NVI Technical College Information

E NVIRONMENTAL , S OCIAL AND G OVERNANCE 9

E NVIRONMENTAL , S OCIAL AND G OVERNANCE

Overview

Environmental, Social and Governance (ESG) has become a standard criterion in the global real estate sector, excepting the United States. The European Union has adopted specific, conduct-based directives on ESG. In the US, while there has been a scattering of ESG regulations within specific markets there has been no industry wide or politically enacted regulations. Nevertheless, market participants are increasingly concerned with environmental risks, sustainable construction, carbon neutrality, social responsibilities, and governance of their companies, partners, and vendors. Principles for Responsible Investment provides the following summary of approaches to responsible investment for direct and indirect real estate investors.

Furthermore, PRI provides examples of how these issues may affect property valuations.

Environmental

F OUR B UILDING I NDUSTRIAL C OMPLEX A PPRAISAL

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