Real Estate

What Does ESG Mean For Europe's Top Investors?

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<p style="text-align: justify;">There is no one simple answer to this question. That's why I am happy that I had a chance to discuss this subject with my industry colleagues one week ago during European ESG Property Forum in Warsaw.</p><p style="text-align: justify;">Let me share with you a few takeaways:&nbsp;</p><ul><li style="text-align: justify;">ESG is shaping the future of investing and will play a significant role in investors' decisions</li><li style="text-align: justify;">Green finance is and will be increasing&nbsp;</li><li style="text-align: justify;">Capital is flowing towards sustainable assets and companies</li><li style="text-align: justify;">However, investors require that companies will demonstrate and prove that they are ESG-compliant in an advanced way</li><li style="text-align: justify;">Last but not the least, standardising ESG criteria, benchmarks, and reporting is crucial for comprehensive analysis. Thus, professionals from the real estate industry should play a front-line role in the preparation and development of such standards and metrics</li></ul><p style="text-align: justify;">&nbsp;</p><p style="text-align: justify;">Companies need and look for ESG-compliant space which aligns with their sustainability strategy.</p><p style="text-align: justify;">Everyone knows that unfortunately, it won&rsquo;t be cheaper due to increasing costs of buildings and materials and the low supply of office space expected in the following years, so it&rsquo;s the best time to decide on new space.</p><p style="text-align: justify;"><span style="font-size: 10pt;"><em>This article was contributed by our expert <a href="https://www.linkedin.com/in/adriankarczewicz/">Adrian Karczewicz</a>&nbsp;</em></span></p><p style="text-align: justify;">&nbsp;</p><h3 style="text-align: justify;"><span style="font-size: 18pt;">Frequently Asked Questions Answered by Adrian Karczewicz</span></h3><h2><span style="font-size: 12pt;">1. Does ESG improve investment performance?</span></h2><p style="text-align: justify;">ESG investing appears to provide downside protection, especially during a social or economic crisis. Sustainability initiatives at corporations appear to drive better financial performance due to mediating factors such as improved risk management and more innovation.</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">2. What is the future of ESG?</span></h2><p style="text-align: justify;">The pandemic has compelled organizations to rethink what they believe is really important, and sustainability has taken over.</p><h2 style="text-align: justify;"><span style="font-size: 12pt;">3. Why investors look at ESG?</span></h2><p style="text-align: justify;">ESG analysis has become an increasingly important part of the investment process. For investment professionals, a key motivation in the practice of considering environmental, social, and governance (ESG) issues as part of their financial analysis is to gain a fuller understanding of the companies in which they invest.</p><p style="text-align: justify;">&nbsp;</p>
KR Expert - Adrian Karczewicz