To decide which ESG measures to invest in, asset managers compare them according to various factors such as expected market value, CO2 savings and execution costs. But subsidies and possible increases in rent are also essential for the prioritisation. However, this data is hard to come-by as subsidies and potential rent hikes vary by region, building purpose and building location.
Some asset managers spend lots of time building their own simplified calculation models. But this requires complex cost-benefit calculations to determine economic profitability and sustainability savings. So, asset managers need a deep understanding of the relationships between variables. Yet often, the necessary expertise for these calculations is missing.
As already mentioned, time and in-depth knowledge are necessary. Rarely are these resources available in-house. So, many outsource the evaluation of such measures to external parties. This, in turn, means high costs and dependencies.
To sum up, a simple and scalable way to compare ESG measures by costs and benefits internally is missing.