Chapter 4: Cromwell Property Group - ESG Investment in Uncertain Times
CHAPTER 4: SUMMARY
Cromwell Property Group - ESG Investment in Uncertain Times
Cromwell Property Group offers insights into the current real investment landscape and the role that ESG considerations are playing in decision-making. The chapter suggests that, despite market uncertainty, investors understand consumer demand for sustainability, the carbon footprint of different building materials and practices, and the potential of repositioning strategies.
Key findings:
Cromwell attributes an increasing focus on ESG investment to consumer demand. In particular, this is related to the prominence of nonprofit organisations such as Make My Money Matter (MMMM), which encourage consumers to make conscious financial choices by increasing transparency into where their banks and pensions invest.
Cromwell highlights the benefits of cross-laminated timber (CLT) as a sustainable building material. Not only can CLT be regenerated, but Cromwell's analysis found that CLT buildings have commanded a 10% rental premium in European markets when compared with traditional concrete and steel structures.
When it comes to brown-to-green strategy, Cromwell focuses on the importance of energy efficiency, green leases, embodied carbon, and net zero targets. Where possible, the use of sustainable materials and onsite renewables can drive positive change.
