As awareness of the importance of environmental sustainability increases, the real estate industry is paying more attention to how properties manage the risks and opportunities related to climate change.
According to the Trends in Real Estate 2023 report, 93% of respondents consider ESG criteria to be the key factor for the success of a business transformation.
The importance of ESG criteria in the real estate sector
The real estate sector is integrating ESG criteria into its business decisions.
This includes everything from emissions reduction to diversity and inclusion within organizations.
The focus on ESG criteria has gained significant importance in recent years due to several key reasons:
- Environmental sustainability: The real estate sector has a significant impact on the environment due to the construction and operation of buildings.
Adopting sustainable practices in property development and management can reduce energy consumption, greenhouse gas emissions, natural resource use, and waste generation.
This not only helps mitigate climate change, but can also generate long-term cost savings and improve the energy efficiency of buildings. - Social responsibility: the focus on social aspects involves considering the well-being of residents, social inclusion, diversity and safety.
Property developers and managers can contribute to the sustainable development of communities by providing affordable housing, community spaces, infrastructure and basic services. - Corporate governance: Effective governance is essential to ensure that companies in the real estate sector are transparent, ethical, and responsible in their operations.
The adoption of sound corporate governance practices promotes transparency in decision-making and ensures compliance with applicable rules and regulations.
This can build confidence among both investors and end users of real estate space.
In addition, from a financial point of view, a clear ESG roadmap can help calculate risk more effectively, potentially improving financing and underwriting conditions.
The real estate sector: key to sustainable investment
The real estate sector plays an important role and can contribute significantly to the transition to a more sustainable economy.
There are several reasons why real estate has become a key focus for sustainable investment and climate change mitigation:
- Impact on carbon emissions: Buildings are responsible for a considerable share of global greenhouse gas emissions.
The construction and use of buildings, including the energy required for their operation, account for a significant share of total emissions.
Therefore, the adoption of sustainable practices in the design, construction and operation of buildings can have a significant impact on reducing carbon emissions. - Energy efficiency: the implementation of energy efficient technologies and systems, such as LED lighting, thermal insulation, efficient air conditioning systems and renewable energies, can significantly reduce energy consumption and associated emissions.
- Certifications and standards: there are certifications and standards that promote sustainable practices in the construction and operation of buildings.
Some well-known examples are LEED, BREEAM and WELL.
These certifications encourage the adoption of sustainable practices and provide guidance for investment in more efficient and environmentally friendly buildings. - Long-term profitability: Sustainable buildings tend to have lower operating costs due to energy efficiency, which translates into savings in energy and maintenance costs.
In addition, these buildings can be more attractive to tenants and buyers, which can generate higher market value and demand.
In conclusion, the real estate sector is assuming an important role in sustainable investment and climate change mitigation due to its impact on carbon emissions and its potential to improve energy efficiency.
Optimizing ESG criteria with Ineria Management
By adopting sustainable practices and promoting the construction and operation of more efficient and environmentally friendly buildings, the real estate industry can make a significant contribution to the transition to a more sustainable future.
At Ineria Management, we focus on helping our clients maximize the ESG performance of their real estate properties.
Our services are designed to promote energy efficiency, reduce carbon emissions and achieve real estate decarbonization.
In addition, we specialize in obtaining leading sustainability certifications and securing top ratings.
We work closely with our clients to implement sustainable practices, improve management and provide solutions that drive long-term success in terms of sustainability and financial performance.
