ESG

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.
Written By:
Flora Harley, Knight Frank
1 minute to read
Categories: Media 60 Second Property Digest Video Topic ESG

ESG Property Investor Survey Q3 2023

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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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