In the final part of Prospects’ series on building a sustainability strategy, we examine the key themes real estate organisations need to address in building out their programme.  

See the links at the bottom of the story for the earlier articles in this series.  

A successful sustainability strategy should be part of a rounded governance structure and companies should work to continuously improve ESG data capture and systems. The ability to Measure, Monitor and Report means practical improvement rather than airy goals.  

“’If you can measure it, you can manage it’ has become something of a cliché, but that doesn’t make it any less pertinent for organisations seeking to improve their sustainability performance, ” says Sam Crispin, Head of Regional Sustainability and ESG at Savills Asia Pacific. 

For example, targets linked to the UN Sustainable Development Goals need to be backed by an action plan with specific measures, a timeline and a responsible person. Ideally such plans will be independently verified by qualified third parties. This should be followed with a tracking system to ensure that either the required actions are taken or an explanation is provided for any difficulties.  

Net Zero targets must similarly be supported by a Net Zero pathway demonstrating specific measures which are being undertaken and how these actions contribute to meeting interim or final targets. 

ESG is sometimes seen as a separate pillar for an organisation, however it should be integrated into existing business lines and be a focus for all management, not just those with ESG in their job titles. Just as all units of a successful business focus on keeping costs down, so ESG needs to be accounted for in every aspect of the business.  

Since many companies operate in vertical silos or separate entities, embedding sustainable practices horizontally across regions and silos can be challenging. Often this starts with education, but leadership and a diplomatic approach are essential to ensure compliance while securing ‘buy in’ from different business units. “Clients for all types of real estate businesses are increasingly demanding with regards to ESG,” says Crispin. “Non-compliance can risk reputations and lead to lost opportunities, so it is not optional anywhere in the business.” 

Landlords should consider introducing green leases, which can promote mutually beneficial energy saving and waste reduction in collaboration with tenants. In much of Asia, the reality is that green leases may not be included in the legal documentation at all but be part of a voluntary arrangement between landlord and tenant. “The concept of green leases is relatively new in Asia, but is growing fast.” says Crispin. “A more collaborative approach to landlord/tenant relations is important for both in meeting ESG goals.”  

Technology can help businesses to drive ESG performance, especially when it comes to data collection. For example, in the UK, Savills has developed SavIQ, a sustainability reporting, monitoring and benchmarking tool which provides a platform for monitoring energy, water, waste and air quality data.  

“This is a great workplace tool and enables businesses to monitor multiple sites to manage net zero compliance and identify problem areas that need to be resolved. . It’s something we are working on introducing to our markets in Asia,” says Crispin. 

Further reading:
How to succeed in stakeholder engagement

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