The importance of sustainability or ESG reporting
Foto de Igor Son en Unsplash
Sustainability reports provide many benefits to all those involved, it has become a tool to take care of aspects of companies that require more attention.
“Environmental, social, and governance (ESG) criteria no longer constitute a niche opportunity but are a fundamental responsibility for companies to be competitive in today’s global markets”
Today Jorge, Chairman of the board at Eosis, tells us, why is it important to communicate your sustainability achievements?
As presented at the lecture wit Javier Llaca at usgbc live at Washington DC early this month, and according to the most recent Sustainability Trends Report of this organization, Net Zero is no longer a long-term pipe dream in the real estate sector. Llaca coincides that the new era of net zero carbon is pragmatic, serious, and action oriented.
Fibra MTY (MTY REIT) fast forwarded their Net Zero Carbon goal by certifying EDGE Advanced their Headquarters at Monterrey, Mexico, demonstrating a 40% reduction in energy use, on the process to supply 90% of the remaining with on-site renewables and the rest trough carbon offsets. With this, he believes that, green buildings can help investors and owners manage the risks associated with a transition to a lower carbon economy. This transition will bring regulatory, economic, and resource changes, and with this strategy Fibra MTY is transforming all their properties towards Net Zero Carbon, knowing that energy inefficient assets will no longer be profitable.
Environmental, social, and governance (ESG) criteria no longer constitute a niche opportunity but are a fundamental responsibility for companies to be competitive in today’s global markets. Immediate action on sustainability for the built environment is imperative, requiring a holistic approach driven by a long-term strategy, aggressive capital management, and agility to adapt to climate change. The Net Zero approach transformation of Fibra MTY portfolio trough the EDGE platform is an strategy to lead the way and facilitate visibility of results, knowing that his tenants also have reporting requirements, and it’s important that they understand they can piggyback on what Fibra MTY is doing and take some credit for occupying a superior building. It’s expected to achieve a long-sought rent premium for sustainable building.
Because more pressure from investors and other stakeholders has driven increased measurement and reporting, EDGE as a tool to achieve ESG goals is going to become more important, avoiding the threat of being accused of greenwashing at a portfolio or entity level.
The perception that green construction involves high upfront costs is a key barrier to its widespread adoption, knowing this, Fibra MTY is an early adopter of ESG practices to build resilience, man- age risk, strengthen financial performance, meet stakeholder and community needs, and develop and retain diverse talent. With their leadership, pledging to achieve Net Zero Carbon at their entire building portfolios is aimed to increase awareness in the market, and encourage smaller companies to follow suit.
According to the International Finance Corporation, Part of the World Bank Group, EDGE has been developed for global use, the software has been customized at the local level through the support of country-based institutions that provided market studies and data collection. Through their support, further granularity has been brought to the base case parameters and assumptions, and the choice and qualifications of the resource efficiency measures has been fine-tuned. Also,these assumptions are updated as the market evolves. The software is calibrated to take local conditions into account, including climate and local industry costs and practice. This method allows EDGE to become increasingly relevant and applicable to local standards and practices.
Fibra MTY is responding the call for corporate accountability from investors, consumers, governments, regulators, and other key stakeholder groups have reinforced the demand for ESG in the corporate agenda, putting people first, and building resilience into its business for the benefit of its shareholders and stakeholders. EDGE Advanced certification, first step towards the Net Zero Carbon goal, is a valuable tool for making public commitments toward meeting ESG goals and targets, amplifying the transparency around and accountability for taking concrete, measurable, tangible sustainability action.
If you are interested in knowing more about how to carry out a Sustainability report,
Chairman of the board