What is ESG?
ESG stands for environmental, social, and governance, and is becoming a major consideration for investors determining which companies to invest in. Environmental typically involves reviewing a company’s carbon footprint, waste and water management, and energy efficiency. Social covers community involvement, diversity, building safety, workplace health and safety, and other impacts on communities. Finally, governance refers to board diversity, ethical and business standards, and executive pay, among other factors.
What is an ESG score?
Simply put, a company’s ESG score is determined through a checklist of sorts, and there are several frameworks used to measure ESG performance, such as the Global Real Estate Sustainability Benchmark (GRESB), Sustainability Accounting Standards Board (SASB), Principles for Responsible Investment (PRI), and Institutional Shareholder Services (ISS).
How do I find my score?
With so many existing and emerging frameworks, it can be tricky to determine which is right for you. EBI recently partnered with GRESB, a leading ESG benchmark for real estate. EBI’s energy services team can help you to determine the best framework and come up with a customized plan that fits your needs and goals. Finding out your ESG score allows you to understand how you compare to others in the industry and meet new investor standards.
Why is ESG important?
As interest in sustainable investing grows, ESG scoring is increasingly important to property owners. A high ESG score demonstrates to investors that you’re aware of the industry’s trajectory towards sustainability and carbon neutrality, you’re getting ahead of regulations we’re likely to see in the future, and you care about your company’s societal impact. Additionally, improving a low score is also attractive to investors. Transparency is key for ESG. We already see investors shifting to greener portfolios and prioritizing ESG is attractive to many investors.
Where do I start?
Getting started may seem overwhelming, but that’s what we’re here for. Our ESG experts want to help you meet your goals and create a custom plan of action for your team. Many clients already feel pressure from investors to measure and improve their ESG scores, so reach out to our team today!
Who to contact:
William Duggan, ESG Program Manager
Joseph DiTizio, E&S Account Executive