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To understand the impact of ESG on Corporate Real Estate it is necessary to know that we are not only talking about “green” properties. The current risk is not knowing how, who and in what way we occupy the properties. The most efficient way to measure this impact is by understanding how the actions we implement must be executed from the most absolute transparency, impacting the entire value chain.

RHO – Partners was born with the idea of implementing these metrics, which we call ϱ(RHO), so anyone will have access to the calculation that will allow them to improve depending on the corporate criteria that each one has.

María del Pilar Rodríguez Muñoz – CEO RHO Partners

What is ESG?





Why does ESG impact CRE?

The AFORES / international pension funds have affirmed that as of January 2022, 90% of them will not invest in vehicles that do not bear the “ESG” seal.

Event AFORES Feb 2021

AMEFIBRA has published a guide on its website so that its associates can get involved in the implementation and measurement of the “ESG” directives.


The institutional users of real estate every day require more spaces that are oriented to their internal directives of “ESG”

Among many others, Nissan↗, FEMSA↗, Whirlpool↗

Institutional investors / developers / Family Office related to the CRE are implementing “ESG” directives in the acquisition and holding of real estate assets derived from the new requirements of the AFORES and the FIBRAS

Among others, Vesta↗ & Brose Fahrzeugteile

Why do we want to measure the impact of ESG on CRE?


  • Make transparent and measure the impact of ESG on the value of real estate assets through the impact on their “carbon footprint”
  • Create value not only economic but of ESG practices
  • Doing the right thing in the environmental, social and corporate governance arena


  • Help to make the initial status of the real estate market transparent in reference to ESG initiatives
  • Measure ESG risks by monitoring in the short, medium and long term to improve the “carbon footprint” of buildings
  • Individual comparison and against the rest of the market players.
  • Financial impact on the value of assets
  • Direct impact on stakeholders


  • That companies do not carry out the necessary actions for the positive impact of ESG on the value of the asset
  • Impairment of brand image and other intangible assets
  • Loss of strategic options due to indifference to ESG
  • False “Greens”

What is ϱ(RHO)®?

“It is the factor associated with the profit from the implementation of ESG strategies, in addition to the premium to pay for aversion to ESG risk, seen from the perspective of defining the price and fair value of a real estate asset”

María del Pilar Rodríguez

CEO RHO – Partners, February 2021

How is the impact of ESG calculated on CRE?

The IFRS 13 accounting standard defines fair value or fair value of assets as:

“The price that would be received for the sale of an asset in an orderly transaction in the main (or most advantageous) market on the date of measurement under current market conditions (that is, an exit price) regardless of whether that price it is directly observable or estimated using valuation techniques. The three widely used valuation techniques are the market approach, the cost approach, and the income approach. “


Therefore, the value is defined by the characteristics of the asset and the price is what someone is willing to pay for it.

However, an exogenous effect as ϱ(RHO), can eliminate ordered conditions and make the price may not be fair or reasonable value but is affected by these factors and does not reflect the stable value of the same.

Seen in a simple way we can say the following:

  • Stable economy: P = V & ϱ(RHO)® = 0
  • Economy affected by external factors or in growth: P > V & ϱ(RHO)® > 0
  • Economy affected by external factors or in recession: P < V ϱ(RHO)® < 0
  • Methodology for Calculatingϱ(RHO)

    From a real estate perspective:

    During the last year, more than 6,900 industrial offices have been analyzed for the making of this report

    This properties represent more than 87 million of square meters, of which 73 million square meters are industrial and 14 million square meters are office spaces**

    64.7 million square meters , were leased to over 6,000 tenants

    These tenants are equivalent to  58.5 million of industrial square meters and about 6 million of square meters correspond to offices

    From an ESG perspective:

    OVer 6,000 tenants / owners analized, and that we continue to analyze every six months, from 79 different activity sectors y from over 33 countries of origin

    Only an 8% of this companies are listed on the different stock markets of the world.

    About 20% have an ESG ranking in Sustainalytics, S&P or MSCI. 

    Less than 5% of the companies have some ISO certification (9001, 14001, 26000, etc)

    Less than 10% is proven that they have some type of action in favor of complying with  ESG policies. Both in owners and users

    * SOURCE: All the data contained in this report comes from verifiable public information. Real estate information was provided by

    RHO – Partners is not responsible for the misuse of this information as well as its accuracy. This must be confirmed by the reader

    ** NOTE: Retail properties, hotels, residential, etc are not included in this report.