In December 2024 and January 2025, Luc was joined by industry experts James Cahill (Senior ESG Manager, Aliro Group), Simon Wild (Founder & CEO, Andefena), and Jordy van Ommen, Yetsuh Frank and Paul Wall of Scaler for a series of Masterclasses on data strategy. Below you'll find practical insights from those webinars. If you'd like to view a recording, get in touch at info@scalerglobal.com.

Collecting comprehensive, reliable data is becoming increasingly important for real estate investors and managers—especially with the growing focus on sustainability and the advent of regulations such as the Corporate Sustainability Reporting Directive (CSRD). Yet data is often scattered across different systems and departments making it difficult to build a single source of truth. Accuracy, consistency, privacy, and regulatory requirements all add to the complexity of data collection.

Below are some key considerations and steps to help you streamline data gathering—from the initial identification of assets and meters to transforming raw numbers into actionable analytics and reports.

1. Identify Your Reporting Obligations

Before you start collecting data, it is crucial to know exactly which regulations, frameworks, and standards apply to you. Understanding these requirements upfront helps shape your data collection strategy and ensures that you capture the right data in the right format.

• Mandatory Regulations

  • Building Performance Standards (BPS) in the US: Increasingly, cities and states across the United States are implementing local BPS, which set performance targets for buildings. For instance, Local Law 97 (LL97) in New York City requires buildings to meet strict carbon emission thresholds, influencing the type and granularity of data you need to collect.
  • SFDR (Sustainable Finance Disclosure Regulation): Requires financial market participants and advisors to integrate and disclose sustainability risks in their processes and investment decisions.
  • EU Taxonomy: Classifies economic activities considered sustainable, guiding investors on which projects meet specific environmental standards.
  • CSRD (Corporate Sustainability Reporting Directive): Expands on existing non-financial reporting requirements, ensuring more detailed and standardized ESG disclosures.
  • ASRS (Australian Specific Requirements): Entities operating in Australia may need to adhere to specific reporting guidelines such as ASRS.

• Voluntary Frameworks

  • GRESB (Global Real Estate Sustainability Benchmark): Provides ESG benchmarking for real estate portfolios, focusing on performance data and management practices.
  • GRI (Global Reporting Initiative): Offers a widely recognized set of global standards for sustainability reporting.
  • PCAF (Partnership for Carbon Accounting Financials): Provides a framework for measuring and disclosing greenhouse gas emissions linked to loans and investments.
  • INREV ESG SDDS (European Association for Investors in Non-Listed Real Estate Vehicles’ ESG Sustainability Data Disclosure Standard): A standardized template designed to facilitate consistent ESG data collection and reporting among real estate funds.

By reviewing both mandatory and voluntary guidelines at the outset, you can avoid duplicating efforts and create a cohesive, centralized data collection process. Some tips & tricks:

• Create a “Compliance Calendar”: Map out deadlines and submission windows for each relevant regulation or framework to ensure you never miss a due date.
• Maintain a “Responsibility Matrix”: Assign internal ownership of specific reporting standards to avoid confusion and duplication of effort.
• Stay Updated: Regulations evolve quickly. Keep tabs on official websites or subscribe to industry newsletters to catch the latest changes.

2. Understand the Data Collection Challenge

1. Scattered Data Sources: Real estate managers often deal with a variety of data—financial figures, operational metrics, and sustainability indicators—all housed in different systems or held by different departments. This fragmentation can slow down the reporting process and lead to gaps in data coverage.
2. Data Quality and Reliability: Even if data is available, it may not always be accurate or up to date. Inconsistent or missing entries can undermine confidence in analytics and decision-making. The result is a domino effect where flawed data leads to questionable reports and ineffective strategies.
3. Compliance With Regulations: Data collection in real estate has additional complexity due to privacy regulations and emerging sustainability reporting standards like the CSRD. Collecting data responsibly and ensuring that it aligns with regulatory expectations are not just boxes to be ticked—they are essential for maintaining investor trust and operational integrity.
4. Volume and Variety: From energy and water usage statistics to tenant engagement metrics, the sheer amount of data can be overwhelming. This data fragmentation creates a pressing need for automated tools and processes to help organize and analyze information in a timely manner.

