We sat down with Jill Brosig, Chief Impact & Sustainability Officer, Harrison Street Real Estate Capital, to explore the biggest opportunities and challenges in scaling ESG initiatives, the unique leadership perspectives women bring to sustainability, and the critical shift from short-term payback models to long-term value creation. Read on for insights on these topics and more.
The industry must continue to demonstrate that ESG initiatives create better-performing, more attractive properties. We can no longer act on initiatives based on gut feel but need to be able to quantify the value that is created from these activities and how and where they translate to financial impact, whether that is higher rents, increased occupancy, longer tenure, or simply higher valuations. We also need to use data obtained from these activities to further leverage those that are successful for all key stakeholders and lessen or discontinue those that are not valued.
When I first started in the sustainability function, I was told it was the “pink” profession. That made it sound as if only women cared about the environment and people. I believe the role wasn’t that valued in the industry initially, but was simply seen as a box to be checked and the bias was perhaps to give it to a woman, typically one at a lower level. Since this had begun in this way in a number of organizations, it allowed women to think more holistically and long-term regarding environmental and social issues. Research has also suggested that women often exhibit a higher sensitivity to risk and ethical issues. This can in turn mean more responsible governance, focus against greenwashing, enhancing transparency, and striving to ensure ESG initiatives have a real impact.
One has to move away from simple payback models and toward value creation. If one only considers the former, then real, meaningful ESG activities that will impact the value of the building risk being ignored due to short hold periods.
Our work in developing and rolling out a social scorecard that connects the human element to building performance was a pivotal moment in taking our ESG work to the next level. For too long people have felt the S in ESG was too ethereal to measure, that they couldn’t quantify its real impact. We have spent the past three years creating a tool that will help us better understand what S related activities we need to do more of and which to retire based on the impact it has on our stakeholders.
That women are driving sustainable innovation, spearheading climate-conscious policies and ESG initiatives that are redefining our industry. Our focus on long-term, community-driven solutions leads to more effective sustainability strategies. Also, women in leadership must empower the next generation, of both men and women, through mentorship and education in sustainability-related careers, to ensure what is happening today is not only maintained but continues to grow.
Jill will join us for a discussion on "Empowered Women, Greener Futures: ESG’s Role in Transforming Real Estate” together with fellow panelists Nicole Wilson (KKR), Katie Cappola (Madison International Realty) at the 27th Real Estate Private Equity Summit on March 25th in New York. This session showcases women transforming real estate through sustainable innovation, equity-driven strategies, and bold leadership. Dive into the minds of power players reshaping the industry, one decision at a time. Register now to join us.