Strategic Focus: The New Role of Sustainability In Real Estate Investment

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Executive Summary

Over the past three years, property investors have become increasingly engaged with the sustainability agenda looking to reduce financial risk and generate higher returns across their portfolios. This report provides investors and asset managers with an analysis of the changing shape of sustainability programmes across the sector, and advice on how to leverage software for smarter sustainability data management. Based on 30 interviews with asset managers, the study finds property investors are aligning their sustainability programmes to risk management strategies and launching more ambitious carbon reduction targets. To improve sustainability data management, real estate investors should review innovation from sustainability software vendors and align data management programmes with their sustainability maturity. 

Table of contents

Sustainability Strategies Gather Momentum In The Property Investment Market  
The Opportunity To Generate Higher Returns And Reduce Risk Drives Investor Interest In Sustainability 
Property Investors Are Launching More Ambitious Carbon Targets And Expanding Sustainability Teams 

Mastering Sustainability Risk Management Requires Better Data And Reporting  
Time-Intensive Data And Reporting Processes Remain Major Pain Points 
Four Capabilities Of Sustainability Management Software Enhance The Data And Reporting Process 
Investors Need To Align Data Management And Reporting With Their Sustainability Maturity 

Table of figures

Figure 1. Benefits Of Sustainability In Real Estate Investment Strategies 
Figure 2. ESG Focus Areas For Real Estate Investors
Figure 3. Investors Should Align Software Strategies To Their Sustainability Maturity

About the authors

Dayann Charles Jeyamohan

Manager, Advisory Services

Dayann is a Manager in the Advisory Services team. Having previously been a part of the Verdantix Smart Buildings research team, he currently leads and works on consulting projects across all of Verdantix’s practices, with a particular focus on ESG, Net Zero and Smart Building engagements. Dayann joined Verdantix in early 2020, following time as a Business and Technology Consultant at IBM. He holds an M.Eng. in Engineering (Mechanical) with Business Finance from University College London.

Susan Clarke

Research Director

Susan leads the Verdantix Smart Buildings practice. Her current research agenda focuses on software solutions for real estate management including integrated workplace management systems and IoT platforms for buildings. Her research expertise also includes a broad range of energy management technologies and energy services. Susan has eight years of experience in technology research. She holds a MSc from the University of London in Sustainable Development.

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