No, you don’t need to buy solar panels to invest in ESG
The term ESG (Environmental, Social, and Governance) is thrown around quite a bit in today’s multifamily industry – and for good reason. ESG is an important factor to understand and consider, especially for multifamily operators and investors. Practicing strong ESG tactics harbors real social, environmental, and financial impacts.
Consumers and stakeholders are both more likely to put money into in real estate that demonstrates socially responsible practices, according to the Property Research Trust. The study also found that properties that implement strong ESG practices are likely to be rewarded with high satisfaction rates and low vacancy rates.
While some property managers are willing and able to invest huge amounts of capital into something as large-scale as installing solar panels, not every action towards ESG has to be so grandiose. Smaller steps can go a long way reap the benefits of ESG, too.
So, what are some affordable implementations of ESG?
One realistic ESG tactic to implement is a more sustainable landscaping routine. The Environmental Protection Agency says that usage of lawn chemicals, such as fertilizers and pesticides, can contaminate streams, groundwater, and soil — particularly when used on a large scale. It recommends limiting pesticide usage, especially before rainfall, and replacing fertilizers with organic composts.
Not all organic composts are made equally, however. Although some pet owners might assume their animals’ wastes might help the local greenery grow, the impacts are actually negative. Unlike recommended composts, pet waste includes harmful nutrient pollution.
Just like fertilizers, the overabundance of nutrients sparks the growth of weeds and algae, which ends up killing off the natural plant life. Combined with the bacteria pollution, waste that makes its way down the watershed can even make residents sick.
The effects are so harmful for the environment that the EPA recommends executing educational programs and regulatory ordinances for communities to limit pet waste. Because an estimated 40% of owners do not consistently pick up their pets’ waste, regulations might be necessary to keep them accountable.
While pet waste management may not be the first ESG practice that comes to mind, it’s an affordable option to reduce nutrition and bacteria pollution.
PooPrints is the most effective and reliable option to manage pet waste and keep the community clean. By keeping a DNA profile of every pet on the premises, any harmful waste can be traced back to the perpetrator. Subsequently, properties that implement the program see 96% less discarded pet waste almost instantly. The majority of clients report the service being cost neutral (and even net positive in some cases) from fees split amongst the residents.
Sure, solar panels are exciting ESG tactic, but they’re not always a realistic choice. Lawn-care management can be a reasonable means to keep residents healthy and happy.
By: J Retinger, CEO at BioPet Laboratories
I like the broader perspective on ESG investing because environmental impact can involve much more than simply owning solar panels. Companies developing clean-energy infrastructure, storage, grid technology, and efficiency solutions can all contribute to the transition in different ways. I’m particularly interested in energy storage because it helps address the variable nature of renewable generation and can improve how electricity is used throughout the day. When I research batteries for solar panels, I pay attention to capacity, cycle life, compatibility, and the overall role the battery plays within an energy system. For me, understanding these different technologies makes ESG investing and renewable energy feel like a much broader conversation than solar generation alone.