What is an ESG Rating?

Real estate companies are increasingly being judged not only by their financial performance, but also by their environmental, social and governance (ESG) practices. As a result, many real estate firms are looking to improve their ESG rating.

There are a number of ways to measure a company's ESG performance, but one of the most common is through an ESG rating. ESG ratings are provided by a number of different firms, but the most well-known is probably the Global Real Estate Sustainability Benchmark (GRESB). GRESB assesses real estate companies' and portfolios' ESG performance and provides them with a score on a scale of A to E.

There are a number of other ESG rating firms out there, but GRESB is generally considered to be the gold standard. Real estate firms that want to improve their ESG rating should focus on improving their performance in the areas of environmental, social and governance. Some specific things that companies can do to improve their ESG rating include reducing their carbon footprint, improving energy efficiency, increasing transparency and disclosure, and implementing policies and procedures to promote diversity and inclusion.

Improving your company's ESG rating can be good for business. Not only can it help you attract and retain investment capital, but it can also improve your relationships with tenants, employees and the communities in which you operate. So if you're looking to give your company a boost, improving your ESG rating is a good place to start.

If you're interested in learning more, reach out to us and we'll schedule a call to see if Enertiv could be helpful for you!