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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Sectors: Buildings, Finance
Country / Region: Europe
Tags: Banks, citizens, climate risks, environmental risks, global climate, industry, Industry Regulators, Institutional Investors, MDG 7: environmental sustainability, National Regulators, program evaluations, risks, SMARTER, supply chains, Supranational Regulators, sustainabilityIn 5 user collections: Green Home Investment Platform – Industry Regulators , Green Home Investment Platform – National Regulators , Green Home Investment Platform – Supranational Regulators , Green Home Investment Platform – Institutional Investors , Green Home Investment Platform – Banks
Knowledge Object: Web Resource
Author: Bendersky, Corrine; Cotran, Henrik; Kejriwal, Manish