ESG opens up endless possibilities

The current pandemic has prompted a growing corporate recognition of the importance of Environmental, Social and Governance (ESG) issues, according to Ken Ip, Chairman of Asia MarTechSociety, as he explains how 2021 was a pivotal year for investors when they started to adopt a more robust approach to sustainability-related risks. 

Going green all round

With over 80% of S&P 500 companies publicly reporting their ESG performance and standards, there is no doubt in the much more prominent role ESG plays within a contemporary company’s operations. As far as investors are concerned, many are making headway to a new trend of sustainable investing.

Seeing that there are tangible financial incentives from going green, developers are embedding ESG considerations into every stage of the property lifecycle, from due diligence to acquisitions. Increased emphases are being paid to Green labelling schemes such as LEED, BEAM Plus and WELL, as they are important measurements of a buildings’ environmental performance. These property certifications aid designers in pre-defining space utilisation for employees to maximise productivity, wellbeing and social equity.

Ip points out that viable green construction methods, such as Modular Integrated Construction (MiC) used in Hong Kong Science Park’s InnoCell pilot project, adopt the concept of ‘factory assembly followed by on-site installation’. MiC helps to ease some of the current challenges faced by the local construction industry by providing a great degree of production quality control, improving construction productivity, reducing carbon emissions and waste generation on site.

Data is the new oil 

Businesses are focusing on what Ip calls the new ‘ABCD Technology’ – Artificial intelligence, Blockchain, Cloud and Data. They are all ultra modern technologies aimed at preserving asset value while detecting, predicting and even preventing subpar environmental performances or anomalies within a building environment.

Ip points out that quite a few Hong Kong startups are implementing wireless IoT and sensors to mediate risks and vastly improve their company’s efficiency. “They can also retrieve data from various different channels to predict and aid in the brand’s customer service,” he adds.

Another phenomenon gaining traction in the real estate world is social commerce - the convergence of social media and e-commerce - as used in Instagram live property auctions or virtual reality showrooms. Surveys show that 60-70% of millennial investors or end-users are demanding assets with higher levels of social commitment; they in turn would reward the company with stronger brand loyalty.

Making data-driven decisions

In a recent address at the Asia Pacific Real Estate Summit, Ip explained that marketing is often mistaken as menial in the real estate industry, however marketing technology plays a significant strategic role in advocating awareness and shaping a company’s ESG proposition. “Marketers can make or break a brand’s DNA; they persuade investors and all stakeholders in your company’s values, outcomes and goals. What they communicate with the world must be strategically aligned with the company,” Ip stressed.

Systematic and quantitative marketing technology (MarTech) is likely to revolutionise post-pandemic marketing operations as companies look for actions that can be replicated and scalable. “We use technology to automate repeatedly so as to facilitate the business to make rational and informed decisions. MarTechcan be seen in other property types such as restaurants, hotels, F&B and even real estate.”

Striking a balance

“I was fortunate enough to work with companies with a strong commitment to ESG,” Ip notes. “In fact, many new tech companies’ core values include equity, diversity and inclusion, thereby enhancing the transparency of procedures and decision making.

Ip recalls working on large-scale infrastructure projects and says that the hardest thing to accomplish was striking a balance between design, commercial viability and being environmentally conscious at the same time.

“But by creating strong ethical and social platforms, companies can strengthen operational resilience and be better positioned to withstand any crises,” he stresses.

Asia MarTechSociety

Email: info@asiamartech.org