The global benchmarking and quality assurance standard for Safe Hospitality, Offices, Retail, and Exhibitions assets.
Harmonizing ESG Objectives with SHORE Certification
Environmental, Social, and Governance (ESG) parameters are essential indicators of a business’s social responsibility. Within real estate asset management, there is an accelerating emphasis on curating safe, sustainable investment opportunities that serve the welfare of employees, society, and shareholders alike. Today’s stakeholders, ranging from staff and tenants to visitors and investors, increasingly hold businesses to account on these parameters.
SHORE Certification is an industry benchmark for effective ESG performance, prioritizing human well-being, asset security, and environmental conservation. SHORE certification enriches asset value by fostering safe, sustainable environments while fortifying governance protocols within these settings. SHORE certification aids organizations in both enhancing and quantifying safety, security, sustainability, and well-being across all stakeholder interactions with the property.
Driving ‘Social’ and ‘Governance’ Elements in ESG
Acquiring a SHORE Certification for your assets equates to the establishment and implementation of robust standards in Risk Management, Resilience, and Governance.
Asset owners and operators actively develop spaces that are not only safe and sustainable but also socially responsible and distinctive.
Spaces with such a strong identity invariably become attractive destinations—whether for shopping, lodging, working, or leisure—thereby elevating asset value for owners and investors.
The European Union is on the verge of making ESG reporting mandatory for corporations, aligning with a global trend towards enhanced corporate transparency. This change necessitates that organizations diligently monitor and report their ESG metrics to ensure long-term sustainability and meet investor expectations.
Currently, the regulations surrounding ESG reporting are relatively flexible, allowing organizations to select a reporting framework and a set of standards to suit their operations. Adopting recognized frameworks such as the Global Reporting Initiative (GRI), Sustainability Accounting Standards Board (SASB), International Integrated Reporting Council (IIRC), or Global Real Estate Sustainability Benchmark (GRESB) can significantly improve an organization’s ESG scoring.
Furthermore, adhering to these frameworks facilitates attaining the SHORE certification standard, which is poised to play a pivotal role in shaping the future of ESG reporting. By proactively engaging with these evolving reporting requirements, organizations can position themselves favorably in a landscape of increasing corporate accountability.
Alignment with UN Sustainable Development Goals
SHORE’s scoring criteria are designed to capture relevant objectives from the United Nations Sustainable Development Goals (UN SDGs), adhering to ESG imperatives. These global goals encompass domains such as people, prosperity, planet, peace, and partnership, and SHORE directly incorporates various sub-categories within these domains.
By connecting your ESG efforts with those outlined by the UN through SHORE Certification, your organization effectively advances its contribution to achieving these global objectives.
Governance and why it matters
Prioritizing governance practices is not merely a compliance checkbox but a strategic move toward sustainable business growth. Here’s how:
Sound Investments: Governance practices provide a framework for making informed decisions, managing risks, and ensuring that the interests of all stakeholders are considered. This leads to sound investments that are well-vetted and have a clear alignment with the organization’s long-term goals.
Value Creation: Good governance goes hand in hand with value creation. It instills investor confidence, enhances company reputation, and fosters a culture of integrity and transparency. This, in turn, attracts capital, drives customer loyalty, and promotes sustainable growth.
Regulatory Compliance: In an era where regulatory scrutiny is intensifying, robust governance practices ensure that companies are compliant with laws and regulations. This not only mitigates legal risks but also positions the company as a responsible and trustworthy entity in the eyes of regulators and the public.
Operational Efficiency: Effective governance streamlines operations by defining clear roles, responsibilities, and processes. This leads to better coordination, reduced redundancies, and ultimately, improved operational efficiency.
Long-term Resilience: Governance practices equip companies to navigate through challenges and uncertainties. By promoting ethical leadership and decision-making, companies build resilience that safeguards their operations and reputation in the long term.
Stakeholder Engagement: Engaging with stakeholders is a core aspect of good governance. It enables companies to understand and respond to the concerns and expectations of their stakeholders, thereby building stronger relationships and enhancing social capital.
Ethical Culture: Governance sets the tone for an organization’s culture. By prioritizing ethical practices and transparency, companies cultivate a culture that values integrity, which is crucial for long-term success.
By embracing good governance practices, companies not only ensure sound investments and value creation but also build a solid foundation for enduring success in a competitive landscape.
Get in touch to learn more about how SHORE supports your overall ESG commitment