Guest Post: How Real Estate Firms Can Streamline ESG Reporting and Improve Their Bottom Lines

By: Scott Lemoine, Lead ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Advisor at Measurabl

As the global focus on environmentalEnvironmental criteria consider how a company performs as a steward of nature., socialSocial criteria examine how it manages relationships with employees, suppliers, customers, and the communities where it operates., and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. issues continues to rise, real estate owners and operators are facing increasing pressure to adopt comprehensive and proactive solutions for reporting their ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. performance.

Historically, real estate companies in the United States have relied on voluntary ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. guidelines led by the private sector. However, ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. has recently become a greater priority for policymakers, with the pending Climate Disclosure Rule proposed by the SEC. If passed, these rules would hold companies to higher standards than ever before, requiring them to identify, assess, and manage climate-related risks, as well as disclose the strategies for addressing these risks.

The proposed regulations also put increased pressure on greenhouse gas emission disclosures, requiring companies to report on not only their direct emissions (Scope 1) and emissions from purchased energy (Scope 2), but also, in some cases, emissions across their entire supply chain (Scope 3).

Though the proposed federal regulations are being challenged in court, it is clear that real estate organizations in the U.S. will need to adopt a more formal approach to disclosing their ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. performance and climate risks in order to remain competitive in the industry. Between the proliferation of EU regulations and growing pressures within the U.S. to embrace more ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. initiatives, monitoring and measuring will become business as usual.

However, gathering data for everything from carbon emissions to energy and water consumption, as well as assessing physical climate risks, can be a complex and time-consuming task when done manually. It is equally challenging to keep up with constantly evolving regulations and reporting deadlines. But there are several ways that can help make these seemingly herculean tasks easier.

A Hybrid Approach Can Help You Overcome Common ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Reporting Roadblocks

For real estate firms, keeping up with the ever-evolving landscape of ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. regulations may seem impossible, particularly for those with small or non-existent sustainability teams. However, deploying the right resources can put these objectives within your reach.

One key initiative is automation. By utilizing AI-enhanced technology that gathers and centralizes data from disparate sources, companies can avoid human errors and time consuming manual inputs. Automated data and machine learning also allow teams to more easily manage and measure their carbon emissions and physical climate risks to assess performance and comply with current ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. regulations and requirements.

Additionally, working with an ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. expert who has a deep understanding of the broader real estate ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. landscape can help streamline your reporting process and extract the most value from your data, while reducing the burden on your full-time employees.

By partnering with a tech-enabled advisor who can leverage the data already collected, companies can better understand and satisfy evolving frameworks, ultimately receiving ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. ratings that are truly reflective of your related investments and successes.

An ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. expert can not only optimize your internal processes, but also help you create and demonstrate data-informed roadmaps and action plans that will propel your company forward in achieving essential ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. goals. Additionally, leveraging automation and third-party expertise can help you improve data quality.

Pursuing Investment-Grade Data

There are several components that qualify data as investment grade, and each of these is important to verify your ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. performance and establish trust with investors, legislators, tenants, and other stakeholders. To satisfy increasing demands, real estate companies must strive for:  

Accuracy – Accurate andverifiable data will be required to comply with the proposed SEC rulings and other legislation, while mitigating the financial and legal risks associated with noncompliance. Automating all data collection in one central location can save time and eliminate the errors associated with manual data input.

Timeliness – We’re moving away from an annual reporting season. Centralized, continuously updated data can help you generate reports for investor requests whenever you need to share insights.

Granularity – ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. is no longer simply about energy, carbon, water, and waste. Real estate companies are also expected to document and disclose climate risk initiatives as well as social and governanceGovernance deals with a company’s leadership, executive pay, audits, internal controls, and shareholder rights. policies. Investors and other stakeholders need clear, timely and accurate data to compare and understand a company’s comprehensive ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. performance.

Optimized ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Reporting Leads to Profitable Outcomes

Efficient and granular ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting will become a competitive differentiator for companies, increasing transparency and improving relationships with stakeholders. Moreover, the ability to view and track performance at the asset level enables companies to identify their lowest-performing buildings and inform capital investments to increase energy efficiency, reduce water consumption, or improve waste diversion rates.

Having all this data on hand allows firms to stay ahead of investor demands and helps them gain access to cheaper, better capital. Optimizing ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting can also reduce operating expenses and increase property values — JLL reports that sustainable buildings have a 6% rent premium and 8% sales premium. Above all, this type of tech-enabled ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. reporting ensures companies can contribute toward building a more sustainable future.

About the author:

Scott Lemoine is a Lead ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. Advisor at Measurabl, where he manages the Advisory Services vertical for North America. He has over nine years of experience in sustainability and ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. consulting for public and private real estate owners and operators. Scott specializes in developing and deploying ESGEnvironmental, social, and governance (ESG) criteria are a set of standards for a company’s operations that socially conscious investors use to screen potential investments. programs across the entire lifecycle, from long-term strategy development and stakeholder engagement to building decarbonization and reporting.

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