Esg real estate funds

1. What is ESG real estate investment?
2. Are ESG funds worth investing in?
3. Why does ESG matter in real estate?

What is ESG real estate investment?

What is ESG for real estate? “ESG” stands for “Environmental”, “Social” and “Governance”. It is a broad acronym which encompasses a variety of factors which can largely be interpreted as follows: Environmental: This limb incorporates (amongst others) climate change, natural resources, pollution, recycling and waste.

Are ESG funds worth investing in?

There are studies that have shown that companies with a higher ESG score experience a lower cost of capital compared to companies with lower scores, on average, over four years. This can mean better profits and therefore better returns for investors.

Why does ESG matter in real estate?

Investors increasingly see ESG as a proxy for good management and a contributing factor to long term value preservation and creation across asset classes. In real estate, ESG integration demonstrates strong risk management, contributes to higher returns and helps “future-proof” a portfolio.