Ecology and social responsibility are no longer separate from the corporate world. More and more often in the analysis of markets and in the reporting of companies you can find the acronym ESG, strategies to reduce the carbon footprint, CO2 emissions indicators and measures to offset them.
Already now some investors are willing to refuse to invest in a company if its ESG indicators are low.
Environmental, Social, and Corporate Governance (ESG) is a set of characteristics of the company management, which achieves the involvement of the company in solving environmental, social and managerial problems.
ESG is a set of company performance standards that socially conscious investors use to screen potential investments. Environmental criteria determine how a company acts as a steward of nature. Social criteria examine how it manages relationships with employees, suppliers, customers and the community. Corporate governance concerns company management, executive compensation, auditing, internal controls and shareholder rights.
ESG are three metrics by which companies ensure that they are managing sustainability.
For example, the Norwegian Government Pension Fund, the largest sovereign wealth fund in the world, sold its entire stake in oil companies at the end of 2020.
The real estate industry has a significant impact on the environment and society - the importance of maintaining a sustainable development strategy is obvious.
According to the CBI (Climate Bonds Initiative), in 2020, low-carbon construction is in 2nd place after the energy sector in the green finance market with an investment of $263.5 billion.
Another tool for expressing sustainability goals in addition to issuing green bonds is participation in the annual
GRESB (Global Real Estate Sustainability Benchmark).
GRESB is:
☑️ Internationally recognized rating of real estate portfolios for investors;
☑️. The company's Environmental, Social and Institutional Responsibility (ESG) assessment tool;
☑️. The ESG assessment method for investment portfolios.
Benefits of participation:
☑️ Tool for making informed decisions for investors;
☑️ Tool to optimize the management process and find the company's weaknesses - as a result of participation, each company receives a report on ESG performance compared to other participants, recommendations for development;
☑️ Image and access to additional sources of capital and a platform for interaction with investors.
GRESB assessments are available on the GRESB portal beginning April 1 of each year. The deadline for applications is July 1.
The availability of international BREEAM / LEED certificates is also taken into account when assessing a company's asset portfolio. ESG Factor is pleased to offer services to fully support the company's participation in the GRESB evaluation process - we look forward to hearing from you!
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