The topics of ecology and sustainability are becoming increasingly important in today's world, but to what extent does this affect real estate?
The abbreviation "ESG" is based on the English terms Environment, Social, and Governance. The aim of ESG is to examine and evaluate corporate social responsibility. Voluntary participation that goes beyond legal requirements is necessary for the development of sustainability.
For the company, all three factors are important areas of responsibility related to sustainability, which only promote maximum success when combined.
The environment plays a major role, and the company explicitly addresses the extent to which it pollutes the environment and how this can be reduced. This topic includes ecological criteria such as
- investment in renewable energies
- sustainable manufacturing
- Reduction of CO2
- Renewable energy
However, sustainable real estate should not only consider environmental aspects; social and societal aspects are equally important. Examples of criteria for significant role models are:
- Compliance with labor rights
- Observation of occupational safety and health protection
- fair remuneration
- fair treatment in the workplace
When assessing sustainability, consideration should also be given to the quality of corporate governance, which includes important components such as:
- Prevention of bribery and money laundering
- Compliance with laws and regulations
- Equal opportunities for all positions
- Human rights
- Risk management
Nowadays, you can find detailed information about whether and to what extent a company is involved in ESG issues simply by searching the internet. The social and ecological actions of a company can be assessed by so-called sustainability rating agencies.
