New research with UK real estate management professionals conducted by Deepki, the ESG data intelligence firm, shows that almost half (44%) believe that fund managers have greatest influence when it comes to improving the ESG credentials of commercial real estate, followed by those using the buildings – occupiers (42%) and their employees (36%).
Government and regulators were deemed less influential despite having publicly stated and ambitious commitments to meeting net zero targets in 2030 and 2050.
| Stakeholders with the greatest influence on ESG performance of commercial real estate | Percentage of UK real estate management professionals |
| 1. Fund managers | 44% |
| 2. Occupiers | 42% |
| 3. Employees of occupiers | 36% |
| 4. Regulators | 24% |
| 5. Government | 24% |
| 6. Institutional Investors | 20% |
| 7. Retail investors | 10% |
| 8. Other | 0% |
The value of sustainable assets is reinforced by the research findings, with 90% of UK real estate professionals saying property with green premia have seen asset values increase by 16% and 25%.
The impact of poor ESG credentials performance is also marked with one half of respondents experiencing asset values which are 16%-20% lower in buildings with poor carbon footprint, and 42% are seeing values which are 21-30% lower. Some 54% are experiencing rental yields which are 21-25% lower because of brown discounting, as occupiers favour greener buildings.
Commenting on the research findings, Katie Whipp, Head of UK, Deepki, said:
“Our research shows that fund managers are at the forefront of the drive to improve commercial real estate’s ESG credentials. They have seen the capital and rental values of green assets increase by 16-25% because occupiers are prepared to pay a premium for buildings which are energy efficient and provide an environment which supports the health and well-being of employees.
“We expect ESG regulation to tighten up in the UK during 2023 which will make greenwashing much harder and will support the drive for real change across the sector.”
Deepki is the only company in the world offering a fully populated ESG data intelligence platform to help commercial real estate investors, owners and managers improve the ESG performance of their real estate assets, and in the process enhance their value.
The SaaS platform enables clients to collect ESG data, get a comprehensive overview of their portfolio’s ESG performance, establish investment plans to reach net zero, and assess results. It also allows users to report to key stakeholders. The platform is supported by carbon and ESG experts who partner with clients across data collection and analysis, through to ESG strategy definition and implementation.
Now with over 250 employees, offices in five European capitals and operating in over 41 countries, Deepki has become the global leader in ESG and data intelligence solutions for environmental transition in the commercial real estate sector, with more than 1.3 million assets under management in all asset classes (offices, logistics, healthcare, retail, multi-family, etc.).
For further information about Deepki’s end-to-end ESG solutions, visit: www.deepki.com
