How PropTech Can Help With ESG Compliance

How PropTech Can Help With ESG Compliance

PropTech and ESG go hand in hand.

PropTech (short for property technology) has been a great help to a lot of companies during the pandemic through the repurposing of vacant offices. Advancements made in related technologies are also utilized to protect the safety of homes. Now, the rapidly growing industry is promising to use its technologies for good by improving ESG performance and compliance across the board.

What does “ESG” stand for?

ESG stands for “environmental, social and governance” criteria, and it’s integral to the way businesses are conducted nowadays. They include impacts a company has on the planet (environmental), on people and reputation (social) as well as management (governance), such as decision-making, establishment of the board of directors, risk management and employee treatment. 

In many industries, ESG analysis has become an increasingly important part of the investment consideration process. Many investors apply these non-financial factors as part of their analysis process to identify material risks and growth opportunities in a business. From intensifying concerns on climate change to fervent discussions of diversity, ESG issues have moved from the sidelines to the forefront of decision-making for asset managers and institutional investors.

Environmental

PropTech is most effective when it comes to the “E” in ESG. Companies nowadays are focused on improving their energy efficiency. Smart technologies can track data on carbon footprint, energy efficiency, water quality and usage as well as waste management. It helps push for companies’ further compliance with ESG through close monitoring of performance, detecting inefficiencies and making automatic adjustments via a building management system. It’s a quick, easy, and cost-effective way to reduce consumption and meet your targets.

Social

While it is hard to measure and quantify social aspects—such as employee wellbeing and human rights—technologies can still do something meaningful to improve staff’s working experience. 

For example, new advancements in sensor technology, such as air quality monitoring, can now accurately and precisely improve occupants’ health, wellbeing and productivity. Using IoT sensors, companies can monitor key parameters, like temperature, humidity, CO2, TVOCs (indicating the level of pollutants indoors) and PM2.5 (indicating particulate matter trends). Smart alerts can be used to notify the management when these factors exceed optimal levels, and automatic changes can often be made via a building management system.

Governance

To achieve good corporate governance, you need good data. A smart building platform can collect and collate all the data in one place, providing a complete empirical outlook of the company’s operation. This gives companies secure and accurate data at their fingertips, including information about the safety and maintenance of the office building and its occupants. The data can then be made readily available to all shareholders and stakeholders to ensure a high level of transparency and accountability within the company.

PropTech and ESG go hand in hand, and they will both continue to rise on the agenda for investors and companies alike as a big step towards sustainability.
Header image courtesy of Unsplash

SHARE THIS STORY

Share on facebook
Share on twitter
Share on linkedin
Share on email

RELATED POSTS

5 More Business Podcasts You Need to Listen To

5 More Business Podcasts You Need to Listen To

Entrepreneurs have one thing in common—they always look for opportunities to learn and grow. To gain an understanding of running a viable business, you need to listen to the experiences of those who have emerged triumphant in the business world. A great way to do so is by tuning into a vast number of business and entrepreneurship podcasts scattered across the internet today.

5 Hobbies To Maximize Your Entrepreneurial Drive

5 Hobbies To Maximize Your Entrepreneurial Drive

Entrepreneurs are a special breed of person. They’re go-getters, risk-takers and dreamers. Yet, even the most driven entrepreneur needs to take a break from time to time. Spending every second of your day on your business is stressful, and you will lose your drive very soon. If you want to stay energetic and ready to take on new challenges at work, hobbies are what you need.

Making the Metaverse a Force for Good with the Metaverse Charity Foundation

Making the Metaverse a Force for Good with the Metaverse Charity Foundation

If you are a frequent reader of our website, you must have seen us mention The Sandbox, Decentraland and Axie Infinity. These are some of the most popular metaverses out there, and the one thing they all have in common is that they all have their origins in Asia. While Asia is home to all these metaverse projects, it suffers two main issues: the region has major rural-urban inequality as well as a significant wage difference between high-skilled and low-skilled occupations.

How Do Stores Get You to Spend More Money

How Do Stores Get You to Spend More Money?

Have you ever entered a grocery store to buy some milk but ended up with a bag full of items you didn’t even need? You’re not alone if you feel guilty for spending more money than you intended. It’s not our fault that we keep putting items in our shopping carts; we are manipulated to do so! To make sure you buy more, retailers will go all the way to carefully engineer every aspect of their store.

6 Lessons All Entrepreneurs Can Learn from Amazon Founder Jeff Bezos

6 Lessons All Entrepreneurs Can Learn from Amazon Founder Jeff Bezos

Whether you love or hate him, there’s no denying that Jeff Bezos is one of the most successful entrepreneurs of our generation. Bezos, the founder of Amazon, has built a business empire encompassing everything from ecommerce and cloud computing to artificial intelligence (AI). What can we learn from Bezos, one of the world’s wealthiest men with a net worth of US$151 billion? Here are six key lessons that all entrepreneurs can learn from the billionaire:

9 Signs of a Toxic Workplace

9 Signs of a Toxic Workplace

Workplace trends like “hustle culture” and “quiet quitting” are shining the light on unhealthy, toxic work environments and their effects on employees. Hustle culture is when you feel like you have to work yourself to the bone and do way more than others all the time; quiet quitting, a counteragent to hustle culture, is about doing the bare minimum at your job instead of going above and beyond for an exploitative employer.