ESG factors have moved to the top of the agenda in the real estate industry worldwide. This shift is driven by mounting pressures such as climate change, social inequality, and demands for better corporate governance. The built environment is responsible for about 42% of annual global CO₂ emissions, making real estate a crucial front in the fight against climate change. In addition to environmental impacts, property companies face expectations to contribute positively to society and to uphold strong governance practices. Investors increasingly favour organisations that perform well financially while operating with well-managed ESG awareness, seeing this as a sign of decreased risk and long-term success potential. Globally and in South Africa, robust ESG performance has been linked with long-term competitive and financial advantages. In short, ESG imperatives in real estate are not only about “saving the planet” but about ensuring the sustainability and resilience of the property sector itself. Executives in Real Estate Investment Trusts (REITs) are thus challenged to integrate ESG considerations into strategy and to transparently report on ESG performance, which in turn demands effective ESG data management.

ESG Imperatives in Real Estate: Global and Local Overview

Global drivers: Around the world, regulators and investors are pushing the real estate sector to improve its sustainability profile. Buildings account for up to 38–42% of global carbon emissions, and 80% of the buildings that will exist in 2050 are already standing today. This means retrofitting and improving existing assets is critical. Global accords, such as the Paris Agreement, and initiatives like the UN Sustainable Development Goals underscore the real estate sector’s responsibility to reduce carbon footprints, improve energy efficiency, and contribute to social well-being. Investors are also driving change: surveys show that they are taking active steps to support organisations that embed sustainability and good governance into their operations. In real estate investment, major asset owners and lenders increasingly require ESG disclosure and performance data before committing capital. Failure to meet these expectations can result in reduced access to financing or exclusion from certain investment portfolios. Conversely, strong ESG performers often enjoy easier access to capital and more favourable financing terms, as well as enhanced reputation with stakeholders.

Local South African context: South Africa’s real estate sector faces unique ESG challenges and imperatives. The country’s heavy reliance on coal-based electricity and ongoing energy supply issues (load shedding) mean that energy efficiency and renewable energy projects (like solar PV installations) are top priorities for REITs. Water scarcity in parts of the country also places emphasis on water management and recycling. Social factors – such as economic inequality, transformation (B-BBEE policies), and community development – are especially pertinent locally, requiring property firms to consider their impact on local communities, tenants and employees. Furthermore, South Africa has a strong corporate governance tradition through the King Code. King IV (2016) in particular stresses that a company’s strategy, risks, opportunities, performance and sustainable development are inseparable elements of value creation. This principle has ingrained an integrated thinking approach in South African boardrooms, where financial and ESG matters are considered holistically.

Another local driver is the evolving regulatory environment. The Johannesburg Stock Exchange (JSE) has introduced voluntary sustainability and climate disclosure guidelines (discussed later) to guide companies on ESG reporting. Importantly, South African authorities are moving toward mandatory ESG disclosures. The Companies and Intellectual Property Commission (CIPC) has begun requiring companies to file ESG reports in alignment with new international sustainability standards, initially on a voluntary basis from late 2023, with a plan to make this mandatory for certain entities (such as publicly listed and state-owned companies) from 2025 onward. This regulatory trajectory underscores that ESG reporting is not just a “nice to have” – it will be a compliance issue and a governance imperative. For South African REITs, operating in a society with pressing socio-economic needs and in an economy transitioning toward lower carbon, addressing ESG imperatives is both a moral duty and a business necessity.

ESG Data Management in South African REITs: Current Landscape

Within South Africa’s REIT sector, awareness of ESG has grown significantly, but approaches to ESG data management have been evolving. Many leading REITs already produce detailed sustainability or ESG reports as part of their annual integrated reports. These typically cover key metrics like energy and water consumption, carbon emissions, socio-economic contributions, and governance practices. However, until recently there was no uniform standard for what data to collect and how to report it, leading to inconsistencies across the industry.

To address this, the South African REIT Association (SA REIT) in partnership with Nedbank CIB launched the SA REIT Sustainability Disclosure Guide in late 2024. This guide establishes sustainability reporting standards and best-practice benchmarks tailored for the local property sector. It is described as a “valuable resource” to help REITs improve their ESG reports, providing a framework aligned with international standards yet grounded in the South African context. The primary goal is to enhance the reliability, consistency, and comparability of ESG data among South African REITs. By standardising key sustainability concepts and metrics, the guide facilitates objective analysis, better valuations, and easier benchmarking of ESG performance across companies. It aligns closely with the JSE’s broader Sustainability Disclosure Guidance of 2022 and global best practices (including frameworks like GRI and SASB), but also addresses property-specific and South Africa-specific issues. For example, international decarbonisation frameworks may not account for local constraints such as municipal restrictions on electricity wheeling or the lengthy process of obtaining water-use licences in South Africa. The SA REIT guide acknowledges these realities, ensuring that recommended disclosures are relevant and practicable for South African property owners. Although use of the guide is voluntary (it’s not a regulation), its introduction marks a significant step toward a unified approach to ESG data in the sector.

