ESG – rate this

"ESG is a long-term strategy and therefore requires responsible implementation," says Łukasz Jachna, Chief Capital Markets Officer and Board Member at 7R.

Driven by global players, corporate social responsibility (CSR) has emerged as a positive trend. However, its widespread adoption calls for clearly defined standards for ethical strategies, enabling companies to move away from business models based solely on profit generation in the face of social isolation.

This is why sustainability-conscious companies today must meet ESG (Environmental, Social, and Governance) criteria. To attract long-term investors, they need to report on their actions, contributions, and impact on sustainable development.

Investing in the future 

“In our opinion, ESG has always been around, but it hasn’t been clearly defined,” says Łukasz Jachna. “ESG standards are guidelines for companies seeking to improve their operational efficiency,” he adds.  Compared to indicators such as revenue, profit, or turnover—which determine a company’s profitability—ESG is currently viewed more as soft data. But Łukasz Jachna predicts that ESG may become a more precise indicator over time, making companies with a significant social and environmental impact a top target for investors.

Gaining an edge today 

But in fact, ESG strategies are already delivering market advantages, such as lower warehouse costs. That is why 7R is focusing on eco-solutions that actually pay off, such as reducing energy and water consumption in warehouses.

– Reducing warehouse operating costs requires additional investments, such as in water filtration or rainwater harvesting. However, these investments generate actual savings for our tenants, which they can then use to implement other ESG solutions within their own organizations – notesJachna.

In an effort to enhance market value and provide additional benefits to tenants, 7R is implementing sustainable solutions at both the design and development stages.

– From an investment perspective, this means higher construction costs and more time spent on the pre-development phase. But to succeed in the real estate market, you need to think long-term, as well-designed projects will not require additional investments in the future – adds 7R’s expert.

This is why 7R is now focusing on energy efficiency. As part of its pilot program, the developer is introducing a system to help tenants achieve energy self-sufficiency. At the same time, in one of its projects in Kraków, it is implementing a system known as trigeneration, or combined cooling, which recovers gas energy for the cooling system.

“Shifting some cooling capacity to natural gas is an environmentally friendly solution and also helps transform the warehouse into a zero-emission building. In order to implement these solutions, tenants need to understand the need for them. And it is our responsibility as a developer to make them aware of what they need,” saysŁukasz Jachna.