As more investors focus on ESG policies, we try to demystify the E in ESG.
By Tony Liou, Partner Energy President
In the past year, ESG (Environmental, Social, and Governance) investing has gone from a niche strategy to a mainstream approach utilized by more institutional real estate investors. Companies like BlackRock and PGIM are scaling their ESG efforts, and more investors and fund managers now know that ESG policies will have a profound impact on their ability to raise funds as well as have a positive impacts on the bottom line.
Investors often focus primarily on the environmental aspects of ESG strategies because making properties more energy efficient and sustainable tends to yield direct financial returns. But what exactly goes into the E of ESG and how does a company achieve them?
As the president of a sustainability consulting firm, I often see clients with a general goal of reducing energy use, waste, and carbon emissions. But they don’t know exactly how to identify, measure, or reach their green goals in an accretive fashion. This is where an experienced sustainability consultant can help guide clients through the process and methodology.
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