The current landscape thus features a mix of leaders and laggards. On one hand, several prominent SA REITs have been early adopters of ESG benchmarking and reporting. For instance, Growthpoint Properties, Redefine Properties, Hyprop and Fortress REIT are among the South African firms participating in the Global Real Estate Sustainability Benchmark (GRESB). In 2021, they comprised the bulk of African entries in that global benchmark. These companies have invested in data collection systems and sustainability initiatives, often achieving recognition as sector leaders. On the other hand, smaller or less resourced REITs may still be developing their ESG data capabilities. Industry-wide, the new guidance and investor pressure are encouraging all REITs to upgrade their data management – moving from basic compliance (tick-box reporting) towards leveraging ESG data strategically for risk management and value creation.

ESG Reporting Frameworks and Standards

ESG data management does not occur in a vacuum – it is guided by various reporting frameworks and standards that define what should be measured and how it should be reported. South African REITs must navigate both international frameworks and local guidelines. Below is an overview of the most relevant frameworks:

International Frameworks

• Global Real Estate Sustainability Benchmark (GRESB): GRESB is the leading global benchmark specifically for real estate ESG performance. Founded in 2009, its mission is to provide a consistent framework for real estate companies and funds to report ESG performance. GRESB has become a de facto standard used by international investors to compare property companies. It aligns its indicators with major global agreements and standards – for example, GRESB’s framework is informed by the UN Sustainable Development Goals, the Paris Climate Accord, TCFD, UN PRI, GRI, and others. Each year, participants (including many REITs) complete a detailed assessment covering both management & strategy (e.g., policies, risk management, stakeholder engagement) and asset performance (e.g., energy use, GHG emissions, water, waste). The assessment is rigorous and self-reported annually, often with external assurance for data points. GRESB provides a score and rankings, which investors can use to gauge a company’s ESG standing. For South African REITs, participating in GRESB provides an opportunity to benchmark against global peers and identify areas for improvement. In recent GRESB results, one notable trend was an improvement in data quality – more companies are having their ESG data externally reviewed or assured, resulting in higher-quality information that investors trust. GRESB also noted improved data coverage (more assets being tracked for energy, water, etc.), which is crucial for meaningful performance improvement. Essentially, GRESB encourages companies to collect comprehensive, verified ESG data, making it a valuable framework for achieving data management excellence.
• UN PRI (United Nations Principles for Responsible Investment): The UN PRI is a set of six principles that serve as a global benchmark for investors to incorporate ESG into their investment decisions. While PRI is targeted at investors (asset owners and asset managers) rather than operating companies, it has a significant influence on REITs. Many institutional investors in South Africa (for example, the Public Investment Corporation, the country’s largest asset manager) are PRI signatories. Signatories commit to consider ESG issues in their investment analysis and to seek appropriate ESG disclosure from investee companies. For REIT executives, this means that major shareholders are asking for robust ESG data. Being responsive to UN PRI-driven requests often involves producing detailed sustainability reports, disclosing ESG performance metrics, and engaging on ESG improvement plans. In summary, UN PRI creates top-down pressure on REITs to manage and report ESG data in line with investor expectations. It also promotes principles like active ownership and transparency that align with improving ESG governance at REITs.
• TCFD (Task Force on Climate-related Financial Disclosures): TCFD is a global framework, developed by the Financial Stability Board, that provides recommendations for climate-related disclosures. It focuses on how an organisation governs and manages climate risks and opportunities, and it calls for disclosure in four areas: Governance, Strategy, Risk Management, and Metrics & Targets. TCFD has quickly become a cornerstone for climate disclosure worldwide. In real estate, it means reporting on issues like building portfolio exposure to physical climate risks (e.g. floods, droughts), transition risks (e.g. new carbon regulations), emissions trajectories, and mitigation strategies. Importantly, TCFD encourages scenario analysis – examining how property values and income might fare under different climate scenarios. South African regulators and exchanges have adopted the TCFD: the JSE’s Climate Disclosure Guidance is based on TCFD principles, and the upcoming international standards (IFRS S2) incorporate TCFD recommendations. Many South African REITs have voluntarily started aligning their reporting with the TCFD. For example, they might include a TCFD index or section in their annual reports, outlining climate governance at the board level, identifying climate risks (such as water shortages or energy price increases), and steps taken (such as energy diversification projects). Adopting the TCFD helps REITs demonstrate to investors and lenders that they are systematically addressing climate risk – a particularly material issue, given South Africa’s vulnerability to climate change and its carbon-intensive economy.
• Global Reporting Initiative (GRI) and SASB Standards: The GRI Standards are the most widely used framework globally for sustainability reporting across all sectors. They provide a comprehensive set of ESG performance indicators covering everything from greenhouse gas emissions to labour practices to community impacts. Many South African companies, including REITs, have historically used GRI to guide their sustainability reports. The new SA REIT disclosure guide specifically highlights GRI and SASB (Sustainability Accounting Standards Board) as global standards it aligns with. SASB, now consolidated under the IFRS Foundation, offers industry-specific ESG metrics. For real estate, SASB has tailored metrics (e.g., energy intensity of properties, tenant safety) that are financially material. By using GRI and SASB metrics, REITs can ensure they report decision-useful ESG information that is comparable internationally. These frameworks contribute to data standardisation: for instance, reporting on energy and water intensities per square metre, or % of assets with green building certifications, or employee turnover rates – all according to defined methodologies. GRI also encourages organisations to report on their management approach to each material topic, thereby linking data to narrative context. In South Africa, integrated reports often use GRI as a reference, and some seek external assurance on key GRI indicators (like verified carbon emissions data) to boost credibility.
• ISSB IFRS Sustainability Disclosure Standards: A very recent development on the international stage is the formation of the International Sustainability Standards Board (ISSB) under IFRS. In 2023, the ISSB issued its first two standards – IFRS S1 (General Requirements for Sustainability Disclosure) and IFRS S2 (Climate-Related Disclosures). These effectively consolidate elements of TCFD, SASB, and others into a harmonised global baseline for sustainability reporting. South Africa, through its regulators, has shown strong support for these standards. In fact, the CIPC updated its XBRL filing system in October 2024 to allow companies to tag ESG disclosures aligned with IFRS S1 and S2. It is anticipated that in the coming years, JSE-listed companies (including REITs) may be required or encouraged to report in line with ISSB standards, which would ensure global alignment. For executives, this means ESG data management should be forward-looking – getting systems ready to capture the data points these standards require (for climate: Scope 1, 2, and 3 emissions, climate risk metrics; for general sustainability: broad topics akin to those in GRI/SASB). Early preparation is wise: companies are advised to start filing ESG reports with CIPC from Q4 2023 as a preparatory step. Aligning with ISSB standards will also simplify reporting for those REITs that operate or attract investors across multiple jurisdictions.

