Rethinking ESG: 3 common myths debunked🌱
Amidst economic headwinds in European real estate markets, prioritising ESG compliance is key for investors.
But who should consider ESG and what measures can investors take? We took a look at 3 common ESG myths. 👇
For insights into what ESG measures guarantee maximum impact at a low cost, register for our webinar "Rethinking ESG: What works? What to avoid?" on the 6th of June, 3pm CEST: https://ow.ly/h8IT50RSogo
1. "ESG is just a trend that will go out of fashion."
It's highly unlikely that ESG is just a trend. In 2021, the UN reported over 130 countries aim for net zero emissions by 2050. Many nations have set ESG targets and enacted relevant legislation. In Europe, the EU Taxonomy and Sustainable Finance Disclosure Regulations address CO² reduction.
Public awareness and political pressure emphasise sustainable practices. Ignoring ESG can lead to missed opportunities, lost competitiveness, and reputational damage. Embracing ESG future-proofs operations, drives innovation, attracts investment, and fosters resilient communities.
2. "ESG is focused on new construction."
ESG investing in commercial real estate covers activities throughout the property lifecycle, including retrofitting, energy upgrades, tenant engagement, and governance practices. ESG principles are vital not only during development but also in property acquisition, renovation, and operations, focusing on energy efficiency, water conservation, waste management, and indoor environmental quality.
Government regulations are also driving ESG adoption. In the UK, non-residential buildings with an energy efficiency rating below E cannot be rented, with a goal of achieving a minimum rating of B by 2030. In the Netherlands, office buildings must meet a C rating or higher to remain in use.
3. "I can wait until ESG regulations become more clear before taking action."
Global pressure and public opinion are accelerating government ESG programs, with varying speeds across countries. As we approach the 2050 zero carbon emissions milestone, companies need a clear ESG strategy with KPIs, progress monitoring, and reporting. External expert advice may be necessary. Start with small steps rather than trying to implement all aspects of ESG compliance at once.
Register for our upcoming webinar "Rethinking ESG: What works? What to avoid?" on the 6th of June, 3pm CEST, for exclusive insights into what ESG measures you should adapt and what measures you should avoid. Register here 👉 https://ow.ly/h8IT50RSogo