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ESG Data Revolution: How Measurabl is Changing Real Estate Investments

29 September, 2024 - 8:29AM
ESG Data Revolution: How Measurabl is Changing Real Estate Investments
Credit: measurabl.com

A New Era of Real Estate Investment: ESG Data Takes Center Stage

The real estate industry is undergoing a transformation, driven by a growing demand for sustainable investments. This shift is being fueled by a convergence of factors, including increasing environmental awareness, evolving investor preferences, and regulatory pressures. As a result, Environmental, Social, and Governance (ESG) considerations are no longer a mere trend; they are becoming the cornerstone of responsible real estate practices.

The Need for Granular Data: Bridging the Gap in ESG Reporting

Traditionally, the lack of reliable and comparable ESG data has been a significant hurdle for investors seeking to allocate capital towards sustainable real estate projects. Most data providers have relied on publicly available information or estimates, leading to inconsistencies and a lack of transparency in sustainability performance reporting.

This challenge is being addressed by a strategic partnership between Measurabl, a leading ESG data management solution for real estate, and FTSE Russell, a renowned global index provider. This collaboration aims to enhance the availability and quality of sustainability data within the real estate sector, empowering investors to make more informed decisions based on robust and credible information.

Measurabl’s Quantum Cloud: Powering a New Standard in ESG Data

Measurabl’s Quantum Cloud, a comprehensive repository of aggregated ESG data for real estate, is now powering FTSE Russell's green indexes. This platform provides access to detailed, asset-level ESG information, offering a level of granularity that has been previously unavailable. The dataset encompasses 273M MTCO2e from 110,000 properties across 93 countries, covering over 18 billion square feet of real estate.

Measurabl’s approach to data collection is unique. It combines actual reported property energy and emissions data with a proprietary machine-learning model trained on a massive database of measured building energy data. This approach provides a more accurate and consistent representation of sustainability performance, bridging the gap between publicly available information and real-world data.

Transforming the Real Estate Market: The Impact of Measurabl's Data

The availability of high-quality, asset-level ESG data is transforming the real estate market. This shift is evident in the launch of new investment products, such as BlackRock’s iShares Global Real Estate Environmental Tilt UCITS ETF, which tracks the FTSE EPRA Nareit Developed Green Low Carbon Target Select UCITS Capped Index. This ETF prioritizes more sustainable real estate issuers, aiming for at least a 20% better environmental performance than its broader investment ecosystem.

The use of FTSE Russell's indexes, now powered by Measurabl's data, signifies a growing demand for investment solutions that align with strong sustainability credentials. This trend underscores the increasing importance of ESG factors in investment decision-making within the real estate sector.

A Shared Vision: Green Buildings, Sustainable Investments

Both Measurabl and FTSE Russell share a vision for a more sustainable built environment. By providing access to accurate and granular ESG data, they are facilitating a shift in the real estate market towards investments that prioritize environmental responsibility and social impact. This move is expected to catalyze a virtuous cycle where better data leads to better investment decisions, ultimately contributing to a more sustainable global economy.

The Future of Real Estate: Data-Driven Sustainability

The integration of Measurabl’s data into FTSE Russell's green indexes is a significant milestone in the evolution of the real estate market. It marks a transition towards a data-driven approach to sustainability, where accurate information is no longer a constraint but a catalyst for change. As investor demand for sustainable investments continues to grow, the availability of reliable ESG data will be crucial for driving responsible investment decisions and fostering a more sustainable future for the built environment.

Tags:
Sustainability Green building Real Estate Construction ESG Real Estate Sustainability FTSE Russell Measurabl
Makoto Yamada
Makoto Yamada

Reporter

Covering business news with a keen eye for detail.

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