How to upskill real estate’s ESG drive at scale, at pace and consistently

COMMENT There is abundant evidence of the meteoric growth in interest in sustainability and environmental, social and governance across the industry. Whichever indicators the market uses – investor and occupier sentiments, sustainable finance growth, board resolutions, capital market raising – it cannot be in doubt that the industry is beginning to get to grips with one of the biggest challenges of our time. The sector is stepping up – signing commitments, setting targets, developing net zero carbon pathways, disclosing climate risk and talking about a regenerative economy. Although these targets are aligning with the science of 1.5 degrees of warming, the latest IPPC findings indicate that we are currently at significant risk of compromising our ability to stay within that boundary. Combine this with the impact of the war in Ukraine on energy and food security and the focus of the UK government on levelling up and it is clear that the E, S and G are intricately intertwined. However, an important question remains. If the industry has made commitments, mobilised the finance and deployed the technology, who is going to deliver on these promises? Buildings are physical assets, but they are only able to generate returns for their investors if they are developed and managed well, and deliver the services that occupiers need. This requires people with the necessary skills. Upskilling an industry A year ago, the BBP launched its ground-breaking ESG Training Course for Real Estate Professionals, designed by the industry for the industry with funding from BBP members Hammerson, Nuveen Real Estate, Legal & General Investment Management, LaSalle Investment Management, Derwent London, GPE, Logicor, Picton, Royal London Asset Management and Savills Investment Management. Hillbreak was chosen by BBP members to co-create and deliver this course due to both its in-depth knowledge of ESG issues and training expertise. Since its launch, 600 asset and fund management professionals from 80 different organisations have registered for the course. Asset managers are, of course, only one stakeholder in our intricate and fragmented commercial property sector. At a meeting of the Property Advisors Forum some time ago, I gave some hard-hitting feedback based on the experience of our members. Property owners did not feel that their advisers were providing them with the appropriate support, guidance and services they needed to deliver on their ESG commitments. Things have certainly changed since that meeting, and many firms are working hard to build ESG into their advisory services. But the sector needs to upskill at scale, at pace and consistently to ensure that skills are available and transferable across the market. This is why, in conversation with George Roberts, chair of the Property Advisors Forum, the BBP embarked on developing a new course, providing a training pathway specific to advisory professionals. Collaborative learning The training pathway has been created in collaboration with members of the Property Advisors Forum with funding from Allsop, Avison Young, BNP Paribas, Carter Jonas, CBRE, Colliers, Cushman & Wakefield, Deloitte, Gerald Eve, GL Hearn, JLL, Knight Frank, LSH and Savills. Hillbreak has developed the course content to focus on those in roles across equity and debt sourcing, investment brokerage and consultancy, agency and capital markets research, among others. The materials enable advisers to navigate the complex and ever-changing ESG requirements of their clients, and ensure their advice aligns with best practice. This is a vital piece of the ESG jigsaw as those acting in an advisory capacity have a significant influence on the market. It is essential that advisers are conversant with ESG risks and opportunities, how they should be assessed and how they might impact on investment performance. Only then can they provide the appropriate support to their clients. The BBP will also be developing a series of elective modules enabling participants to take a deep dive into specific ESG topics. Modules planned include net zero carbon, sustainable finance, social value and impact, disclosure regulations and standards and ESG benchmarking and target setting. The BBP is a not-for-profit business and our members and the Property Advisors Forum have shown exceptional leadership by spearheading the development of these courses. I’m immensely proud of the industry for putting radical collaboration into action, not only upskilling individuals, but also contributing to the significant and urgent industry transformation that is needed. Sarah Ratcliffe is chief executive of Better Buildings Partnership For more information on the course, visit the BBP’s website