Environmental, Social and Governance (ESG) Factors as Key Factors in Real Estate Investment Decision: Mixed Use Properties

Ifediora, C.O. and Idhlolo, I.O. and Halim, H.C. (2024) Environmental, Social and Governance (ESG) Factors as Key Factors in Real Estate Investment Decision: Mixed Use Properties. International Journal of Development and Economic Sustainability, 12 (4). pp. 16-28. ISSN 2053-2199 (Print), 2053-2202(Online)

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Abstract

There is no doubt that environmental, social and governance factors (ESG) plays a crucial role in real estate investment decisions especially in mixed-use properties, which is what this study reveals. The study which employed a mixed-methods approach also combines literature reviews, surveys, interviews and statistical analysis. The finding shows that Employee wellbeing, biodiversity and green space are the top ranked factors. This was followed by water conservation and energy efficiency. Identified also were other factors which include; community engagement, transportation access, waste management and community health impact. The factor analysis done reveals that these factors contribute in no small measures to overall ESG impact. To test adequacy and shericity, the analysis done in the study shows that Kasier-Meyer-Olkin's measure of sampling adequacy and Barlett's test of sphericity KMO measure showed appropriateness and are in the range of 0.70. The research indicated that for mixed-use development, ESG factors play a significant role in real estate investment. Therefore, it important for investors to set priority right especially on ESG factors as it concerns decision-making process even as this is expected to help in the creation of positive impacts on both the environment as well as the society while also achieving financial success.

Item Type: Article
Subjects: H Social Sciences > H Social Sciences (General)
Depositing User: mark suger
Date Deposited: 09 Nov 2024 14:58
Last Modified: 09 Nov 2024 14:58
URI: https://ecrtd-digital-library.org/id/eprint/71

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