ESG: As Easy As IoT

Actually, Sustainability is Complicated. But Properly Managed IoT Data Is Where the Smart Buildings Start

By Michael Moran

Executive Summary:

ESG – the fast-growing metrics that measure corporate performance on Environmental, Social and Governance issues – will soon be a requirement in the European Union and is becoming a necessity in the US market, too, as younger, more activist investors demand a commitment to sustainability. In commercial real estate, added pressure emanates from potential tenants and from municipal governments who desire to differentiate and to avoid reputational risks. For the managers of large corporate real estate portfolios, outsourced Facilities Management firms, and asset managers of large real estate portfolios, collecting accurate data on ESG metrics from buildings that in some cases are a century old can be challenging. But the industry’s growing adoption of Internet of Things (IoT) sensors and move toward “Smart Buildings,” largely driven by potential costs savings, can also provide a cost-effect solution to the collection of ESG data likely to become a regulatory requirement in major global markets. Put simply, Smart Buildings are not the same as Green Buildings, but the goal of achieving the latter – especially in older structures – will require the former.

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