THE CHANGING DYNAMICS OF WORK & WORKSPACES

Anshuman Magazine, Chairman & CEO - India, South East Asia, Middle East & Africa, CBRE, elucidates why ESG framework is critical for the future viability of real estate and the role of startups in the evolving acceptance of ‘flex’

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Over the last few years, global concerns about climate change and business ethics have brought forth the need for businesses to focus on environmental, social, and governance (ESG) issues and their associated risks. Sustainable and environment cautious business practices have become more prominent in overall corporate strategies – addressing concerns on climate change, business ethics.

While opinions about ESG often get restricted to issues surrounding climate change and pollution, the concept itself has more far-reaching goals. The ‘social’ pillar of ESG focusses on businesses’ responsibility towards labor practices, talent management, and other stakeholder relations – while the ‘governance’ pillar focuses on ethics, leadership diversity, and the provision for providing livable wages.

For businesses functioning in the real estate sector, the need to imbibe ESG principles is not just a moral imperative, but also a fiduciary responsibility. With increased scrutiny on ESG, CRE stakeholders need to understand, improve, and leverage their performance on this front to drive value and stay competitive.

The essential question is no longer what to do, but rather how to do it.

Planning from the ground-up

With the growing understanding of ESG, the real estate sector has started imbibing these strategies into its overall corporate functions. What’s essential is the need to incorporate ESG across the entire real estate lifecycle.