ESG: not just a buzzword

As the UK and Ireland push for carbon net zero by 2050, the importance of ESG strategies in the property sector has never been greater. An effective ESG strategy helps property builders, investors, and asset managers to stay sustainable, mitigate risks, and be socially responsible – so what’s the issue here?

Despite data from PwC revealing that 91% of business leaders want their company to deliver on their responsibility towards ESG issues*, there remains a reluctance to adopt these strategies. Fears of greenwashing accusations and the idea that it is too costly and time-consuming are among the most common reservations.

To counter greenwashing accusations, having the right data is key. Geospatial data can be gathered quickly, cost effectively, and with long-term value for all involved – maximising insight to the property landscape and ultimately contributing to informed decisions surrounding ESG.

Developers, investors, and asset managers should be looking to develop a robust geospatial data library to transform what may be viewed as superficial PR into one of real power.

Achieving your ESG score

An ESG score is a metric that represents a company’s commitment to diminishing its environmental impact and implementing effective ESG strategies. It relies primarily on data provided by the company, with certifications, audit reports, and daily practices factored-in to determine a final score.

Despite the growing requirement for ESG scores in tenders and contracts, there is no universally-adopted standard for this purpose. Gathering enough effective data to achieve an impressive ESG score can therefore seem a daunting task, and with the risk of a low score potentially threatening returns, some may be dissuaded entirely.

Geospatial technology provides property stakeholders with a comprehensive overview of their portfolio. Carbon footprint mapping and monitoring allows us to measure, track, and report carbon emissions across assets, helping clients meet sustainability targets and regulatory requirements.  

Not only does geospatial intelligence reveal insufficiencies in a property portfolio with minimal disruption, it also digitises it in real time – making data much more accessible when putting together a case for a great ESG rating.

A point of no returns?

Some property stakeholders are sceptical in believing that ESG-aligned developments will be more expensive due to the cost of sustainable materials and more time-consuming, either in achieving certifications or following compliance processes. This scepticism may be exacerbated in smaller property businesses that may not have the budget to pay upfront costs associated with implementing an ESG strategy.

The reality is that sustainable buildings are only around two per cent more expensive to construct, and evidence leads us to believe that the longer-term returns are worth the initial hit.

In a study by EY, they measured the market value of two buildings of the same size, one being a recent green development and the other a non-green 1970s property. They found that the green building saw between a 10% and 21% increase in market value compared to its counterpart.**

If your asset portfolio consists of period properties with out-of-date, inefficient infrastructure, geospatial data can be used for a strategic retrofit that brings your ESG rating up to standard.

By leveraging geospatial insights, stakeholders can identify energy inefficiencies, optimise resource usage, and support the transition to renewable energy sources in buildings and infrastructure.  

Turning obligation to advantage

It may seem like just another regulatory burden for stakeholders, but with the right insights, an effective ESG strategy helps to future-proof assets, improve access to green finance, and strengthen tenant appeal.

Rather than relying on assumptions or outdated audits, geospatial tools provide real-time insights into how your properties are performing—highlighting areas of energy inefficiency, flood risk, poor air quality, or limited access to sustainable transport. This intelligence allows you to make targeted improvements that not only boost your ESG score but also drive down operational costs, attract environmentally-conscious tenants, and get access to green financing.

* ESG Consumer intelligence data from PwC
** Case study on property values by EY

Diarmuid Murphy is Director of Property at Murphy Geospatial, a UK-based business that applies geospatial solutions through the design, construction, and in-use phases of projects across six key sectors; infrastructure, manufacturing, property, natural environment, energy and utilities.