What is ESG and why does sustainability matter in the real estate market?

What is ESG after all? Sustainability is a topic that is becoming increasingly relevant in various sectors. We already know that we need to take care of the environment and look for ways to reduce the impact we have on it, right?

This is why the acronym ESG was created and has become such an important item today for companies in various areas, including those related to real estate development.

If you are interested in investing in sustainable products, you need to know what ESG is and why sustainability is essential even in the construction industry. To find out the answer to these questions, continue reading our post and learn how to invest even more in a sustainable world!

What is ESG

ESG is an English acronym that stands for “environmental, social and governance”. It is widely used to analyze companies’ commitment to these issues.

In each topic, certain factors are analyzed. Now, let's look at some of the items that are examined in each area:

• Environmental: waste management, air and water pollution generation, deforestation and actions in relation to global warming.
• Social: compliance with labor laws, human rights, employee and customer satisfaction, diversity in the company and the protection of consumer data.
• Governance: provision of a reporting channel within the company, employee salaries and the business's relationship with politicians and public organizations.

ESG is very important because it shows consumers whether institutions really care about these issues. And, as thousands of people are trying to consume more consciously, when they see the ESG of companies, they decide whether to buy or rent items from those businesses.

It is also relevant because it makes commercial institutions collaborate with the preservation of the environment and the creation of a fairer society.

What is the relevance of sustainability in civil construction?

The construction industry is one of the most damaging to the environment, because construction work tends to generate a lot of waste, pollution and consumes a variety of natural resources. Construction also consumes energy and, even when it is finished, it continues to consume energy.

That is why adopting sustainability in projects in this area is so fundamental to preserving the planet. Several companies and professionals in the sector already work with sustainable architecture and construction, which are models that seek to reduce the impact of construction work and finished properties on nature.

They create projects that, for example, generate less waste on construction sites, are created with renewable materials and take advantage of natural sources to reduce energy consumption during construction and in the finished building. In this way, it is possible to reduce the impact of civil construction on the environment in the short and long term.

These construction models also address the social and economic aspects. In the social area, sustainable architecture and construction projects seek to offer a better quality of life for residents or visitors to the property.

To achieve this, the projects pay close attention to acoustic and thermal comfort and air quality in the building's environments. In the economic field, the objective is to build projects that are economically viable. In other words, that the owners or residents can carry out and maintain financially, even in the event of unforeseen circumstances.

As you can see, in addition to helping preserve the planet, sustainable buildings improve people's quality of life and also help reduce costs. After all, since properties are designed with energy consumption in mind, electricity, water and gas bills in these buildings are usually lower than in traditional buildings.

What are certified sustainable enterprises?

Certified sustainable developments are buildings, apartments or houses that have documents proving that they contribute to sustainability in civil construction in some way.

So, if you are looking to rent a more sustainable apartment or house, you can ask about these certificates to ensure you are making the right choice.

Certified sustainable developments may have different documents that prove that they contribute to sustainability. Check out below 3 of the main certifications that properties can have:

LEED

The Leadership in Energy and Environmental Design certification , which was created by the US Green Building Council, aims to encourage the creation of more sustainable buildings.

It is used in over 160 countries and works as follows: 7 criteria are assessed in the works and, as they meet the requirements, they gain points. If they reach a certain minimum number of points, they receive certification.

The categories analyzed in the constructions are: sustainable space; location and transportation; energy and atmosphere; materials and resources; water use efficiency; indoor environmental quality; and innovation.

It is important to remember that there is more than one type of LEED certification, so the required scores also vary according to the certificate models.

EDGE

The Excellence in Design for Greater Efficiencies (EDGE) certification is an initiative of the International Finance Corporation (IFC).

EDGE is an application that encourages the creation of green buildings. To obtain this certification, the person responsible for a civil construction project must use the EDGE software to find ways to reduce 20% of the energy, water and embodied energy in the work materials.

Once the service reaches these numbers, it will earn EDGE certification. Projects that achieve this certification are eligible for investment from the IFC.

The buildings under development by Citas will be EDGE certified!

Blue House

The Casa Azul seal was created by Caixa Econômica Federal and classifies the housing projects that this bank finances. The idea behind this seal is to encourage the rational use of natural resources and ensure quality in the property, so that monthly bills and maintenance costs are lower.

This certification analyzes several project characteristics, which are divided into 6 groups:

• Urban quality;
• Water management;
• Energy efficiency;
• Conservation of material resources;
• Design and comfort;
• Social practices.

It is essential that sustainability is increasingly encouraged in civil construction, through certificates or other practices, so that this sector reduces its impacts on the environment and still manages to provide more comfort for people.

After checking out what ESG is and how you can make the world more sustainable by paying attention to certain points when choosing your home, also check out 10 tips for living sustainably ! and other tips on our Blog

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