Triple Bottom Line
With a strong philosophical grounding in the UN’s Sustainable Development Goals and Principles of Responsible Investment, our focus is People, Profit, and Planet (P³).
About Us
Operating Philosophy
People
Our clients are used to making a difference, to being agents of change, they care a lot about their communities and the world at large, and they have ever increasing expectations of us as their commercial / investment real estate advisors to help them find opportunities to invest impactfully in areas of interest and passion, and they need us to understand that their return metrics now include non-financial measures in addition to the traditional ROI or ROE requirements.
Significant among these measures are the benefits of diverse and inclusive communities, including our workforces and investments. Deeply embedded in the work of E³SG is the focus on helping create equity and opportunity by, for and through traditionally under-represented constituencies, and promoting gender, age, racial, and ethnic equality at every turn.
Profit/Economics
ESG investing recognizes that ESG factors have financial relevance. Embedding environmental, social and governance factors in capital markets makes good business sense and leads to more sustainable markets and better outcomes for societies. Good corporate sustainability performance is associated with good financial results. ESG information is critical and integral to assessing corporate risks, strategies and operational performance. And, as shown below, on Wall Street, this is big business.
- Commercial properties in the U.S. in 2022
- 50 million
- U.S. commercial real estate (CRE) value in 2021
- between $14 and $17 trillion
- Global CRE transaction volume in 2022 (growing 5% annually) →
- in excess of $4 trillion
- U.S. sustainable investment AUM in 2020 (up 42% from 2018) →
- $17.1 trillion (33% of total AUM)
- ESG global assets in 2020
- $40.5 trillion
- Global Impact investment by 2030 →
- $30.0 trillion
- AI contribution to the global economy (2017 – 2030) →
- over $15 trillion
- Funding for U.S. proptech companies in 2021
- approaching $17.2 billion
- Corporate Global Reporting on ESG issues →
- 80% + of the largest corporations
ESG is also big business on Main Street. As tenants are increasingly on their own sustainable journey, ESG drives demand and allows higher rents. Sustainable systems save money and reduce expenses. Higher rents and lower expenses translate into higher value. An exponential effect is created as these two economic components reduce key operating risks and thus lower cap rates, which increases value even more.
Planet
The built environment accounts for more than 40% of global energy consumption and for approximately one-third of the world’s carbon emissions. With this in mind, we should all aspire to help mitigate climate risk by continuing to advocate for best sustainability practices in construction and building occupancy.
Real Leaders notes: “We aim to inspire better leaders for a better world; a world of far-sighted, sustainable leadership that helps find solutions to the problems that 7.5 billion people have created on a small planet. We want to ensure that the next generation of leaders, in all spheres of influence, are exposed to the best and brightest minds in the hope that they are inspired to find profitable business solutions that benefit humankind.”
Subscribe to Learn More from the E³SG Team.
Stay up-to-date with all the latest news from the CRE and ESG industries.
