Environmental, social and governance in the listed real estate sector: A Latin American perspective

This study investigates the relationships between Environmental, Social, and Governance (ESG) attributes and financial performance indicators in the listed real estate sector across Brazil, Chile, and Mexico. Utilising a comprehensive dataset from Bloomberg and annual financial reports, and employing panel regression and Granger causality tests, the analysis reveals significant bidirectional and unidirectional causal linkages between ESG practices and financial performance. Key findings indicate that energy efficiency and governance disclosures are instrumental in augmenting both financial performance and firm valuation. The robust positive correlations between ESG variables and financial metrics substantiate the strategic importance of sustainability, particularly in terms of governance transparency and environmental stewardship. Policy recommendations advocate for incentivising energy-efficient practices, standardising ESG reporting frameworks, and fostering gender diversity to promote sustainable development within the listed real estate sector.