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Article

Pricing ESG Equity Ratings and Underlying Data in Listed Real Estate Securities

1
Department of Economics, Tilburg University, 90153 Tilburg, The Netherlands
2
Department of Real Estate and Planning, Henley Business School, University of Reading, Reading RG6 6UD, UK
3
PGGM Investment, 3700 AC Zeist, The Netherlands
*
Author to whom correspondence should be addressed.
Academic Editors: Pierfrancesco De Paola, Francesco Tajani and Marco Locurcio
Sustainability 2021, 13(4), 2037; https://doi.org/10.3390/su13042037
Received: 1 October 2020 / Revised: 22 December 2020 / Accepted: 31 December 2020 / Published: 13 February 2021
(This article belongs to the Special Issue Sustainable Real Estate: Management, Assessment and Innovations)
By analyzing the adoption of the European Public Real Estate Association’s (EPRA) Sustainability Best Practices Recommendations (sBPR), we examine and discuss the application of transparent environmental, social and governance (ESG) ratings and their interaction with public real estate performance across European markets. Due to increasing concerns about the environment and the impact of investment on society at large, public property companies have made significant progress in improving transparency and enhancing the protection of shareholder value by sharing and reporting ESG best practices. We explore and review the EPRA sBPR database, which is highly useful for investors who are already screening listed real estate companies. Hence, in this project, we carefully study the diffusion process of this new ESG metric as a tool to enhance informational transparency regarding public real estate investment management and assess the effects of this transparency and ESG performance for the real estate stock returns. We find evidence of a sustainability premium that investors are willing to pay to access companies with better sustainable ratings. View Full-Text
Keywords: ESG; real estate companies; ratings; sustainability; energy efficiency ESG; real estate companies; ratings; sustainability; energy efficiency
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MDPI and ACS Style

Brounen, D.; Marcato, G.; Op ’t Veld, H. Pricing ESG Equity Ratings and Underlying Data in Listed Real Estate Securities. Sustainability 2021, 13, 2037. https://doi.org/10.3390/su13042037

AMA Style

Brounen D, Marcato G, Op ’t Veld H. Pricing ESG Equity Ratings and Underlying Data in Listed Real Estate Securities. Sustainability. 2021; 13(4):2037. https://doi.org/10.3390/su13042037

Chicago/Turabian Style

Brounen, Dirk, Gianluca Marcato, and Hans Op ’t Veld. 2021. "Pricing ESG Equity Ratings and Underlying Data in Listed Real Estate Securities" Sustainability 13, no. 4: 2037. https://doi.org/10.3390/su13042037

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