Creating Sustainable Value: Real Estate and ESG
From ‘E’ to ‘S’ and ‘G’
According to Deloitte’s survey of 114 CFOs in financial services and real estate, half of respondents have incorporated ESG into their business strategies, but there is more emphasis on the ‘E’, 48% of them seeing improvements in reporting as an opportunity to achieve better results. access to capital markets, compared to 30% for ‘S’ and ‘G’.
“Considering that buildings account for around 90% of electricity consumption and more than 60% of carbon emissions in developed cities like Hong Kong, it is hardly surprising that the climate impact of the real estate sector is examined closely.” Straight Explain.
“Although environmental issues are of particular importance in the real estate sector, ESG goes beyond an isolated consideration of ‘E’. A more holistic approach to ESG can generate long-term value, while neglecting it can damage reputation, lose customers, alienate employees, and increase operating costs.”
To promote governance, the report recommends supporting a culture of ethics, compliance and integrity that can drive long-term value. Since COVID-19, the “S” in ESG has received more attention. Real estate companies can make it an engine of value and enhance their social impact by participating in the rehabilitation of public spaces and affordable housing, and by promoting high standards of work practices, responsible marketing and diversity.