At least 90 percent of all buildings are not ESG compliant, yet investors make ESG compliance the top priority of any due diligence process. So I have to do something – and fast. ESG stands for Environment, Social and Governance.
ESG compliance means adherence to guidelines in the areas of environment, social and governance. Sustainability and social responsibility are increasingly becoming the focus of society and many companies. The management floors of companies cannot avoid addressing these issues – even if it is for image reasons – and developing corresponding corporate strategies under the keyword ESG.
While CSR (Corporate Social Responsibility) generally describes a company’s responsibility for sustainable management in economic, ecological and social terms, the term ESG conceals criteria for proving the collective awareness of a company with regard to ecological and social management, especially for company evaluations and thus also the future viability of companies.
As a result of this development, ESG is becoming a transitional risk for the industry. In the absence of commonly agreed standards, the only thing we can do today is commit to ESG and disclose a plan. The fact that sustainable buildings generate 20 to 25 percent higher rents and 8 percent higher occupancy should already be motivation enough for any player to focus on ESG and make it a top priority. Flexible office solutions combined with a smart leasing approach can help increase space utilization and reduce the average carbon footprint per WZ by 50%.
workcloud24 supports and accompanies companies in the real estate industry, banks and tenants alike on their way to ESG compliance with an industry experience of over 35 years.