97% of investors affirm ESG performance enhances asset value: A study by BuildingMinds and GRI Club reveals
A recent study conducted by BuildingMinds and GRI Club has displayed significant growth in the focus on Environmental, Social, and Governance (ESG) investments, with a staggering 97% of investors stating that improved ESG performance directly boosts asset value. The survey, which included participants from various industries and roles, highlights a clear shift in market dynamics towards sustainable investment practices.
However, the survey also reveals a noticeable gap in companies' confidence regarding their current ESG strategies, emphasizing the need for robust practices to remain competitive and navigate complex regulatory frameworks. As the market continues to evolve, businesses must adapt to the challenge on the increasing demand for sustainable investments and ESG-focused strategies.
Key findings have been conducted across three different areas of interest: market perception, market impact and confidence in ESG strategies; interviewees came across different industries such as accounting/ audit, architecture/ planning, asset/ fund management, banking, consulting, developer (commercial and residential), government/association/NGO, insurance, investment advisory/brokerage and property management.
Key findings on market perception:
Growth in ESG focus: 83% of interviewees believe that investors have a strong emphasis on green investments, signifying a distinct transition in market dynamics towards sustainability.
Key findings on market impact:
Operational Challenges: 52% of respondents see a negative impact on operational cash flows due to the lack of proper ESG practices. This stresses the importance of steady ESG strategies to remain competitive.
Asset Value Enhancement: 97% of respondents believe that better ESG performance directly increases asset value, which could be a critical point in terms of long-term market positioning.
Key findings on confidence in ESG strategies:
Reporting and Compliance: Only 35% are confident in their ability to meet reporting and compliance needs.
GHG Emissions/ Energy Consumption: Confidence here is slightly higher at 41% but still indicates room for improvement.
Capital Planning: A mere 31% feel confident about the correlation between their capital planning ans ESG
Operational Management: Only 34% show confidence in their operational management to meet ESG goals.
The “BuildingMinds x GRI ESG Leadership Survey” has been crucial in the development of white papers, with top real estate institutions like RICS, GRESB, Moodys, SOM, Schindler, and JWA Consulting. The survey's data-driven findings have significantly supported the content of these papers, co-authored by BuildingMinds and these key industry figures. Surveys help boosting market confidence, pinpoint critical issues, forecast trends, and gather insights from diverse stakeholders. This enables strategic decision-making to address challenges, seize opportunities, and adapt in a fast-paced environment, ensuring continued agility, competitiveness, and innovation in a dynamic industry landscape.
