Despite recent political pushback, investors in commercial real estate continue to recognize the importance of factoring environmental, social, and governance (ESG) principles into their investment strategies. Addressing climate change, considering the social impact of projects, incorporating DEI initiatives, and aligning corporate structures with environmental and social initiatives has now become a top priority for investors.
The adoption of ESG goes far beyond altruism, however. Multifamily investors are finding that “doing well by doing good” is more than just a slogan. In addition to reducing operating expenses by adopting more efficient energy and water protocols, applying ESG principles has become essential to attracting institutional capital. A growing body of evidence suggests that investors do not have to sacrifice risk or returns to invest in ESG investment vehicles. In fact, much of the data indicates that over the long term, ESG investing delivers slightly better risk-adjusted returns.
For our latest Multifamily Outlook, we sat down with Bob Simpson, President of the Multifamily Impact Council, and Richard Randall, CEO and Co-Founder of Echelon Energy, to discuss current ESG sentiment among multifamily investors and owners.
Our wide-ranging conversation covered questions such as where property owners can start with ESG initiatives, which players in the multifamily ecosystem are motivated by ESG, and why ESG investment is much more than a charitable exercise.
Read the full Q&A when you download your complimentary copy of our Multifamily Outlook report.