Sustainability and climate expert, Chris Bennett, has urged all those involved in World Environment Day (Monday 5th June) to help make ESG a more widely understood topic.
The real estate industry has recently been embracing sustainable business practices, with landlords recognizing the importance of environmental, social, and governance (ESG) factors.
Chris claimed that ESG has for too long been a buzzword and a communication gap around the subject has emerged.
Chris founded Evora Global in 2011 — a sustainability advisor offering climate solutions for real estate — and argues that ESG is about helping companies to understand their future risks and taking steps to lower them.
Chris commented: “Most people still don’t know what ESG really means. This includes many politicians and senior business leaders — this must change.
“Climate change is real, so getting some good data on the ‘E’ of ESG is something any business with assets should be interested in.
“The S and the G — social and governance — are vital indicators about how a company makes decisions and how it behaves.”
Chris explained that when ESG data is used effectively, it can safeguard companies and assets and futureproof decisions, making it “a necessity” for landlords looking to thrive in today’s evolving real estate landscape.
He mentioned how businesses are now recognising the importance of ESG skills more widely in their hiring and training also more investors are “collecting data on ESG indicators” and using these to make better investment decisions.
“A company with a strong understanding of its ESG risks can plan well for the future and also ensure it has a more positive impact on the world,” he added.
Chris believes misuse of ESG data can be used to justify unacceptable and unsustainable practices often known as ‘greenwashing’.
“Misunderstandings around ESG can cause problems; greenwashing is bad for all industries and undermines trust and credibility.
“It’s a shame ESG has been associated with such things as it’s a great commercial opportunity,” he continued.
Chris hopes World Environment Day will be an opportunity to close the communication gap on ESG and have a “good conversation on how it can help us all."