South African Frameworks and Guidelines

• JSE Sustainability Disclosure Guidance (2022): The Johannesburg Stock Exchange, recognising its role in promoting ESG transparency, issued a voluntary Sustainability Disclosure Guidance (SDG) in June 2022. This guidance serves as a practical manual for listed companies on what and how to report regarding sustainability matters. It is closely modelled on international best practices (drawing from GRI, TCFD, etc.) but also addresses South Africa’s context, ensuring relevance for local issues. The JSE guidance identifies key narrative disclosure areas – namely, a company’s governance (board oversight of ESG), its strategy in relation to sustainability, risk management, and a set of core metrics. It then provides detailed metrics across ESG topics: for example, recommended governance metrics include board composition and ethical behaviour; social metrics include labour standards, health & safety, and community investment; environmental metrics include climate change (emissions, energy), water usage, waste management, and biodiversity impacts. Companies can report via various formats (integrated report, standalone sustainability report, etc.), but the guidance emphasises clarity on the purpose and audience of the sustainability disclosure. For REITs, using the JSE guidance ensures that their ESG reporting covers the bases expected by the market and regulators. The benefits of doing so are substantial: the JSE notes that good sustainability disclosure can enhance a company’s ability to attract capital (including potentially lower cost of capital), drive internal efficiencies and growth (through cost savings and risk mitigation identified by ESG data analysis), improve compliance, and boost reputation and stakeholder trust. Essentially, the JSE has provided a roadmap for “what good looks like” in ESG reporting – and SA REITs are encouraged to follow it, especially since the SA REIT Association’s own guide is built on this foundation.
• King IV Code of Corporate Governance: While King IV (developed by the Institute of Directors in Southern Africa) is not an ESG reporting framework per se, it is highly relevant. King IV (2016) is a set of 17 principles that all South African organisations (public, private, listed or not) are urged to apply under a “apply and explain” regime. Principle 4 of King IV explicitly links to sustainability, stating that the governing body should ensure that the organisation’s core purpose and strategy are inseparable from its pursuit of sustainable development. King IV thus embeds ESG into the concept of value creation. For REIT boards, this means ESG matters (e.g. climate risks, tenant well-being, ethics) should be integrated into risk registers, strategy sessions, and performance evaluations. The JSE requires listed companies to report on how they apply King IV, effectively mandating disclosure on these governance practices. King IV also expects boards to oversee and approve integrated reports, which include material sustainability information. Hence, it drives the governance of ESG data – establishing that there should be robust systems and controls for ESG information, much as there are for financial data. In practice, many SA REITs have Social & Ethics Committees (a requirement under the Companies Act for certain companies) which, alongside Audit & Risk Committees, ensure that ESG data and reporting receive board-level scrutiny. Adhering to King IV’s ethos means REITs treat ESG data with the same rigour as financial data, enabling more trustworthy and strategic use of that information.
• JSE Climate Disclosure Guidance (2022): In tandem with its general sustainability guide, the JSE also released a Climate Change Disclosure Guidance. It provides more granular direction specifically on climate-related disclosures, aligning strongly with TCFD. It covers recommended disclosures on climate governance, strategy (including transition plans), risk management processes for climate, and metrics/targets (like emissions, energy use, scenario analysis outcomes). The climate guide is voluntary but dovetails with future ISSB climate standards. For REITs, this is particularly useful given that real estate is directly impacted by climate (physical risks like extreme weather, and transition risks like energy costs/carbon tax). By using the JSE climate guide, REITs can methodically report climate risks – something that investors and lenders (e.g. banks following Prudential Authority guidance on climate risk) are increasingly expecting.
• SA REIT Association’s Sustainability Disclosure Guide (2024): Mentioned earlier, this new guide is a sector-specific adaptation of global frameworks for the property industry. It aligns with GRI, SASB, TCFD, and uses the JSE guidance as a foundation. The value of this guide is that it interprets broad ESG concepts for real estate. For instance, where global standards talk about “GHG emissions reduction,” the SA REIT guide might discuss practical issues like installing solar panels or energy-efficient retrofits in buildings – providing context on how to measure and report these initiatives in a REIT context. It also shares best practices like using intensity metrics (e.g. energy per square meter) to allow comparisons across portfolios, and encourages disclosure of certifications (Green Star, LEED ratings of buildings, etc.) as indicators of environmental performance. By following the SA REIT guide, a REIT can produce an ESG report that is both globally credible and locally relevant. Executives should note that while it’s voluntary, broad uptake of the guide could pre-empt future regulation and demonstrate industry self-regulation. It’s a tool to help REITs get ahead of mandatory requirements by standardising now. Joanne Solomon, the SA REIT CEO, highlighted that the guide’s aim is to “foster a unified approach to sustainability” in the sector, integrating sustainable practices into business strategies to enhance resilience and value.

