Interplay of technology, IFM and ESG in the real estate framework

ESG has become an important business consideration around the world. The need for ESG stems from climate change concerns, investor and lender expectations, and stringent regulatory requirements. Companies are beginning to formalize their ESG-related initiatives in light of specific regulatory and reputational risks. Globally, investors and their stakeholders are increasing their use of his ESG parameters to screen investments, and as a result, Private His Equity’s real estate investment manager uses environmental and sustainability benchmarks. more emphasis is placed on

India is on track to meet its commitments under the Paris Agreement in terms of reducing energy intensity and increasing the use of renewable energy. This commitment will be met much sooner than expected, increasing the need for ESG compliance, especially in real estate, which accounts for more than 40% of carbon emissions. As developers and facility managers continue to work in concert towards green buildings and regulatory compliance, we are already seeing significant shifts in investments mapped to ESG responses. Correspondingly, we are seeing a promising transformation in the way business is done in this age-old industry as IFM (Integrated Facilities Management) involvement increases to enable decisions to make real estate ‘ESG-friendly’. .

Understanding ESG and IFM

In the real estate sector, ESG is a framework that influences every step, from land procurement to operations. ESG criteria are a set of principles by which businesses operate and are used by socially conscious investors to screen potential investments. ESG spans areas of sustainable development choices, including the use of sustainable materials for construction, efficient infrastructure for sustainable operations, ethical governance, and full disclosure of information. Regarding the operational phase of the property, most buildings are dilapidated or already functioning. This is where a lot of work can easily produce results. This is a key area where facilities management (FM) plays an important role.

With so many commercial and real estate businesses active in every market, the need to better manage and maintain buildings has never been a more pressing concern. With the unprecedented paradigm shift caused by the Covid 19 outbreak, the growth of people-centric technology is redefining how facilities management companies approach customer-centric experiences.

Technology and its role

The advent of sustainable/green buildings has led to an evolution in the curation of the built environment. Essential.. As Peter Drucker rightly said, “You can’t manage what you don’t measure.” The use of sensor technology and cloud integration allows us to monitor utility consumption in real time, so we have the data to perform analysis and benchmarking. is provided. Once data is obtained, stakeholders can benchmark their portfolios by pursuing global certifications from GRESB, IWBI and others. In addition, stakeholders can take informed actions and plan investments to address ESG. Energy management, water management and waste management continue to be major concerns for India. India promises to generate 500 GW of renewable energy by 2030 and net zero by 2070, so facilities invest in tangible outcomes within her ESG framework is essential.


Tomorrow’s growth is highly dependent on the foundations laid today. The world is evolving and requires real-time attention and action to improve business outcomes. The facilities management industry is empowered to build strategic pillars to operate with a strong data-driven, future-proof approach. ESG goals are subjective of multiple factors, including business nature, environmental landscape, political climate, geography, social climate and financial climate. ESG creates rapid change, pushing companies towards best practices that benefit everyone in the ecosystem, but pursuing it in a structured and scientific way is essential to success is.

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The above views are those of the author.

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