Article by Klaudia Bacinska - Director of Brand and Marketing at Impact Capital Group

If you were to ask absolutely everyone in your business (employees and clients alike) what ESG stands for, would they all know the answer?   

According to recent studies, over 50% of UK residents are unaware or lack a clear understanding of ESG (Aegon Survey, 2021), and 60% of clients are unfamiliar with the acronym itself (King Financial Planning Survey, 2021).  

Fuelled by global initiatives to address climate change, a drive towards net-zero and social cohesion, the environmental, social and governance (ESG) criteria is rapidly gaining traction in the corporate realm as a mainstream set of standards for businesses to answer to, manage, and report on.   

But how can the real estate industry, or any industry for that matter, successfully drive social and environmental change if the end user does not know that the ESG movement exists?  

The concept of ESG dates back to the 1960’s and in less concrete terms, possibly before then. But it wasn’t until the 2005 landmark study entitled “Who Cares Wins” that the term came to be, and for the first time, companies were able to structure ESG criteria into their financial evaluations.   

So why ESG? The purpose of ESG reporting is to determine, review, and manage a companies’ impact on the society and the environment through their activities and supply chains. ESG reporting accounts for both, finding ways to maximise the benefits of ESG practices and minimise ESG-related issues.   

It’s important because it sets out a fundamental framework that allows mistakes made in the past to never repeat again, and paves a better way forward for more eco-friendly, ethical business practices.   

The irony here is that the end user genuinely cares about the concept behind ESG.  

Whether they are a resident, an office space occupier, or a developer looking for a bridging loan, a recent survey by Aegon revealed that the general concern for ESG-related issues in the UK is increasing. 70% of respondents who took part in the study worry about the environment, 60% are troubled by inequality, and 65% have concerns about the standard of corporate governance.  

But to truly push the ESG movement, we must all first understand the concept, or relay it in a way which is clear, to actively play our part in shaping positive social and environmental change.  

It’s my view that the ESG revolution is very much at play, it just isn’t labelled the same way across the realm.   

For instance, each and every one of us makes a conscious decision on the everyday products we buy, which actually answer to ESG. Be it the recycled bottle of water we buy or the ethically sourced coffee beans we choose at our local Starbucks. Most of us automatically choose a product based on its ESG criteria, without the ESG label, and we do so without thinking about it twice.   

The real estate sector needs to reach the same level, and so there is a lesson to learn here. In order for ESG to make a real environmental and social impact, it needs to be a term that is not only practiced, but fully understood by everyone in the industry and that includes the end user.   

At IMPACT we have built the entire brand to answer to ESG, except that we call it The Great Emergencies of Our Time (Environment, Social Cohesion, Wellness, Housing). 

We’re not claiming we’ve mastered the answers, this is a journey, a journey we take all employees and our end users on.   

Our mission is clear, and we’re continually working to ensure that each employee, and each end user understands our purpose, and is on board to make their own impact.    

ESG can only come to be if it is understood, lived, and practiced by everyone within its framework, and that requires the involvement of everyone. 

Find out more about Impact’s ESG structure by learning about our values. For further information, reach out to us at marketing@impact-capital.co.uk.  

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