Meet requirements. Meet goals. Meet the future.
Achieve profitable sustainability tomorrow with a strong ESG plan implemented today.
Emissions reduction requirements are just a warm up. At its core, ESG is about creating long-term value for everyone; whether you’re buying, holding or selling.
The first contact CRE stakeholders have with ESG-driven goals and KPIs is often through some form of energy and water use reduction targets mandated by cities and states.
These requirements are generally first steps towards a larger energy sustainability goal of net zero, as we’re seeing with California’s Zero Net Energy, NYC’s Local Energy Laws, and Boston’s Emissions Reduction and Disclosure Ordinance (BERDO).
While they may seem like burdensome and costly regulations at first glance, forward-thinking owners and investors are going beyond meeting regulations, and leveraging sustainability as competitive advantage.
ESG stands for Environmental, Social, and Governance, and is rapidly becoming a key consideration for investors in determining where to invest.
Environmental typically involves reviewing a company’s carbon footprint, waste and water management, energy efficiency, and other related matters.
Social covers community involvement, workforce diversity, building safety, workplace health and safety, and other impacts on communities.
Governance refers to board diversity, ethical and business standards, and executive pay, among other factors.
Several frameworks exist to benchmark and report on ESG initiatives. At EBI, and for several of the world’s leading real estate companies, the preferred framework is GRESB. Established by investors in 2009, GRESB is used by more than 140 institutional investors to monitor their investments, engage with their managers and make informed decisions.
How does ESG create value for commercial real estate businesses?
According to GRESB, 98% of investors use ESG data in their investment process, and according to EY, 85% of the largest PE firms have ESG policies.
ESG strategy examples that create value for CRE stakeholders include:
|Building Efficiency||Tenant Health & Well-Being|
|Energy Auditing & Modeling||Industrial Hygiene Services|
|Energy & Water Benchmarking||Hazardous Materials Testing & Abatement|
|Commissioning/Retro-Comissioning||Indoor Air Quality Assessments|
|MEP Assessments||Indoor Environmental Quality Assessments|
|Carbon Footprint Analysis||Air & Water Permitting|
|Water & Waste Management|
|Building Certifications||ESG Policy & Strategy|
|Leed Certification||Net-Zero Carbon Strategy|
|Energy Star Certification||Municipal Energy Compliance|
|WELL Certification||Environmental Management Systems|
|and more!||Compliance and EH&S Policy|
|Climate Change Risk Assessments|
|Transition Risk Assessments|
These improvements deliver cost-effective, sustainable buildings that best mitigate climate risks and clean energy concerns expressed by investors and tenants alike.
As a result, sustainability-optimized properties are in high demand, while the lack of efficiency improvements gives potential investors new leverage.
What if building an ESG program with a dedicated team isn’t feasible for your business?
The ESG landscape is moving fast and aligning your business interests with the broader ESG framework is a heavy lift most companies aren’t ready to take on now. For many, this is perpetuating inaction in ESG adoption.
There’s no need to stay stuck at buy-in.
Partnering with an experienced leader in ESG is an efficient and cost-effective way to implement ESG and help improve your bottom line.
When asked how EBI implements an ESG plan with clients, EBI’s Associate Director of ESG Business Development and Client Success, Joe DiTizio, states, “The process begins with benchmarking, to establish a baseline for current company performance. We then move into planning, identifying efficient, cost-effective strategies for improvement based on each client’s timeline and goals. Then we are able to help clients execute the plan, creating paths for improvement and driving actual progress. Finally, we report on the client’s ESG performance, along with setting goals they want to meet year-over-year. The process is circular and is designed to facilitate continuous improvement over time.”
ESG is the new standard for building resilient, valuable portfolios that drive up company reputation and investor demand. CRE stakeholders who invest in ESG strategies have a clear path to increased asset value, lower operating costs, and ever-growing, exclusive financing opportunities.
Your ESG consultant should be an experienced, reputable, and trusted advisor.
At EBI, we use four steps to devise and drive your ESG program forward: Benchmark, Plan, Improve, and Report. We identify opportunities for operational improvement by leveraging 30+ years of natural and built environments experience and consulting expertise. You will come away with detailed environmental and ESG reporting that not only shows your commitment to improving operations, but also demonstrates your dedication to employee well-being, community involvement, and operating responsibly.