In the world of corporate environments, events, and conferences, the term ESG is becoming increasingly common in discussions. Some might still perceive it as a passing trend, but seasoned professionals in the commercial real estate market believe it's an irreversible path. ESG is a strategy that can determine the continuity or end of businesses.

The term ESG might seem relatively new, having gained popularity in the business world in recent years. However, believe it or not, the acronym for Environmental, Social, and Governance has been around for almost 20 years. Its origins trace back to the publication "Who Cares Wins”, launched by the Global Compact in partnership with the World Bank in 2004.

ESG strategies may seem complex, but they essentially encapsulate criteria that materialize the evolution of a long-standing concern for 360° sustainability, already being incorporated by companies of all sizes. This movement was primarily led by multinational corporations and their investors. Over the years, with generational shifts in the labor market and the entrance of purpose-driven employees and a more socially conscious consumer market, the adoption of strategies focusing on environmental, social, and governance aspects gained substantial importance within companies.

The COVID-19 pandemic intensified this movement, with the introduction of new ESG funds into the market and European leaders reinforcing the agenda for discussions on issues such as global warming. A 2021 survey by EY, encompassing 324 senior investment leaders worldwide, revealed that 90% of the respondents analyze ESG performance in their investment strategies and decision-making processes. The study also highlighted that 78% of investors were interested in companies investing more in the quality of their sustainability reports.

But how do these concepts apply to the commercial real estate market, and where does one start?

Before devising strategies and working towards achieving goals, a comprehensive understanding of how these principles apply to the industry is crucial.

• Environmental: This involves analyzing practices related to responsible management of natural resources, carbon emissions reduction, energy efficiency, and sustainable land use.
• Social: Encompasses corporate social responsibility, including diversity and inclusion practices, workplace safety, community relations, and employee well-being.
• Governance: Focuses on a company's governance structure, business ethics, transparency, regulatory compliance, and accountability to stakeholders.

The first step to implementing an ESG strategy is conducting a thorough analysis of the company to understand where the business stands concerning these criteria, evaluating operations, policies, and practices.

Next, align the actions and goals of the business with the Sustainable Development Goals (SDGs) in Brazil, established by the United Nations. There are a total of 17 established goals, but you can focus on those most relevant to your company's reality and future vision. A practical example would be setting a target for carbon emission reduction or implementing diversity and inclusion policies.

Once the objectives and goals are defined, the phase of engaging all stakeholders begins—employees, suppliers, clients, investors, and the communities where you operate. Transparent and clear communication of initiatives is fundamental to the success of the strategy and to obtain the collaboration of all involved. In the future, the measured results can be transformed into a public report, encouraging more companies in the sector to invest in similar initiatives and promoting the advancement of the agenda.

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