The role of stakeholders in ensuring data quality in real estate

In today’s rapidly evolving real estate landscape, ensuring data quality has become a top priority. Accurate and comprehensive data is critical, particularly as ESG (Environmental, Social, and Governance) reporting becomes more deeply integrated with financial reporting and investment strategies (Deloitte, 2024). As the demands of audits and reporting intensify, there’s a growing need for clarity in the roles and responsibilities of all stakeholders, from asset managers to tenants. 

Who does what in the data collection process?

Achieving high-quality data is not just about the willingness of data collectors; it begins with how the data collection framework is designed. A well-organized project structure, with clearly defined roles, responsibilities, and goals, is crucial to the success of the data collection process. In simple terms: Who does what, and when?

Before anything else, it is useful to note that the organization of key stakeholders involved in data collection is typically structured as follows:

1. ESG/Central Team

Its role

The ESG/Central team ensures the project organization, responsibilities, and structure of your ESG strategy.

Its missions

The ESG/Central team has several key missions:

• Training and mobilization: Mobilizing and training users, ensuring everyone is equipped with the necessary knowledge and skills to contribute effectively.
• Coordination: overseeing the entire ESG project, ensuring that all processes are aligned with organizational goals and regulatory requirements.
• Support: providing guidance and assistance at every project stage, helping stakeholders navigate challenges and implement best practices.

Missions related to data quality

The ESG/Central Team engages stakeholders to ensure they understand and uphold high data quality standards. The team also collaborates with asset managers to plan and prioritize data tasks, ensuring efficient and accurate data processes.

Read more on ESG: a whole-company commitment in real estate

2. Asset manager

Their role

The Asset Manager (AM) is responsible for managing and optimizing real estate portfolios, primarily focusing on maximizing asset profitability. This includes enhancing asset performance, monitoring the operational budget provided by investors, managing vacancy rates and unpaid dues (like rent and common charges), and setting an annual forecasted budget. Additionally, they are responsible for overseeing the ESG value of their assets. All of these tasks have been streamlined for Azora’s asset managers, who have reported significant time savings since implementing the Deepki Platform.

Their missions

The Asset Manager has several key responsibilities:

• Collect and analyze all data related to the assets they manage.
• Stay informed about real estate market trends and new regulations.
• Find tenants and negotiate lease agreements.
• Develop effective asset valuation strategies.
• Manage the technical upkeep of common areas and oversee property management operations.

Missions related to data quality

The AM holds a pivotal role in overseeing and enhancing data quality. Their responsibilities include:

• Supervising the progress of data collection, identifying gaps, and implementing KPIs to improve data coverage.
• Designating key stakeholders and Property Manager (PM) for each property. They are essential for fostering a culture of engagement in the process, both during implementation and operationalization.
• Coordinating and supervising the work of the PMs, especially in sustainability initiatives, automation enhancements, and ensuring that roles are fulfilled throughout the year.
• Gathering and communicating PM needs to the core team, ensuring that these needs are addressed efficiently.

3. Property Manager

Their role

The role of a Property Manager (PM) is straightforward: to manage assets on behalf of owners and Asset Managers by closely monitoring the building’s operating budget and, when necessary, delegating more operational tasks to the Facility Manager.

Their missions

A Property Manager is responsible for several key tasks:

• Managing the technical aspects of common areas.
• Overseeing lease management.
• Acting as the liaison between owners and tenants to ensure good communication and the best possible relationship.
• Enhancing the day-to-day experience for both tenants and landlords.
• Potentially delegating operational and regulatory management to the Facility Manager.

Missions related to data quality

Their primary focus is to drive a consistent and regular data collection process, which includes:

• Data collection and validation: PMs collect and upload manual data on schedule, check meter and building details to ensure correct mapping, and fix any data errors.
• Data analysis: PMs regularly analyze data to identify spikes or drops, improving data accuracy. 
• Manage their communication with tenants and collect signed tenant mandates.
• Support for automated processes: PMs provide the necessary information for automated data collection and make any needed corrections.

