Sustainability, more than a requirement it is a commitment

We hear more and more about ESG (Environmental, Social, and Governance) issues and it is likely that many of us are still on the road to understanding the true impact this has on our daily lives. In short, these three letters speak of the vision of a person (natural or legal) with respect to the impact of its activity on the environment and climate change, society, and its integration with its stakeholders and, finally, its governance or what we could call guiding ideas for its actions with respect to the ecosystem in which it is immersed.

Beyond environment

Companies, keeping pace with the new regulations and the change in demand, are increasingly forced to report their actions against these three parameters. In fact, we can see that the ESG criteria are currently a central factor that speaks of the value of an organization and as such, it has an impact both on its business operations and on the evaluation of the sustainability of investments and their impact on finances. The environment, social and corporate governance is an approach that allows evaluating to what extent a corporation can achieve favorable economic results while generating a positive impact on the three aspects.

Based on studies developed by JLL around the world, we see that the impact is not limited only to financial aspects of the corporation, achieving savings and efficiencies in its operations. They also reduce reputational risks and act as a factor of attraction and retention of talent.

As the origin of this change, of course, there is the understanding that society has today that a change in the vision of how we do business is necessary, and the regulations, both from governments and regulatory entities, which have a fundamental role in the acceleration that this initiative will take.

Regulations and goals

If we talk about regulations, of course we find excellent examples worldwide, of how governments are being increasingly strict in meeting the goals that achieve the reduction of greenhouse gas emissions, but also their commitment to people and society. We can say that Latin America is on the same path today.

Colombia is a clear example. Today, the regulations establish clear goals and actions for GEl mitigation by 2030 that considers reducing Greenhouse Gas emissions by fifty-one percent (51%) and thus achieving carbon neutrality by 2040.

In the same vein, the Financial Superintendency of Colombia is now requesting the following information from local broadcasting companies that must transmit through the RNVE, no later than 2024: (i) the draft chapter dedicated to practices, policies, processes and indicators in relation to social and environmental issues, including climate issues, (ii) within the end-of-year periodic report, the chapter dedicated to practices, policies, processes and indicators in relation to social and environmental issues, including climate, and (iii) within the quarterly periodic reports, the chapter dedicated to any material changes that have occurred in the practices, processes, policies and indicators implemented in relation to social and environmental issues, including climate issues.

Real strategy

The big question on the part of companies is how they can meet the sustainability objectives, certify them, create a real and lasting strategy in which society, the company and its employees benefit. The answer is simple, not to improvise. A correct guide by experts in sustainability and real estate is fundamental to achieve it, understanding and understanding each company is the key to making the process successful.

As real estate advisors to global and local companies, at JLL, we have already accompanied a wide range of clients in the definition and implementation of their sustainable strategy with a focus on their properties and operation. Based on our extensive understanding of the latest trends, we develop tailor-made solutions for our clients to transition this paradigm shift in the best way and strictly comply with their objectives.