ESG is at the top of the agenda for every real estate conference, awards affair, or event at the moment. Indeed, it is nigh impossible to scroll through LinkedIn without an operator, developer or investor announcing that their property has achieved BREEAM ‘Very Good’ or PassivHaus certification. The worry is that we’re creating an echo chamber with a narrow focus on energy and carbon, leaving a lot of potential for even greater positive impact unfulfilled.  

ESG has moved beyond niche circles and into the mainstream, much like student housing in the world of real estate investment. However, in order to move beyond purely construction or operational impacts in ESG, a change in mindset is required, or at the very least, training and knowledge development throughout the industry. 

It’s one thing to understand what ESG means, it’s another thing entirely to create, implement and manage a credible ESG strategy that has a tangible positive impact.  

We have worked on global ESG strategies with commercial real estate agencies, independent European PBSA developers, investors, and operators, and thus have considerable knowledge and experience in the area. So what are the ESG questions that the PBSA industry isn’t asking?   

Who should oversee our company's ESG strategy?  

Allocating internal resources to your ESG strategy should be a priority, but this should be more than simply bolting on ‘Head of ESG’ to an existing role. To quote Liam Neeson in Taken; ESG requires a “particular set of skills” and you need to consider who has the bandwidth, passion and capabilities for it internally. If you hire a senior ESG Director, they will often need junior assistance or a consultancy to help with strategy, policies, data and reporting.

Alternatively, if you hire a junior sustainability coordinator, they will need direction from someone within the organisation and help with more strategic projects and stakeholder management. Not every company needs an internal ESG resource, just the willingness to make a positive impact and change their organisation for the better.

That’s why for the most part we initially recommend creating an ESG steering committee with key stakeholders within and without the organisation, then working with a strategic ESG consultant to define goals and the roadmap. But there is no ‘one-size-fits-all’ approach.  

How can we go beyond purely operational impacts?  

Energy, waste and water will always make up the majority of an operational ESG strategy. However, there is a significant opportunity for the real estate industry to go one step beyond the obvious and start to impact the sustainable lifestyle choices of residents through enabling tech, education, and communication.

Tech has a significant role to play in improving efficiencies by helping residents to understand, measure, and manage their impacts whilst education and communication should reinforce the behaviours that will contribute to a positive social and environmental impact. Lead by example and empower your residents on their terms. Showcase impact points everywhere, talk openly about your progress, tell them how they can help, and make your ESG policies and reports engaging to deliver lasting behavioural changes.  

What is our company's ESG strategy?  

This is arguably the most important question for your company and one that every stakeholder should be able to answer. ESG is much more than a certification, policy or an annual report. It is a roadmap that should be embedded into your organisation. How can you make strategic decisions that will benefit society and the environment while delivering financial and operational results? This isn’t an either/or scenario of people & planet vs. profits.

The financial, operational and reputational benefits of a credible ESG strategy are now evident. Communicating your ESG journey as well as the destination is paramount and this is what a good ESG strategy will do — you just might need help to write one.  

Where do we start?   

1. Review your ESG performance across all areas. Analyse key metrics and points of interest and innovate.  
2. Create a pioneering strategy with complete buy-in from your stakeholders. 
3. Implement your strategy using new systems, processes, policies, and training.  
4. Manage your strategy through data insights, reporting, and communication.  

Whether you use the terms ESG, CSR, Net Zero, sustainability, or carbon-neutral, we call it Good Management. We specialise in helping real estate operators, investors and developers with credible ESG strategies on a property, portfolio or company level.  

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Dan Smith is the former Managing Director of Nido Student Living, Director of Student Housing Consultancy Ltd and co-founder of ESG & sustainability consultancy, Good Management Group Ltd (Goodmanagement.co).