Social Sustainability in Corporate Real Estate

Abstract

Implementing strategies within corporate real estate (CRE) projects effectively is a challenge, often resulting in a gap between intended strategy and realised outcome (Winch, 2010). Especially social sustainability strategies are challenging, as this pillar of ESG remains underrepresented and sustainability certifications for buildings mainly focus on the environmental side (Chethana et al., 2017; Alawneh et al., 2019; Kempeneer, 2021). This study addresses the problem of strategy implementation, focused on social sustainability goals in corporate real estate office projects in the Netherlands. The study explores the underlying factors that influence this implementation process throughout the project lifecycle. The main research question is: To what extent do underlying factors influence the implementation of social sustainability goals throughout the project lifecycle of corporate real estate office projects in the Netherlands? To answer this question, this study employed a multi-method research approach, combining both exploratory and qualitative methods. A systematic literature review and content analysis established a theoretical framework for social sustainability in CRE, including categories, subcategories and indicators. The empirical part of the study involved a multiple case study of three corporate real estate office projects in the Netherlands, from which data was collected through document analysis and in-depth interviews. The case studies illustrate how a lack of specificity in the vision phase complicates implementation. The vision phase marked a crucial shift, as projects articulated detailed goals and indicators addressing a wide range of social sustainability categories. However, compared to literature, these indicators lacked robustness. This study identified multiple drivers and barriers that influence the implementation process of social sustainability goals. Although there were clear underlying factors that affected the implementation process, such as social and economic performance, barriers—most notably financial and spatial limitations—impeded the complete achievement of social sustainability objectives. Notably, the desire to give social sustainability top priority occasionally conflicted with environmental objectives, making decision-making more difficult. A fundamental challenge identified is the disconnect between strategy formulation and implementation, which significantly complicates the realisation of these goals. It was seen that clear guidance and communication between the project phases is essential for tackling these barriers. In conclusion, this study critically underscores the necessity for a cohesive approach that bridges the gap between strategy formulation and implementation. Without a robust strategy that translates into clear, actionable indicators, organisations may struggle to achieve ambitious social sustainability outcomes.