ENVIRONMENTAL, SOCIAL AND GOVERNANCE (ESG) SERVICES FOR EUROPEAN COMMERCIAL REAL ESTATE (CRE)
According to Deloitte, the buildings sector alone contributes to 40 percent of global carbon emissions, inclusive of construction and operation. Decarbonizing the sector is crucial to achieving the commitments made under the Paris Agreement and the United Nations SDGs.
Real estate owners are increasingly expected to have environmental, social and governance (ESG) strategies and business plans in place. When done right, ESG strategies not only address global environmental challenges, but can also contribute to cost savings, social equity, tenant and employee health and well-being.
The increasing focus on ESG simultaneously presents a range of opportunities and risks for equity investors and debt funders. Hexagon anticipates that single CRE assets or CRE portfolios that do not fit the ESG narrative will find it increasingly difficult to attract competitive loan and/or equity terms. Without proper planning, asset owners face the risk of holding certain properties that will eventually become obsolete in terms of “bankability”.
Together with its property asset management teams, Hexagon advises and supports property asset owners to develop fully-costed ESG strategies and business plans to attract the most competitive sources of equity and debt funding.
Hexagon also advises and supports equity investors and debt funders in their understanding of how to apply ESG criteria to their current and future CRE exposures and how to achieve sustained returns from the asset portfolios that they have lent against or invested in that align with ESG investment strategies.
Awesome bit of evidence based work! Thank you indeed.
CEC, UK Solar Trade Association