ESG (Environmental, Social and Governance) is applied in commercial real estate and infrastructure by integrating sustainability and risk considerations into investment decisions, asset management and reporting.

Environmental factors

Environmental considerations focus on how assets impact and respond to climate and resource risks.

In commercial property and infrastructure, this commonly includes:

• Energy efficiency and emissions management
• Water use and waste reduction
• Climate-related risks and resilience
• Improving building and asset performance over time

These factors are assessed during acquisition and managed throughout the life of the asset.

Social factors

Social considerations relate to how assets affect people and communities.
This may include:

• Tenant and community health, safety and wellbeing
• Labour standards and supply chain practices
• Community engagement and social impact
• Accessibility and amenity of buildings and infrastructure
• Human rights and anti-modern slavery practices

Social risks and opportunities are monitored as part of ongoing asset and investment management.

Governance factors

Governance focuses on how assets and funds are managed and overseen.

This typically includes:

• Board and management oversight
• Risk management and compliance frameworks
• Managing conflicts of interest
• Transparent reporting to investors

Strong governance supports long-term decision making and investor accountability.

Integration into investment decisions

ESG considerations are commonly assessed:

• During investment screening and due diligence
• When deciding whether to acquire, hold or sell assets
• As part of ongoing monitoring of risks and opportunities

Sustainability-related risks and opportunities are generally considered where they may have a financially material impact on asset performance and long-term returns.

Measurement and reporting

Performance is often measured and disclosed using recognised frameworks and benchmarks, such as:

• GRESB sustainability benchmark assessments for real estate and infrastructure portfolios
• Building and asset performance ratings
• Regular sustainability and investor reporting
• Investor due diligence questionnaires and discussions

This helps investors understand how ESG risks and opportunities are being managed over time.