The real estate sector is facing a major transition. Sustainability, social responsibility and transparent governance – summarized under the heading ESG (Environmental, Social, Governance) – are playing an increasingly important role in investment decisions and the valuation of real estate. The rise of ESG standards poses new challenges for real estate owners and investors: how to meet these strict requirements and how to ensure that real estate portfolios are future-proof?
At Matrixian, we understand these challenges. Our extensive real estate data and API solutions provide the insights needed to not only make real estate more sustainable, but also to optimally manage it according to ESG standards. In this blog, we discuss the importance of ESG for the real estate sector and how data solutions can help.
1. Environmental: sustainability at building level
The environmental aspect of ESG focuses on the impact of a building on the environment. This goes beyond just energy labels; it includes energy consumption, CO2 emissions, the possibility of making roofs more sustainable and more. Thanks to the Sustainability API and detailed property data, we can map the energy efficiency of buildings and sustainability options. Our data provides information about, among other things:
- The energy label of the building
- Potential for solar panels or other sustainability options
- Return per sustainability option
- Increase in value after sustainability
These insights make it possible to make buildings more sustainable in a targeted manner and help property owners make well-considered decisions that contribute to reducing the ecological footprint of their real estate portfolio.
2. Social: health, safety and livability
Social factors within ESG revolve around the liveability and safety of a property and its immediate surroundings. With the Neighborhood Information API, we offer insight into the (social) environment of a property, such as:
- Safety and crime rates in the neighborhood
- Distance to public facilities such as schools and parks
- Demographic data and income distribution
This information helps property owners and investors to assess whether a location meets the social requirements that are becoming increasingly important in real estate investments. In addition, project developers can anticipate the needs of tenants or buyers by focusing on neighborhoods with good facilities and a favorable living environment.
Curious how data integrations can strengthen your real estate platform?
3. Governance: transparency and reliability
The governance aspect of ESG is about good governance, ethical business practices and transparency. Our APIs such as the Ownership report API, Purchase Price API and Cadastral Map API, provide in-depth insight into ownership structures, historical transactions and cadastral data. With this data you can:
- Understand the ownership structure and ownership history of a property
- Gain insight into the number of companies per building and which companies are located there
- Any restrictions on use
A good understanding of governance ensures better risk management and increases investor confidence in the long-term value of a real estate project.
The future of ESG in real estate
As regulations become stricter and tenants and buyers place higher demands on the sustainability and liveability of properties, optimising ESG criteria is becoming a crucial success factor for real estate owners. By using the insights provided by our data, real estate companies can lead this transition and simultaneously create value for both their investors and society.
The benefits of ESG-driven real estate portfolios
Investing in ESG-driven real estate offers a number of benefits. Firstly, it reduces the risks associated with outdated buildings that do not meet modern sustainability standards. Secondly, it helps attract capital, as more and more investors only want to invest in sustainable and socially responsible projects. Furthermore, it results in lower operational costs through energy-saving measures, ultimately contributing to better returns.
Conclusion
The real estate sector is at a tipping point where ESG criteria have become indispensable for successfully managing and investing in real estate. At Matrixian, we make ESG measurable and manageable. By integrating our extensive data into your real estate strategy, you can not only comply with current regulations, but also anticipate future trends in sustainability and corporate social responsibility. With our data solutions, you can take your real estate portfolio to the next level and contribute to a sustainable future.
Want to know more about how our data can help you optimize your ESG strategy? Contact us and discover the possibilities
