In the last decade, there has been a notable change in how businesses and investors evaluate the performance of companies. Environmental, Social and Governance (ESG) criteria have emerged as essential components for assessing an organisation’s resilience and long-term viability. ESG represents a comprehensive framework taking into account a company’s impact on the environment, how it addresses social concerns, and the effectiveness of its corporate governance practices. By evaluating these dimensions, ESG seeks to measure a company's commitment to sustainable practices, responsible behavior, and ethical decision-making by assessing these factors.
More and more regulatory bodies, associations, and other institutions have increasingly emphasized the importance of ESG reporting and integration into investment decision-making processes. Prioritizing ESG factors puts organizations in a better position to attract investments, manage risks, encourage innovation, and produce long-term value for their stakeholders.
It comes to no surprise that ESG factors also influences Commercial Real Estate. The increasing regulatory pressure to address environmental issues and reduce carbon emissions, investors that recognizing financial benefits of sustainable investments (higher rental incomes, lower vacancy rates, and improved asset values), and organizations that seek environmental conscious and socially responsible spaces to align with their corporate strategies are just mere examples of how the Commercial Real Estate industry is evolving.
It is clear that the Future of Belgian cities will change and not remain the way they are now.
Download the first edition of our ESG report to discover more about this subject.