Investing In Ethical Property Development

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Globally, the real estate sector contributes around 40% of global greenhouse emissions around the world per annum. Which is why the growing appetite for investing in a more sustainable future has never been stronger, or more important.

With arguments to suggest that property development can’t be ethical, we categorically fight against this with our environments and community’s best interests at heart. Thanks to new and improved ESG [environmental, social and governance] regulations from the UK Government, developers have the opportunity for full transparency and change.  

How big is the ethical investing sector?

Ethical investing is generally a loose term apart from broadly meaning you have other goals besides just the return on your investment.  Ideally, you want your money to do the best it can, reducing any repercussions or harm.

While ethical investing has been relatively smaller in the past few years, new Net Zero projections have changed the sector in the grand scheme of things, with those aligning on goals according to research firm Morningstar, attracting net inflows of $71.1bn globally between April and June 2020, taking the total assets under ESG funds to just over $1trn.

However, it is important in the non-bias sense to state that though some investment funds are called ethical, it doesn’t always mean that all others are necessarily immoral or harmful. Making transparency more important than ever.

What factors should ESG investing look at?

Environmental, social and corporate governance are the three main factors in judging the sustainability and impact of a business or other organisation, but how are these factors weighed?

Environmentally, factors such as carbon footprint, the use of renewable resources and the contribution to other forms of pollution are considered. With social factors including diversity within the workforce, inclusivity, and its responsibilities towards its customers.

In order to manage this, corporate governance is used to relate to how the organisation is structured and run, holding activities a business regularly undertakes to reduce or offset impacts, as well as corporate policies, to accountability toward assuring an ethical reputation.

How can property development be ethical?

Respecting and understanding the value of the communities we develop within is the first step toward better and brighter sustainability within property.

Here at Integritas Property Group, we strive to be different by allowing our values and vision to speak for itself. Putting our money where our mouth is, we commit to building a better future for young and emerging generations by levelling our communications to be wholly transparent.

Ways that we ensure ethical investment here at IPG include:

• Purchasing land that has gone into administration, as well as land that will not be used for housing developments, utilising brownfield sites in need of new property that will ensure a reduced social impact.
• Selling properties on average around 10% below their value, with investor alignment in mind towards positive community impact.
• Ethically sourcing materials through aligned ethical suppliers only, including steel.
• Ensuring our developments have the highest standard amenities in line with ESG regulations.
• Providing larger living standards in square footage per unit, as well as external spaces to ensure tenancy quality of life.
• Providing 5% of the profit our Managing Director Mitchell Walsh makes back to charity within the communities we develop within.

Ethical standards are intrinsically integral to the Integritas Property Group, which is why we are also one of the only developers to share our DGV openly and honestly online. If environmental issues and social responsibility relate to your interests in property investment, our team are ready to collaborate in your first, or next project towards an ethically secure future.