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A new report shows that while firms intend to make good on their ESG targets, meeting the “social” aspects of that promise is proving more elusive.
Global real estate firm JLL’s recent Responsible Real Estate: Social Value survey showed only 10 per cent of respondent companies are focusing on all seven key areas of social value.
This includes health and wellbeing, community engagement, diversity, equity and inclusion, employment and skills, responsible procurement, nature and biodiversity and net zero carbon goals.
Dr Marie Puybaraud, JLL’s global head of research for future of work, says that while companies are aiming to deliver on environmental, social and governance (ESG) targets, social value activities can feel further away from an organisation’s core business, making it “less of a priority”.
“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 explained.
The expert noted the majority of companies are focusing only on environmental aspects amid increasing pressure to deliver tangible progress in line with evolving expectations from shareholders, employees, customers and society in general.
Tim Wedemeyer, JLL’s head of sustainability best practice in APAC, said while achieving net zero transition continues to be “critical”, ESG strategies must consider it along with broader social development goals.
“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 added.
While the shift towards transforming building spaces that deliver social value to the community can be described as slow going, the experts noted companies are taking up the call to tackle it.
One way that companies can fulfill their environmental targets is by implementing initiatives that not only benefit the environment but also have positive impacts on local communities such as adding green spaces. The survey found that 40 per cent of companies are planning to undertake biodiversity projects, while 33 per cent aim to create green spaces for public use.
Dr Puybaraud also underlined that achieving social value targets can entail simple actions, including establishing partnerships with local businesses or restaurants to offer discounts to employees.
“It costs little, connects an organisation to the community, delivers economic benefits and elevates social value,” she said.
Sharing private space for public purposes — something 43 per cent of those surveyed are already putting into action — is another low-cost example of using the built environment for social good, Dr Puybaraud noted.
“Investors, developers, occupiers and city authorities are starting to work together to deliver greater social impact, not just in their buildings, but across communities via placemaking,” Mr Wedemeyer said.
But despite emerging consensus about what social value priorities are, the survey showed corporate decision makers are less confident about how to measure them.
Findings revealed almost a quarter of organisations reported a lack of standardised reporting and consistent data, as well as difficulty measuring success as their biggest barriers.
“Success can prove harder to track, but it’s not impossible,” Dr Puybaraud said, adding that “a quarter of our survey’s respondents are already collecting real time data and using advanced analytics for their future social value strategies.”
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