In summary, a South African REIT today has a suite of frameworks to draw upon: global ones like GRESB, PRI, TCFD for benchmarking and meeting investor expectations, and local ones like JSE’s guidance and King IV to ensure alignment with domestic best practices and impending regulations. Savvy ESG data management involves selectively combining these – for example, using the SA REIT metrics (which are aligned to GRI/SASB) as the basis for internal data collection, using a platform that can output data for GRESB and CIPC filings, and ensuring narrative disclosure follows TCFD and JSE guidelines. The frameworks are increasingly interconnected, which helps streamline reporting (for instance, ISSB standards will make it easier to satisfy both investors and regulators with one set of disclosures).

Challenges and Opportunities in ESG Data Collection and Integration

Managing ESG data in the real estate context presents a number of challenges, but also significant opportunities for REITs that can overcome those hurdles. Below we outline key challenges in ESG data collection, standardisation and integration, and the flipside opportunities that arise from improving in these areas:

1. Data availability and granularity: Real estate companies often struggle with gathering complete data, especially at the property level. For environmental data (energy, water, waste), information may be split between landlord-controlled and tenant-controlled areas. In South Africa, many commercial leases are triple-net, meaning tenants manage their own utility accounts. This creates a data availability challenge: landlords might not easily access tenants’ consumption data. As investor expectations evolve from annual to quarterly ESG reporting, REITs need more timely data streams. The opportunity here is to collaborate with tenants and utilities to obtain whole-building data. Technologies like automated meter reading or agreements to receive tenant usage data can fill gaps. Greater data availability (e.g. obtaining 100% coverage of energy usage for all buildings) allows REITs to identify inefficiencies and cost-saving opportunities (such as unusually high consumption in a particular building). It also enables them to demonstrate improvements (e.g. reductions in like-for-like energy use) more credibly to stakeholders. Companies that solve data access issues gain a strategic edge by having a fuller picture of their portfolio’s ESG performance.

2. Data consistency and standardisation: Without standard frameworks, different REITs (or even different departments within one REIT) might track ESG metrics differently – for example, using various units, scopes, or methodologies. This inconsistency hampers comparability and integration of data. The push from SA REIT and JSE guidelines towards common metrics and definitions is directly addressing this challenge. A specific challenge in South Africa has been reconciling local context with global standards; for instance, measuring “carbon intensity” in a country where the electricity emission factor is high (due to coal reliance) might make local buildings look worse than global peers – but standardising on intensity metrics is still essential for tracking improvements. The opportunity from standardisation is improved efficiency and confidence: once metrics are standard, REITs can invest in systems and automation (see below) to collect data at scale. Standardisation also means data from different sources (property managers, utility bills, HR systems) can be integrated more easily. Over time, having consistent data builds a valuable historical dataset that can inform strategy – e.g., a REIT can project future energy costs or carbon footprint based on robust historical intensities. Additionally, industry-wide standard data allows benchmarking: a REIT can compare its energy use per square meter against an industry average or peer, highlighting leadership or areas needing improvement.

3. Data quality and assurance: Ensuring ESG data is accurate, complete, and reliable is a non-trivial task. Unlike financial data, which has matured controls and audit processes, ESG data often comes from disparate sources like manual readings, surveys, or external providers. Data may be prone to errors or missing points (e.g. a missed utility bill submission leading to a gap in monthly data). As one sustainability manager described, the challenge is ensuring data is “consistent, complete and accurate” so it can be used confidently for decisions. Leading REITs are tackling this by establishing internal controls and also seeking external assurance on key ESG metrics. In fact, frameworks like GRESB and CDP award points for third-party data assurance, and some jurisdictions are beginning to require assured data. South African REITs like Growthpoint have independent assurance statements for metrics like greenhouse gas emissions. The opportunity to improve data quality is multi-fold: high-quality data builds trust with investors and regulators (stakeholders can rely on your ESG reports as much as financial statements). It also enables better decision-making internally – if data is accurate and granular, management can pinpoint problem areas (e.g. a building with abnormal water usage) and address them. Moreover, there’s evidence that investing in data quality pays off: according to GRESB research, companies that assure their data often experience reduced capital costs, likely because financiers view assured ESG metrics as a sign of lower risk. Thus, robust ESG data management can literally create financial value through lower interest rates or insurance premiums, etc.

