There is no one simple answer to this question.

That's why I am happy that I had a chance to discuss this subject with my industry colleagues during the European ESG Property Forum in Warsaw.

Let me share with you a few takeaways: 

• ESG is shaping the future of investing and will play a significant role in investors' decisions
• Green finance is and will be increasing 
• Capital is flowing towards sustainable assets and companies
• However, investors require that companies will demonstrate and prove that they are ESG-compliant in an advanced way
• Last but not the least, standardising ESG criteria, benchmarks, and reporting is crucial for comprehensive analysis. Thus, professionals from the real estate industry should play a front-line role in the preparation and development of such standards and metrics

Companies need and look for ESG-compliant space which aligns with their sustainability strategy.

Everyone knows that unfortunately, it won’t be cheaper due to increasing costs of buildings and materials and the low supply of office space expected in the following years, so it’s the best time to decide on new space.

This article was contributed by our expert Adrian Karczewicz 

Frequently Asked Questions Answered by Adrian Karczewicz

Q1. Does ESG improve investment performance?

ESG investing appears to provide downside protection, especially during a social or economic crisis. Sustainability initiatives at corporations appear to drive better financial performance due to mediating factors such as improved risk management and more innovation.

Q2. What is the future of ESG?

The pandemic has compelled organizations to rethink what they believe is really important, and sustainability has taken over.

Q3. Why investors look at ESG?

ESG analysis has become an increasingly important part of the investment process. For investment professionals, a key motivation in the practice of considering environmental, social, and governance (ESG) issues as part of their financial analysis is to gain a fuller understanding of the companies in which they invest.