Epsilon Archive for Student Projects

Abstract

The aim of this study is to investigate how Swedish listed real estate companies use quantitative sustainability measures - mainly sustainability index with a financial focus. Sustainability management is a controversial issue that is used more and more constructive. A sustainable management approach in corporate cunduct is complex and based on a number of aspects of business visions, objectives and daily procedures. The study identifies aspects that are considered relevant in real estate companies where the selection of sustainability indicators is based on the support of scientific research in this field. The study intendeds to clarify how Swedish listed real estate companies have selected aspects and indicators of sustainability management and how these work towards a sustainable development.

The study is structured as a comparative case study with methodological triangulation, giving both width and depth to the conclusions. There is scientific support for the relationship between environmental commitment and positive economic development in the selected case studies. However, it is premature to generalize by saying that there is a general correlation. In addition, it is unclear what the actions are that deliver perceived value-enhancing effects.

The Swedish listed real estate companies in the empirical study, all work actively with both qualitative and quantitative dimensions and measures as of sustainability in their communication efforts. All companies keep personnel with expertise in sustainability management within the organization. Only one Swedish listed real estate company was listed on a sustainability index, Dow Jones. Hence the usage of sustainability indexes are not commonly used in Swedish listed real estate companies at present but all of the companies were engaged in corporate social responsibility (CSR) using ethical and social guidelines. The study reveals that these corporations are genuinely committed to sustainability aspects of their conduct. There are not apparent reasons why certain coporations do not fulfill the creterion for sustainability indexes, other than a lack of transparency of what it takes to fulfill the requirements for being listed in Dow Jones index.

Coporate management is characterized by a positive attitude towards sustainability which in part is explained by the perception that the development creates cost-effective solutions that can generate higher returns on investment. Sustainable development requires knowledge, determination and ability to communicate the message. All the represenatives from the studied companies were of the opinion that they thought sustainability indexes can be used as a tool to promote sustainable development.