As ESG becomes a more serious concern, ESG accounting comes to the fore as Blue Module founder and CEO Paul Wessels explained.
“ESG information is moving towards financial information, information which affects the value of of real estate,” he told Real Asset Media’s Richard Betts. One consequence is that a process is needed which can be summarised as “test, verify, certify”.
“So be very objective and thorough in how you go about creating ESG information,” Wessels recommended.
Collaboration with other professionals is also key. “We create ESG accounting software, but to gather all the information, you need to collaborate with players in the market who can provide the data you need to get really good ESG reporting.”
He said one example is Freesi, a company which provides indoor climate management tools and generates information about air quality, and which is thus part of the solution to ESG reporting.
Data quality is an important consideration and Wessels said that frameworks are becoming important. In one example Blue Module is working with Dutch banks on an ESG annexe to valuations undertaken in the Netherlands. “You see this also from the side of the EU taxonomies like CSRD and SFDR. These are Frameworks which are becoming very important for investors in the real estate market.”