ABSTRACT

The traditional goal of profit maximisation is being replaced. Investments must increasingly be profitable as well as sustainable: economically resilient with positive Environmental Social and Governance (ESG) metrics. The positive impacts of sustainable property investing could be huge for profit-motivated investors, people and the planet. The financial, environmental and social risks and costs of getting it wrong could be catastrophic. United Kingdom (UK) residential property is dominated by individual investors or small private companies: 94% of property investors were individuals in 2018,5 and in 2016, 93% of residential property investors owned four or fewer properties. Many residential property investors are unaware of how significant the growing importance of sustainability will be for the values, performance and risk of their investments through the 2020s as well as for the planet, and they are unclear on how to deal with the issues at hand.