4. Integration of ESG data into business processes: A major challenge is breaking down silos – ESG data often resides in separate systems or spreadsheets, handled by sustainability teams, and not integrated with core business data. This can lead to inefficient reporting processes (e.g. scrambling every reporting season to pull data from various sources) and a disconnect between ESG performance and financial performance. Katrina Itin of Growthpoint Properties noted a three-layered problem: collecting data across the business, ensuring data quality, and then being able to repurpose the data for various disclosure requirements. Growthpoint’s solution was to consolidate data into one platform so that ESG information becomes a single source of truth that can feed all reports. The opportunity in better integration is significant: by embedding ESG data into regular management information systems, REITs can consider ESG factors in every decision (for example, integrating energy efficiency data into asset management dashboards). It also streamlines reporting – data can be “cut and diced” in any format or time period needed for different frameworks (annual report, GRESB survey, lender questionnaires) from one central system. Integrated data management can save substantial time and cost. Growthpoint, for instance, was able to complete its GRESB submission in half the time by leveraging an integrated platform with an automated interface to GRESB. In general, automation and integration free up sustainability and finance teams from manual data wrangling, allowing them to focus on analysis and strategic insights – such as using dashboards to identify which buildings to prioritise for solar installations. This turns ESG data into a tool for operational excellence rather than just a reporting burden.

5. Keeping pace with expanding scope of ESG: What companies need to report under ESG is continuously evolving. Initially, focus was on environmental metrics (energy, GHG, water). Now, social metrics (like employee diversity, tenant satisfaction, community impact) and governance metrics (like anti-corruption efforts, board diversity) are gaining prominence. For real estate specifically, emerging areas include Scope 3 emissions (e.g. embodied carbon of construction materials, tenant travel) and climate resilience data, as well as data on green building certifications and health & well-being features of buildings. Many REITs find it challenging to collect data in these new areas because they involve new methodologies and sometimes reliance on third parties (e.g. suppliers for embodied carbon data). However, proactively expanding the scope of ESG data collection is an opportunity to stay ahead of regulations and investor asks. Companies that begin tracking Scope 3 emissions and social impact metrics will be better prepared as these become mandatory or standard expectations (noting that frameworks like the EU’s CSRD and ISSB encourage Scope 3 reporting). Moreover, broadening ESG data gives a more holistic view of risk. For example, tracking social metrics like employee engagement or community relations can alert a REIT to potential issues (labour disputes, protests, etc.) before they escalate. In essence, today’s extra credit becomes tomorrow’s baseline – so forward-looking REITs treat new ESG data demands as an opportunity to differentiate and future-proof their reporting.

6. Resource and expertise constraints: Collecting and analysing ESG data requires skilled personnel and often new IT tools, which can be a challenge for some firms. Smaller REITs may not have dedicated sustainability teams or budgets for fancy software. There is an industry opportunity here for cost-effective shared solutions or industry collaborations. In South Africa, we see early signs of this: the Green Building Council South Africa (GBCSA) provides certification frameworks that help standardise data around building performance, and industry groups can share best practices. Some REITs outsource certain data functions or partner with consultancies to run energy monitoring, for example. The benefit of overcoming resource constraints is that even smaller players can punch above their weight in ESG if they leverage external tools or partnerships. For executives, making a business case for ESG data investments is aided by the aforementioned benefits – citing improved investor access, potential cost savings, and alignment with impending regulations can justify the allocation of resources to ESG data management systems and personnel training.

In summary, while challenges like data gaps, quality assurance, and integration complexity exist, the overall trajectory is that these challenges are being systematically addressed through technology, standards, and collaboration. Each challenge, when addressed, turns into an opportunity – whether it’s cutting energy costs through better data or attracting investors by demonstrating top-notch ESG transparency. The key for South African REITs is to recognise ESG data not just as a reporting obligation but as a strategic asset that can inform decisions and strengthen the business. We now turn to a brief case study illustrating how one leading REIT approached these issues.

Case Study: Growthpoint Properties – A Leading REIT’s ESG Data Management Approach

Growthpoint Properties is the largest South African REIT (by market capitalization) and a constituent of the JSE Top 40 index. It has extensive operations in South Africa and investments in other markets (including a major stake in Growthpoint Properties Australia). Growthpoint has been at the forefront of sustainability in the local real estate sector – it was one of the first South African companies to produce an integrated report embracing ESG, and it consistently participates in indices and benchmarks like GRESB. A look at Growthpoint’s approach to ESG data management provides insight into best practices for REITs.

A few years ago, Growthpoint recognised that manual and decentralised methods of collating ESG data were unsustainable given the growing demands. The company had “a lot of public disclosure requirements as well as voluntary reporting” annually, including GRESB submissions, an extensive annual sustainability report, and other investor surveys. To ensure each report was backed by credible numbers, Growthpoint had to verify every data point, which was onerous when data was scattered. As Katrina Itin, a Sustainability Advisor at Growthpoint’s Australian division, noted, the challenges were threefold: (1) collecting all ESG data across a diverse business and combining it into one source, (2) ensuring the data is consistent, complete and accurate enough for decision-making, and (3) efficiently reporting the same dataset in multiple formats for different stakeholders. In other words, Growthpoint needed to solve for data aggregation, quality control, and flexible reporting.

