses to manage
risks, anticipate
regulatory actions and
access new markets. For
instance, real estate can
foster its social pillar with
affordable housing and
care centers.
Integration
Challenges
Investors, regulators,
customers and other
stakeholders are holding
businesses accountable for
sustainable practices.
Limited access to green
financing and regulatory
constraints pose a stiff
challenge for stakeholders.

3. Importance of Environmental
Sustainability in Real Estate
Green Buildings
Green building has
become the next big
thing as stakeholders
emphasize reducing
carbon emission and
energy consumption.
Water Conservation
Investors are betting big on
water conservation to
underpin their green
building initiatives.
Burgeoning population and
soaring urbanization have
fueled significance of water
conservation measures.
Energy Efficiency
The penetration of smart
technologies has
become pronounced to
propel energy efficiency.
Decarbonization of real
estate through
digitization will boost
ESG performance.

4. Social Factors in the Real Estate
Industry
1 Inclusive Communities
Diverse and inclusive representation could be a testament to companies’ adoption of a
robust framework to reinforce gender diversity and other workforce demography practices.
2 Affordable Housing
Social pillars, such as affordable housing, are in line with ESG principles, underscoring
brand position and relationship with stakeholders. Affordable housing can reduce housing
shortage and bolster Sustainable Development Goals.
3 Community Engagement
The real estate sector has created an ambience of community engagement by actively
engaging with the local communities, boosting community development programs and
infrastructure projects.

5. Governance and Ethical
Considerations in Real Estate
Transparency
Industry leaders are
prioritizing transparency
and accountability by
sharing information on
financial performance,
sustainability efforts and
addressing stakeholders’
concerns.
Risk Management
The need for robust risk
management frameworks
has become a pivotal
portfolio to (including but
not limited to) assess
corporate behavior and the
current and future financial
performance.
Corporate Social
Responsibility
Real estate companies are
embracing philanthropic
responsibility, environmental
responsibility, economic
responsibility and ethical
responsibility. Companies are
banking on CSR for increased
customer loyalty, brand
recognition and robust sales and
to empower people.

6. ESG Practices and Policies in Real
Estate Companies
1 Evaluating ESG Performance
ESG data platforms can help companies report and manage their ESG green
building performance. The data can be used to minimize risk, make informed
decision and underpin reputation.
2 Integrating ESG into Decision-Making
Innovators, investors and other stakeholders are injecting funds into clean energy
infrastructure and green buildings. Real estate projects with LEED, Energy Star
and BREEAM certifications have prompted stakeholders to integrate ESG into
decision-making strategies.
3 Reporting and Transparency
ESG reporting has become paramount to enhance accountability and stakeholder
confidence. While GHG emissions are widely reported on a quantitative and
comparable basis, social factors often go under-reported. Investors perceive
human rights abuses and labor relations as a major source of risk. New
regulations and global push to reinforce sustainability will spur transparency and
ESG reporting.

7. Benefits of Implementing ESG in
Real Estate
Enhanced Reputation
Strong ESG practices can enhance risk management, attract investors and tenants and
underpin real estate company’s reputation. Investors are inclined toward companies that
integrate ESG factors into their decisions.
Long-Term Value Creation
ESG integration is helping create long-term value by mitigating risks and identifying new
opportunities by being a valuable proposition for socially responsible investors. ESG-focused
buildings can resist environmental and social challenges.
Resilience and Adaptability
ESG implementation has become instrumental in addressing future challenges, such as
ensuring buildings operate during hostile weather conditions and the pandemic.

8. Future Trends and Opportunities in
ESG for the Real Estate Industry
1 Technology Advancements
State-of-the-art technologies, such as AI and IoT, are reshaping ESG practices in the real
estate industry. For instance, IoT is a vital cog in smart green buildings that can help reduce
carbon emissions and augment the growth of sustainable buildings.
2 Regulatory Shifts
ESG regulations have made compliance a mounting challenge as implementing the correct
framework and keeping abreast of changing laws and standards may be an uphill task.
3 Impact Investing
Impact investing has gained prominence to align financial goals with environmental and
social impact. Investors are expected to emphasize climate emergency and social change.
While “E” of ESG has grabbed headlines, stakeholders are likely to prioritize the social
factor.