Whilst the prevalence of taking a stance on environmental, social and governance matters has become more apparent industry-wide, a recent presentation by Savills has brought to light the increasing importance of the social aspect of ESG — specifically with regards to real estate lenders. 

The pandemic has re-focussed attention to considering the social impact of investments, in particular for lenders to understand the borrower's sustainability goals and values. This is particularly relevant to the office sector: from speaking with real estate professionals daily, there is still an appetite for remote and flexible working once offices fully reopen. With this in mind, ascertaining ways to bolster demand via social drivers, and understanding the economics behind it, seems to be the way forwards...