Property managers are at the interface between owners and users. But I can imagine that both sides have very different ideas about what ESG actually is and what they expect from you as a service provider.
Our customers are now prepared when it comes to ESG. In recent years, they have sounded out and developed ideas about what they need from us. It usually starts with the topic of data quality and the collection of consumption data in order to operate their properties more sustainably and, above all, with less energy. It continues with analyses, investigations of building quality, energy audits and certificates.
In other words, the owners focus very much on the E of ESG, i.e. on the performance of the buildings in terms of energy consumption and other resources?
Absolute. The S and the G are often still in preparation. There are already some customers who want projects for the topic of social issues. Something is also moving at G, for example with the Supply Chain Act or the purchasing guidelines.
In summary: The customers have clearly defined their demands in our direction. The challenge for us, however, is to fulfil these tasks with all our employees. First of all, it must be said quite honestly and critically that property management as a craft has hardly developed in the last 30 years. There were hardly any innovations. That has changed in the last 5 years. Because of the requirement on the customer side, we were encouraged to train our employees, who are our most important asset, and to take them on a sustainable journey. Within a few years or even just a few months to meet the new demands.
So have you been forced to become an ESG expert in your day-to-day business?
Definite. We believe that we have grown together with our customers in recent years and have evolved to provide exactly the service that the customer needs. In the past, it was often just a matter of getting the rent in the account on time and now a missing consumption value can become a big problem that has to be solved within a few hours.
You are close to the object, you have an overview of information about the buildings and about the user. Of course, these are interfaces with essential information for ESG performance. But the aspect that there has of course also been a change in your role as employees, perhaps also in your appreciation, is very exciting. Does it pay off? Are there higher fees?
In the case of fees, an attempt is made to keep them in moderation. However, it is very clear that our specifications have changed significantly. We have integrated much more power that we have to provide as balancing power and the fees are correspondingly higher. In addition, there are special services in the area of ESG, such as structural measures or tenant dialogues. Nevertheless, it has to be said that there is a common understanding between asset and property managers that these are necessary and, in the best case, it should run hand in hand and in partnership. This is definitely progress compared to some developments in the past.
The users are a very important aspect. To what extent are they already approaching you property managers? Are they already at the level of the owners or does it still take some time?
It varies greatly. There are some tenants who are already very far along and from whom we can also take topics with us. Some tenants, on the other hand, still have to be explained that it does not make sense to operate several thousand square meters 24/7 for energy efficiency, because perhaps two employees, colleagues or customers from overseas are working together. However, we often run into open doors with our sustainability dialogues. These discussions are really important in order to make progress together on the properties. Maintaining the operation of the building and also the service life of the technical systems is not possible without the tenants.
Are there frontrunners among users? Is it the big international players who are driving ESG forward?
Absolutely. We are already noticing that it is mainly the large international countries that are pursuing their own CSR charter or ESG agenda. There is hardly a lease agreement without the corresponding regulations between landlord and tenant, so that the value chain is really carried into the rental sector by all the ESG measures. A few years ago, regulation stopped even before the rental sector.
But how do you motivate tenants to agree to these regulations and to implement them?
To this end, we have developed tenant discussions, among other things: The Green Committee is intended to sensitize tenants and explain to them how the building works. In these conversations, we show what actions are being carried out by the owner and give food for thought about what tenants can do that they may not have thought about yet.
