Several years ago, CoreNet Global gathered together a number ofsenior European consultants and corporate real estate executives toidentify the forces that would shape the property world over thecoming decade. It wasn't long before terms like "sustainability"and the "environment" cropped up. It quickly became apparent thatcompanies' relationships with the environment and society ingeneral were very real business issues being taken seriously bymajor multinationals—and that their real estate functions lay atthe heart of their policies in these areas.

There are a variety of factors pushing sustainability andcorporate social responsibility (CSR) up the business agenda. Notthe least of these is the globalization of business activity, whichis leading companies to develop networks of professionalrelationships that span the world. While economically efficient,there are also several challenges. You may be confident that yourmanufacturing company does not directly employ child labor inproducing its products, but are you ensuring that all yoursuppliers around the world adheres to the same high ethicalstandards? The financial impact of failing to do so can besignificant.

Additionally, the combination of legislation and shareholderpressure is exerting a strong influence on corporate behavior. InEurope, environmental concerns have become more prevalent overrecent decades. Recycling initiatives are common (or evenmandatory, for example, in Germany) and a variety of energy andemissions legislation is in place or imminent following adoption ofthe Kyoto Protocol.