3. Kick Off Your ESG Data Collection Season

Real estate investors are increasingly prioritizing ESG factors to address sustainability concerns and meet stakeholder expectations. If you’re beginning your ESG data collection process, here are some critical steps to keep in mind:

A. Update Asset Characteristics

1. Document New or Sold Assets: Ensure you have a clear overview of your portfolio. Any newly acquired properties or those that have been sold or retired should be reflected in your data records.
2. Record Major Renovations and new development assets which need to be reported: If you’ve made any significant changes—such as upgrading HVAC systems or improving insulation—make sure to document these, as they will have a direct impact on your energy usage and ESG metrics. The definition from GRESB for major renovations is: ‘Alterations that affect more than 50 percent of the total building floor area or cause relocation of more than 50 percent of regular building occupants. Major renovation projects refer to buildings that were under construction at any time during the reporting year
3. Check Occupancy Rates and Gross Asset Values: Occupancy and asset value are not only financial indicators but also influence your ESG calculations, especially when normalizing consumption data.

B. Gather Asset ESG Data

1. Energy Ratings & Certifications: Collect up-to-date information on any relevant certifications such as LEED, BREEAM, Energy Star ratings, NABERS stars or Energy Performance Certificates (EPC). These help contextualize your sustainability performance. Where possible, also record the underlying data which can be helpful when prioritizing CAPEX investments to improve the ESG performance of your buildings.
2. Green Leases: Keep track of any clauses or agreements that promote energy efficiency, waste reduction, or other sustainable practices within tenant spaces. Typically recorded at a unit/tenant level.
3. Tenant Engagement Metrics: Gathering data on tenant participation in sustainability programs—such as recycling rates or green commuting incentives—will help you understand and improve overall environmental impact.

C. Update Meters and Consumption Data:

1. Meter Verification: Before collecting consumption data, verify that all energy, water, and waste meters are functioning and accurately recording usage. If you switched from natural gas to electric heating or installed additional sub-meters, make sure these changes are noted.
2. Collect Data from Property Managers and Automated Systems: Property managers often maintain monthly or quarterly reports on utility consumption. Combine these with automated data feeds for real-time or near-real-time insights.
3. Estimate Missing Data: Despite your best efforts, gaps in data might still occur. Use estimation methodologies (e.g., based on historical averages or occupancy) to fill in missing values and maintain a complete dataset.
4. Keep Historical Records: Don’t discard old data once you’ve updated your records. Historical trends can provide important insights for forecasting, identifying irregularities, and meeting regulatory reporting requirements.

​​ Tips & Tricks

• Standardize Metrics: Use the same metrics (e.g., kg of waste, kWh of energy) across the portfolio to simplify aggregation and comparison.
• Adopt a Consistent Naming Convention: Label meters and consumption streams in a uniform way (e.g., BuildingName_MeterType_Date) to avoid confusion.
• Leverage Smart Devices: Consider installing smart meters for more granular data, especially if local regulations (e.g., BPS) demand frequent reporting or specific data points.
• Conduct Spot Checks: Occasionally validate automated readings against manual checks to maintain confidence in your data’s accuracy.

4. From Raw Data to Actionable Reports

Once you’ve gathered all relevant data, the next step is to transform these numbers into meaningful insights.

1. Clean and Validate Data: Standardize the format of your collected data, remove duplicates, and check for anomalies. Validation rules—for example, flagging consumption spikes that exceed average usage—can help catch errors early.
2. Consolidate into a Central Repository: Reduce data fragmentation by storing all information in a single, secure database or data platform. This could be a specialized ESG software solution, a data warehouse, or a cloud-based platform that allows for easy sharing and auditing.
3. Analyze for Insights: Use analytical tools and dashboards to convert data into insights. Identify trends in energy consumption, detect cost-saving opportunities, and track the effectiveness of sustainability initiatives.
4. Generate Comprehensive Reports: Tailor your reporting to the needs of various stakeholders:
   • Internal Teams: Provide operational dashboards that highlight day-to-day management metrics.
   • Investors and Regulators: Align your reports with recognized frameworks like GRESB or the CSRD.
   • Tenants: Offer transparent information on consumption and engagement opportunities to encourage sustainability practices.

5. Navigating Data Privacy and Security

Throughout your data collection and analysis processes, maintain vigilance about privacy and security regulations. Implement:

• Access Controls: Ensure only authorized personnel can view or edit sensitive data.
• Data Encryption: Protect data both in transit and at rest.
• Compliance Frameworks: Regularly review your policies to align with data protection laws (e.g., GDPR) and industry guidelines.

6. Looking Ahead

Successful data collection is not a one-time exercise but an evolving strategy that grows alongside regulatory demands and technological advancements. By taking a structured approach—updating asset characteristics, verifying meter data, and aligning with privacy regulations—you’ll build a robust foundation for your ESG reporting and sustainability goals.

As you refine your data processes, keep exploring new automation tools, platforms, and partnerships that can further enhance data accuracy and reporting capabilities. Ultimately, the aim is to transform raw data into actionable insights that help you optimize portfolio performance, meet emerging regulations, and demonstrate tangible progress toward sustainability targets.