Health Care Properties/Facilities: Identifying Environmental, Social and Governance (ESG) Factors as Key Factors in Real Estate Investment Decision (Published)
The study reveals that Environmental, Social, and Governance (ESG) factors are crucial in real estate investment decisions, particularly in healthcare facilities. The study adopted mixed approach in its design; it featured both descriptive and inferential statistics. It identified the key factors and mean ranking was done for the identified factors. In addition, was factor analysis which was also done to determine which of the factors were fit. The identified factors influencing ESG include biodiversity, employee wellbeing, sustainable design, indoor air quality, energy efficiency, water conservation, certification, community engagement, employment, and health and safety practices. These factors not only contribute to the sustainability and long-term profitability of investments but also contribute to societal well-being. Test done such as Kasier-Meyer-Olkin’s measure of sampling adequacy and Barlett’s Test of sphericity KMO measure indicate good sample quality. The study concludes that the incorporation ESG criteria into investment decisions do not only allow the investors to mitigate risks, enhance reputation but also it will help in advancing sustainable development goals. Setting priority right on ESG principles is essential for investors, developers and operators in the healthcare facilities sector and should be seen from that perspective.
Keywords: ESG factors, Health Care, facilities, investment decision and real estate