Beyond the Balance Sheets: Quantifying Social Impact in the Canadian Real Estate Industry

The Canadian real estate industry significantly influences urban development, social welfare, and community well-being across 6 major markets nationwide. Despite its economic importance, the industry's current state of social impact assessment and sustainability disclosure remains fragmented and limited, primarily focusing on basic metrics such as volunteer hours and charitable donations. To address this gap, this research study explores recommendations for an adaptable social value framework that captures real estate practices' complex and nuanced effects on a diverse multi-stakeholder group, including Indigenous communities, tenants, employees, suppliers, investors, regulators, veterans, and civil society.

Using a mixed-method approach, this research analyzed ESG reports from 15 Canadian real estate entities and interviewed 6 sustainability practitioners to gain qualitative insights that informed recommendations for an adaptable social value framework. Real estate companies will develop a tailored framework based on the following guiding principles: holistic, measurable, adaptable, inclusive, and strategic alignment. These companies can further utilize social value indicators to measure their impact on stakeholders and then effectively disclose social performance in their ESG reports. By adopting a stakeholder-centric approach and engaging with diverse groups, real estate companies can better understand and address the social issues that matter most to them. The adapted framework will provide a roadmap for integrating social value objectives into real estate operations, enabling data-driven decisions that balance financial returns with tangible social outcomes.