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A Nuanced Approach to ESG in Commercial Real Estate

A recent Pitchbook 2021 survey of investors and their advisors shows that ESG is a movement that's only growing.


The pandemic did not stop the progress and few are worried about the cost anymore, as they realize that ignoring ESG risks in the short term can ultimately be more costly than identifying and mitigating them.


However, respondents from all geographies and types were clear that the top challenges facing sustainable investing are defining and measuring impact outcomes, the lack of robust data on ESG factors for private companies, and difficulty benchmarking non-financial goals.


At PHI Space we recognize these challenges. We continue to grow with our investors and account for our ESG impact with the same diligence as our financial reporting. We believe that is the starting point for design and execution of projects across the changing landscape in Commercial Real Estate.


Here is a snapshot at our internal Placemaking tool which is built on ESG indicators and helps us deliver design excellence and sustainable development.


The tool benchmarks and measures various environmental and social parameters like circulation, access, usability and comfort. The benchmarking process relies on a combination of industry standards and establishing a baseline within the project itself.


For example, revising the amenity mix in a commercial real estate development can revive a dead asset and monetize spaces in addition to fostering a sense of community.


In some cases we have used the tool to assess the space utilization across commercial campuses and understand the environmental benefits of activating outdoor spaces and common areas, on the basis of the demographics of the users and space requirement of the occupiers.