YOUR COMMERCIAL PROPERTY AGENTS FOR ALL WEST LONDON
ESG WHAT DOES IT MEAN FOR LANDLORDS & OFFICE OCCUPIERS?
Landlords & Tenants will find Environmental, Social and Governance considerations are increasingly important in today’s environment of accountability and transparency. Collaboration between landlords & occupiers is key as we strive to achieve our ESG goals.
In the property industry, the EPC ranking has become standard and is a useful starting point on the energy efficiency aspect. However older buildings can be tricky to adapt with planning restrictions and cost considerations.
The BREEAM rating helps further by assessing the Environmental & Social elements, though this is not always available with older and smaller buildings.
Social and Governance is a little more complicated to understand. Here is our quick guide for landlords & occupiers.
ENVIRONMENTAL
The ENVIRONMENTAL aspect of ESG focuses on how business minimises its impact on the environment. Occupiers are increasingly looking for energy-efficient rental properties.
Environmental business practice
- Reducing energy, using renewable energy
- Employing greener services.
- Aim for zero-waste, with facilities to encourage recycling and reduction of waste.
- Reducing emissions with LED lighting. Insulation etc.
SOCIAL
The SOCIAL aspect focuses on how a business impacts the wider society and workplace culture.
- Health & wellness, such as fitness centres on-site.
- Prioritise inclusivity in their hiring and occupier selection processes.
- Providing training and supporting health, safety and wellbeing,
- Promoting equality in the workforce with diversity and inclusivity policies.
- Investing in local community projects.
GOVERNANCE
The GOVERNANCE refers to the process of decision-making, reporting, and the logistics of running a business.
- Good governance can appeal to investors & occupiers and help enable a business to grow.
- Ensuring that companies are operating ethically and transparently, with a focus on fair and equal treatment of all stakeholders.
- To undertake business ethically, such as preventing bribery, promoting equality and diversity.