ESG Evaluation Key Sustainability Factors: Real Estate

S&P Global considers key environmental sustainability factors in the ESG evaluation of real estate operating companies (including REITs) as well as single-family and multi-family real estate developers. S&P assesses the materiality of those risks across the industry’s value chain and captures them in the weighting of quantitative environmental performance factors. These vary by subsector, including:

 

Factor Property Developers Property Owners
Greenhouse Gas Emissions 30% 40%
Waste and Pollution 30% 20%
Water 10% 25%
Land Use and Biodiversity 30% 15%

 

Material environmental risks real estate companies face across the value chain include:

 

  • Environmental Impact During Building Use Phase
  • Environmental Impact of Construction
  • Environmental Impact in the Supply Chain
  • Physical Climate Risks

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