Responsible Property Investing – Between Green Transformation and Greenwashing

Responsible Property Investing (RPI) is integrating environmental and social factors into real estate investment decisions. This study examines the dual realities of RPI: its potential as a driver of green transformation and the prevalence of greenwashing practices that undermine sustainability efforts in cities as well as the environmental, social, and governance (ESG) policies of companies. By analyzing survey data from 2024 collected from the 60 largest municipalities in Poland and over 50 major commercial real estate investors (including companies listed on the stock exchange), this research identifies both the enablers and the barriers to implementing RPI in practice. The findings show a gap between the aspirations of RPI and its implementation, with both parties struggling to align long-term strategies and goals of the other side, underscoring the critical need for improved dialogue and harmonized policy frameworks that can ultimately bridge this divide and advance sustainable real estate practices on a broader scale including not only profit, but also environmental and social goals. This research provides recommendations for property investors, emphasizing the need for clear definitions, robust regulations, and enhanced stakeholder engagement to foster the green transformation of cities instead of greenwashing. By critically assessing Poland's experiences, this study contributes to the general discussion on achieving urban sustainability through responsible investment practices and furthermore ESG.