ESG as a Sustainability Approach in Corporate Real Estate Management
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Abstract
This study aims to examine the implementation of environmental, social, and governance (ESG) principles from a corporate real estate management (CREM) perspective and to propose guidelines for managing office buildings in alignment with ESG. A literature review identified sixteen aspects of CREM related to ESG principles and subsequently compared with findings from case studies. Three case studies from Bangkok, Thailand, were conducted to explore how these insights are applied in current practices. Criteria for case selection included office buildings in Bangkok owned by companies listed on the Stock Exchange of Thailand (SET) and recognised as Sustainable Stocks or Thailand Sustainability Investment (THSI) in 2021. Data were gathered through field studies, which involved surveying the physical environment of the organisation’s real estate assets, examining building operations, and assessing support services that promote the organisation’s sustainability objectives. Key stakeholder interviews were also conducted. The literature review suggests that while most CREM approaches related to ESG are applied in practice, the degree to which CREM aligns with ESG principles varies depending on organisational strategies, the type of real estate, and building conditions. The findings revealed that CREM practices, when classified under a specific aspect of ESG, also can be linked to other aspects. For example, waste management, classified under the environmental aspect, often involves in-office waste segregation, which requires employee involvement and is thus connected to the social aspect. This study introduces the integration of ESG principles with CREM, contributing insights and practical guidelines for implementation. By identifying connections between sustainability and real estate management, we present a framework for both academic research and practical application. Sixteen aspects linking CREM to ESG, identified in both theory and practice, have the potential to contribute to the added value of CREM initiatives.
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