Resilience is increasingly top of mind for today’s companies — and not just in light of the recent COVID-19 pandemic. Over the past decade, businesses and their investors have become more aware of the potentially devastating impacts that external factors, like environmental conditions and natural disasters, can have on their assets. Now, companies will need to consider how public health crises factor into that risk.
Not to be confused with sustainability, resilience is the capacity for an entity to survive and prosper in the face of shocks and stresses. While the global pandemic is the perfect example of a shock, businesses can also be vulnerable to less visible, slow-burning stressors, such as drought conditions or rising sea levels.
Increasingly, real estate owners are expected to collect, analyze, and report accurate ESG (environmental, social, governance) data, which sheds light not only on a company’s impact on the environment, but also on its capacity for resilience in the event of a disaster. These factors include the extent to which a company’s assets might be impacted by hurricanes, floods, wildfires, and other factors intensified by climate change. Managing this data across a company’s entire portfolio of assets can be daunting without the help of a nimble, tech-founded solution.
Now, more than ever, companies that use technology to own and manage their data and maintain control over their assets in-house will be in the best position to sustain their businesses and continue to attract capital.
Increased access to capital will soon become even more important as firms are more diligent about where they invest. Financial advisory firm Green Capital recommends that throughout the COVID-19 crisis, investors should continue to focus on companies that “remove risk from the situation” by taking the initiative to prepare for long-term risks like climate change.
To stay ahead of the curve, real estate owners should be well positioned to initiate the conversation with investors regarding how their assets are managed and the initiatives they’ve taken to become even more sustainable and resilient.
There are a variety of reporting frameworks available to assist with the disclosure effort, including GRESB, TCFD, and CDP, to name a few. Regardless of the framework, it’s important for real estate owners to have immediate, on-demand access to ESG-related data so they can establish an open and ongoing dialogue with investors.
Beyond the Report
Reporting ESG data through existing frameworks like GRESB is a good jumping off point. However, owners that want to make meaningful improvements and control the narrative with their investors need to go beyond simply reporting — they need to have this treasure trove of information available to them anytime, anywhere. Owners that still manually enter that data in excel spreadsheets or rely on third parties without a tech-founded approach risk getting left behind.
No matter what happens in the days ahead, ESG will not go away as a long-term business advantage. We’re already starting to see the difference between the haves and the have nots: According to a Bloomberg analysis, ESG funds are faring far better than their traditional competitors despite the current economic crisis. And ESG data will likely become even more vital as investors become more selective and scrutinize risk even more.
It’s no secret that when companies embrace technology, maintain nimble mindsets, and have the knowledge and support to make cutting-edge tools work for their unique situations, they will outperform their competitors — even in the most challenging conditions.
Measurabl is certainly no stranger to the concept of resilience, both in how we operate internally and in the value that our technology brings to customers. To help our customers navigate through these difficult times, Measurabl will continue to provide a tech-founded approach that helps companies measure and improve their ESG practices so they can control their own narratives and prepare for whatever comes next.