A whitepaper has called for increased cohesion and interoperability in ESG reporting for the real estate sector. The analysis, conducted by real estate software-as-a-service provider BuildingMinds and real estate fund manager Cromwell Property Group, highlighted the fragmented nature of current global ESG real estate demands, noting that the most powerful way to drive change in an industry responsible for nearly 40% of greenhouse gas (GHG) emissions is to standardise data, disclosures, regulation and incentives. However, given the diverse requirements across the sector according to geography and demands from investors themselves, the report noted that a one-size-fits-all approach is unfeasible. “The lack of regulation and geographical nuances have made it challenging to accurately collect data and benchmark portfolios in the real estate sector,” said Marek Sacha, CEO of BuildingMinds. “[This] whitepaper […] underscores the importance of standardisation to effectively meet ESG ambitions and, ultimately, reduce GHG emissions.” BuildingMinds and Cromwell Property Group suggested that tailoring ESG strategies to the unique demands of different geographical markets, using precise data collection and reporting, would help drive standardisation – increasing efficiency and reducing resource demands. “We’re witnessing trends in the real estate ESG sector driven by sustainability and innovation,” said Cecile Babcock, Head of Distribution, Europe, at Cromwell Property Group. “The rise of cross-laminated timber is revolutionising construction. Simultaneously, the shift towards brown-to-green repositioning reflects a growing commitment to transforming existing assets. These trends are not just responses to challenges, they are paving the way to a more sustainable and resilient real estate sector.”
