Property companies that put conscientious work into environmental, social, and governance planning deserve to benefit from their efforts. Building-level ESG certifications provide a practical way to share your progress. These credentials help you reap the rewards of your achievements.
What Are Building-Level ESG Certifications?
A building-level certification provides a score that grades a property on its application of ESG principles. An institution uses established metrics to review and rate your buildings on their performance. Rankings depend on considerations such as water conservation, pollution control, and employee safety.
Real estate professionals cannot afford to ignore ESG concepts in construction and maintenance. The United Nations created 17 Sustainable Development Goals as guidance. These goals provide a framework seeking to eliminate poverty while protecting the planet.
Real estate and property development are fundamental elements in commerce and environmental activities. Credentialing lets your company demonstrate its commitment and progress while gaining various advantages.
Why Should Your Business Become Certified?
You could commit to environmentally friendly activities without concerning yourself with a certification. However, building-level ESG certifications benefit all stakeholders in real estate and property management. Your company and individual assets also prosper in the following areas.
A fundamental goal is attracting the best tenants and maintaining high occupancy rates. Modern renters are increasingly looking for buildings that commit to environmental and social sustainability. A high score can reassure lessees that your owners and managers have considered occupant well-being in their facilities. Tenant satisfaction and loyalty will increase.
More investors are educating themselves on ESG principles and pursuing personal certifications themselves. The training gives them an advanced understanding of critical sustainability issues. Investors now recognize that properties with attention to ESG tend to achieve a primary goal: reducing risk.
The word “sustainable” itself denotes an asset that will reap profit in the long term. Thus, properties with building-level ESG certifications are a more attractive opportunity. High-quality materials and increased attention to detail lead to premium assets.
Reputation and Compliance
Environmental and social considerations should not be for lip service or marketing ploys. Irresponsible actions, such as greenwashing, cause public relations damage. In the past, many firms that did not keep up with environmental concerns have become obsolete. Clients and investors moved on to more responsible companies.
Additionally, governments are enforcing more regulations to ensure sustainability. An organization could end up being behind the times and playing a costly game of catch-up.
Companies seeking to expand into international commerce could find themselves at a disadvantage without certifications. Countries overseas often desire clear evidence of commitment to ESG standards. Higher scores on building-level ESG certifications can allow a company to position itself as a leader in the space and enter new markets.
Savings and Value
ESG can demonstrate immediate savings that eventually recoup the expenses of green building. An ESG-certified property contributes to lower operational costs due to limiting resource consumption. Technical systems will have a reduced risk of failure due to efficient functioning. Also, well-maintained buildings with top-tier eco-friendly materials can receive a higher resale value.
A properly executed ESG process also identifies and eliminates risks and hazards. Enhanced safety leads to fewer costly accidents and lower insurance premiums. Tenants pay more to occupy these buildings and show higher loyalty.
Healthy employees are more productive and happier. Locations with building-level ESG certifications create an environment that promotes employee wellness.
Companies that emphasize ESG principles report faster employee responsiveness and increased morale. These efforts lead to attracting and retaining top talent who commit to organizational objectives more fully.
How Does a Business Get ESG Certifications?
Acquiring a certification requires studying different credentials. Then you must determine which of the many choices suits your company. Businesses that are serious about selecting the correct credentials often rely on a consultant.
Once you know the benchmarks for certification, you can create a strategy for meeting the requirements. Various plans have an entry-level status, so your first goal might be to qualify for basic recognition.
Follow the policies and practices to gain the ESG certification you desire. The agency will have the requisite professionals audit your building.
Institutions typically require recertification after a period. You can work to improve your ranking over time and display additional accolades as you achieve them.
Which ESG Certificate Is Best?
The best building-level ESG certifications meet the needs of an organization and keep up with the industry. An online search yields dozens of possible choices. Careful consideration is necessary to make a pragmatic decision.
How Can ESG Property Consultants Help You?
Understanding and implementing sustainable processes for building-level ESG certifications can quickly become overwhelming. An expert can guide you in the right direction. Begin your ESG journey with help from ESG Property Consultants and seize the many advantages of certification.