To tackle this, Growthpoint implemented a comprehensive ESG data management system: the IBM Envizi ESG Suite (a specialised sustainability data platform). This platform became the single repository for all ESG data – from utility consumption figures and carbon emissions to building certifications and social metrics. Growthpoint has been using Envizi since 2017 and has expanded its use over time. Key modules include Sustainability Data Management, Building Ratings and Benchmarks, and Interval Meter Monitoring for real-time energy data. By consolidating multiple data streams into one system, Growthpoint addressed the first challenge: data scattered in silos. Envizi automatically captures data from various sources – for example, it pulls utility data (electricity, water) for each property, aggregates travel emissions data from business travel systems, and even integrates HR data for tracking diversity metrics. The platform flags any data gaps or anomalies (e.g. if a month of utility data is missing or unusually high/low), enabling the team to correct or estimate those values. This ensures completeness and accuracy.

The impact on efficiency has been striking. Growthpoint reports that it spends 50% less time on ESG disclosure and reporting tasks now. One reason is that the platform can directly interface with reporting frameworks – for instance, Envizi’s GRESB API integration allowed Growthpoint to send data to the GRESB portal automatically, halving the time needed to complete the lengthy GRESB questionnaire. What previously required manually populating complex spreadsheets is now largely automated, with data mapping in place. With the data centralised and “audit-ready,” the sustainability team has confidence in its integrity, which also streamlines third-party assurance processes. Indeed, every year Growthpoint obtains independent assurance on certain ESG metrics, and having an organised data trail makes that audit much smoother.

Another benefit has been better integration of ESG into decision-making. Growthpoint’s system provides interactive dashboards where sustainability and asset managers can visualise performance by asset, portfolio, or metric. If a property’s energy intensity worsens, it’s quickly apparent, and the team can investigate causes (perhaps a malfunctioning HVAC system or higher occupancy) and take action. Katrina Itin noted that with a few clicks, she can get insights into any building’s performance and have “data-backed discussions with site teams”. This capability helped Growthpoint prioritise projects like solar PV rollouts – by identifying which buildings had the highest energy consumption and would benefit most from on-site generation. In South Africa, where Growthpoint has already installed significant solar capacity, these insights are crucial for scaling up renewables and hitting their net zero targets. In fact, Growthpoint has set ambitious targets (e.g. net zero for its office portfolio by 2025 in the Australian arm, and similarly aggressive goals in SA). Tracking progress toward such targets is only feasible with robust data systems; in Growthpoint’s case, the platform can readily show, for example, year-on-year emissions reductions and progress on waste diversion, etc., across dozens of properties.

Finally, Growthpoint’s case underlines the importance of transparency and trust. The company’s leadership recognises that to maintain the confidence of investors, employees, and tenants, they must provide ESG information that is verifiable and transparent. By investing in a strong data foundation, they have made ESG data “non-negotiable” in terms of quality. This not only helps in external reporting but internally fosters a culture where ESG considerations are taken seriously at all levels. For example, having clear data has allowed Growthpoint to integrate sustainability performance into management scorecards and tenant engagement (showing tenants the impact of their energy use, etc.). In essence, Growthpoint turned ESG data management from a burden into a tool for continuous improvement and stakeholder engagement.

This case study illustrates what leading practice can look like: a single source of truth for ESG data, enabled by technology, endorsed at executive level, and used for both reporting and strategic action. While not every REIT may have the same resources as Growthpoint, the principles apply broadly – centralise your data, ensure its quality, and leverage it for insight.

Best Practices and Strategic Recommendations

Drawing on global trends, local context, and the example above, here are best practices and strategic recommendations for South African REITs to improve ESG data quality, governance, and stakeholder reporting. These recommendations aim to help executive teams turn ESG data management into a source of value and competitive advantage:

1. Establish a Centralised ESG Data Platform: Invest in a robust ESG data management system to serve as a central repository for all sustainability data. Whether it’s a commercial software solution or an in-house data warehouse, centralisation is critical. It enables automated data capture from multiple sources (utility providers, property management systems, HR databases, etc.), reducing manual errors and effort. Growthpoint’s use of a single platform (IBM Envizi) resulted in a 50% time savings in reporting and enabled the company to reuse one dataset for various disclosures. For REITs, a central platform means that at any given time, management can get an accurate snapshot of ESG performance. It also simplifies responding to different stakeholder requests, as data can be queried and formatted flexibly from a single source. When choosing a platform, ensure it can handle property-level data and aggregate to portfolio level, and that it supports reporting standards like GRESB, CDP, and the upcoming ISSB taxonomy. Cloud-based solutions can be advantageous for ease of updates (especially as ESG frameworks evolve). While there is an upfront cost, the efficiency gains and risk reduction (through fewer data mistakes) typically provide a solid ROI.

