ESG vector is actively penetrating all sectors of the economy. Banks are already showing more loyalty to companies that have made progress in sustainable development and corporate responsibility. Maxim Kavaryants, Commercial director of COLDY, talked about the ESG trend effect on the real estate market in his column on the website Vedomosti.Ecology.
ESG approach is based on three pillars - environment, social responsibility, and governance. In development ESG has become an evolutionary culmination of such processes as integration of sustainable development principles and widespread use of green building standards.
In 2020, ESG orientation proved its effectiveness - 94% of ESG-oriented companies' securities showed higher returns compared to their non-sustainable colleagues. There is a consensus that 75% of investors are interested in investing in companies in the sustainable segment.
Consumers are also interested in ESG-oriented products. The main consumer demand for eco-agenda is pushed by Zoomers and Millennials. 90% of them are planning to increase their investments in the next five years, taking into account how responsible the object of investment is.
Generation of 25-year-olds is gradually entering the target group of real estate buyers. This is true not only in the comfort segment, but also in higher price categories: business class, elite real estate. Often 25-year-olds are not the actual buyers, but are the ones who make the final decision about the purchase. Therefore, sales will directly depend on how well the developer's product meets the needs of today's youth.
You can read the full article at Vedomosti.Ecology.