Responsible Real Estate: Social Value

While the urgent need to accelerate the transition to Net Zero is an absolute priority for real estate investors, developers and corporate occupiers, it must be considered in tandem with broader sustainable development goals.

Addressing the ‘S’ (Social) alongside the ‘E’ (Environmental) considerations is a unique opportunity to maximize return on investment and to future-proof assets while delivering lasting positive change for communities and cities companies operate and invest in.

Lack of clear definitions, scope and challenges around measuring impact are just some of the reasons why the ‘S’ pillar has been traditionally lagging behind the ‘E’. So how do we define ‘Social Value’? In JLL’s view, social value in the built environment is about creating lasting positive social impact throughout the real estate life cycle for every stakeholder interacting with and within spaces.

Organizations should be taking a holistic approach when formulating their real estate ESG strategies and addressing all 7 aspects of social value identified in our research alongside their environmental and governance goals: health and wellbeing, community engagement, net zero carbon goals, diversity, equity & inclusion, employment and skills, responsible procurement and nature & biodiversity. 

Organizations recognize that they have a responsibility to act on their ESG commitments and social value goals. However, despite emerging consensus about what social value priorities are, corporate decision-makers are less confident about how they can achieve these priorities.

By making smart decisions about the acquisition, design and operation of their real estate today, real estate owners, developers and occupiers can mitigate future risks, deliver positive change and achieve sustainable growth, beyond financial return.

Across the extensive supply chain attached to buildings and at every stage of the real estate life cycle there are opportunities to generate positive environmental and social impact, but bold actions and investments are needed to deliver meaningful results.

It is the translation of sustainability ambitions into actionable strategies that represents the most significant challenge organizations face today.

In evaluating priorities and making decisions, it is important for companies to consider the environmental and social goals together and to weigh the trade-offs. Only then will they be better able to demonstrate both the impact and the return on investment that their environmental and social value activities generate.

JLL believes that only a purpose-driven, integrated approach to ESG can drive long-term value and net-positive impact for all stakeholders of the built environment.​

We surveyed over 800 corporate decision makers across 12 countries globally​

• 35% of respondents are from organizations with over 10,000 employees​

• 54% of respondents have a role with a global remit​

• 76% are familiar with direct decision-making authority / influence on corporate real estate and 84% on ESG strategy​

Organizations categorized as ‘Market Leaders’ are among the most mature in our survey population (scoring above 71 points). They have clear ambitions to drive social value through their real estate and have already implemented specific social value targets. Carbon emissions reduction is already a part of their corporate sustainability strategy or corporate real estate strategy.​