Invest Tribe – Return on Sustainability

Energy and waste management, green building certification, and carbon footprint are often considered the most important ESG criteria to investors. And although the time horizons of ESG outcomes and investment returns are not always aligned, the carbon mandate is clear. At IMPACT UK, the INVEST Tribe discuss the embedding of ESG best practices throughout property investment and asset management.

Takeaways:

Community Engagement in Real Estate: There’s a notable emphasis on community involvement and accessibility in real estate projects. Offering spaces for community activities and events can enhance the overall asset value and bring about social benefits.

Challenging Traditional Metrics: Current industry metrics, like the EPC, might not accurately represent the sustainability or social value of a property. There’s a call for more comprehensive and holistic evaluation methods.

Shift Towards Sustainable Investment: There’s a growing pool of investors who prioritize sustainability and social impact, even if it means potentially sacrificing some financial returns. This trend indicates a shift in market priorities and investor values.

Importance of Social Value: Beyond just financial returns, there’s an emphasis on the importance of the social value real estate can bring, whether it’s through community integration, providing space for local charities, or other means.

Flexibility & Adaptability: Property owners and asset managers are encouraged to be flexible with their spaces. Short-term offers to charities or community events can bring about long-term benefits.

Debate on Sustainable Metrics: There’s an ongoing debate and discussion about how best to measure and represent sustainability in real estate, especially as it pertains to social value.

Future Trends: There’s a sentiment that the industry will evolve in such a way that separate “impact funds” might become redundant. Sustainability and social impact strategies are expected to become integral to everyday investment activities.

Immediate Action and Evolution: While the industry has come a long way in recent years, there’s a consensus that there’s still a lot of progress to be made. There’s an encouragement to act immediately and push for further change and improvement.

For more on IMPACT UK, visit: https://www.space-plus.org/property-events-london/impact-uk/