If you’re a commercial property owner and feel overwhelmed by the number, scope and cost of environmental, social and governance (ESG) focused certifications and disclosures, you're not alone.  

It’s a lot to take in, but the right recognition strategy can make it easier to decide what’s best for your asset. 

With expert guidance, companies can prioritize issues that present the greatest risks and opportunities to their business. 

It’s important to build a winning approach to properly tend to assets and portfolios, and a key component of that is a recognition strategy. That means being intentional about the pursuit of certifications, awards and disclosures to ensure your portfolio is being recognized for your hard work by the stakeholders who expect it.  

In the marketplace, there are several mechanisms to measure ESG advancement, including GRESB, LEED, BREEAM, BOMA BEST, WELL (Performance and Health ratings), Fitwel, Energy Star, Rick Hansen Accessibility Certification (RHFAC), B Corp, as well as industry challenges, several waste reduction programs and many, many more considerations.

One might ask: Why are there so many certifications that seem to cover the same things? Which one is better? Do any of these even matter?   

Navigating the ESG trough of disillusionment 

With polarizing political and social sentiment catching headlines, it feels like we’re living in an “anti-everything progressive" world. It’s challenging to know what to do and how to shine a light on commitments and achievements. (It’s important to note that this reticence is predominantly a North American condition when compared to our global peers.) 

Turning your back on ESG will hurt in the long run.

But what are the must-haves? What are nice-to-haves? What is redundant and what do your tenants, employees or investors really care about? How do you balance time and financial costs with value?  

It’s kind of like being at the buffet table when you’re trying to eat healthier and smarter. So many options, some good and some bad.

It can feel overwhelming on your own, but imagine having a dietician with you in line to provide expertise, helping you make an informed decision that is in line with your goals. There is help available.

Toward a plateau of productivity

In Canada, regardless of the political headwinds, future-proofing assets remains a priority for building owners.

Findings from the 2024 Climate Impact Partners Report show that 45 per cent of Fortune Global 500 companies have made public commitments to achieve net zero by 2050. That's up from 39 per cent in 2023.

The solution is to not turn your back on ESG, and instead, reprioritize the process to meet your own corporate needs with expert support and data-oriented guidance. There is no need to figure this out on your own. 

Companies continue to assess whether a building in which they're considering leasing space aligns with their corporate ESG commitments.

Tenant demands for ESG performance and transparency aren’t wavering. Tenants are particularly concerned with emissions and accessibility, and many have been vocal about the risk of being in a space for 10 or 15 years without any evidence that the building owners and operators are committed to advancing their ESG performance, full stop.

Think of it as a “brown discount.”

By abandoning all ESG certifications and ESG programming, a landlord immediately cuts its tenant pool significantly. We’ve seen tenants eliminate half of prospective locations due to a lack of an ESG commitment from the landlord. 

So, what is the right approach? 

It starts with a clear destination and a realistic timeline.

For some owners, that journey may need to evolve – and that’s okay. It’s essential to define your own ESG performance goals or, if you already have them, chart the most pragmatic path forward. By leveraging data, projects can be strategically prioritized, ensuring every step adds measurable value.

It all starts with a deep dive into the property: analyzing performance, tenant composition and ESG metrics such as energy efficiency, environmental conditions and accessibility. From there, assess both the value and risks associated with these criteria, quantifying the financial and reputation impact of meeting, or missing, key ESG targets.

The result can be a tailored, strategic directive and playbook that enable property teams to budget, mobilize and take action with confidence.

Now is not the time to step back. It’s time to engage experts who can quantify ESG risks, unlock opportunities and elevate asset value.

Companies can implement strategies that save time, reduce costs, minimize risk and drive meaningful impact – all while staying aligned with corporate goals and owners’ investment objectives for their assets.