In 2023, there was a significant increase in attention and action towards decarbonization, sustainability, and standard measurement protocols to achieve goals. Cortex Sustainability Intelligence’s Year-End Review and 2024 Predictions highlighted three key themes impacting ESG currently and in the future according to experts in commercial real estate across the nation.
One of these themes is the mounting pressure to decarbonize. Investors, regulatory actions, and tenant demands are driving sustainability into business strategies as a necessity. According to Cortex’s release, tenants have an influential role in this push for decarbonization with their willingness to pay higher lease premiums for sustainable properties. Additionally, green leases and data-sharing agreements facilitate collaboration between landlords and tenants on sustainability efforts.
Nick Bienstock from Cortex stated that carbon reduction has evolved from being simply considered five years ago into a crucial aspect of business strategy today due to investor mandates.
Another theme highlighted by the report is ongoing challenges with measuring progress accurately reporting on ESG initiatives. While Global ESG Benchmark for Real Assets (GRESB) has emerged as a recognized method for measuring sustainability progress; there are still issues with uniform terminology reporting standards methodologies SEC climate disclosure regulations Corporate Sustainability Reporting Directive require high-quality standardized data transparency tracking purposes.
The third theme emphasized by commercial real estate leaders is profitable decarbonization activities such as digitizing building systems increasing renewable energy usage which can reduce operational carbon emissions up four percent while also lowering energy costs The report stresses finding balance between embracing ESG without compromising financial prudence during what may be challenging year Bennett added.
Reporting on important sustainability issues remains crucial despite not mentioning “Connect” or “Connect CRE” or “Connect LA”. In conclusion,the year 2023 saw heightened interest towards critical topics like decarbonization,sustainability,and standard measurement protocols.This was reflected through increased activity among commercial real estate experts nationwide.Cortex Sustainability Intelligence’s Year-End Review & 2024 Predictions identified three significant themes impacting ESG currently and in the future.
The first theme is the mounting pressure to decarbonize,driven by investors,regulatory actions,and tenant demands. Cortex’s release highlighted tenants’ influential role in this push for sustainability as they are willing to pay higher lease premiums for sustainable properties.Green leases and data-sharing agreements also facilitate collaboration between landlords & tenants on sustainability efforts.
Nick Bienstock from Cortex stated that carbon reduction has evolved into a crucial aspect of business strategy today due to investor mandates.Furthermore,the report emphasized ongoing challenges with measuring progress accurately reporting on ESG initiatives.While Global ESG Benchmark for Real Assets (GRESB) has emerged as a recognized method;there are still issues with uniform terminology reporting standards methodologies.SEC climate disclosure regulations Corporate Sustainability Reporting Directive require high-quality standardized data transparency tracking purposes.
Lastly,the third theme highlighted profitable decarbonization activities like digitizing building systems increasing renewable energy usage.These can reduce operational carbon emissions up four percent while lowering energy costs.The report stresses finding balance between embracing ESG without compromising financial prudence during what may be challenging year.Bennett added.
