ESG – once limited to “green” initiatives and vague references to sustainability – is now top of mind for investors, C-suites, and other stakeholders as talks of climate change begin to escalate. According to Neutral Capital Partners, 23% of companies have made a public commitment to being totally carbon neutral by 2030, and it would be naïve to assume this corporate real estate sustainability decision wasn’t made with the bottom line in mind.
But why should corporate real estate and facilities professionals care? IEA says the built environment is responsible for nearly 40% of direct and indirect carbon emissions. If it hasn’t happened yet at your organization, you can expect to be held accountable in the near future for KPIs related to sustainability and reduction of carbon emissions.
Now that we have your attention, you might be wondering what’s next. Let’s work backwards – your end goal is reduced CO2 emissions and a sustainable real estate portfolio. Before doing that, you’ll have to know how to get there, and to determine a roadmap to success, you’ll have to know where you’re starting from. To have a clear understanding of where you are, you’ll have to have 2 things: a clean, validated ESG dataset and a centralized sustainability reporting platform to measure and analyze progress.
Fully understanding the scope of your ESG initiative will require a specialized software that helps you analyze and benchmark your carbon footprint and emissions data for your global commercial real estate portfolio. ESG reporting software is a relatively new category, especially in the real estate industry, so here are some things to look out for when choosing a solution:
Interested in learning more about sustainability for corporate occupiers? Watch RefineRE’s latest ESG webinar on demand featuring Mastercard, Verdantix, and more.