Automated ESG Reports for Commercial Real Estate | Cohesion (2024)

FAQs

What are the ESG standards in commercial real estate? ›

In the context of commercial real estate, investors, regulators, and other stakeholders will use ESG factors to assess how an investment is managing its environmental impact, its treatment of employees, tenants, and communities, and the quality of its governance practices.

The Nareit Guide to ESG Reporting Frameowrks includes only the KPIs and metrics from the GRI Standards that are most relevant to the real estate industry. Users of the GRI Standards will need to review all disclosures that might be material to their business.

ESG ratings are now key in setting the value of commercial real estate. They highlight a property's green, social, and governance qualities and affect its price on the market. Real estate experts can gain many benefits by applying ESG principles.

The real estate industry stands at a pivotal juncture where Environmental, Social, and Governance (ESG) considerations have become indispensable for long-term success. These priorities, ranging from climate change risks to regulatory compliance and stakeholder sentiments, collectively shape the industry's trajectory.

ESG describes the three areas that characterize a sustainable, responsible, and ethical investment: environmental, social and governnance. The term has become commonplace in corporate boardrooms and in turn, it's an important area to understand for your commercial awareness.

Is ESG reporting mandatory in the United States? There is currently no federal mandate for ESG (Environmental, Social, and Governance) reporting in the United States. However, there are various initiatives and regulations that require companies to disclose certain ESG information.

In this blog post, we've given you a rundown of three of the most popular ESG reporting frameworks: GRI, SASB, and CDSB. Now all you need to do is decide which one is right for your business! Align your ESG practices to any of the above frameworks with EmpoweredESG.

The Sustainability Accounting Standards Board — or SASB — is a non-profit organization that was built in 2011 to create a framework for industry-specific standards that are relevant to investors because they have a material impact on the business. Materiality is a large focus of these standards.

What is a good ESG score? ›

Environmental, social, and governance (ESG) scores are an essential tool for investors to assess a company's sustainability and ethical performance. These scores typically range from 0 to 100, with a score of less than 50 considered relatively poor and more than 70 considered good.

85% of investors, executives to boost ESG investments, despite economic headwinds: Survey. The survey, which canvassed opinions from 250 C-suite executives and 250 global investors, also revealed that 84% of executives see ESG as a key to a more robust corporate strategy.

Assurance for a sustainability report could cost $50,000. Getting one's auditors involved could add $50,000 to $100,000 to an annual report process. Let's put the average annual cost of creating ESG data at $200,000 per entity. If 50,000 entities are creating data, the total cost may be $10 billion.

The global ESG and sustainability reporting focus is shifting from being largely voluntary to a mandatory disclosure landscape. Underpinning this shift is a patchwork of global regulations with various environmental, social and governance (ESG) disclosure requirements.

Eikon offers ESG data on over 10,000+ companies, active and inactive covering 80% of global market cap across 76 countries.

ESG standards are the response to the call for consistency and comparability. In essence, such standards translate ESG framework principles into action. They specify aspects such as: Metrics and Indicators: ESG standards provide specific metrics and indicators that organisations must measure and report on.

Understanding ESG regulations and frameworks

They aim to ensure that companies assess and disclose environmental, social, and governance (ESG) factors that influence their impact on climate-related financial risks, sustainable business practices, and compliance with regulatory standards.

Environmental criteria may include a company's energy use, waste management, pollution treatment, natural resource conservation, and treatment of animals. Social criteria look at the company's business relationships. Does the suppliers' values align well with that of the company's?

The Global ESG Disclosure Standards for Investment Products are the first global voluntary standards for disclosing how an investment product considers ESG issues in its objectives, investment process, and stewardship activities.