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IROs: Real Estate & Services (RRS)
Jasper Akkermans avatar
Written by Jasper Akkermans
Updated over 4 months ago

ESRS E1 - Climate change

Topic

Climate change

Sub-topic

Climate change adaptation

Sub-sub-topic

IRO

Risk

Location

Own operations

Time-frame

Long-term

Title

Climate change threatens building’s resilience.

Example

Real estate companies encounter significant physical risks due to climate change, including flooding and extreme weather events, which can lead to substantial insurance costs and damage fees. To mitigate these risks, CBRE is proactively assessing potential threats and enhancing building resilience to reduce the likelihood of climate-related damages.

Reference

CBRE Sustainability Report, 2023

ESRS E2 - Pollution

Topic

Pollution

Sub-topic

Pollution of soil

Sub-sub-topic

IRO

Impact - actual negative

Location

Own operations

Time-frame

Long-term

Title

Soil contamination from real estate development.

Example

Soil contamination from past industrial activities can affect real estate development. CBRE is involved in remediation projects to clean up contaminated sites.

Reference

CBRE Sustainability Report, 2023

ESRS E4 - Biodiversity and ecosystems

Topic

Biodiversity and ecosystems

Sub-topic

Direct impact drivers of biodiversity loss

Sub-sub-topic

Land-use change, fresh water-use change and sea-use change

IRO

Impact - actual negative

Location

Own operations

Time-frame

Long-term

Title

Building on new land harms biodiversity and natural ecosystems.

Example

Real estate developments can impact land use and local habitats, especially when building on virgin land. CBRE is implementing measures to minimise habitat disruption during development projects.

Reference

CBRE Sustainability Report, 2023

ESRS S1 - Own workforce

Topic

Own workforce

Sub-topic

Equal treatment and opportunities for all

Sub-sub-topic

Training and skills development

IRO

Opportunity

Location

Own operations

Time-frame

Long-term

Title

Clear development programs encourage employee retention.

Example

Clear career progression paths can enhance employee retention and thus lower hiring costs. JP Morgan Chase offers extensive career development programs to support employee growth.

Reference

JP Morgan Chase Sustainability Report, 2023

ESRS S2 - Workers in the value chain

Topic

Workers in the value chain

Sub-topic

Working conditions

Sub-sub-topic

Social dialogue

IRO

Impact - potential positive

Location

Own operations

Time-frame

Medium-term

Title

Social impact assessments positively engage the community.

Example

Skanska performs social impact assessments before starting major construction projects, helping to mitigate the negative impacts on communities and involve them in the decision-making process.

Reference

Skanska Sustainability Report, 2023

ESRS G1 - Governance

Topic

Governance

Sub-topic

Business ethics

Sub-sub-topic

IRO

Opportunity

Location

Own operations

Time-frame

Medium-term

Title

Strengthening ethical governance to enhance transparency and trust in real estate operations

Example

In the real estate industry, maintaining high standards of business ethics is crucial for fostering trust with clients, investors, and the community. Implementing robust governance frameworks that emphasise integrity, accountability, and compliance with regulatory standards can mitigate risks associated with corruption and unethical practices. For example, Jones Lang LaSalle (JLL) has established a comprehensive code of conduct that guides employees and partners on ethical behaviour, ensuring fair dealings and transparency in all business transactions. This commitment to ethical governance has enhanced JLL’s reputation as a trusted real estate advisor and strengthened relationships with stakeholders.

Reference

JLL Corporate Responsibility Report, 2023

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