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Bringing the User Back in the Building: An Analysis of ESG in Real Estate and a Behavioral Framework to Guide Future Research

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  • Shirley Kempeneer

    (Antwerp Management School, LAMMP Chair on Behavioral Insights in Real Estate, Boogkeers 5, 2000 Antwerp, Belgium
    Tilburg Law School, Professor Cobbenhagenlaan 221, Tilburg University, 5037 DE Tilburg, The Netherlands)

  • Michaël Peeters

    (Antwerp Management School, LAMMP Chair on Behavioral Insights in Real Estate, Boogkeers 5, 2000 Antwerp, Belgium
    Faculty of Business and Economics, University of Antwerp, Prinsstraat 13, 2000 Antwerp, Belgium)

  • Tine Compernolle

    (Faculty of Business and Economics, University of Antwerp, Prinsstraat 13, 2000 Antwerp, Belgium)

Abstract

Investors are currently obliged to take environment, social, and governance (ESG) issues into consideration as part of their fiduciary duty. As such, it becomes increasingly important to identify sustainable investments that also hold financial value. A sector where this is especially underdeveloped is real estate. This has a lot to do with the obfuscated conceptualization of ESG. The article identifies key gaps in the literature and practice and provides a framework to further the understanding of how ESG factors can add societal and financial value in the real estate sector. A key premise of the article is that the user in the building is grossly overlooked. Drawing on insights from behavioral social science and environmental psychology, the paper explains the role of the user in improving buildings’ ESG, also taking into account the investment value. To conclude, the article makes the case that the transition to user-centered smart real estate is the solution to improving both the environmental (E) and social (S) sustainability of buildings, as well as their investment value. Therefore, practitioners and academics are encouraged to critically evaluate and contextualize the ESG framework they are using as well as the extent to which users are considered and smart technology is employed.

Suggested Citation

  • Shirley Kempeneer & Michaël Peeters & Tine Compernolle, 2021. "Bringing the User Back in the Building: An Analysis of ESG in Real Estate and a Behavioral Framework to Guide Future Research," Sustainability, MDPI, vol. 13(6), pages 1-12, March.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:6:p:3239-:d:517499
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    References listed on IDEAS

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    3. Maria Elena Bruni, 2022. "MDPI Sustainability: Special Issue: “Women’s Special Issue Series: Sustainable Energy”," Sustainability, MDPI, vol. 14(8), pages 1-2, April.

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