
60 Second Property Digest – ESG playing crucial role in property markets
Our ESG property investor survey shows desire to improve efficiency of existing properties and acquire and improve underperforming assets.
15 September 2023
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ESG Property Investor Survey Q3 2023
To understand how ESG factors into investment decisions, we surveyed 45 investors who together represent almost £300 billion in assets under management.
Improving existing assets
Improvement was a key focus for the investors.
Of those surveyed:
- 76% aim to improve the efficiency of existing properties
- Just under 60% are looking to acquire poor ESG-performing assets to upgrade
- Around 20% are looking at disposing of poor ESG-performing assets
ESG considerations in transactions
ESG due diligence is going to become increasingly commonplace for transactions.
Of those surveyed:
- 61% require an EPC Plus or pathway report before an acquisition, which can help assess capital expenditure requirements and improvement pathways
- More than 50% require CRREM analysis before a new acquisition to understand the asset's impact on overall portfolio performance
NABERS building certificates
We could see a wider adoption of NABERS building certificates.
Of those surveyed:
- Energy use data is required by nearly 70% of those surveyed before acquisition
- Despite NABERS UK being relatively new, 44% of those surveyed already own or are developing a NABERS-rated building
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