Green Agenda and Green Performance: Is There a Link? Quantifying the Financial Benefits of Sustainability for European Listed Real Estate Companies

Posted: 10 Oct 2011  

Marcelo Cajias

PATRIZIA Immobilien AG

Peter Geiger

University of Regensburg - International Real Estate Business School (IREBS)

Sven Bienert

University of Regensburg - International Real Estate Business School (IREBS)

Date Written: August 31, 2011

Abstract

A green agenda has turned into a growing subject throughout an increasing number of European listed real estate companies over the last decade. The focus on sustainability is probably not only goodwill or partly legislation driven but rather a benefit driven action to achieve an economical surplus. Following the guidelines of the European Public Real Estate Association and the Global Reporting Initiative we identify the key factors which should be included into a Real Estate Green Agenda. Our Four-Bottom responsibility approach constitutes these four areas: Human rights and social responsibility, environmental responsibility, financial responsibility and transparency. The investigation of eighty European listed real estate companies from 2006 until 2009 enables us to classify firms across different levels of Sustainability intensity. A green performance is shown in the sense of the firm’s idiosyncratic risk and the ability to generate revenues. After controlling for all other factors we apply a panel analysis in a conditional and unconditional regression framework to quantify the impact of an intensive green agenda. Our findings suggest a positive linkage between a green agenda and a green performance, especially in terms of an increased ability to generate revenues and a decreased level of idiosyncratic risk. As a result, green commitments are not merely altruisms, but rather economically driven.

Keywords: Sustainability, GRI-Guidelines, Sustainable Real Estate, Asset Turnover, Idiosyncratic Risk, Corporate Social Responsibility, Annual Reports, EPRA, Quantile Regression

Suggested Citation

Cajias, Marcelo and Geiger, Peter and Bienert, Sven, Green Agenda and Green Performance: Is There a Link? Quantifying the Financial Benefits of Sustainability for European Listed Real Estate Companies (August 31, 2011). Available at SSRN: https://ssrn.com/abstract=1920223

Marcelo Cajias (Contact Author)

PATRIZIA Immobilien AG ( email )

Fuggerstr. 26
Augsburg, 86150
Germany
+49 (0) 151 17215198 (Phone)

Peter Geiger

University of Regensburg - International Real Estate Business School (IREBS) ( email )

Universitaetsstrasse 31
Regenburg, Bavaria 93040
Germany

Sven Bienert

University of Regensburg - International Real Estate Business School (IREBS) ( email )

Universitaetsstrasse 31
Regenburg, Bavaria 93040
Germany

Register to save articles to
your library

Register

Paper statistics

Abstract Views
687
PlumX