ESG Means Business 1
S
ocially responsible or sustainable invest-
ing, which takes into account environ-
mental, social and governance factors,
has become serious business for investors in
real estate. No longer a niche focus for a few
European pension funds, ESG has gone main-
stream, as more investors embrace a credo of
doing well by doing good.
"Sustainability fits into our overall approach
to doing business and fits with our overall
business drivers," says Darryl Neate, director –
sustainability with Oxford Properties Group, the
real estate investment, development and manage-
ment arm of Canada-based OMERS pension plan.
The business case for ESG
Supporters of ESG point to a compelling
business case. On the environmental front,
sustainable practices can attract tenants,
improve occupancy, provide rent premiums
and cut costs, which reduces operating costs
to occupants and improves the property own-
er's bottom line and, therefore, the underly-
ing value of the asset.
ESG means business
Investors have gotten serious about sustainability
and socially responsible property investing
by Loretta Clodfelter
