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ESG Real Estate Insights 2023

Sustainability is surely here to stay – and as market participants, governments and the wider public demand effective corporate action, the real estate industry needs to proactively address ESG themes in all its dimensions.

#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 diligence

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 from Deloitte & Touche LLP.

#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.

ESG Real Estate Insights 2022

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

Ranging from regulatory issues, such as EU taxonomy, to valuation in the light of ESG, data management & CSRD, SBTi and carbon accounting to Digital ESG Assessment, the 2022 edition of ESG Real Estate Insights addresses some of the key topics relevant for real estate players today.

Read the full report, which summarizes all topics of the 2022 series, or see below to access the separate contributions from Deloitte real estate and sustainability experts globally.

ESG Real Estate Insights 2021

We started our ESG Real Estate Insights journey in 2021, with a series of 10 articles addressing key topics the industry is dealing with.

The full report provides a summary of all articles at a glance - with executive summaries for each article to allow fast and selective reading.

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