How to Factor ESG Into TALL Building Real Estate Investments and Development


ESG factors into real estate investment in many ways. When thinking of tall buildings real estate class of assets, most think of the environmental and sustainability aspects first. However, both the social and governance components of ESG also play an essential roles in the tall building real estate investment. Below are some of examples of how ESG can be applied in TALL Building real estate investments and development asset class:


Environmental

  • Developing tall building with the lowest emissions level possible and then offsetting the emissions created by finding ways to reduce and/or reuse waste and utilize renewable energy sources.

  • Utilizing eco-friendly materials such as timber, green steel (green hydrogen), and low carbon concrete.

  • Incorporating technology AI, Robotics and IoT into developments, design, and construction of smart tall building, such as smart heating or ventilation.

Social

  • Affordable tall building projects - In the last 30 years, household wealth has quadrupled; however, in the lower 50%, it has dropped significantly. The relationship of wealth change and home ownership change tracks almost one-for-one. There is a huge need across the country for affordable tall building developments.

  • Workplace wellness features - This focus is not only on physical wellness but also on employees’ mental health and can include increased ventilation and air circulation, increasing natural light, offering employee’s healthy food options, or meditation, Pilates and yoga classes.

  • Diversity & Inclusion - This can be applied to all stakeholders involve in developing tall building (the real estate investment firm, developer, consultants, contractors), as well as the tenants in the investment properties.

Governance

  • Corporate social responsibility - A form of self-regulation that reflects a business’s accountability and commitment to contributing to the well-being of communities and society through various environmental and social measures. This can include environmental efforts, philanthropy, HR, ethical labor practices, and volunteering.

  • Data protection - Personally identifiable information in tall building real estate is accumulated while managing tenants, handling property guests, and selling properties, as well as servicing investors, employees, and contingent labor, such as contractors and handypersons. Fund managers should make sure there are policies and procedures in place to remain good stewards of the personal information they accumulate and use.

  • Transparency and disclosures - Clear description of which factors are significant or a main concentration, and disclose how the fund measures progress on its ESG and sustainability objectives.


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About PAN Partners

PAN is the leading global Management Consulting firm for construction industry. Real estate asset management, structural engineering, PM oversight, claims consulting, scheduling, dispute resolution, expert testimony and project management are our key strength services. Applying our deep experience knowledge insights, we work in close collaboration with our clients to deliver exceptional and sustainable outcomes throughout the lifecycle of their assets.

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