Let’s take a high-level look and see if we can shine more light on the subject.

“…ESG, makes up the three key categories used to measure sustainability and the ethical impact of investments.”

Environmental, Social and Governance or better known by the acronym ESG, makes up the three key categories used to measure the sustainability and the ethical impact of investments. Socially responsible investors use ESG components to determine how they will invest their money.

Let’s look at what each letter means and how it applies.

The “E” in ESG

The Environmental criteria focuses on how companies manage their carbon footprint and energy usage. This looks at factors such as:

  • Waste and pollution
  • Water and electric usage
  • Resource depletion
  • Greenhouse gas emission
  • Deforestation
  • Climate change

Companies that employ ESG factors to minimize environmental hazards are looked upon more favorably.

The “S” in ESG

Social criteria looks at how companies manage relationships with employees, suppliers, venders, and communities. This focuses on issues such as:

  • Employee relations
  • Working conditions
  • Local community involvement
  • Health and safety
  • Diversity

Companies with engaged employees can perform better and it trickles into every aspect of the company.

The “G” in ESG

Governance criteria examines how a corporation holds itself accountable. This concentrates on factors such as:

  • Transparency and accountability in leadership
  • Changing laws and regulations
  • Equity and equality in the workplace
  • Corruption and bribery
  • Diversity in leadership roles

What does ESG mean to KBS? We will incorporate this platform, into our current structure, to better serve our employees, tenants, investors and communities.

  • Energy management at the asset level
  • Employee satisfaction and engagement
  • Tenant satisfaction
  • Tenant safety and wellbeing
  • Community involvement

Apaulo Malloy
ESG Manager