2. Strengthen Data Governance and Quality Assurance: Treat ESG data with the same rigour as financial data. This means establishing clear data governance processes: assign data owners for each ESG metric (e.g. utilities manager for energy data, HR for diversity data, etc.), implement validation checks, and maintain audit trails. External assurance is a growing best practice – obtaining third-party verification of key ESG figures (such as emissions, energy usage, or safety statistics) enhances credibility. As noted, frameworks like GRESB reward data assurance, and some regulators are hinting that it may become expected. The JSE guidance also emphasises that good disclosure can improve access to capital, and part of “good” is trustworthy data. Therefore, consider engaging independent assurers for your sustainability report, similarly to how financial auditors are used. This not only boosts stakeholder trust but can sharpen your internal controls (assurers will often point out areas to improve data processes). Additionally, leverage your internal audit or risk management teams to include ESG data in their scope. On the quality front, utilise the capabilities of software to identify anomalies and gaps – for example, setting up alerts for unusual consumption patterns or missing data points. By catching issues early (maybe a broken meter or a data entry error), you prevent material misstatements in reports. High-quality data will allow your board and investors to confidently make decisions – such as setting targets or linking executive compensation to ESG outcomes – knowing the underlying numbers are sound.

3. Align with Recognised Frameworks and Standardise Metrics: Embrace the major ESG reporting frameworks appropriate to your context and use them to standardise your data collection. The SA REIT Sustainability Disclosure Guide and the JSE Sustainability Disclosure Guidance should be starting points for all South African REITs, as they distill global standards into locally relevant guidance. Ensure that your ESG metrics and definitions align with these guides – for instance, if reporting on energy efficiency, use common units like kWh/m²/year, and follow standard scopes for emissions (Scope 1, 2, 3). Aligning with GRI and SASB metrics (as recommended by the SA REIT guide) will make your data more comparable and decision-useful. It’s also strategic to align with TCFD (for climate) and ISSB standards early. As noted, South Africa is moving towards ISSB adoption (voluntary filings began in 2023), and likely mandatory use for listed companies by 2025. Therefore, start integrating those requirements (e.g. climate scenario analysis, risk disclosures) into your data strategy now. A practical step is to perform a gap analysis: compare what you currently report versus what frameworks like GRESB, TCFD, JSE guide, etc. expect – then plan to fill the gaps. Standardisation also entails creating internal reporting guidelines for your team, so everyone understands how to measure, for example, an injury rate or a community investment spend. The payoff is smoother reporting cycles and the ability to use one set of vetted metrics across multiple publications (annual report, sustainability report, investor presentations), ensuring consistency in what you communicate.

4. Integrate ESG Data into Corporate Governance and Strategy: Elevate ESG data to the boardroom and C-suite level. King IV already mandates that boards take responsibility for sustainability as part of their oversight. To action this, set up regular ESG performance reviews at board or executive committee meetings, just as you would review financial KPIs. Include ESG metrics in your balanced scorecards and risk registers. Many leading REITs have a board Social & Ethics Committee or similar, which should be empowered to review ESG data and guide targets. Make sure this committee reports to the full board on ESG trends and progress. Another best practice is to link a portion of executive remuneration to ESG outcomes, which necessitates reliable ESG data to measure achievement (for instance, a CEO’s bonus might partly depend on meeting a GHG reduction target or achieving a certain level in a GRESB score). This creates accountability and signals the importance of ESG data-driven goals. On the strategy side, use ESG data to inform your business plans: for example, if data shows increasing tenant demand for green buildings (perhaps measured through occupancy rates or rent premiums for certified buildings), factor that into your investment strategy (i.e. allocate more capital to green refurbishments). Likewise, granular climate risk data can influence where you build or what insurance to buy. The key recommendation is to embed ESG data into decision-making processes – budgeting, capital allocation, acquisitions, and risk management should all reference ESG data analyses, not treat ESG as a separate realm. When ESG data is integrated into the DNA of corporate governance, it ensures cohesive messaging to stakeholders and tends to result in more sustainable long-term strategies.

5. Leverage Technology and Innovation for Data Collection: Keep abreast of technological advancements that can enhance ESG data collection and accuracy. For real estate, this includes IoT sensors and smart meters for real-time monitoring of building performance (energy, water, air quality etc.), APIs for automated data transfer from utility companies or property management systems, and specialised ESG analytics platforms (like Measurabl, Deepki, or the Envizi system Growthpoint used). Emerging solutions like “shadow metering” can help gather tenant data by installing parallel meters to capture whole-building consumption where tenants are reluctant to share data. Embracing these tools can significantly improve data coverage – ensuring you capture close to 100% of relevant data points – and reduce manual workload. Many REITs globally are also exploring AI and machine learning to analyse ESG data for patterns (e.g. anomaly detection in energy usage or predicting maintenance needs that impact safety). While not every innovation will be immediately applicable or cost-effective in South Africa, an innovative mindset is recommended. Pilot new technologies on a subset of properties to test their benefits. Additionally, consider the power of data visualisation and business intelligence tools: presenting ESG data in interactive dashboards (as Growthpoint did) can help asset managers and operations teams to engage with the information more readily, driving a culture of data-informed sustainability actions at all levels. In summary, treat technology as an enabler to overcome ESG data challenges – whether it’s filling data gaps or providing more timely, accurate information to act upon.

