7 Compelling Reasons Why Digital Solutions are Key to ESG Success
ESG is now a legal requirement in the real estate industry and a crucial driver for maintaining the value of buildings. Digital solutions are essential for the successful implementation of ESG measures.
Digital solutions for efficient asset management and the optimal operation of buildings are indispensable in the ESG transformation. Here are seven compelling reasons why:
1. A Strong Basis for Decision-Making
Recording and analyzing energy and resource consumption, as well as measuring emissions, form the foundation of a ESG strategy. Digital tools not only enable precise data collection but also facilitate efficient action planning and targeted, sustainable CO2 management.
2. Rapid Emission Reductions
Regulatory obligations and the link between ESG and real estate values necessitate a swift reduction in emissions and energy consumption. Robust digital solutions, such as AI-supported predictive control of HVAC, can achieve a 20-30% reduction in energy consumption quickly, leading to significant emissions reductions.
3. Simplified Reporting
Digital solutions streamline ESG reporting by automating data collection and analysis, determining KPIs, and preparing reports based on various criteria. Standardized reporting reduces effort and errors, making ESG reporting more efficient, reliable, and meaningful.
4. Leveraging Scaling Effects
Every building is unique, and not all measures are universally applicable. However, digital and universally adaptable ESG measures can be implemented more easily across an entire portfolio, maximizing scaling effects.
5. Enhanced Adaptability
Real-time data and transparency regarding buildings and portfolios allow real estate operators to quickly respond to changing regulatory obligations and user requirements.
6. Mitigating Labour Shortages
Finding specialists to implement ESG measures can be challenging. Digital solutions provide dual support: they simplify manual tasks by structuring data and reducing complexity, and they reduce the need for skilled workers by automating ESG goal achievement, such as decarbonization through AI-supported HVAC control.
7. Engaging Stakeholders
Successful ESG transformation requires the cooperation and commitment of various stakeholders, including tenants, investors, owners, and operators. Digital solutions facilitate communication and collaboration among these parties, enabling and enhancing their involvement.
Conclusion
Digital solutions are indispensable for implementing ESG strategies in the real estate industry. They enable precise data collection and analysis, rapid emission reductions, and effective scaling.
Additionally, they enhance adaptability, compensate for the shortage of specialists, and facilitate stakeholder engagement. By leveraging digital solutions, real estate operators can support comprehensive ESG transformation, create attractive spaces for tenants, and maintain the value of properties and portfolios.
Carsten Kreutze has served as CEO of Recogizer since 2014. With his many years of experience in corporations and start-ups, he founded the green tech company to significantly reduce the energy consumption of properties and help them retain their value. He is convinced that intelligent data technologies are vital to achieving climate goals in the real estate sector.
Carsten Kreutze | Managing Director
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