Making ESG and real estate work together for a better future— why we invested in Predium
Making ESG and real estate work together for a better future— why we invested in Predium
ESG and sustainable investing are at the top of the agenda in the financial industry. The impact on real estate owners is significant and multi-faceted, ranging from tax and regulatory issues, to operational decisions and strategic planning. Up until a few years ago, many dimensions of ESG remained undefined, and there was a lack of concrete policies and guidelines. Covid-19 has accelerated the development of new rules and regulations that are now coming into force across Germany and the rest of Europe.
In this context, Predium has built a software platform for real estate owners to help them collect data, analyze their ESG performance, and — most importantly — plan, implement and track actions that can make their buildings more sustainable and increase profitability along the way. Predium empowers real estate owners and managers to make data-driven investment decisions to effectively reduce their environmental footprint and meet regulatory requirements without sacrificing their bottom line, a critical need that has gone unmet until now.
Here is why we are excited about Predium:
⚙️ Action planning and implementation of new sustainability measures
As of today, action planning and implementation of new sustainability measures by real estate companies has been a very unstructured and inefficient process. Current software solutions in the market are still in their infancy and mainly focus on the collection of ESG data, but not on new actions that can be implemented based on that data. This is a crucial part of the equation for real estate owners, as it will not only enable them to improve their ESG performance but also to optimize investment returns (for example, through energy efficiency). Predium has recognized this need and is focusing on supporting ESG implementation planning from the outset. We believe this puts Predium in a strong position to become a leader in the industry by ensuring the underlying economic viability of the real estate sector as it seeks to become more sustainable.
🌱 Market timing
ESG is one of the key issues transforming the real estate investment industry in Europe. In recent years, both investors and real estate owners have dramatically increased their efforts to integrate ESG principles into real estate assets and portfolios. This trend is only expected to continue. Hence, we believe that the market timing for a solution like Predium could not be better.
💪🏻 Strong team and execution capabilities
The founding team has demonstrated very strong execution and a deep motivation to change the industry for the better. Given the limited amount of capital that has been poured into the business, the team clearly stands out for its capital-efficient and results-oriented execution capabilities.
Overall, we firmly believe that Predium has the potential to make the real estate sector more sustainable. We are super excited to be part of this journey.
ESG and sustainable investing are at the top of the agenda in the financial industry. The impact on real estate owners is significant and multi-faceted, ranging from tax and regulatory issues, to operational decisions and strategic planning. Up until a few years ago, many dimensions of ESG remained undefined, and there was a lack of concrete policies and guidelines. Covid-19 has accelerated the development of new rules and regulations that are now coming into force across Germany and the rest of Europe.
In this context, Predium has built a software platform for real estate owners to help them collect data, analyze their ESG performance, and — most importantly — plan, implement and track actions that can make their buildings more sustainable and increase profitability along the way. Predium empowers real estate owners and managers to make data-driven investment decisions to effectively reduce their environmental footprint and meet regulatory requirements without sacrificing their bottom line, a critical need that has gone unmet until now.
Here is why we are excited about Predium:
⚙️ Action planning and implementation of new sustainability measures
As of today, action planning and implementation of new sustainability measures by real estate companies has been a very unstructured and inefficient process. Current software solutions in the market are still in their infancy and mainly focus on the collection of ESG data, but not on new actions that can be implemented based on that data. This is a crucial part of the equation for real estate owners, as it will not only enable them to improve their ESG performance but also to optimize investment returns (for example, through energy efficiency). Predium has recognized this need and is focusing on supporting ESG implementation planning from the outset. We believe this puts Predium in a strong position to become a leader in the industry by ensuring the underlying economic viability of the real estate sector as it seeks to become more sustainable.
🌱 Market timing
ESG is one of the key issues transforming the real estate investment industry in Europe. In recent years, both investors and real estate owners have dramatically increased their efforts to integrate ESG principles into real estate assets and portfolios. This trend is only expected to continue. Hence, we believe that the market timing for a solution like Predium could not be better.
💪🏻 Strong team and execution capabilities
The founding team has demonstrated very strong execution and a deep motivation to change the industry for the better. Given the limited amount of capital that has been poured into the business, the team clearly stands out for its capital-efficient and results-oriented execution capabilities.
Overall, we firmly believe that Predium has the potential to make the real estate sector more sustainable. We are super excited to be part of this journey.
The Author
Johanna Junkermann
Investment Manager
Johanna Junkermann is Investment Manager and part of the b2venture Fund team.