What is ESG Data?


ESG is short for 'Environmental, social, and governance', which are a set of standards for businesses to report on their social and environmental impact. Typical metrics include carbon footprint, organizational diversity, and corporate governance transparency. More specific examples include:

1) Environment:

  • Energy-saving and renewable energy usage
  • Carbon reduction and net-zero progress
  • Water conservation
  • Safe disposal of waste
  • LEED, BREEAM, and WELL property certifications

2) Social:

  • Employee wellness
  • Benefits packages
  • Encouraging individual development
  • Ethically sourcing resources
  • Paying reasonable wages

3) Governance:

  • Diversity of the board
  • Corporate social responsibility
  • Using benchmarking tools such as Global Real Estate Sustainability Benchmark (GRESB)

Why it Matters

Commercial real estate investors are embedding ESG considerations into every investment as ESG is becoming a prominent industry trend. According to CBRE's 2021 Global Investor Intentions Survey, 60% of respondents said that they have already adopted ESG criteria as part of their investment strategies.

ESG data will help benchmark portfolios, improve transparency, and inform a more accurate insight into how the company is performing from a financial perspective. Also, a leading online data collection platform called Bright Data found that over 76% of US's organization's investment decisions are impacted by ESG factors.