Five Ways ESG is Transforming Multifamily Utility Management

ESG in multifamily housing is all the rage. These three letters – which stand for Environmental, Social and Governance – are making a big difference in how the apartment and multifamily real estate industry is viewing, measuring and managing its communities. At first glance, ESG appears to be only about sustainability. But there is much more. ESG also stands for driving efficiency of resources, lowering risk and increasing efficiency with energy, waste and water utilities that impact the financial well-being of apartments and other real estate. It’s all in how your organization and community approach a new metric that today holds as much weight as traditional key performance indicators in multifamily property management. Call it an operational metric or an environmental badge of honor – or both. Like many industries, multifamily is following the path of global sustainable investing, one that has grown 15% to $35.3 trillion between 2018 and 2020. Owners and operators are forming ESG strategies and engaging in a dynamic that is driving not only a sustainability stamp of approval but real asset value as well. $1 of every $3: the ‘ESG megatrend’ in multifamily In a recent webcast, RealPage Vice President of Sustainability Mary Nitschke and Chief Evangelist for Smart Energy Carol Schmitt gave an overview of ESG and the financial and social impact on multifamily. They said ESG is the megatrend in the industry. “Ideas around ESG have had a big impact on multifamily real estate and the investors behind it,” said Nitschke. “There are trillions of dollars in investment, and there is a focus on multifamily. Portfolios are demanding that they have ESG policies in place.” Schmitt noted that $1 in every $3 managed by investment firms (totaling about $50 trillion in assets) are earmarked for ESG by 2025. Property operators who deploy efficiencies in these areas and measure them through benchmarking and reporting...