Location! Location has always been the primary focus for both REIT executives and other property professionals. Now, three additional words are entering their lexicon with increased frequency--environmental, social and governance.
Due to a mix of drivers, environmental, social and governance (ESG) worries are gaining prominence among REITs and their own investors. ESG is becoming a critical point of focus from the perspective that failure or success may determine the long term of assets.
"The U.S. is rapidly catching up with the Europeans on ESG issues," says Sam Adams, co-founder and CEO of San Francisco-based based Vert Asset Management. In 2017, Vert Asset Management started the Vert Global Sustainable Real Estate Fund, a mutual fund investment in publicly-traded REITs which rely upon ESG metrics. Let’s start off by defining what ESG really means.