How companies are baking social value into their real estate

As strategies to make real estate more sustainable mature, companies are starting to integrate social value initiatives alongside their environmental goals.

Social value, the short- and long-term value that the built environment creates and delivers for the communities around, is far from a new concept but it’s one that many companies struggle to address fully.

Only 10% of those surveyed in JLL’s recent Responsible Real Estate: Social Value survey are focusing on all seven key areas of social value through health and wellbeing, community engagement, diversity, equity & inclusion, employment and skills, responsible procurement, nature & biodiversity and net zero carbon goals. 

While companies are aiming to deliver on ESG targets, social value activities can feel further away from an organization’s core business, and therefore less of a priority, says Dr Marie Puybaraud, JLL’s Global Head of Research for Future of Work.

“It’s clear that decision-makers would like to do more, but the perception that it takes wide scale investment and major strategic commitment is creating a gap between ambition and action,” she explains.

Furthermore, many companies are focusing on environmental aspects amid rising pressure to show tangible progress in line with evolving expectations from shareholders, employees, customers and society at large.

While the net zero transition remains critical, successful strategies must consider it in tandem with broader social development goals, says Tim Wedemeyer, JLL’s Head of Sustainability Best Practice in APAC.

“It’s vital to take a joined-up approach as environmental and social elements are all interlinked. If you fail in one area, your overall governance and matrix score go down too,” he adds.