The growing influence of ESG in the CRE, CMBS and CLO markets
The growing influence of ESG in the CRE, CMBS and CLO markets
In a few short years, the term ESG (Environmental, Social, and Governance) has gone from a lofty and idealistic ambition to an integral policy goal incorporated into the corporate strategy of many top firms across the globe. To emphasize the impact of this increased interest in ESG, Trepp convened a panel of experts in both the investing and academic fields to break down the latest ESG trends and how they are playing out in the CRE, CMBS, and CLO markets.
Professor Gianluca Marcato (Head of Department, REP) was asked to speak on this panel, and his recent report was highlighted as it shows a correlation between ESG ratings and the interaction with public real estate performance across European markets. Due to increasing concerns about the environment and the impact of investment on society at large, public property companies have sought to improve transparency and enhance the protection of shareholder value by sharing and reporting ESG best practices. In turn, Mercato finds evidence of a sustainability premium that investors are willing to pay to access companies with better sustainable ratings.