BuildingMinds and Cromwell Call for Standardisation in Real Estate ESG Reporting
Real estate software-as-a-service provider BuildingMinds recently launched a whitepaper in collaboration with global real estate investor and fund manager, Cromwell Property Group. The chapter provides an in-depth analysis of turbulent market conditions in recent years, the fragmented nature of current global ESG (environmental, social, and governance) real estate demands, and emerging trends across the sector. It concludes that the most powerful way to drive change in an industry responsible for nearly 40% of greenhouse gas emissions is to standardise data, reporting, regulations, and incentives, all of which contribute to optimising the profitability of ESG-orientated investment strategies.
No “One-Size-Fits-All” Approach
The complexities of implementing ESG initiatives in the real estate sector are underscored by a lack of standardisation across the board. Given the diverse requirements geographically, regulatorily, and from investors themselves, it’s unfeasible to have a “one-size-fits-all” model. BuildingMinds and Cromwell Property Group suggest that tailoring ESG strategies to the unique demands of different geographical markets using precise data collection and reporting will drive a much-needed level of standardisation that will have a positive impact on profitability through increasing efficiency and reducing the resource requirements around asset management.
“The lack of regulation and geographical nuances have made it challenging to accurately collect data and benchmark portfolios in the real estate sector. Our latest whitepaper in collaboration with Cromwell Property Group underscores the importance of standardisation to effectively meet ESG ambitions and, ultimately, reduce greenhouse gas emissions,” said Marek Sacha, CEO of BuildingMinds.
Vast Opportunities for Innovation
Cromwell Property Group sees a real estate industry rich with innovation and filled with vast opportunities for ESG improvements and advances, particularly in the use of cross-laminated timber, brown-to-green repositioning, and a consumer-demand-driven focus on sustainable and ethical investments.
“We’re witnessing trends in the real estate ESG sector driven by sustainability and innovation. The rise of cross-laminated timber is revolutionising construction. Simultaneously, the shift towards brown-to-green repositioning reflects a growing commitment to transforming existing assets. Consumer demand for sustainable investment options is also shaping the market, compelling investors to put a greater emphasis on ESG. These trends are not just responses to challenges, they are paving the way to a more sustainable and resilient real estate sector,” said Cecile Babcock, Head of Distribution, Europe, Cromwell Property Group.
Click here to download the full whitepaper.