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Sustainable Commercial Real Estate
Edited by Tim Dixon and Paul McNamara
Introduction and background
Within the process of property investment decision making, increasing attention is being given to the relationship between property valuation, risk analyses and financing and the growing interest and responsibility that the property industry is taking towards society and the environment. The property industry is also becoming aware of the need to actively communicate this attitude to the wider public, as well as seeing the increasing demand for property assets and investment opportunities that are in compliance with the principles of sustainable development or that follow ethical maxims as a major opportunity. The growing acceptance of social responsibility by organisations, corporations and other actors impacts on both investment, planning and financing processes as well as on the demand for and the provisioning of products (e.g. buildings, property investment products, financing and insurance products).
The terms "social responsibility" or "corporate social responsibility" (CSR) are used by organisations, investors and companies to commit themselves to the protection of social and environmental interests. CSR (sometimes referred to as "good" corporate governance) is defined as an open and transparent business practice that is based on ethical values and respect for employees, communities, and the environment. It is designed to deliver sustainable value to society at large, as well as to shareholders ([77] US Social Investment Forum, 2006). CSR impacts on all business activities including investment policies. Such policies and investment practices can be grouped under the term "socially responsible investment" (SRI). Socially responsible investment as a strategy and socially responsible investing as a process characterise the behaviour of investors who not only focus on the mere economic aspects of an investment but also follow ethical principles and take into account environmental and social aspects. Such investors either avoid investments in particular companies and products or they systematically select and support other companies and products through their investment. In addition, such investors sometimes use their shareholder rights in order to positively impact on the development of a particular company. A framework for this is provided by the Principles for Responsible Investment ([76] UN Environment Programme Finance Initiative, 2006)[1] . The Principles have been endorsed by institutions representing more than $US8 trillion in assets globally.
The issue...