Words by Debbie Whitfield, Fabrix.

ESG certainly remains the buzz word of the moment – and in lots of ways rightly so – but at Fabrix we have always been a little sceptical of the usefulness of lumping together the diverse considerations of environmental sustainability, social value and ethical governance in a single acronym.

It hides the complexity and individual importance of each pillar, in the process creating fertile ground for ‘green-washing’ to go unchecked.

Embedding value

This is even more of an issue during times of economic headwinds and political turbulence, when the first targets for cutbacks, both in government and business, are often those priorities that fall under the blunt heading of ‘the ESG agenda’. We don’t see these as costs to be value engineered but as opportunities to embed value.

It’s critically important we recognise that the value chain isn’t just economic – it encompasses all those aspects that are important for making society more prosperous.

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In the UK we have seen ‘green premiums’ for several years, but ‘brown discounts’ are quickly becoming the reality and this trend will only increase. With a chronic undersupply of environmentally sustainable buildings across the UK, developers able to deliver projects that address this need are attracting smart investors who can see the way the wind is blowing.

Ultimately, not addressing the pressing environmental and social issues that we face today will exacerbate those problems and we all lose out – society, the planet, and of course the economy. So, it’s more important than ever that, as an industry, we find ways to persuade others of the long-term benefits offered by progressive solutions to those real and escalating issues.

There are still some who see the principles embedded in ESG as an extra, or more worryingly as something to push back on. Whilst impact investing may be in part trying to change the world for the better, it also amounts to a de-risked strategy to create value over the long-term. And is a better world such a bad price to pay?

Who is Fabrix?

Founded in 2016, Fabrix is a London-based vertically integrated real estate investment, development and management company striving to shape a more sustainable world through the intelligent application of finance, technology, and architecture.

Fabrix employs a hybrid top-down thematic and bottom-up fundamental value approach to real estate investing. We specialize in bringing value to underutilized and overlooked urban spaces, focussing on complex asset transformations and turnarounds, as well as building scalable businesses in high-conviction investment themes.

Nature, society and culture are at the heart of our projects and actions. Our ethos is to make sophisticated investments in buildings that help shape a more sustainable and equitable world.

Read our case studies showcasing best-in-class ESG redevelopment projects by Fabrix:

• Roots in the Sky, London, United Kingdom 
• Atelier Gardens, Berlin, Germany