Today’s real estate investors not only want the financial and operational numbers on their assets but what’s driving them. That includes environmental, social and governance (ESG) performance, which is becoming increasingly important to property occupants, investors and regulators.  In fact, many institutional investors who provide money for U.S. real estate companies incorporate ESG criteria into their investment decisions. Meanwhile, 85% of asset owners believe ESG factors are material to investment policy. And many states and municipalities have enacted laws requiring public disclosure of energy-use data. “Property owners required to report ESG data to investors and regulators need aggregated data that can be used for multiple purposes. Investors also want access to their energy information on the same system as the investment data,”says Joe Consolo, industry principal of Yardi Energy. That’s why boosting ESG performance and data accessibility is critical to sustaining asset value, mitigating risks and optimizing returns.  Many investment managers are discovering that the most efficient approach to ESG management is a technology platform that combines data for energy, property management  and investment management. Benefits of this single-platform approach to ESG performance include: A single source of the truth that encompasses the underlying asset and rolls into the investment structure and then to the investor. The result is faster, better-informed investor decisions and no errors from disparate systems becoming outdated. Full compliancewith increasingly stringent ESG compliance requirements, including accurate assessments of energy consumption and greenhouse gas emissions.   Energy consumption reductions of up to 30% with better data. Efficient submission of data required for ENERGY STAR certifications, successful ASHRAE Level 2 audits, GRESB® reports and energy-oriented financial incentives, also known as “green financing.” Risk mitigation through full visibility of operations. Higher LEED and ENERGY STAR scores that help attract investors and high-quality tenants.  Investor...

Let’s go green! Earth Day is April 22. Earth Day is celebrated with over a billion people worldwide, promoting a clean, green environment. Companies that have developed robust Environmental Social Governance (ESG) standards are seeing better profitability, stronger financial performance, and happier employees. Yardi was recently awarded the ENERGY STAR® Partner of the Year for Sustained Excellence Award from the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy for the fifth year. Earth Day is important to us at our offices worldwide, as it is for our clients and their communities. No time is more vital than the present to act and invest in our planet. Here are some ideas to mark Earth Day at your properties and be good guardians of the environment. Host a “lights out” event for your community. Host a happy hour in the clubroom for an hour and encourage residents to turn off their electronics inside their units. Have organic paper-made utensils and plates. Serve up some organic cupcakes, green juices, and organic coffee. Clean-up event at a local park. Host a trash pick-up day if you are close to a park or recreation center. Residents can come out and help clean up the park free of cans, plastics, or any other trash that is on site. Be sure to provide supplies residents need, such as trash bags and gloves. Then, take it a step further and plant a tree with residents. Plant a tree or some flowers around the property. Native plants are the best option for local bees to pollinate. Plants serve as mood boosters and increase productivity and creativity. Your green efforts will give you leverage over the competition to retain or attract new residents. Explore the outdoors. This saves on indoor gym...

A growing need for transparency among real estate managers, tenants, regulators and investors is expanding the value of automated property management technology platforms that centralize operational and financial data. “You need a consistent process to allow investors to access timely information,” says Chris Barbier, senior director of investment management at Yardi. “The new generation of investors has an expectation to access data anytime, anywhere, on any device.” That’s true with environmental, social and governance issues as well. “Clients need to be able to report ESG data to investors and regulators. They want aggregated data that can be used for multiple purposes,” adds Joe Consolo, director of Yardi Energy. “Investors want access to their energy information on the same system as the investment data.” Real estate investment and energy consumption management systems capable of integrating all data are starting to supersede manual systems that rely on email, spreadsheets and other less-efficient tools, according to Barbier and Consolo, who offered their insights in an interview published in PERE magazine. Why adopt a platform that connects accounting, operations, investment activities and ancillary services? Because, Barbier says in the article, it produces a single source of the truth that encompasses “the underlying asset, rolls into whatever the investment structure is and then ultimately out to the investor, all in one ecosystem.” A similar rationale applies to ESG compliance, Consolo notes. Accurate assessments of energy consumption and greenhouse gas emissions are crucial to property owners’ ability to meet emissions targets, prompting many to seek technology platforms that consolidate governance documentation and measure energy, water and waste data in one system. Risk mitigation is the greatest value proposition for adopting a single connected solution for investment and environmental performance, Barbier and Consolo say. Such a platform enables decision-making informed by...