The concept of environmental, social, and governance (ESG) investing is gaining traction among investors who want to make sure their money is doing more than just making money. ESG investing is an approach to investing that takes into account the environmental, social, and governance impacts of the companies and assets in which investors put their money. While ESG investing has traditionally focused on stocks and other public markets, there is an increasing interest in applying ESG principles to real estate investments.

Real estate ESG investing is an approach to investing in real estate that takes into account the environmental, social, and governance impacts of the properties and companies in which investors put their money. The goal of ESG investing is to create positive social and environmental impacts while also delivering attractive financial returns. By investing in real estate with an ESG focus, investors can make sure their money is being put to work for the greater good.

When it comes to real estate ESG investing, there are a few key steps that investors should take. First, investors should identify the environmental, social, and governance factors that are important to them. This could include things such as energy efficiency, water conservation, green building practices, labor standards, and diversity and inclusion. Once these factors have been identified, investors should look for real estate investments that align with these goals.

When evaluating real estate investments, investors should look for buildings or companies that have implemented best practices in terms of ESG. For example, investors may want to look for buildings that are LEED certified, buildings that have implemented energy-efficient lighting, or buildings that have implemented water-conserving practices. Investors should also look for companies that have adopted policies on labor standards, diversity and inclusion, and other social issues.

In addition to looking for investments that align with ESG goals, investors should also consider the financial performance of the investments. While ESG investing does not guarantee financial returns, investors should still look for investments that have attractive financial returns. This could include investments in buildings or companies that have strong occupancy rates, long-term leases, or attractive returns on capital.

Finally, investors should also consider the risks associated with real estate ESG investing. Investing in real estate can be risky, and investors should understand the risks associated with the investments they are considering. Risks can include things such as property values declining, tenants defaulting on their leases, or changes in the local market. Investors should also consider the liquidity of their investments and the potential for capital gains or losses.

By following these steps, investors can make sure their money is being put to work for the greater good while also delivering attractive financial returns. Real estate ESG investing is an important way for investors to put their money to work for the environment, society, and the economy. By investing in these types of investments, investors can help create a more sustainable and equitable future.