Residential assets have unique challenges when it comes to implementing ESG
When it comes to ESG implementation, the apartment industry faces different challenges than other property types. Education and engagement are key, as are providing the right types of amenities.
“ESG program strategies need to be tailored to the needs of the specific property type, and each property type will face its own set of hurdles. Some of the challenges for the multifamily sector include data coverage and building electrification/decarbonization,” says Philip Carmody, head of ESG at GID.
Residential buildings can be thought of as a B2C industry (business to consumer), unlike commercial buildings, which are a B2B industry (business to business). Individual consumers have very different needs and wants than business consumers, and apartment owners must rely on individual tenants to act in a sustainable manner by saving energy, conserving water and limiting their own waste.
With apartment buildings, you see “individuals making decisions for themselves,