Hey Siri, steer clear of the economic downturn…
Sounds nice, right?
In the ever-evolving landscape of the multifamily industry, with rising rents and record-high summer utility bills, the challenge for property owners and managers is clear: ensure affordability while upholding the quality of life residents deserve and expect.
Enter: ESG as a beacon of hope. While ESG (Environmental, Social, and Governance) is a relatively new term, its core principles have deep roots. Those well-acquainted with “sustainability” and “green initiatives” have already touched base with ESG’s origins.
Why is everyone talking about ESG and sustainability? ESG systems for water, electricity, gas, and waste management are becoming the gold standard for their emphasis on environmental and economic sustainability. Real estate investors recognize that a sustainable business model means longer-term success. Businesses are more likely to manage risks effectively, adapt to regulatory changes, and foster innovation.
Beyond its essential role in reducing our environmental impact, ESG-driven programs put substantial savings back into the pockets of both multifamily properties and their residents.
Sustainable Utilities, Multifamily’s ESG Solution
Residents shoulder a hefty 90% of a multifamily community’s utility costs. So implementing sustainable solutions is more than just an ecological move. Actively adopting ESG-focused initiatives means property owners and managers reduce energy consumption, dodge hefty compliance fines (in regulated markets), lower communal energy costs, and elevate residents’ health and comfort—all while trimming financial burdens.
What’s in It For Your Residents?
More Money, Less Problems
Residents who choose to live in an eco-friendly apartment community start saving up to $50 annually*. And it’s not just about the savings: by aligning with these initiatives, residents play an active role in shrinking their ecological footprint, ensuring that their living choice aligns with a sustainable future.
*Based on a public REIT that invested in ESG programs seeing a reduction in energy costs of 2%-11% where residents saw 90% of those savings.
There’s more to sustainable utilities programs than meets the eye. The financial perks are undeniable, but the tangible improvements in daily living conditions are just as noteworthy. ESG initiatives lead to optimal air temperatures, well-regulated humidity levels, and a noticeable reduction in noise levels for a more comfortable living environment.
Health is Wealth
An eco-friendly outlook enhances physical and mental health, leading to a vibrant, healthy community. Improved air quality from increased greenery leads to fewer respiratory issues and boosts mental health by reducing stress. Providing access to green spaces not only encourages physical activity but also offers a serene environment for relaxation. The emphasis on natural light and sustainable, non-toxic materials in construction promotes physical health and a more peaceful living space, contributing to mental wellness. And green initiatives that foster community engagement offer further physical and mental health benefits.
ESG for Property Managers and Owners
Understand Your Impact with End-to-End ESG Reporting
The ESG journey is more than a numbers game—it’s about unraveling the story behind the figures. A streamlined ESG data system tracks insights for you, and dedicated support is your right arm to translating numbers into actionable insights.
Energy and Cost Reduction
Any objections? We didn’t think so! Prioritizing energy efficiency and mitigating environmental risks can revolutionize the operations of multifamily properties. It’s also worth noting the substantial overheads associated with outdated utilities that go unnoticed. You’ll be shocked at the surprising amount of hidden margin outdated utilities eat up – up to 15-20% of your budget. Sustainable utilities are your competitive advantage, offering affordable, eco-aware living that resonates with the values of modern consumers, especially Millennials and Gen Z.
Resilience Against Disasters
When Mother Nature throws a curveball or the lights go out, sustainable utilities give property managers confidence that residents remain comfortable and safe.
Risks Without an ESG Program
Properties lacking ESG initiatives are vulnerable to significant and harmful risks.
- Inefficient Utility Management: Hello increased waste and higher operating costs
- Health Risks: Poor air quality, unregulated temperatures, etc.
- Regulatory Fines and Penalties: The laws change rapidly. Non-compliance leads to hefty fines
The Beacon of Hope: Conservice ESG’s Sustainability Solution
The Sustainability Solutions program by Conservice ESG is a pioneering initiative designed to promote sustainable utilities, making residences more resilient, efficient, and environmentally friendly. Sustainable Utilities stand as a comprehensive solution for both residents and property owners, echoing a global commitment to environmental stewardship.
The extensive benefits of implementing an ESG program echo far beyond the realms of cost and energy efficiency.
Contact Our ESG Experts:
Start your journey with dedicated support from our team.