Climate change, resource depletion, and pollution are major global challenges that threaten the health and well-being of present and future generations. Since United Nations recognised that the real estate sector significantly contributes to global energy consumption, reportedly up to 40%, sustainable property management has become the need of the hour. Sustainable property management offers an opportunity to mitigate these challenges by reducing the carbon footprint of buildings and communities, conserving natural resources, and creating healthy and sustainable living environments.
Moreover, this can also benefit property owners and managers by reducing operating costs, improving tenant satisfaction and retention, and enhancing the overall value of properties. As a result, sustainable property management is becoming an increasingly important concern for property owners and managers who seek to remain competitive and financially viable in the long term. As people become more conscious of the effects on the environment, property managers are increasingly anticipated to take on a pivotal responsibility in advocating for a greener and more sustainable world. Dr Michael Waters sheds light on the need for reducing the environmental impact of real estate, particularly across the much longer operational phase.
Prioritising sustainability also has practical benefits for businesses. Assets that adopt energy-saving equipment and eco-friendly practices are not only more durable but also cost-effective to operate. According to a recent report by Bloomberg, the value of global Environmental, Social, and Governance (ESG) assets is expected to exceed $53tr by 2025, representing more than one-third of the world’s total assets under management. This indicates that property management companies must put ESG strategies at the top of the agenda.
Conducting an environmental audit
Performing an environmental audit is an efficient way to gain a comprehensive understanding of the condition of the property. For instance, by analysing the energy consumption patterns, property managers can identify potential issues, establish attainable objectives, and select the best-suited environmental strategies for their needs. Property managers have a responsibility to comply with environmental standards and regulations. Conducting an environmental audit can help them identify any areas where the property is not meeting these requirements and take corrective action to implement suitable strategies. An environmental audit can also lead to cost savings. By identifying areas where energy, water, and waste can be reduced, property managers can implement measures to reduce consumption and lower costs. This can lead to significant financial savings over time while also reducing the property’s impact on the environment.
Efficient energy management
While rolling out energy-efficient initiatives, the focus should be on creating partnerships that recognise the value of energy management at the front end and help facility managers and property managers deliver greater value to both their clients and the occupants in their buildings. It is crucial to identify and combat specific factors that may affect the building’s energy usage. For instance, one of the most significant factors is the age and condition of the building, as older buildings may have outdated heating, ventilation, and air conditioning (HVAC) systems and building technologies which are less energy efficient. Property professionals must adopt a comprehensive approach to property performance and recognise that energy management is just one aspect of sustainability. Focusing solely on reducing energy consumption, minimising waste, using sustainable materials, or any other individual element in isolation would result in fragmented efforts that hinder effective management within the broader context of the business. Moreover, property managers can work with government agencies and energy experts to ensure compliance with regulations and implement best practices for energy efficiency. More pressing for building owners is the fact legislation is putting greater financial pressure to make improvements.
Sustainable procurement with environmentally preferable purchasing
Another crucial step towards achieving sustainable property management is adopting an Environmentally Preferable Purchasing (EPP) or green purchasing policy. By adopting this as an integral part of the decision-making, property managers can prioritise environmental, social, and ethical factors. In sustainable property management, green purchasing policies extend beyond just environmental considerations. Businesses occupying real estate are being much more considered on the social impact of their decisions. Incorporating this strategy can benefit not only the environment but also society and the economy, making it a win-win proposition for all stakeholders involved.
Lastly, imparting skills and training to the existing workforce and aspiring professionals can significantly make sustainable property management impactful and easier. For instance, a thorough understanding of the latest software that can predict the building’s energy use by taking inputs of variables like climate, location, and construction material can help the building managers come up with a solution that maximises the return on investment and energy efficiency while staying within the budget. Furthermore, educational institutions have a crucial role in providing education through advanced courses for professionals to upskill themselves to stay abreast with the evolving needs of the industry.