As global economic systems shift and societal expectations evolve, business leaders are under pressure to enhance financial performance, resilience and long-term growth. 海角视频鈥檚 latest global research reveals a compelling link between mature ESG strategies and improved business outcomes, evidencing that聽proactivity, not reactivity, is the key to staying ahead.
The built environment is at a crossroads.鈥�
To remain competitive, avoid stranded assets and attract investment, business leaders must rethink how they manage interconnected environmental, social and economic risks, while unlocking the opportunities that drive future resilience and success.
Whether an organisation chooses to call it 鈥楨SG鈥�, 鈥榬isk management鈥� or 鈥榮ustainability鈥�, the opportunity is the same: to boost performance and resilience by addressing the complex challenges and opportunities of our time.
“Ultimately, companies that prioritise resilience, embrace change and align their strategies with evolving risks and opportunities will be the ones shaping our skyline.”
鈥� Oliver Plunkett, CEO, 海角视频
“Businesses embracing ESG and planning for their built assets with these risks in mind are creating products and portfolios that are better designed, fit for the future and have higher market value.”
鈥� Duncan Price, partner and global sustainability/climate lead
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Filling the business performance evidence gap
Despite growing interest, a clear evidence base on the value ESG brings to the built environment has been lacking. So, we set out to uncover ESG鈥檚 true potential as a business driver for investors, real estate companies and asset owners.
We surveyed 400 senior global executives 鈥� most overseeing more than $750 million in annual revenue or assets under management 鈥� across investment firms, real estate managers and corporate real estate departments. Our goal: to explore the connection between advanced ESG strategies and business performance. What we discovered was powerful.
Our findings provide a solid evidence base for leaders to act with confidence and ambition in the integration of environmental and social risks throughout their business 鈥� and how to deliver resilience, create value and drive enhanced business results.
Key findings
82% are developing an ESG strategy, have or are actively integrating ESG into their organisation’s core strategy.
79% of senior executives say that ESG positively impacts their financial performance.
Of these senior executives, over 鈥�40% reported an increase of over 11% and a further 42% reported a 5鈥�10% increase.
68% say that climate risk and the related insurability and cost of insurance is a rising concern for the near future.
MATURITY
Almost all the senior executives surveyed acknowledge the importance of having an effective ESG strategy. Over half (58%) are either developing an ESG strategy or already actively working to integrate ESG into their broader strategy. Notably, a quarter of respondents say they have already embedded ESG into their organisation鈥檚 core strategy.
FINANCIAL IMPACT
54% of senior executives in our research say that ESG has either a growing (32%) or a sizeable positive (22%) impact on their financial performance, and a further 25% report a limited positive impact, regardless of how far they have embedded ESG in their business strategies. Investors and asset managers are most likely to report a sizeable positive impact.
SIZE OF THE PRIZE
What is the size of the potential prize on offer? Of the senior executives who say they have experienced a positive financial impact from ESG, over 40% reported an increase in their financial performance of more than 11%, and a further 42% reported a 5鈥�10% increase. Investors and asset managers are most likely to report that they have seen a more than 20% increase.
EVOLVING RISK PROFILES
Looking to the future, 68% say that climate risk and the related insurability and cost of insurance will be a rising concern for their business over the next three years. And 70% say that ensuring that their real estate interests are socially responsible will be as important a strategic goal as meeting their sustainability targets over the next three years.
The leaders see an exponential impact
From the survey of 400 senior executives worldwide, we identified a leader group – a high-performing 25% who demonstrate advanced ESG maturity and strategic integration. These leaders are proving that ESG is not just a compliance exercise but a driver of business value.
The leaders see an exponential impact. They are three times as likely to report that ESG has a sizeable positive impact on their financial performance (47% versus 14% other respondents).
Of those who report experiencing a positive impact, the leaders are almost five times as likely to say ESG has impacted their financial performance by more than 20% in the last 18 months (25% versus 5% all respondents).
Unlocking performance
This research also uncovers a number of success factors for enhanced ESG success, from the 鈥榚ssential鈥� strategies that all business leaders valued to the 鈥榓ccelerators鈥� 鈥� four strategies that our leader group valued significantly more than the rest of the respondents. Our findings explore how to harness these to unlock advanced business performance.
Good business sense
This research uncovers the value of ESG as a business driver for stakeholders traversing a complex landscape 鈥� and explores how to use it to unlock improved, sustainable growth and to provide increased resilience in an uncertain world.
It demonstrates the importance of getting ahead if business leaders want to minimise disruption and generate value. Those who are proactively integrating environmental and social risks into strategy, rather than reacting to them, are better positioned to protect value, maintain continuity and lead through uncertainty.
“What ultimately matters? The imperative to understand and manage interconnected environmental and social risks 鈥� because doing so is essential to protecting and generating lasting business value.”
鈥� Neal Mehta, director – UK advisory, 海角视频
“We know that business leaders today are faced with a sea of uncertainty and complex challenges, but our research indicates that the companies that prioritise resilience, embrace change and align their strategies with evolving risks and opportunities, will be the ones who reap the greater financial rewards.”
鈥� Graham Kean, chief development officer, 海角视频
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ESG as a catalyst for business
growth in the built environment
Contact us
Duncan Price
Partner and Sustainability/Climate Lead | Global
Aditi Kulkarni
Associate Director, Sustainability | India
Rayya Jawhar
Associate Director, Sustainability | Middle East
Thomas Kraubitz
Partner, Cities | Europe
Simon Kaye
Partner, Advisory Lead | US
Hanna Swaintek
ESG Lead | US
Neal Mehta聽
Director, Advisory | UK
Philippa Garnett
Director, Sustainability | UK
Dr Hong Wang
Regional Head of Sustainability | Asia PacificRelated content
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