GUEST SUBMISSION: Many organizations are asking the same question: “Should we be scaling back on ESG initiatives?” External pressures, shifting political landscapes, market wobbles and evolving investor expectations often lead to that pivotal boardroom question. But a quiet retreat is not the answer. 

ESG (environmental, social and governance) is not a luxury but a fundamental part of building valuable assets, fostering livable communities and securing long-term investor confidence.

Through many years in Canadian real estate, I’ve seen the benefits of consistently and thoughtfully evolving our commitments. Now is the time to double down, not dial back.

The business case for ESG

ESG drives direct value, and deprioritizing these efforts creates reputational, regulatory and financial risks. At Starlight Investments, we treat ESG as operational, moving from foundational compliance to pragmatic leadership.

Sustainability professionals are engaged on all new development projects, and ESG elements are embedded in individual scorecards for our property teams, with quarterly touchpoints and clear project plans.

Our ESG Steering Committee has defined five core priorities to guide us over the next three years:

• embedding our ESG strategy with the business’ purpose;
• delivering high-quality, standards-aligned reporting;
• implementing our pathway to zero carbon;
• aligning with third-party certifications; and
• engaging employees and partners to foster a culture of ESG integration — ensuring momentum persists even when markets wobble.

Starlight Investments’ approach

Genuine resident engagement transcends checkbox exercises. It begins with active listening and results in visible change. Surveys provide a baseline, but two-way dialogue — including community events, educational sessions and ongoing follow-up — is crucial.

We empower our property management partners to provide these ongoing connections, linking ESG outcomes to property manager scorecards and remuneration. This ensures accountability, proving that keeping residents connected and heard is a core operational priority.

This commitment to people extends beyond our buildings to our employees and the broader community. Our annual Impact Day mobilizes teams for charitable work, while initiatives like the Princess Margaret Cancer Foundation Journey to Conquer Cancer allow our people to live our values alongside their families.

Whether through these partnerships or our award-winning children’s books like Ivan’s Garden of Hope, which celebrate multi-residential life, we are focused on fostering a culture of social responsibility that resonates both inside and outside our walls. 

Our commitment also extends to the physical spaces our residents and tenants inhabit.

Buildings are central to Canada’s emissions challenge and climate resilience efforts. Opportunities for low‑carbon retrofits and operational improvements are plentiful but not always straightforward. We’ve already invested in renovations that significantly cut energy and water use.

The next big challenge is switching from natural gas to electric systems. Although technically feasible, the high costs and multi-faceted revenue models in multi-residential settings complicate the equation. That’s why we built and maintain a prioritization tool to track end‑of‑life equipment and identify decarbonization projects by building type.

We can’t always justify immediate widescale retrofits, but we’re ready when the market and investors align — exploring hybrid fuel solutions and unique financing models in the meantime.

Securing financing for sustainability projects can be a major hurdle. Government programs, tax credits, energy‑as‑a‑service models and green bonds help, but navigating them requires significant time and expertise. Evolving disclosure rules like Bill C‑59 and the need for climate value‑at‑risk scenario analysis make proactive strategies essential.

Canada also trails global peers in data availability, underscoring the need for better technological solutions and data mapping to future‑proof portfolios against climate risk.

Advice for ESG leaders 

ESG must be central to business strategy, not a siloed initiative. My advice: integrate sustainability with core business outcomes and engage leadership from the start.

Data is the universal language of executives and investors — metrics on carbon, resources and occupancy, and how these affect value and operating costs, are essential. 

Be transparent about successes and setbacks; candour builds credibility. Investors, often more than regulators, are pushing change with a long‑term perspective. Present them with data, risk mitigation plans, and opportunities to turn skeptics into champions.

For those starting out in ESG, my advice is to listen and learn first. Humble curiosity often achieves more than being the loudest voice. Strive to be a connector, bridging diverse teams to problem solve.

If you’re an emerging ESG leader, start with strategic simplicity: 

• Conduct a materiality assessment to identify what matters most to your portfolio and stakeholders.
• Prioritize scalable wins — energy and water upgrades, waste reduction, resident engagement — and build a pipeline for tougher projects.
• Maintain a ready‑to‑go decarbonization toolkit with priority lists, project templates, and financing options so you can move quickly when capital or incentives appear.
• Integrate ESG metrics into employee and property teams’ scorecards so sustainability is a concrete measure of success, not an abstract concept.
• Remember transparency doesn’t mean perfection. Share honest progress and plans; ESG is an ongoing journey, not a one‑off win.

When markets tighten, genuine leadership shows steadiness. Retreating from ESG exposes organizations to reputational damage, regulatory scrutiny and long-term investment risk, while slowing urgent progress on climate and community well-being.

Real estate leaders who integrate ESG as a core business pillar — with pragmatic planning, transparent reporting and concrete resident and tenant engagement — will emerge stronger, with more resilient assets and the trust of investors.

Let’s not diminish our ambition; let’s get to work.