How can you use ESG solutions to make your real estate business more sustainable?

Implementing ESG (Environmental, Social, Governance) solutions in real estate involves adopting eco-friendly practices, ensuring social responsibility, and enhancing governance. Utilize energy-efficient technologies, sustainable materials, and green building certifications. Foster social inclusion through community engagement and affordable housing initiatives. Strengthen governance by transparent reporting and ethical business practices. ESG integration not only aligns with sustainability goals but also attracts socially conscious investors, tenants, and enhances long-term value in the real estate industry.

Assessing your organization's ESG performance is the starting point for making actionable ESG strategies. Using frameworks like the Global Real Estate Sustainability Benchmark (GRESB), the Sustainability Accounting Standards Board (SASB), or the Task Force on Climate-related Financial Disclosures (TCFD) could help you to identify the most material areas related to your real estate business. In my experience supporting clients in the real estate sector, we always recommend that clients measure and understand their baseline ESG metrics/performance before making any decisions in their business. With a clear baseline assessment, organizations could leverage their funding and resources to make the best and most efficient investment.

The implementation of ESG practices in business strategies can reduce environmental impact, create positive social impact, and improve governance. The following are some key ways ESG solutions can help you in real estate: 1. Energy-efficient systems, such as solar panels and LED lighting, can reduce your carbon footprint. 2. Conserve water by installing low-flow faucets and rainwater harvesting systems. 3. Implement recycling and composting programs to reduce waste and minimize environmental impact. 4. Reporting on ESG performance can attract tenants and investors. 5. Diversity attracts talent, increases equity, and creates a positive work environment. 6. Positive reputations can be built by participating in community events.

ESG (Environmental, Social, and Governance) principles can enhance sustainability in the real estate business in several ways: Energy: Implementing energy-efficient technologies leads to lower energy consumption and operating costs. Sustainable Construction:? Environmentally friendly construction materials minimize resource consumption and the overall ecological footprint of real estate projects. Renewable Energy Integration: Incorporating renewable energy sources reduce reliance on conventional energy and decrease carbon emissions. Asset Resilience: Considering climate change impacts in the design and location of real estate projects, incorporating measures to enhance resilience against extreme weather events and rising sea levels.

First the ESG gap Assessment should be carried out and then it should be compared with similar types of projects in same country and internationally. It will help to formulate the further strategy

Other than switching to renewable energy supplies, consider the big contributors to your building energy consumption, such as HVAC (heating, ventilation and air-conditioning). There are many ways to improve efficiency - for example, installing IOT devices to monitor usage trends, detect and diagnose faults and highlight the need for preventive maintenance. Metrics such as CO2 levels, occupancy, and temperature can also be monitored to allow for energy savings through demand-control ventilation. Other interesting innovations include UV lights, HVAC nets and VSD drives.

Switching to renewable energy supply will also helps in reducing the carbon emission. We should first focus on reducing scope 1 and 2 emission.

In my experience, the first step to improve your energy efficiency is to measure, collect all data you can get to analyse and think the best strategy possible. Look at your all consumptions in your building, those can be electricity, water, gas, waste, recycling, .... Measure all of them and the you could think how to improve your energy efficiency.

Leadership in Energy and Environment (LEED) certification provide complete guidelines on Energy efficiencies and is widely used nowadays. As we know the building's materials also have embodied energy and that's why this certification helps you source those construction materials which have less carbon footprint and save energy consumption in the longer run. There are different modules of this certification and ratings are given for your score in each module.

Improved energy efficiency in real estate plays a crucial role in sustainability for several reasons. Energy-efficient buildings require less energy for operations resulting in lesser GHG emissions. They are less expensive to operate, providing more P&L sustainability. They often provide better indoor air quality and thermal comfort, leading to healthier occupants They can be more attractive to buyers and renters due to various efficiency accreditations. Energy-efficient buildings are more compatible with renewable energy sources because they require less energy to operate. Many regions have implemented building codes and standards that require or incentivize energy efficiency in new construction and renovations.

First of all let me share that achieve fully engagement is not a easy task. So we need to be really commited to that engagement them. The first step is ask if we really know what are the stakeholders of our organization. Do we really have identifyied them ALL? To have this in mind is the first step. Did we made the right analysis and a benchmark? And by that is crucial to highlight that a good benchmark not only makes the analysis of our main competitors but all the other companies that surroung our organization. The right identication of stakeholders and really get to know what are their main concern os Key. f We can use management investigation methodologyes to launch a survey. Is just one of the tips that i leave here.

The most important step is stakeholder engagement as their feedback helps you understand where you are lacking behind and what are the things you need to work on. Their needs and expectations are very important for the long-term success of your business in a real state otherwise you will be at a lower position in the competitive market.

All ESG solutions must be clearly integrated in all the organization and not only at a corporate level. In my opinion that's the most impost strategic approach to take into account when we want to really achieve sucess. And success is not only good KPI but really achieve operational results and changes in the mindset of all the employees and other stakeholders. Employees need to cleary understand what are we talking about when we say that the companies is concerned about sustainability topics, what is sustainability and most of all why is crucial to the survival of the organization and mostly why is important for all employes and surrounding communities!

Look at #VornadoRealtyTrust in New York, #AmericanTowerCompany REIT Or better still look at #MerlinProperties Spain. It’s not only about GHG for them and entering the Dow Jones Index ; but today their processes enable their tenants to reduce GHG. These real estate companies have some of the best practices in the world where they have now become enablers for their tenants (customers). They have also secured Green Loans because of this. They have entered a positive cycle for Net Zero action. No wonder the bourses , customers, local governments and investors respect that and give them the cash flow and valuation they deserve.

Lots of corporates in service sector are looking for energy efficient offices, green building certified places to rent and reduce their emissions intensity. So, this could be a significant market driver for the ESG practice leaders in real estate sector. Some of the real estate business leaders are also raising sustainability loans also reducing the cost of capital. This can further give a market advantage to the ESG practice leaders in the sector.

Enhancing the sustainability of your real estate business in Africa through ESG solutions is a great opportunity that typically entails ESG integration right from the project conceptual or design stage. For instance, the adoption of energy-efficient and green building practices, utilizing eco-friendly materials. You also need to implement waste management and recycling systems, water conservation measures, and community engagement initiatives. These will eventually lead to climate-resilient, affordable, and inclusive housing options that promote social equity and improve your brand's popularity as a leader in an emerging market.

A few days ago, I was in a business meeting with a real estate business owner and I explained how the initiatives taken in energy efficiency will make him prominent and attractive. You can consider using those materials which help keep the internal environment of the building at a moderate level saving the costs associated with cooling in the hot season and vice versa in the winter season.

Making Zero Liquid Discharge (ZLD), reducing water usage, conservation of ecology are some of the important points to be considered.