4. Facility Manager

Their role

Facility Management (FM) refers to companies outsourcing operational maintenance and management. This field is divided into two main categories:

• Services: Including reception, concierge services, cleaning, security, safety, catering, etc.
• Technical Aspects: Covering electrical systems (high and low voltage), HVAC (heating, ventilation, and air conditioning), lifting equipment, etc.

Their missions

The Facility Manager has several key objectives:

• Ensure that the building remains operational and compliant with regulatory standards.
• Manage the work environment for companies that choose to outsource these services.
• Optimize the balance between the quality and overall cost of assets.

Missions related to data quality

Facility Managers rely on various Computerized Maintenance Management Systems (CMMS) to perform their duties. These software tools collect a wealth of information on buildings and their equipment. By leveraging this data, Facility Managers can monitor and optimize maintenance activities, improve operational efficiency, and ensure regulatory compliance. 

5. Tenant

Their role

The tenant is in daily contact with the Property Manager. 

Their missions

Their responsibilities include:

• Leasing part or all of a building according to their real estate strategy.
• Collaborating with the PM by sharing its consumption data, especially in compliance with regulations like the Tertiary Decree in France.
• Potentially negotiating the charges billed by the PM.

Missions related to data quality

The tricky part comes when you need to involve tenants in the data collection process. Simply because they own their energy data, they get to decide what happens with it, who gets to see it, and how it is used. But it also means without an incentive in place, getting them to share this data is not easy – why would they bother taking on an extra task? How do we make the data collection process easier? 

A collaborative approach is essential to make data sharing straightforward and beneficial for both parties. Indeed, in the case of consumption data for private spaces, these data are confidential because they are private, meaning access requires authorization from the individual who owns them. In this case, you will need a signed authorization letter from each tenant granting you permission to collect the data. By working together with the right services, we can create an environment where sustainability data flows freely, benefiting all stakeholders in the long run.

Data analytics tools and technologies in real estate

It’s impossible to ignore the robust suite of tools and technologies that have emerged in recent years within the real estate sector. The selection of the right software solution can be the factor that helps you transform an investment into a great one. These tools are not just helpful; they are vital for robust data collection processes and verification mechanisms, which are critical for ensuring the accuracy of reported ESG data. Regular audits and data verification are necessary to maintain reliability and trust. For instance, to comply with ISAE 3000, Deepki has implemented new processes focused on enhancing data quality.

However, there are numerous challenges in data collection (Bloomberg Survey, 2024). For instance, each country has its own methods, influenced by varying regulations. Some countries boast advanced automated data connectors, while others lag. The first hurdle is understanding who provides the data and how to access it effectively. The Deepki Platform facilitates this by guiding all stakeholders through every stage of the process—from implementing your ESG action plan to submitting reports on your ESG targets and ensuring compliance with complex regulations and commitments. Deepki helps operationalize your strategy, ensuring everyone understands their role in meeting your targets across your organization and portfolio. This platform supports asset managers in meeting stringent ESG and financial reporting standards.

The need for quality data

This high-quality data is primordial as everything starts with it and as managing your ESG performance. Indeed, it is increasingly complex and costly for real estate players to access capital without disclosing their ESG impact, as investors and banks are becoming more vigilant and risk-averse regarding ESG performance. It’s crucial for companies to produce and disclose ESG information easily. For instance, 28% of investors are willing to divest from non-ESG-friendly assets, and one-third are ready to pay premiums for ESG-friendly assets (CBRE Survey: Europe Investor Intentions Survey 2023).

Want to learn more on data collection effectiveness? Our latest interactive infographic is your go-to guide for mastering ESG data collection and estimation in real estate. From overcoming main challenges to leveraging cutting-edge ESG technology, we’ve got you covered! Click below to navigate it.