Not long ago, ESG was central to every firm’s corporate strategy. Now, prioritizing or publicizing ESG brings a new set of political and reputational risks.
For real estate managers and investors, these shifts are just noise. The pressures to generate financial returns and manage real assets for value creation have not changed:
- Tenants demand leased spaces that are operationally efficient, healthy, and align with their own corporate sustainability goals.
- Rising energy costs encourage the adoption of more energy-efficient practices and equipment.
- State and local jurisdictions have building performance standards and benchmarking requirements that may carry stiff penalties for non-compliance.
- Institutional investors remain obligated to deliver returns over long horizons, which means they must evaluate the location-specific nature of physical climate risk.
Responding to these pressures requires accurate, complete data from building operations, though achieving this remains a challenge.
Real estate ESG data sources are dispersed and often rely on third parties: utility companies, multiple commodities, property management companies, bill pay providers, tenants, and more. With these multiple sources comes inconsistency and complexity that scale up with larger portfolios. To add to the challenges, reporting standards and investors request different data in varied formats, and these can change annually.
How Real Estate Firms Can Improve ESG Data Quality and Unlock Value
Real estate sustainability leaders should cut through the noise and focus on solving data challenges.
- Use the months after the Global Real Estate Sustainability Benchmark (GRESB) and Principals of Responsible Investing (PRI) reporting deadlines to review ESG data flows. Conduct a structured evaluation of what worked, what didn’t, and why. This helps to refine processes and improve data quality and coverage.
- Link building performance data to business value. Use case studies to show how ESG data insights drive operational efficiency and deliver returns on CapEx and OpEx investments.
- Once opportunities for improvement are identified, socialize the findings across internal teams. Ensure executives, asset managers, finance, and marketing teams understand how and why ESG data creates value. Internal buy-in drives innovation and improves data workflows.
- Partnering with an experienced third party can streamline ESG data workflows, reduce complexity, and accelerate value creation, especially when internal resources are stretched.
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ESG Data Strategy and Governance Solutions for Real Estate Firms
Every client’s situation is unique, and our data strategy and governance solutions can flex to meet any needs. Our approach to ESG real estate data leverages technology, process optimization, and change management to enhance data integrity.
Our ESG consultants begin by mapping current data flows to identify inefficiencies and gaps. We then implement scalable governance structures that provide oversight, accountability, and durability.
Whether you are migrating from one ESG data platform to another or optimizing existing systems, we support seamless integration and empower users to become confident users. We prioritize automated, reliable data sources and collaborate directly with property managers and tenants to close remaining gaps.
Our ESG advisory and analytics team enables firms to build resilient ESG programs that meet investor expectations, mitigate risk, and unlock operational and financial value.
Get in touch to strengthen your ESG data strategy and turn insights into more measurable impact.