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.


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.


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.


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


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