The Globe and Mail reports in its Wednesday edition that Canada's commercial real estate sector is striving to meet increasingly demanding environmental, social and governance standards, but the ESG is still greener elsewhere.
The Globe's guest columnist David Israelson writes that for example, experts say Canada is playing catch-up in the use of "green leases" -- commercial tenancy deals in which the landlord and the renter incorporate sustainability, socially responsible management and good governance into their property deals.
Tonya Lagrasta, vice-president and head of ESG for Colliers Canada, says: "Canada is behind places such as the European Union. Many Canadian developers are moving ahead anyway -- we're seeing a shift -- but the rules and regulations aren't necessarily in place."
Schulich School of Business associate professor of real estate finance and sustainability Avis Devine says, "In North America we're seeing more of a push toward stronger ESG standards coming from investors, while in Europe it comes more from regulation." In Canada, the experts say that major commercial developers, such as Oxford Properties, BentallGreenOak and Brookfield Asset Management, are typically ESG leaders.
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