ESG investing is a big topic for us in the real estate world and, without a doubt, it will dominate industry conversations for years to come.
For those unfamiliar with the concept, ESG is a movement towards sustainable or “green” investing. It is an acronym for Environment, Social, and Governance, all values strongly tied to our urbanized societies. As a continuation of the long tradition of responsible investing, ESG has already begun to guide investment decisions in the higher echelons of the property investing sphere.
However, everyone’s emphasis on ESG seems to only be on “Environment,” while “Social” and “Governance” are rarely considered. Our goal as a PropTech online platform is to help bring those three values equal to the forefront of investor’s minds.
The struggle for ESG companies when trying to convey a “Social” or “Governance” vision is the lack of tangible storytelling. Investing in “Environment” with “green” properties is explicit enough because the environment tends to speak for itself. Whereas “Social” and “Governance” are subtle, and thereby, ESG companies need to deeply consider how to elucidate the benefits/advantages of these values for investors.
Denzity fits into this very space, providing an easy way for ESG to design effective platforms to communicate and sell these values to investors.
Some might offer reasons to procrastinate on this “trend.” Sure, ESG is heating conversations around investing, but is ESG reflected in the investment choices of small investors or mom-and-pop businesses? The big mistake is to look too closely. In the macro, large listed companies and big developers are already shifting their assets and adjusting their long-term outlook towards ESG companies.
Things are moving fast. As the ground is shifting beneath our feet, it is essential to know once these institutional investors decide this direction, it won’t take long for these effects to trickle down to everyday investing.
More so, as governments worldwide show collective sensitivity towards the question of global warming and other environmental issues, we can expect to see a move towards regulations that incentivize green projects/investment and punish companies that practice unsustainable development.
This is a trend to take seriously, especially in 2021. Denzity is, and we intend to help make these ideas come alive. Not only do we see this as an inevitable opportunity, but we see it as something that is right to pursue. Just as it is right to want sustainable buildings in our city. Just as it is right to desire better communal places for our elderly and breathable air for our kids. As we champion “making real estate more accessible for everyone” and build towards the day that our families and friends can experience a better real estate ecosphere, we also want the people we love to enjoy life in an ESG conscious city. We are excited not only for what this could mean for Hong Kong but also for the world, and we are eager to help it be on its way.
What do you think of ESG? How do you see this standard develop in your local real estate sector? Feel free to reach out to Darren to discuss more about the future of ESG.