EVORA have developed the Tenant Environmental Benchmark Report designed to allow landlords to engage with their tenants on ESG performance using data provided by the tenant.
The challenge
Landlords across the real estate industry regularly request ESG data from their tenants, but rarely is this data used to provide direct feedback to the tenants on their individual performance. If ESG goals are to be achieved, the collaboration between the landlord and tenant is crucial. It often starts with the sharing of ESG data, and we believe the natural next step is to use this data to provide feedback on performance to:
1. Improve the landlord/tenant relationship
2. Improve the frequency and quality of future requested ESG data from tenants
3. Improve ESG performance across tenant-controlled assets
The solution
Using previously provided ESG data by tenants, we create simple, concise, tenant-specific ESG benchmark reports which comprise benchmarked energy, water and carbon performance against anonymised sector-specific data and industry standard benchmarks.
Both energy and water performance is benchmarked against sector ‘Typical’ and ‘Good’ performance, with ‘Good’ performance representing the performance of the 25th percentile, and ‘Typical’ the 50th percentile of tenants within each asset sector. Carbon performance will be benchmarked against a “1.5⁰C Carbon Benchmark” using CRREM.
Improvement recommendations across energy and water are also provided, informed by the asset class occupied.
The approach
Our Tenant Environmental Benchmark Reports require minimal input from clients and stakeholders.
For our existing clients, EVORA will advise on whether we need any additional information to proceed. We typically utilise existing information already held on our ESG data platform, SIERA, such as tenant consumption and asset sectors, though we will require tenant/unit floor areas, if not already held. tenant floor areas can be provided in the form of tenancy schedules.
For new clients, a request template can be issued to capture the relevant data points shown opposite.
Completed reports will be provided to asset owners and managers who are responsible for report distribution and engagement with tenants.
