Responsible property investment criteria developed using the Delphi Method

This paper helps define responsible property investing (RPI) by using the Delphi Method to prioritize criteria for the evaluation of property investments. An international panel from the real estate and social investing sectors evaluated 66 criteria in terms of materiality to investors and importance to the public interest. A moderate to strong level of consensus was achieved. Criteria were ranked in terms of their materiality for financial performance and their importance to the public interest. Top ranked criteria were energy efficiency and conservation, high level of public transport services, transit-oriented development, daylight and natural ventilation, and contributes to higher density, mixed-use walkable places. There were few to no significant differences among the panellists by industry, gender or nationality. Factor analysis uncovered ten dimensions underlying the criteria. Based on this analysis, the panel would emphasize the creation of less automobile-dependent and more energy-efficient cities where worker well-being and urban revitalization are priorities. Leadership in Energy and Environmental Design (LEED) green building rating tools were compared with the results and found to be much stronger on environmental criteria than social concerns. The results can guide RPI portfolio audits, database development, third-party assessments of property companies, strategic consulting, the development of corporate reporting standards, RPI certification procedures, updated green building assessment tools, and cost-benefit studies to help guide asset managers.