6. Expand ESG Metrics to Cover Emerging Areas: As stakeholder expectations broaden, ensure your data collection encompasses the full spectrum of ESG relevant to real estate. Environmental data should go beyond utilities; start tracking Scope 3 emissions (like those from your supply chain and tenants) because investors are increasingly asking for this and upcoming standards consider it best practice. Engage with suppliers and tenants to get this data – for example, work with construction contractors to calculate embodied carbon in developments, or partner with tenants on measuring their operational emissions. Social metrics are equally important: measure things like local job creation from your developments, tenant satisfaction scores, community complaints, and importantly, diversity and inclusion statistics within your staff and even your suppliers. Globally, there is rising attention on DEI (diversity, equity, inclusion) and human rights in business operations. South African companies are familiar with certain social metrics due to B-BBEE, but ESG reporting may require more nuanced data (like employee engagement by demographic group, which can highlight inclusion issues). Governance data might include tracking training hours on ethics/compliance, incidents of fraud or fines, etc. By broadening your ESG data scope now, you position your REIT as forward-thinking and transparent. It also helps you pre-empt issues – e.g., if data shows low female representation in management, you can develop a program to address it before it becomes a reputational concern. Moreover, comprehensive ESG data can unlock sustainability-linked financing opportunities: banks might offer better loan terms if you have data to set ESG performance targets (for instance, a sustainability-linked loan where interest rate decreases if you hit a certain renewable energy usage percentage). In short, don’t limit your data to what you historically reported; continuously reassess material topics and ensure you have data to manage and report them.

7. Communicate ESG Data Effectively to Stakeholders: Finally, even the best data is of little use if it’s not communicated clearly and credibly. For executive teams, a best practice is to produce an annual ESG or sustainability report (or integrated report section) that presents data in a balanced, digestible way. Use tables, charts, and trend analysis over multiple years to show progress or explain setbacks. Where possible, contextualise the data – for example, relate your energy intensity figure to a benchmark or state that “our water consumption reduced 10% year-on-year due to efficiency projects.” Ensuring consistency in data reported across different channels is important: figures in your annual report, investor presentations, and website should all tie back to the same verified source to avoid confusion. For credibility, reference frameworks: e.g., “Disclosure aligned with TCFD” or “Calculations per GHG Protocol” – this assures informed readers that standard methods were used. Also consider participating in ESG ratings and indices (like the FTSE/JSE Responsible Investment Index or GRESB) and publicly share those results. Even if scores are modest initially, it shows a commitment to transparency and allows stakeholders to independently view your performance relative to peers. Another tip is to engage stakeholders with the data: hold ESG briefings for investors where you walk through key data and answer questions, or share site-specific data with tenants (some REITs provide monthly sustainability reports to major tenants about their building’s resource usage). Such engagement turns data into a dialogue, building trust. Remember that ESG storytelling backed by data is powerful – highlight case studies within your reports (e.g., an energy-saving project and the data on kWh saved, or a community initiative and the number of people benefited) to give life to the numbers. By communicating data effectively, you not only meet disclosure demands but can enhance your company’s reputation and stakeholder relationships.

Conclusion

ESG data management in the real estate sector has rapidly evolved from a niche concern to a central business function, particularly for REITs operating in South Africa. Globally and locally, there is an imperative for real estate companies to measure, manage, and report ESG performance with the same diligence as financial performance. South African REITs find themselves at the confluence of global standards (like GRESB, TCFD, UN PRI) and local frameworks (like JSE guidance, King IV, and the new SA REIT guide), all signaling the need for high-quality, comparable ESG data. While challenges in data collection, standardisation, and integration are real, they are surmountable with the right strategies – investment in technology, adoption of standards, and strong governance oversight. As illustrated, leading firms are already turning ESG data into actionable insights: reducing operating costs through energy efficiency identified by data, informing strategy via risk data, and strengthening stakeholder trust by being transparent.

For executive teams at South African REITs, the message is clear: ESG data is a strategic asset, not a mere reporting burden. By professionalising ESG data management today – putting in place the systems, skills, and standards – REITs can improve their sustainability performance and demonstrate tangible value to investors, tenants, and communities. In an environment where capital markets are increasingly evaluating property companies on ESG criteria, those REITs that excel in data-driven sustainability will be better positioned to secure investment, achieve operational excellence, and ensure long-term resilience. The coming years will likely see even more alignment of ESG reporting with financial reporting (potentially even mandatory assurance and filings), so building these capabilities now is both prudent and advantageous. Ultimately, robust ESG data management leads to better ESG outcomes – and these, in turn, support the real estate sector’s contribution to a sustainable and inclusive future in South Africa and beyond.

By following the best practices outlined – from centralising data and assuring its quality to aligning with frameworks and embracing innovation – South African REITs can rise to the challenge and turn ESG commitments into credible, data-backed action. The result will be improved stakeholder confidence, enhanced corporate reputation, and a stronger, more sustainable real estate sector that meets the environmental and social needs of the present without compromising the prosperity of future generations.

Sources:

• Deloitte (2024). ESG in Real Estate Insights.
• Engineering News (2024). SA REIT Sustainability Disclosure Guide Launch.
• Shepstone & Wylie Attorneys (2023). ESG, the JSE and Sustainability Disclosures.
• GCX (2021). GRESB Real Estate Results: Data is Key to ESG Performance.
• IBM (2023). Growthpoint Properties Case Study – Envizi ESG Data Platform.
• GRESB (2023). Navigating the Evolving ESG Data Landscape.
• Architecture 2030 (2023). Why the Built Environment? (Climate impact of buildings).
• DataTracks (2024). South Africa’s Roadmap to ESG Reporting.
• JSE (2022). Sustainability and Climate Disclosure Guidance.
• UN PRI (Signatory directory) – PIC Signatory date.
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