What You Need to Know About Emerging ESG Practices in Commercial Real Estate
2 min read
Canada's commercial real estate industry has focused intensely on environmental, social, and governance (ESG) compliance heading into 2023. This emerging trend is fueled by the federal government's pledge to achieve net zero status by 2050, encouraging property owners to incorporate ESG into their business strategies sooner than later.
This has become an added consideration amongst commercial real estate professionals when working alongside property owners, investors, and tenants alike.
So, what is ESG, and why is it important in commercial real estate? The concept of ESG was created to be built into the day-to-day operations of leading industries, including real estate. Since its introduction, the CRE industry has incorporated these concepts at a corporate and independent business level. Below are the basics of each.
Environment: Environmental policies focused on reducing and/or eliminating negative environmental and climate impacts.
Social: Evaluation of social elements within the workplace, including diversity and inclusion efforts at all employment levels. It also includes the ongoing engagement of the organization's local community.
Governance: An organization's leadership and how it sustains legal and ethical obligations and navigates risk over time.
Although all equally as important, the CRE industry continues to focus on environmental elements to reduce energy consumption, carbon emissions, and the industry's overall impacts on the environment.
Incorporating ESG into your business strategy is a wise choice, positioning you as an industry leader while helping you satisfy evolving client needs.
References
Andre Simoneau Associate Editor André Simoneau is an associate editor at LoopNet.ca, Editor, A. S. A., Simoneau, A., Editor, A., & André Simoneau is an associate editor at LoopNet.ca. (2023, January 5). What to expect in canadian commercial real estate in 2023. LoopNet. Retrieved January 10, 2023, from https://www.loopnet.com/learn/what-to-expect-in-canadian-commercial-real-estate-in-2023/1725921854/
Foster, M. (2022, October 12). ESG Basics in commercial real estate. LoopNet. Retrieved January 10, 2023, from https://www.loopnet.ca/learn/esg-basics-in-commercial-real-estate/927735577/?_gl=1%2Abss7c8%2A_ga%2AMzk2NDgyMjcuMTY3MzM2ODkyMA..%2A_ga_2DVXTE8M0Q%2AMTY3MzM2ODkyMC4xLjAuMTY3MzM2ODkyMC42MC4wLjA.
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