How ESG drives proptech innovation
The insights as summarised in this article were provided by Julian Kezelman (Taronga Ventures), Rebecca Cope (Ashurst) and Angus Moore (PropTrack) through The Proptech Panel: what lies ahead?
A holistic view of Environmental, Social and Governance (ESG) at home and abroad
Proptech companies need to take a holistic approach to ESG to gain a full understanding of its true value, and impact, of implementation. As ESG continues to improve asset management in areas like waste reduction, water usage, and the internal environment, a better understanding of the impact on all stakeholders, from employees and communities to service providers, can be the key difference between successful implementation and failure.
Internationally, ESG standards are also a key focus, with governments and investors in Europe pushing for more environmentally friendly and socially responsible buildings. This is influencing the development of real estate technologies in the region.
In the US, there is a trend of consolidation in the proptech industry, with financially strong companies acquiring others to build larger platforms. For example, Measurabl, a provider of ESG data, is expanding its offerings by acquiring smart building platforms.
In Asia and the Middle East, the emphasis is on urbanisation and construction, leading to a boom in construction tech as people look for advanced building solutions.
It’s recommended that proptech founders prioritise responsible governance, diversity, inclusion, and sustainability within their own businesses. By doing this, they will be able to work more efficiently and effectively with owners of large companies and international partners in order to achieve their own ESG goals with credibility.
Managing real estate assets with technology
One of the biggest changes in the industry is the use of technology to manage real estate assets. This is different from the way things used to be done, which was often with pen and paper, or with people physically inspecting buildings and taking notes.
One example of technology that helps manage real estate assets is Trendspek. Trendspek uses drones to capture photos of the exterior of buildings and then uses those photos to create a 3D model of the building. This 3D model can be used to inspect the building for things like damage, maintenance needs, and better planning for future improvements. This technology is important because it makes real estate asset management easier and more efficient. It saves time and money and ensures buildings are safe and in good condition.
Takeaways for Australian proptech
It's important to consider a multi-market approach from the outset. This means designing your product with deployability across markets in mind, rather than focusing solely on domestic growth before expanding internationally. This mentality is prevalent in Singapore, MENA, and Europe. For Australian proptech, the domestic market provides a great opportunity to build up their company before considering expansion to other regions. However, in other major regions such as the US, the focus tends to be more domestically driven.
If you have a proptech solution you'd like to scale, learn more about Stone & Chalk's support for proptech startups and scaleups.
