IBM and JLL have collaborated to launch a sustainability solution designed to improve ESG (environmental, social and governance) reporting and data management for commercial real estate (CRE). The initiative employs IBM's Envizi technology and JLL's sustainability services and is available globally.
The integration of IBM's Envizi ESG Suite into JLL's sustainability program management aims to streamline the process of collecting and managing sustainability data across real estate portfolios. This responds to the growing demand for comprehensive ESG reporting, which is expected to increase significantly over the next few years. According to JLL's research report, “The Green Tipping Point,” 30% of market demand for low-carbon office space is expected to go unmet by 2025, highlighting the urgent need for enhanced ESG metrics within the industry.
Limited integration of ESG metrics within business organizations is perceived as a major barrier. According to a report from the IBM Institute for Business Value, only 20% of organizations integrate ESG metrics into their supply chain operations, 26% into procurement and sourcing, and just 11% into real estate and facilities management. Additionally, the report found that companies that prioritize sustainability are 52% more likely to outperform their competitors and enjoy 16% higher revenue growth.
Highlighting the importance of this development, Guy Grainger, Global Head of Sustainability Services at JLL said: “As ESG reporting requirements become increasingly mandatory, our clients are turning to us to help them deliver decarbonization strategies across their portfolios. We selected IBM Envizi as our preferred solution, which allows our extensive team of sustainability subject matter experts to deliver more robust reporting and data management around these strategies.”
Kendra DeCairell, vice president of ESG and asset management at IBM, also commented on the collaboration: “Now more than ever, organizations need ESG data to underpin their sustainability performance initiatives and reporting. We look forward to working with JLL to help their client base with our specialized, AI-powered software to address their evolving business needs.”
The initial deployment of this solution is expected to provide an opportunity for thousands of JLL client sites to adopt IBM Envizi software, improving their ability to effectively consolidate and report ESG data. It highlights the collaborative's commitment to addressing the increasingly complex sustainability challenges facing the CRE sector, aiming to drive more substantive and measurable environmental outcomes through improved data management and reporting capabilities.