ESG has become an indispensable part of the real estate world. This has already become clear in many podcast episodes. However, we have mostly only touched on the area of property management. We are therefore very pleased that we now have two employees from the Property Management department who can talk about concrete ESG measures that can be implemented. Sandra Ambrosi, Senior Project Manager ESG, und Robert Schmidt, Director of Technical Property and Project Management. The moderator in today’s episode is Managing Director Andreas Völker.
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.
Interestingly, there are many international logistics companies that are much further ahead than some office tenants.
What concrete advantages do you use to convince tenants?
Especially with the savings in operating costs. So when it comes to finding out something about your own consumption data, for example the consumption data from the building, the information on the current certificates, also the measures that are planned and which have already been implemented. Hardly anyone can escape this openness and transparency. There are also action plans in which we put certain items on the agenda every year, which we also ask the tenant about, be it recycling or the topic of use and operating hours or water consumption. And these actions are also binding. Because they are recorded, and after a few weeks and months they meet again and discuss their careers. After all, the cooperation is supposed to work for years.
How has your building stock changed in recent years since ESG became a big topic? Are you already feeling the investment in the portfolio or can you even measurably see that the performance is improving?
Yes. In the area of hardware, a lot has been invested in the last 2 to 3 years. This means that the period is not that long, but we actually see the savings through the energy audits, for example through all the LED campaigns or through digital energy management.
What services do you offer in the area of ESG’s S?
In some cases, we have also created concepts for events that are held on site. For example, we checked the annual health calendar for a customer and organized campaigns such as a blood donation day. For this customer, we have also launched a Coffee Break after Corona. For this purpose, we provided an espresso bar with coffee and ice cream and cake on site and, together with the property manager, invited the tenants. Meeting and exchanging ideas on site was very well received by the tenants.
In addition, we are also actively reinstalling showers and changing rooms in office space to promote e-mobility. Cycling also promotes the health of employees. These are all topics that go into the social sphere. 10 to 12 years ago, people still laughed about the fact that points were awarded for being able to shower in the office as part of DGNB certification.
Have you noticed an increase in certification in the portfolio and if so, which certificate is used most often?
There is hardly a building in our portfolio that is not certified. Even if an infinitely valid building certificate has been issued for the construction of the building, for example according to LEED, many also have an existing building certificate. BREEAM is the most common choice here. This is the most widely used certificate pan-European that can be read and assessed by all. Besides, it is also the cheapest.
In addition, the certifications also have a different focus: While BREEAM in Use is very technical, DGNB takes into account many soft factors, such as well-being or the connection of the property to local transport.
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