ESG – rate this

"ESG is a long-term strategy and, as such, must be implemented in a sustainable manner," says Łukasz Jachna, Chief Capital Markets Officer and member of the management board at 7R.

A positive trend driven in recent years by leading global players has been the implementation of socially responsible business practices. As organizations have become increasingly involved in activities related to CSR in the broadest sense, there has been a need to define strategies that represent a departure from the model of the autonomous enterprise, which generates profits in isolation from the social context.

As a result, the key metric used today to assess a company’s commitment to the broader public good is ESG (an acronym standing for Environment, Social Responsibility, and Corporate Governance). This means that companies seeking to attract long-term investors regularly report non-financial data based on selected sustainability goals.

An investment in the future

“In our view, ESG has always existed; it just hadn’t been given a name until now.Today, ESG serves as a guide for organizations seeking to improve the efficiency of their operations,” notes Łukasz Jachna.

As Jachna points out, unlike financial metrics such as revenue, profits, or turnover—which determine a company’s profitability—ESG still falls under the category of soft indicators. This does not mean, however, that over time it will not become a more precise criterion, identifying companies worth investing in due to their positive impact on the economy, the environment, and society.

Benefits Today

On the other hand, solutions that reflect ESG principles are already delivering tangible benefits in the form of lower operating costs. That is why 7R focuses on solutions in areas that actually provide various benefits, such as water and energy savings. “Reducing facility operating costs for tenants means additional investments, such as in water filtration or rainwater harvesting. But at the same time, it generates savings that—again—can be used for ESG solutions within their own organization,” explains the expert.

That is why 7R is already implementing solutions at the design and construction stages of buildings, with the aim of both increasing their market value and providing tangible benefits to future owners.  “ Of course, this means higher construction costs and more time spent on project preparation, but the real estate market demands long-term thinking from its participants,” emphasizes Łukasz Jachna. “Because a well-designed building today won’t require additional investments tomorrow.”

At this stage, the company is focusing primarily on energy efficiency. As part of a pilot program, 7R is implementing a system designed to provide tenants with energy self-sufficiency. This program allows the company to verify how effective the implemented solutions actually are. As part of another investment, 7R is carrying out a preliminary project at one of its developments in Kraków. This involves trigeneration, i.e., the use of gas to generate electricity and process cooling.

“Using natural gas is an environmentally friendly solution in and of itself, and it also ensures that the building is carbon-neutral for the tenant,” explains Łukasz Jachna. “However, to implement this type of solution, it is essential that the tenant understands these needs. And as a developer, we understand that we have to foster these needs from the ground up,” he adds.