Christensen, P H; Robinson, S and Simons, R (2022) Institutional investor motivation, processes, and expectations for sustainable building investment. Building Research & Information, 50(3), pp. 276-290. ISSN 0961-3218
Abstract
This paper examines strategic motivations, processes and expectations for institutional real estate owners around sustainable improvements and eco-labelling in office buildings. A series of 33 industry interviews with senior representatives of institutional real estate owners (e.g. REITs, Pension Funds, Opportunity Funds, and Investment Managers) were conducted to explore three key research questions. First, what motivates firms to invest in and move towards green technologies and certifications? Second, how do firms choose to implement, manage and maintain green investments and eco-labels? Third, what, if any, are the financial expectations of investing in green labelling and efficiencies? Results from the constant comparison analysis of the transcripts reveal that expected financial outcomes dominate environmental, broader sustainability and governance concerns when making decisions related to sustainability. The perceived value in eco-labelling was found to be widespread. Data collection and benchmarking related to energy and water usage were found to be the new norm for institutional managers and investors. In addition, a range of localized and firm-level policies was identified. A rigorous interview protocol was followed to reduce threats to reliability and validity.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | corporate strategies; energy star; LEED; office tenants; qualitative research; sustainability |
| Index terms: | efficiency, investor, corporate strategy, governance, owner, energy star, office building, validity, real estate, eco-label, interview, manager, certification, tenant, motivation, sustainable building, qualitative research, benchmarking |
| Subjects: | performance management, performance measurement, sustainability assessment, sustainable construction, sociology, administrative processes, research design and methodology, business, construction type, evaluation and assessment methods, data collection methods, practitioner, real estate economics, psychology, energy systems |
| Topics: | Human Resources, Quality Management, Urban Studies, Contract Administration, Research Practice, Construction Technology, Governance, Sustainability, Stakeholder Management, Roles and Professions |
| Descriptive scope: | 5 PCTEA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here