EXPO: benchmarks crucial to implementing ESG strategies

Benchmarks are an essential part of the move from decision to implementation, experts agreed at the Data driven decarbonisation, valuation and implementing ESG Strategies briefing, organised by Real Asset Media, which took place at the International Investors Lounge at EXPO Real.

¨Benchmarks are crucially important¨, said Paul Wessels, Founder, Blue Module. ¨In the Netherlands an ESG report is now needed for valuation, which has been a real breakthrough. There is also a need for a clear standard for circularity, but what is positive is that progress is being made and business behaviour is changing.¨

Benchmarks like CRREM have provided guidance and clarity in the market.

¨We see the CRREM pathway as the starting point, telling us how to proceed¨, said Joost Leendertse, Founder & CEO, VerusSol. ¨But the problem is that regulation is onerous and costly and complex. We need leaner, simpler, clearer rules to incentivise implementation.¨

A lot of progress has been made on the operational carbon front, but now there needs to be more of a focus on circularity and existing buildings.

¨People tend to postpone difficult decisions and regulation is still not where it is supposed to be, because the market needs clear guidance¨, said Hunter Kuhlwein, Chief Technology Officer, CRREM Foundation. ¨The CRREM pathway provides clarity and that also unlocks finance, but there is an urgent need to move from reporting to acting. Time is running out and the decarbonising challenge must be tackled.¨

There is still little knowledge about how circularity works in practice and few actionable facts for companies to base their decisions on, but things are moving in the right direction. 

¨We are seeing a real shift in perspective on circularity¨, said Ann Kathrin Goerke, Circular Consultant & ESG Manager, Consular. ¨There´s a real shift in demand on re-using all materials and we have software to make it clear how they can be used and can also guarantee the product. It is the circular economy in action.¨

Having clear goals and setting out every step of the path ahead is important, but so is bringing every one on board and moving in the same direction.

¨We have broad goals, like being climate-neutral by 2029, but we also focus on every aspect of implementation¨, said Vesa Palander, Business & Development City of Turku. ¨Leadership is key and the goals must be communicated clearly, there must be a link between climate politics and actual implementation, otherwise your contractor will use the cheapest possible concrete, for example.¨

That link between lofty goals and practical, everyday implementation is crucial in order to see real progress.

Otherwise, as Samantha Rowland, Director, Healthcare Operational Living Advisors, said, ¨we are in danger of hitting the mark but missing the point. The challenge is getting our of our silos and communicating clearly. Valuation is also a key piece of the puzzle.¨