The increasing importance of environmental sustainability in global real estate investment markets

Newell, Graeme; Marzuki, Muhammad Jufri

doi:10.1108/jpif-01-2022-0005

Cited by 24 publications

(7 citation statements)

References 32 publications

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“…This includes the need for increased granularity and assessing climate risk from major weather events (e.g. Clayton et al , 2021b; Fuerst and Warren-Myers, 2021; Sayce et al , 2022), need for increased transparency (Newell and Marzuki, 2022) and increasing the ESG focus in the emerging markets (Newell, 2021). For several of these recommendations, there are also clearly future research opportunities for a deeper assessment of these ESG issues; this includes issues regarding TCFD and the increasing importance of the S dimension in ESG.…”

Section: Discussionmentioning

confidence: 99%

“…Warren-Myers et al , 2021), government responses to climate change events (e.g. Cradduck and Warren-Myers, 2022), climate risk and real estate pricing (Clayton et al , 2021b; Fuerst and Warren-Myers, 2021; Sayce et al , 2022), the increasing importance of ESG in international real estate markets (Newell and Marzuki, 2022) and ESG and real estate in a post-COVID environment (Pike, 2020). A full assessment of the international literature regarding hazard exposure to specific climate change events (e.g.…”

Section: Literature Reviewmentioning

confidence: 99%

“…Major ESG initiatives in the real estate area, such as Global Real Estate Sustainability Benchmark (GRESB), European Public Real Estate Association's (EPRA) Sustainability Best Practice Awards, European Association for Investors in Non-listed Real Estate Vehicles' (INREV) Due Diligence Questionnaire and Global Property Research's (GPR) sustainable real estate indices, have embedded the importance of ESG issues more fully in the real estate industry at a global level. This has seen the language of ESG also become a key feature of the language of the real estate industry today, as evidenced by the increasing importance of ESG in global real estate markets (Newell and Marzuki, 2022).…”

Section: Introductionmentioning

confidence: 99%

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Improving the benchmarking of ESG in real estate investment

Newell

Nanda

Moss

2023

JPIF

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Purpose Environment, social, governance (ESG) has taken on increased importance in real estate investment in recent years, with benchmarking ESG being critically important for more informed real estate investment decision-making. Using 60 stakeholder interviews with senior real estate executives, this paper examines the strategic issues regarding benchmarking ESG in real estate investment; specifically, identifying areas going forward where ESG benchmarks need to be improved. This includes the issues of granularity, climate resilience and climate risk, as well as an increased focus on outcomes and performance, and using best practice procedures in delivering ESG in real estate investment.Design/methodology/approachIn total, 60 stakeholder interviews were conducted with key real estate players globally to assess the use of ESG benchmarking in real estate investment at various levels (asset/fund-level, listed real estate, delivery, reporting and internal benchmarking), across regions and across different types of real estate investment players (real estate fund manager, real estate investment trust (REIT), institutional investor and real estate advisor). This enabled key strategic insights to be identified for improved ESG benchmarking practices in real estate investment going forward.FindingsThere was clear evidence of the need for improved benchmarks for ESG in real estate investment. More focus was needed on performance, outcomes and impacts, with a stronger focus on granularity around the issues of climate resilience and climate risk. Improvements in Global Real Estate Sustainability Benchmark (GRESB), as well as increased attention to Task Force for Climate-Related Financial Disclosures (TCFD) were seen as important initiatives. Clear differences were also seen in the use of these ESG benchmarks on a regional basis; with Australia and Europe seen as the world leaders. These strategic stakeholder insights regarding ESG saw the development of best practice guidelines for the more effective delivery of ESG benchmarks for more informed real estate investment decision-making, as well as a series of recommendations for improving ESG benchmarking in real estate investment.Practical implicationsESG benchmarking is a critical area of real estate investment decision-making today. By utilising stakeholder interviews, the strategic insights from key players in the real estate investment space are identified. In particular, this paper identifies how the current ESG benchmarks used in real estate investment need to be improved for a more critical assessment of climate resilience and climate risk issues at a more granular level. This enables the identification and delivery of more effective ESG best practice procedures and recommendations for improving ESG benchmarking in real estate investment going forward. These issues have clear impacts on ongoing capital raisings by investors, where benchmarking ESG is an increasingly important factor for real estate investors, tenants and real estate asset managers.Originality/valueBased on the stakeholder interview responses, this paper has identified key areas for improvement in the current benchmarks for ESG in real estate investment. It is anticipated that an increased focus on technology and the availability of more granular data, coupled with user demand, will see more focus on assessing performance, outcomes and impacts at a real estate asset-specific level and produce a fuller range of ESG metrics, more focused on climate resilience and climate risk. This will see a more effective range of ESG benchmarks for more informed real estate investment decision-making.

