REIT ASIAPAC
GRESB said in its report entitled The Business Case for ESG in
Real Estate that companies with a comprehensive sustainability
strategy and data management platform are positioned to be
“ahead of the curve.” They are readily able to adapt to meet local
environmental regulatory compliance standards and avoid fines
and penalties as well as potential reputational risk.
“The gains from the productivity of your employees can dwarf
your utility bill,” she said.
As for the social aspect of ESG, B&I Capital
believe that strong corporate governance often
results in management that pays attention to
the sustainability of its assets, transparency
in reporting, alignments of interests with all
stakeholders, tenants, employees and society at
large.
Beyond operating expenses and risk management, other social
standards, particularly on health and safety of tenants and
employees, also bode well for a company’s bottom-line and stock
prices as they bring good reputation and brand awareness for the
company.
When we consider a firm’s corporate governance, it is not just
from the position of an investor.
In an article published in NAREIT, Kilroy Realty Corp.’s Senior
Vice President of Sustainability Sara Neff said features that
focus on health and productivity, such as open stairwells, low-
emitting construction materials and overall investment in skill
improvements for employees and staff “translate to the bottom
line and are more material than quantifiable energy savings.”
We believe the sustainability of a business is achieved when the
interests of all parties can be aligned. How a REIT management
interacts with its investors, maintains its properties, manages its
tenants and suppliers are all crucial factors.
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