The S in ESG is bit of a black box.
What are we actually supposed to do?
From talking to ESG experts like Paul Wessels or Paul Deverell (Future2), I can already see it changing to something more tangible, more specific.
How?
Measuring.
But what exactly?
Air quality, tenant satisfaction, space utilization, times spent at various parts of the building or amenities, property manager response times...
With technology like IoT sensors, cameras or digital tools and apps, measuring these KPIs becomes a breeze.
What's more, not only can this data be used to manage the building and tenant relationships better and simplify reporting to investors.
It can then be even cross-checked and or directly linked with hard data about the building such as temperature, consumption or utilization of various systems.
But it starts with having the right tools to collect the data and then having one central place for storing, combining and analyzing it (obviously, rather than pulling together from various excel files...).
A few years back, the E was vague and unclear. Everybody was grading their own homework.
With net zero policies taking place at leading companies like Nrep or LaSalle Investment Management, banks favouring green(er) projects and the EU Taxonomy approaching, the rules and guidelines are becoming clearer.
The S is next up.
#realestate #innovation #esg
