Triple Bottom Line Reporting will have Significant Impact on Real Estate

Singapore

Triple Bottom Line (3BL) reporting, which is a means to quantify, record and demonstrate an organization's on-going commitment to Corporate Social Responsibility (CSR) will have significant impact on how real estate is being managed, according to Jones Lang LaSalle's recently launched White Paper titled "People, Planet, Profit: Property - Triple Bottom Line Reporting and Its Impact on Real Estate in Asia Pacific". This is because real estate and the activities undertaken within it present corporations with significant opportunities for gains, especially in terms of the environmental impact and the health and safety of the workplace. Hence, anyone with real estate portfolios need to be aware of 3BL and understand its impact on the corporate real estate function now and in the future.

Mr Justin Kean, author of the White Paper and Associate Director of Occupier Research says, "The corporate drivers for adopting CSR practices are impacting the way commercial buildings are designed, operated, refurbished and occupied. These impacts range from the environmental footprint of operations in a portfolio across Asia, the impact of operational practices on individuals working within a portfolio and the social impact that a portfolio has on the community where it is located."

"Managers and executives involved in managing real estate portfolios are increasingly coming under pressure to demonstrate their contributions to the CSR process and to account for the 3BL performance of their portfolios. It is therefore important that they understand the key elements of 3BL reporting, be able to benchmark a portfolio's current CSR performance and be aware of the necessary measurement and reporting platforms prior to the implementation and reporting of the initiatives," adds Mr Kean.

For 3BL implementation to be successful, it needs to be robust and meaningful. It should be quantified in terms of the impacts on and outcomes for social, environmental and economic surroundings. The 3BL reporting process has to reflect transparency and accountability and must take into account the range of stakeholders that will need to be informed. Reporting should also be conducted over an adequate period of time to provide a meaningful view of a company's CSR performance. In addition, corporations should be attuned to the minimum performance standards and reporting criteria adopted by international reporting projects such as the Dow Jones Sustainability Index, Global Reporting Initiative (GRI) and FTSE4Good.

Triple Bottom Line Reporting Will Have Significant Impact on Real Estate - Add One

"CSR is no longer a 'western agenda'. With the Asia Pacific property market currently experiencing a convergence of drivers, the government, tenants and stakeholders now need to operate in ways that are environmentally and socially sustainable," notes Mr Kean. "With the rise in global outsourcing and offshoring of manufacturing and the environmental and social impact that goes with it, consumers and lobbyists are demanding that western firms actively export sustainable practices to the markets that they outsource to."

In Asia, corporations that are active and have strong CSR policies include Procter & Gamble, ANZ Banking Group, Motorola, Nokia and Microsoft. International investors like ABN AMRO, AMP, Deutsche Bank AG, ING Group NV and Lend Lease Group are also seeking sustainable ways to invest their funds.

"CSR and 3BL reporting are developing a more prominent position in the assessment of property decisions. However, they are still relatively new approaches in the corporate environment and implementation requires a new way of thinking about real estate to innovate and manage change for the organization. Hence, there are a number of real estate challenges to overcome, including cultural change, contractors and service providers, understanding that CSR is not a quick-fix philosophy, having an integrated whole life cycle view, owner-occupier partnership, lease agreements, benchmarking and measurement, as well as development of education and foundation skills," concludes Mr Kean.

About 3BL Reporting

A method of quantifying and reporting on both the non-financial and non-market areas of CSR performance, 3BL reporting covers three key areas:

-- Economic: Other than revenues, operating costs, compensation and investments, this measurement also factor in infrastructure and services provided for the public benefit, localized hiring practices, together with financial implications, risks and opportunities.

-- Environmental: This measurement tracks the materials, energy and water consumed by the organization and the impact its activities have on biodiversity and protected areas and the environment in general. It also measures the emission of greenhouse gases, ozone-depleting or other toxic substances as well as the waste generated and disposal methods used.

-- Social: Covers workforce-based measurements, human rights-based indicators and marketing and communications impacts.

About Jones Lang LaSalle

Jones Lang LaSalle (JLL), the only real estate money management and services firm named to FORTUNE magazine's "100 Best Companies to Work For" and Forbes magazine's "400 Best Big Companies," has approximately 150 offices worldwide and operates in more than 450 cities in over 50 countries. With 2006 revenue of over USD 2.0 billion, the company provides comprehensive integrated real estate and investment management expertise on a local, regional and global level to owner, occupier and investor clients. Jones Lang LaSalle is an industry leader in property and corporate facility management services, with a portfolio of over 1.0 billion square feet worldwide. LaSalle Investment Management, the company's investment management business, is one of the world's largest and most diverse real estate money management firms, with approximately USD $40.6 billion of assets under management. For further information, please visit our website, http://www.joneslanglasalle.com.

Jones Lang LaSalle has over 45 years of experience in Asia Pacific. With approximately 12,000 employees operating in over 50 offices in 13 countries across the region, the company is positioned to partner with clients to provide the quality advice needed for making quality decisions.

The Little Book of Real Estate Definitions - Asia Pacific by Jones Lang LaSalle is a useful resource to gain a better understanding of the most commonly used real estate terms in the region. To enhance your knowledge, please visit www.joneslanglasalle-dictionary.com.

To view the Triple Bottom Line Reporting (3BL), Please click on the link given below:

http://www.businesswireindia.com/attachments/AU_TripleBottom_low.pdf

Justin Kean, Associate Director, Occupier Research - Asia Pacific, Jones Lang LaSalle, +65 6539 9532 justin.kean@ap.jll.com

Supatriana Supaat, Manager, Marketing & Communications, Asia Pacific, Jones Lang LaSalle, +65 6539 9014 supatriana.supaat@ap.jll.com

Source: Jones Lang LaSalle (Business Wire India)