Best Practices: ESG Strategies Across The Building Ecosystem

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Executive Summary

As sustainability becomes increasingly engrained in the real estate investment industry, the sector is starting to move from strategy and intention, to implementation. This report provides actionable guidance for real estate owners and investors on implementing ESG strategies tailored to diversified property portfolios. As stakeholder expectations and regulatory pressures rise, aligning sustainability initiatives with the unique characteristics of each building type is essential, with distinct ESG priorities requiring targeted approaches to maximize impact. Portfolio segmentation – by building type, size, age, location and use case – enables effective benchmarking, opportunity identification and the prioritization of interventions. By adopting data-driven, asset-specific approaches, real estate stakeholders can optimize ESG performance, enhance asset resilience and achieve long-term value creation. This report highlights key strategies for ESG strategy generation at the investment or fund level, before discussing principles for translation into asset-level action. Strategies for ESG implementation are highlighted for offices, hotels, retail properties, healthcare facilities, data centres and higher education campuses. 
Summary for decision-makers
To execute on ESG strategies, approaches must be tailored to building characteristics

ESG is now a central value driver in the real estate market
Not all strategies are created equal: factors for building owners to consider when developing ESG strategies
Translating portfolio-level strategies into asset-level actions requires a deep understanding of each building
Asset-level actions are essential for the effective implementation of ESG strategies
Material considerations and technologies vary considerably across asset classes
Figure 1. Real estate asset managers see decarbonization more as an opportunity than a risk
Figure 2. Example real estate ESG strategy framework and roadmap
Figure 3. Asset managers can adopt a range of ESG strategies based on ambition and objectives
Figure 4. Example real estate portfolio segmentations and ESG strategies
Figure 5. 2024 GRESB results highlight differential in performance across different asset types

About the Authors

Ben Readman

Ben Readman

Industry Analyst

Ben is an Industry Analyst covering the real estate sector, with a focus on data centres and hotels. His core research covers more than 100 vendors in the energy efficiency, s...

Claire Stephens

Claire Stephens

Research Director

Claire Stephens is a Research Director at Verdantix, leading research into technologies and services shaping the real estate and the built environment, encompassing ...

View Profile

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