- What´s the first thing coming to your mind when you hear ESG?
- It´s bigger than most of us can imagine. It influences the way how we design, value, finance and operate properties. It brings chances but also carries a transformation risk for the industry.
- When was the first time you came across ESG?
- In November 2021, around MIPIM (that year it was postponed because of COVID), I read the book by Bill Gates “How to avoid a climate disaster”. So, I was curious about what the industry has to say and searched for ESG panels. I found out that we are at the very beginning, and I thought its worth learning more.
- In what way is your sector affected by ESG?
- Offices as Asset Class, together with retail, are very much exposed. We could easily save 50 % of operational carbon and, in the long term, save in embodied carbon. Investors are already all in, banks have no chance but to get there and tenants are starting to get sensitive as well.
- What do you do as a company to comply with ESG? Do you have any best practice?
- We are in transformation. For about 18 months, the awareness grew that we needed to do something, and for 12 months, we engaged very much in developing an ESG strategy. Finally, for about 6 months now we started to benchmark all our products against the peer group and measure their impact on E and S while we also developing a communication strategy to comply with G.
- Which advantages and which challenges do you face in implementing ESG initiatives?
- One of the most significant advantages is that ESG gets discussed from all stakeholders. We raise significant awareness of what it is about and in which way it can help us to get better not only regarding the culture but also how we can improve our products and support achieving sustainable performance. The biggest challenge is the resilience of people who think that this will go away and that there is nothing to do.
- Do you make a difference between ESG and CSR initiatives and to which extent would you count CSR as necessary for the company culture?
- There is a difference between the two. CSR is more focused on the company's impact on society, whereas ESG is more focused on the long-term performance of the property or company. This Means CSR is about well-being and clients' experience in the first place. I call it storytelling. At the same time, ESG comes along with complex measures investors and banks want to see.
- How do you see the future when it comes to the digitization of your sector in general, and which concrete milestones are you facing?
- There is no ESG compliance without digitalization. Hence it is inevitable to implement digital strategies. As operators of space, the space management or booking systems followed by the BMI systems will be the first choice to check.
- How did the use of digital tools improve your journey regarding ESG?
- Very much, at workcloud24, we can´t do much without the ESG-Software from which we generate all data, which is also the basis of certification. At New Work, we sell Space in the Cloud since February 2022, and today already, 90 % of all new contracts include digital Services.
- Where do you see an acceleration in change towards product definition and return?
- The high acceptance from our clients shows us that Steve Jobs was right when he said: “Think it backwards from the client’s perspective to the design”. Digital tools and services are the future in all segments of real estate.
- What are the most significant risks to your sector over the next two or three years?
- Non-ESG compliant properties in times of recession and the energy crisis carrying high stranded risks. As soon as the valuation departments from the banks fully integrates these points, we will see a lot of properties struggling.
- If you could name a project as a lighthouse out of any industries for fighting global warming, which would it be?
- There are more and more buildings which are worth mentioning. The Bullett Center in Seattle, constructed already in 2013, was designed to be the most energy-efficient commercial building in the world. Erste Campus in Vienna was designed for 4.500 people working there, now it’s used by more than 7.000 employees thanks to the fact that the building has only work zones, but no offices and is operated with a booking software for space management.
- Any must read books you'd like to refer for our readers helpful for the best practice journey?
- I would say the latest market reports by New Work and workcloud24 (laughs). Seriously there are many books about impact investing and how to make profits while acting sustainably. But one of the best insight stories comes from Patagonia founder Yvon Chouinard, he donated the company, worth 3 billion USD to fight climate change.
"The Responsible Company: What We've Learned from Patagonia's First 40 Years" by Yvon Chouinard and Vincent Stanley - This book provides an inside look at the sustainable business practices of outdoor clothing company Patagonia, and how they have been able to balance environmental and social responsibility with profitability.
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