ESG Real Estate Insights 2023

ESG now holds a key role in strategy and daily operations. To remain successful, organizations must incorporate ESG factors in their strategic decision-making, transformation, reporting, and assurance. At Deloitte, we will support you through your sustainability journey and highlight any aspects that impact you, now and in the future – always with a focus on real estate.

ESG Real Estate Insights is our article series and has been developed to shed light on key ESG topics as they relate to real estate players. 

With contributions from Deloitte member firms and connected with a worldwide network of real estate and sustainability experts, our annual series aims to provide a diversified view of ESG in the Real Estate industry.

#1 Governance in the Real Estate Sector

Real estate firms are experiencing increased stakeholder pressure to address environmental, social, and governance issues. But when it comes to the governance component of ESG management, real estate companies face a number of unique challenges. Firms must work to strike a balance between stakeholder expectations and business objectives. This article from Deloitte Israel explores a framework for helping to manage the complexities.

#2 How can ESG be profitable for real estate?

Despite increasing evidence on the benefits of ESG, real estate companies continue to take a passive approach focused on risk mitigation. A recent Deloitte Canada survey shows how owners lag in giving strategic importance to ESG, even as tenants demand more ESG insights and services and are willing to pay. In this article, we discuss how ESG brings an opportunity to generate new revenue that can directly improve the profitability from ESG initiatives, making a stronger business case for commercial real estate owners and developers.

#3: Real estate sustainability due dilligence

The ability to provide or receive sustainability information in real estate due diligence is becoming more critical. Final and emerging standards and frameworks provide a consistent language for engagement among negotiating parties. Learn more in this article.

#4: Empowering Real Estate Players through Integrated ESG Reporting

Real estate players have began to realize the impact of ESG considerations on the long-term value of their assets. One way to gain better visibility into ESG risks and opportunities is through integrated ESG reporting. In this article from Deloitte Luxembourg we will discuss the benefits of using software for ESG reporting and on what aspects real estate players should look when considering and implementing a ESG software tool.

#5: Charting a Nature Positive Pathway for the Real Estate Sector

Global nature loss presents a significant challenge for the real estate sector, given its high dependence on natural resources and ecosystem services. If real estate organizations are to ensure their long-term resilience and differentiate from competitors, they will need to reimagine their relationship with nature. In this article Deloitte Australia explains steps which real estate firms can take to move towards nature positive.

#6: The sustainable (project) cashflow

There is an intuitive value in embedding sustainability into a real estate project. In this article from Deloitte Central Europe, we look for evidence of the inflows and outflows in the cashflow of a sustainable project, as opposite to a non-sustainable project. Those will define the capacity of creating either lengthier cashflows, or with bigger inflows, or both. 

#7: The spectre of stranded assets—risk or opportunity?

The impact of climate change on asset resilience—and therefore value and performance potential—is accelerating at pace. How can real estate stakeholders strategize to identify, quantify, and mitigate the “value at risk” of asset portfolios through effective stewardship strategies? Explore in this article from Deloitte United Kingdom.     

#8 CSRD—What is it all about for the housing companies

What does the Corporate Sustainability Reporting Directive mean for your company? Learn more about this new requirement and how firms can consider the data management and other necessary reporting in this article from Deloitte Germany.

#9 Circular Economy: Obligation of means or obligation of results?

Is circular economy an obligation of result or an obligation of means? Do players actually have to prove that their waste has been recycled or simply show that they have sorted the outgoing flows? This article from Deloitte France explores answers to these questions.

#10 Bricks and mortar improve lives and livelihoods

We often hear about the negative environmental impacts of real estate and how to reduce them. But in this article from Deloitte South Africa, we look at the positive socio-economic impact of real estate development and operation in Africa and how the sector may drive economic growth and sustainable development across the continent.

This series should give you, our valuable readers, an insightful and thought-provoking read, and we look forward to receiving your comments and suggestions for future topics.

This series is designed to provide you with useful and insightful information. We look forward to discussing with you how these topics can impact your organization.