ESG & Sustainability Consulting

In Canada, the intersection of commercial real estate and sustainability is no longer optional—it is imperative.

With increasing regulatory pressures, heightened investor scrutiny, and a growing tenant demand for sustainable spaces, businesses are seizing the opportunity to integrate environmental, social, and governance (ESG) principles into their real estate strategies to stay ahead of the curve.

This shift transcends compliance; it’s about future-proofing assets, boosting valuations, mitigating risks, and aligning with a more sustainable economy.

ENCOR’s real estate consulting services empower clients to navigate this landscape effectively, ensuring they capitalize on emerging opportunities while addressing potential challenges. As trusted advisors to our clients, we are firmly committed to due diligence in this critical space.

 

Key Service Offerings

 

1. Elevate Asset Valuation Through an ESG Lens

We deliver in-depth analyses to uncover how ESG factors impact property valuations. As market standards evolve, buildings with robust ESG credentials (e.g., LEED certifications, energy efficiency ratings) increasingly command premium valuations, while those lacking may face depreciation or obsolescence.

Our clients gain clarity in their market positioning with actionable recommendations to enhance value through strategic sustainability improvements.

 

2. Proactively Addressing Stranded Assets

Stranded assets—properties losing value due to regulatory shifts, technological advancements, or changing market expectations—pose significant challenges. We conduct thorough assessments to identify potential risks like poor energy performance or non-compliance with emerging carbon-reduction regulations.

By proactively identifying and addressing these risks early, we help clients minimize financial exposure and develop strategies to upgrade, repurpose, or divest these properties effectively.

 

3. Transform Lease Negotiations and Renewals with ESG Due Diligence

Lease negotiations now extend beyond financial terms to include critical clauses on energy performance, energy performance, emissions reporting, and operational sustainability. We provide comprehensive ESG due diligence to equip our clients for negotiate lease terms that reflect their long-term sustainability goals.

This service ensures that lease agreements align with ESG priorities, mitigating risks related to compliance, operational inefficiencies, and tenant retention challenges.

Our Approach: A Holistic Framework

ENCOR’s ESG consulting services leverage a holistic framework that combines technical expertise, industry insights, and actionable strategies. Our approach includes:

1. Regulatory Alignment

Ensuring full compliance with federal, provincial, and municipal sustainability regulations, including Canada’s Net Zero goals.

2. Market Analysis

Evaluating emerging trends such as tenant demand for green leases and investor focus on ESG metrics to position our clients competitively.

3. Stakeholder Collaboration

Facilitating alignment between landlords, tenants, and investors to achieve shared ESG objectives.

4. Sustainability Reporting

Assisting clients in integrating ESG metrics into reporting frameworks for transparency and alignment with global standards such as GRESB and TCFD.

Reflect on your sustainability efforts with these questions:

  1. What is your current ESG strategy for your real estate portfolio? How do you measure and report on your performance?
  2. Have you conducted a comprehensive climate risk and carbon footprint assessment for your properties?
  3. How are you addressing energy efficiency, waste management, and water conservation in your buildings?
  4. What steps are you taking to ensure the well-being of occupants?
  5. How do you incorporate ESG factors into your real estate investment decisions and long-term asset management strategies?

Sustainability and ESG are reshaping the commercial real estate landscape in Canada. At ENCOR, we are committed to helping our clients navigate this transformation, ensuring their real estate portfolios are not just compliant but optimized for future success.

By focusing on asset valuation, stranded assets, and ESG-driven lease negotiations, we provide a clear pathway for clients to unlock value, mitigate risk, and lead in a rapidly evolving market.

ENCOR Advisors as Your ESG Real Estate Team

Led by Sarah Renaud, ENCOR’s VP of Consulting, our team specializes in delivering tailored ESG and sustainability strategies for commercial real estate.

Reach out to Sarah or our consulting team by filling out the form below—we’d be happy to discuss how we can work together to achieve your ESG goals.