Interpret data and derive targeted measures

Sustainability reporting is becoming increasingly complex. Various benchmarks, standards and certificates require a wide range of data and key figures. As Switzerland's leading real estate service provider, Wincasa manages the portfolios of several large institutional owners who are directly affected by these challenges. How can management fulfill this role?

Niklas Naehrig: ESG reporting has developed enormously in recent years - from voluntary disclosures to clear regulatory requirements. Institutional owners are under increasing pressure to provide transparent and robust ESG data. As managers, we are at the source of this information and play a key role in collecting and processing this data. Our sustainability team supports our clients by collecting and processing ESG-relevant key figures in a structured manner and making them available for annual reports, certificates and benchmarks. Together with Novalytica, we have developed technical solutions to largely automate data flows and ensure data quality.

Management is now moving into a new and extremely important position in property and portfolio management. Recording consumption data plays a central role in ESG reporting. How does Wincasa go about this?

We focus in particular on consumption data in the areas of energy, water and waste. The challenge lies in the heterogeneity of the data sources: A lot of information is available in unstructured formats such as PDF invoices. We use AI-supported solutions to make this process more efficient. Our technology can automatically read and structure consumption bills. We then check the plausibility of the data to minimize errors. Automated quality checks ensure that deviations are identified and corrected if necessary.

FM and management professionals need to familiarize themselves with new technologies such as IoT, big data and AI and be able to use them to manage buildings and facilities efficiently. The collection and analysis of building data is also becoming increasingly important in order to optimize efficiency and improve decision-making. Can management meet these needs?

The job description of both the property manager and the facility manager is constantly evolving. In addition to traditional tasks, digital skills are becoming more important. The implementation of IoT solutions, automated data collection and AI-supported analyses are essential in order to manage buildings efficiently. However, it should not be forgotten that these solutions themselves also cause maintenance costs. Our task as a real estate service provider is to train our specialists in these areas and at the same time provide solutions that make it easier to handle complex data. The property manager plays a key role here, as he or she acts as an interface between the owner, tenants and the technologies used. He or she must not only work with these systems, but also interpret the data and derive targeted measures.

Although ESG reporting standards enable a structured presentation of sustainability performance, there is often a lack of best practices for implementation. How are key figures, as required by standards such as AMAS, calculated from this?

The first step is the systematic collection of all relevant raw data. This is then combined with other factors such as area data and emission factors. For example, we calculate the CO₂ intensity of a property by multiplying the energy consumption by specific emission factors and then relating this to the total area of the property. We use automated processes to ensure that these calculations remain consistent and traceable.

However, the results must also be interpreted correctly.

In fact, ESG reporting has not yet achieved anything in terms of improving performance. It's about interpreting the results correctly and translating them into concrete measures. We are therefore convinced that we are closing an important gap at the interface between property management and asset management with our sustainability services.

In order to participate in a benchmark such as GRESB, but also for other reporting standards, other data is required in addition to consumption data. This data is often recorded in different systems. How can these data flows be brought together?

This is exactly where we come in with our data strategy. We recommend that our clients define a clear strategy for ESG reporting at an early stage: Which benchmarks and certificates are relevant? What data needs to be collected for this? Data from very different sources often needs to be consolidated in order to reduce the complexity of the data collection process. Together with Novalytica, we have developed a central ESG data platform that consolidates and prepares relevant information from different systems. Thanks to a consistent data structure, we can then generate the necessary reporting formats at the touch of a button.

The entire process, from data collection to the calculation of the relevant key figures, must be transparent and comprehensible. This shows how crucial efficient, well thought-out data management is for ESG reporting. Who guarantees the accuracy of the information provided?

Quality assurance takes place on several levels. On the one hand, we rely on modern technologies that automatically detect discrepancies in the data. Every calculated key figure must be traceable back to the source in every processing step. There are also increasing external auditing requirements: Benchmarks such as GRESB or regulatory standards require reporting to be traceable and verifiable by third parties. Our data collection processes therefore meet the requirements of the International Standard on Assurance Engagements (ISAE 3000).

Most of the data relating to a property is recorded manually. Particularly in the case of consumption data (electricity, water, waste), there are often no automated options for recording or direct data connection via interfaces to the utility companies. How can data collection be automated despite this heterogeneity?

Smart metering is a key solution to this problem, but coverage in Switzerland is still limited. For manual data collection, standardization of billing formats and formatting would be helpful and also in the interest of consumers. Even AI has its limits when it comes to evaluating the different formats. We rely on a combination of digital interfaces and AI-supported data collection. Our systems can extract consumption data from bills and transfer it into a standardized structure. The long-term goal is to establish direct interfaces to utility companies in order to obtain real-time data.

Solid ESG data management is therefore an indispensable component of a successful ESG strategy and helps real estate companies to identify risks at an early stage, exploit opportunities and achieve their sustainability goals. But does this also have a positive impact on returns?

Absolutely. A well-thought-out ESG strategy and a good maintenance strategy are not contradictory. They not only increase regulatory compliance, but also enhance the attractiveness of a property. Investors are increasingly paying attention to ESG criteria, and well-documented sustainability measures can have a positive impact on the value of a property. In addition, optimized consumption and maintenance costs lead to better financial performance in the long term.

So far, we have only talked about the E of ESG. To what extent will management also have to focus on the two letters S (Social) and G (Governance) in the future?

Sustainability management will become increasingly important. Factors such as tenant mix, inclusion and social responsibility are increasingly playing a role in real estate management. One example of this is Wincasa's housing estate coaching, which is specifically geared towards social sustainability in housing estates. This involves actively strengthening neighborhoods, identifying conflicts at an early stage and promoting community activities - with the aim of improving the quality of life for residents. The importance of transparency in data management and compliance with regulatory requirements is also increasing in the area of governance. Real estate management will therefore have to deal more intensively not only with energy consumption, but also with social and governance-related issues in order to meet the increasing requirements.

The job description of a property manager is currently undergoing major changes. Specialists are at the forefront of collecting data in buildings and must be able to handle the new technologies. To what extent is the shortage of skilled workers making itself felt here?

The change in management requires specialization and new skills. The demand for specialists with technical expertise is increasing, while the traditional, generalist job description of a property manager is changing. A good example of this is our Target Operating Model (TOM), which we are using to realign management structures. By specializing roles - such as the separation of residential and commercial properties and a clearer division of tasks between operational and administrative activities - we are creating more efficient processes and, at the same time, more attractive, future-proof job profiles.

How do you intend to achieve this increase in attractiveness?

We are increasingly focusing on training and further education for our employees. At the same time, digital solutions must be designed in such a way that they make work easier and not more difficult. By combining modern technology, clear role profiles and targeted training, we want to counteract the shortage of skilled workers and further develop the job description of a manager. Ultimately, this will also contribute to the various aspects of sustainability.