What Is ESG?
ESG refers to Environmental, Social, and Governance criteria used to measure the sustainability and social responsibility of a company or investment. These three pillars together contribute to strong performance and benefits for both markets, society, and the world at large.
At Knight Frank, environmental, social, and governance sustainability is deeply embedded in our DNA. It's part of how we work with our clients and operate as a company.
With 40% of carbon emissions coming from the construction sector, it's now more important than ever that we continue to integrate these values into how we serve our clients.
Looking ahead, our three areas of focus will center on combating climate change, protecting nature, and creating social value.
Investing in ESG through Real Estate
Our goal is to be your ESG partner in the real estate sector, providing clear information, advice, and solutions that support ESG strategies and help you become more sustainable now and in the future.
We understand that ESG needs can vary depending on real estate assets and strategy, which is why our global team of Energy, Sustainability, and Natural Resources experts has a wide range of specialized knowledge in ESG, including renewable energy, regulatory compliance, valuation, and investment advice, among others. Contact us for more information.
In addition to providing specialized advice directly to our clients, this team also collaborates with other areas throughout the company. ESG criteria are an integral part of all our services, at all stages of a building's lifecycle. This includes geospatial mapping and site selection, planning, design and development, leasing, operation and management, rehabilitation, and eventual demolition or reuse; with services related to valuation, investment, carbon emissions reduction/offsetting, and capital advice.
For investors, in addition to due diligence work during acquisitions, we conduct environmental reports, sustainability risk assessments, update studies, and cost advice. Furthermore, our investment, leasing, and valuation teams ensure that ESG criteria are reflected in our services.
Our Journey to Net Zero
Climate change is a critical issue of our time, and addressing it requires immense collaboration and innovation. The Paris Agreement represented the world leaders' greatest universal commitment to limit global warming to below 2°C and to make additional efforts to keep this temperature increase below 1.5°C. The ultimate goal is to achieve net-zero emissions, meaning emitting the same amount of greenhouse gases as the atmosphere can reabsorb. The Spanish government has committed to reaching this goal by 2050 and has established ambitious plans for the industry, garnering support from companies.
Fighting climate change is the responsibility of all companies, and we all must play a role in managing our GHG emissions. Therefore, Knight Frank has joined the global race toward net-zero emissions, committing to achieve it by 2030 worldwide, while the UK aims to reach it by 2027.
If you want to learn more about our journey to net-zero, please don't hesitate to contact our ESG ambassadors.