The Third Generation: Outcomes and Opportunities in Moving to ESG Gen 3 for Real Estate Investor

Institutional Real Estate (2022) | Retrofitting, Innovation, Technology

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In 2021, conversations around environmental, social, and governance (ESG) initiatives surged, driven by powerful social movements that brought diversity, equity, and inclusion (DEI) to the forefront. At the same time, climate risk came under sharper focus from both government bodies and regulatory agencies. Many leading companies already have robust ESG strategies and transparent reporting in place. Given the evolving legal landscape and anticipated regulatory shifts, it's increasingly important for the broader industry to follow suit—building and refining ESG programs that meet rising expectations and standards.

The article tackles the three phases observed in the evolution of ESG and sustainability in real estate:

• Gen 1: awareness and acceptance

• Gen 2: reporting and comparability

• Gen 3: outcome-based measures and goals

Like any emerging innovation, ESG programs face growing pains. It’s …