Sustainability action in the real estate sector — An organizational and institutional perspective

Abstract

IntroductionDecision-makers' perceptions, influenced by institutional and organizational pressures, shape sustainability action. However, the current body of research on the impact of these pressures within the real estate sector, particularly among real estate owner organizations, remains limited. Research argumentThis explorative study fills the research gap by providing empirical findings and theoretical interpretation that explains the influence and outcomes of institutional pressures on decision-making processes. Methodological approachExplorative surveys and interviews were conducted with asset managers in Sweden to understand their sustainability perceptions and actions within the real estate sector. Main findingsThe study found a notable shift in sustainability perceptions among asset managers in Sweden, with most recognizing sustainability as critical for commercial real estate, challenging the notion of their passivity and highlighting their proactive engagement. Economic incentives significantly influence sustainability actions, with top priorities being energy efficiency and renewable energy due to their positive business impact. Other sustainability actions are also important but not prioritized to the same extent, revealing specific priorities within real estate owner organizations, an area less explored in prior research. ConclusionThe article proposes a theoretical framework to guide future research on how institutional and organizational mechanisms shape decision-makers' sustainability perceptions, guiding sustainability action. Understanding these mechanisms is essential for implementing Sustainable Development Goals in practice across industries.