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Section: Discussionmentioning

confidence: 99%

Section: Literature Reviewmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Improving the benchmarking of ESG in real estate investment

Newell

Nanda

Moss

2023

JPIF

Self Cite

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“…Fuerst and McAllister, 2011 a, b, c), real estate investment importance (e.g. Newell and Marzuki, 2022; ULI and Heitman, 2019) and valuation implications (e.g. Warren-Myers, 2022; Warren-Myers et al ., 2020 a, b).…”

Section: The “E” Dimensionmentioning

confidence: 99%

Real Estate Insights The increasing importance of the “S” dimension in ESG

Newell

2023

JPIF

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PurposeEnvironment, social and governance (ESG) has taken on increased importance in recent years. This paper assesses the increasing importance of the social (“S”) dimension of ESG in the real estate space and the strategies being used by the leading real estate players to deliver this important aspect of ESG. This includes gender equality, cultural diversity, staff wellness, supply chain management and community engagement. It also indicates the need for an increased level of metrics in the S space for the effective delivery and external validation of the S dimension into real estate investment decision-making.Design/methodology/approachThis research is based on a thorough understanding of the ESG environment in the real estate industry by the author. Best practice examples regarding the S dimension are given from the ESG/sustainability reports from real estate players in Australia who are leaders in the ESG space.FindingsExcellent examples of the delivery of the S dimension are reported from the ESG/sustainability reports from the real estate industry. Whilst there is an increasing range of S information being reported in the real estate industry, there is a need for more metrics to effectively report this S information to indicate its key role in seeing the S dimension being delivered for the fuller integration of ESG at all levels of the real estate industry. The external validation of this S information will also take on increased importance going forward.Practical implicationsWith ESG becoming a critical issue in the real estate sector, issues involved in the S space will take on increased significance. This is critical, as the elements of the S dimension such as gender equality, cultural diversity, staff wellness, community engagement and supply chain management are important aspects for an effectively functioning real estate industry. More metrics in the S space will be an important development to further expand the delivery and external validation of the S space of ESG.Originality/valueThis paper is the first paper to specifically address the need for more focus on delivering the S dimension of ESG in the real estate industry, highlighted by best practice examples from the real estate industry in Australia. This is a key issue for the real estate industry going forward at all levels to facilitate more effective real estate investment decision-making.

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“…On the other hand, the warehousing sector is one of the key contributors to worldwide greenhouse gas releases, the generation of waste, and energy and water usage. Crucially, the sector has addressed ESG challenges to ensure a more sustainable future, and above all, warehouse properties are one area of the industry that is likely to have a profound impact on the corporate governance society and environment [35]. Hence, this article, embarking on a quantitative netnographic examination of social media communication of ESG activities by warehouse space developers, will help ll the research gap and advance current knowledge in this area.…”

Section: Introductionmentioning

confidence: 99%

The role of social media marketing of ESG in warehouse logistics

Błaszczyk,

Viet-Błaszczyk

2023

Preprint

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Environment, social and governance (ESG) topic has attracted increasing attention from practitioners, especially in last 2 years. However, there is still a lack of a studies of this area in the context of modern warehouse logistics and how these activities are communicated in social media (SM). The purpose of this article is to explore this topic and present the results of quantitative research involving statistical analysis of the results of social media marketing publications on ESG. For these purposes, the researchers brought up the structured overview of ESG in warehouse logistics and made a netnographic investigation focused on the social media activities of companies that represent the largest market share. The results of the research evaluate the correlation between warehouse size and marketing performance, show areas of ESG, which are the most frequently communicated and the most attractive to customers from the perspective of engagement on LinkedIn. It can be a basis for future studies on the implementation of ESG activities in warehouses and can serve practitioners in selecting projects of interest and worth deploying.

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The increasing importance of environmental sustainability in global real estate investment markets

Cited by 24 publications

References 32 publications

Improving the benchmarking of ESG in real estate investment

Improving the benchmarking of ESG in real estate investment

Real Estate Insights The increasing importance of the “S” dimension in ESG

The role of social media marketing of ESG in warehouse logistics

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