How do you evaluate your real estate assets' ESG performance?

1 Set your ESG goals and strategy

The first step is to define your ESG goals and strategy, aligned with your business objectives and stakeholder expectations. You need to decide what ESG issues are material for your real estate portfolio, what standards and frameworks you will use to guide your actions and reporting, and what targets and indicators you will track and disclose. You also need to assign roles and responsibilities for ESG management, and allocate resources and incentives to support your strategy.

2 Assess your current ESG performance

The next step is to assess your current ESG performance, using data from various sources, such as energy and water consumption, waste generation, carbon emissions, tenant satisfaction, health and safety, diversity and inclusion, and community engagement. You can use tools and platforms, such as the Global Real Estate Sustainability Benchmark (GRESB), the Sustainability Accounting Standards Board (SASB), or the Task Force on Climate-related Financial Disclosures (TCFD), to collect, analyze and benchmark your data against industry best practices and peer groups. You can also conduct audits, surveys and interviews to gather feedback and insights from your internal and external stakeholders.

3 Identify your ESG gaps and opportunities

Based on your assessment, you can identify your ESG gaps and opportunities, and prioritize them according to their impact, urgency and feasibility. You can use a SWOT analysis or a materiality matrix to map out your strengths, weaknesses, opportunities and threats in relation to your ESG goals and strategy. You can also use a gap analysis or a risk assessment to evaluate your compliance with relevant regulations, standards and expectations, and to identify potential risks and liabilities.

4 Implement your ESG action plan

The fourth step is to implement your ESG action plan, which should include specific, measurable, achievable, relevant and time-bound (SMART) actions to address your ESG gaps and opportunities. You can use a project management approach, with clear milestones, deliverables and accountability, to execute your action plan. You can also use a stakeholder engagement plan, with regular communication and collaboration, to involve your key stakeholders in your ESG initiatives and to demonstrate your commitment and progress.

5 Monitor and report your ESG results

The final step is to monitor and report your ESG results, using data and evidence to measure and evaluate your performance against your goals and indicators. You can use tools and platforms, such as the Global Reporting Initiative (GRI), the Carbon Disclosure Project (CDP), or the International Integrated Reporting Council (IIRC), to prepare and publish your ESG reports, in line with recognized standards and frameworks. You can also use feedback and recognition mechanisms, such as ratings, awards or certifications, to validate and celebrate your ESG achievements and to enhance your reputation and credibility.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?