Why E³SG? Why Now?
Updated: Jan 3
E³SG Realty Investments is a real estate investment and brokerage company focused exclusively on assets related to Shared Values of Sustainability, Impact, and ESG (Environmental, Social and Governance). The business model is comprised of three integrated platforms – technology, brokerage, and investments.
The Current Situation
ESG is the fastest growing, most impactful new development metric in the global investment community, directly tied to the UN’s Sustainable Development Goals (SDG’s), now governing more than 60% of the total Assets Under Management with $40T so benchmarked in the United States alone. Whether self-directed or imposed by regulation, our target audience requires more investment outlets and better, standardized data to quantify sustainable benefits and returns – and is spending valuable time, money, and effort – globally, right now – to develop these opportunities.
The Problem
In this case, as there is no solution without a problem, for all the money chasing ESG and Impact opportunities, private real estate has never been identified as an alternative asset class that can satisfy the mandate on a broad scale. The market is too granular and too inefficient. Accordingly, over the past decade, as ESG has been mainstreamed and expanded exponentially, most of the capital invested has come from Wall Street and been placed in the securities of portfolio companies, not directly in real estate. ESG is largely thought of today in terms of investment in companies.
Drilling down further, to the extent investors have included real estate acquisition in an ESG strategy, they have mostly had to do so through self-identified, locally oriented, one-offs. There is a void in the marketplace, there is no product specialization, there is no brokerage group sourcing ESG real estate assets nationally.
Further still, it is a highly inefficient and outdated characteristic of the real estate transaction process that offerings are evaluated individually, during post-contract due diligence – not (at least preliminarily) by algorithm in real time.
E³SG changes that narrative by creating an automated and efficient national market for risk-managed investment in ESG and Impact commercial real estate assets.
The Hypothesis
This business concept is predicated on our interpretation and projections of the future of ESG and sustainable investing by the target audience – in terms of dollar amount and asset type. We believe these investor groups will be receptive to a product and a methodology that will further their ability to meet their sustainability mandates through a standardized, predictable, and efficient market structure. It is a critical assumption of this hypothesis that, while currently invested in companies (with the obvious exception of REIT’s), this target audience will invest directly in the product offerings of the structured E³SG real estate brokerage and investment platforms, also indirectly to help grow their portfolio companies, and may also be led to invest in new companies on the basis of E³SG findings.
The Solution
For our Target Audience, for those on Wall Street, Main Street, and Down the Street, the Solution is outlined in the pages of the E³SG Realty Investments web site (www.e3sg.net). Please have a look. We look forward to working with you.
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