ESG Trends: How PropTech can create a sustainable future.

ESG Trends: How PropTech can create a sustainable future.

By Chris Roberts

By Chris Roberts

March 20, 2023

6 min read

Sustainability: The Challenges

Sustainability is one of the most critical challenges that we face today. The United Nations predicts that global temperatures will increase by 1.5 degrees by 2030, and unless we rapidly reduce global emissions, we may see a catastrophic 3-degree rise in global temperatures. Therefore, it is essential to reduce global emissions on the broadest scale possible to mitigate the effects of the climate crisis.

Given the built environment's significant contribution to global greenhouse gas emissions, accounting for 40%, it is unsurprising that stakeholders now fully recognise the importance of environmental, social, and governance factors (ESGs). This increased awareness has seen a significant increase in the development and adoption of PropTech solutions that aim to transform the real estate industry. PropTech has not only changed how we buy, sell and rent properties, but it is also helping us create a more sustainable future.

In this blog post, I will explore how PropTech creates a sustainable future and how it is changing the real estate industry.

Construction Technology

Construction technology, also known as Contech, has emerged as a critical area of PropTech that can help address the sustainability challenge at the development stage.

A promising area of Contech is modular construction, which offers numerous benefits over traditional construction methods. Modular buildings are designed off-site, using prefabricated components that can be quickly assembled on-site, reducing construction time and costs. This approach minimizes on-site disruption, noise and pollution, making it amore sustainable option for real estate development.

Moreover, new technologies are emerging for building materials, architectural design and site management. For example, advanced materials such as cross-laminated timber and 3D-printed concrete can help reduce the environmental impact of construction. Architectural tools such as Building Information Modelling (BIM) and virtual reality can enhance the design process, reduce errors and waste and improve stakeholder communication. Site management tools like drones and IoT sensors can monitor construction progress and identify potential issues, enabling proactive and efficient project management.

In summary, Contech has the potential to transform the construction industry and create more sustainable and efficient real estate development. As technology evolves, we expect to see more innovative solutions that will help us tackle the sustainability challenge and build a better future.

Energy Management Solutions

Energy management solutions provided by PropTech are becoming increasingly popular in the real estate industry and are making significant contributions to creating a more sustainable future. Designed to reduce energy consumption and waste in buildings, PropTech solutions such as smart lighting systems, occupancy sensors and energy monitoring systems are at the forefront of this trend.

A primary energy management solution provided by PropTech is the use of smart lighting systems. Using sensors and advanced analytics, smart lighting systems can be adjusted based on the occupancy and levels of daylight in the room. This will help reduce energy consumption by up to 40%, leading to significant cost savings and a reduced carbon footprint.

Energy monitoring systems are another essential energy management solution provided by PropTech. These systems provide real-time data on energy usage, helping building managers identify areas of waste and inefficiency and make more informed decisions about energy management. This allows building managers to optimize energy usage, reduce waste and lower energy bills. Additionally, the data provided by energy monitoring systems can be used to identify trends and patterns in energy usage, allowing building managers to predict future energy usage and plan accordingly.

Smart Home Automation

In recent times, there has been a significant shift in the mindset of tenants and homeowners towards the environment and climate change. There is now a heightened awareness of the need to reduce our carbon footprint and take steps to mitigate the impact of our actions on the planet. As a result, consumers are becoming more discerning in their choices, preferring to live or work in buildings that have obtained certification for being carbon-neutral. Similarly, they are more inclined to associate themselves with companies prioritising environmental concerns and taking meaningful steps towards sustainability.

This is where smart home automation steps in. Smart home technology allows homeowners to control and automate various aspects of their homes, including lighting, heating, and cooling, using a smartphone or other connected devices. This technology can reduce energy consumption and costs by allowing homeowners to set schedules and adjust settings based on occupancy and other factors.

For example, a smart thermostat can help reduce energy consumption by automatically adjusting the temperature based on occupancy and weather conditions. This can lead to significant cost savings and a reduced carbon footprint. Similarly, intelligent lighting systems can adjust lighting levels based on occupancy and daylight, reducing energy consumption and waste.

Digital Property Management

Digital property management is another PropTech solution that is helping to create a sustainable future. Digital property management systems provide a range of features and tools that help property managers and owners manage their properties more efficiently, reducing costs and waste.

For example, digital property management systems can help automate and streamline various tasks, such as rent collection, maintenance requests, and lease renewals. This not only reduces administrative costs but also helps to reduce waste and improve overall efficiency.

Additionally, digital property management systems can provide real-time data on property usage and maintenance needs, allowing property managers to make more informed decisions about energy usage and waste reduction.


In conclusion, PropTech is transforming the real estate industry, and its impact is particularly significant regarding sustainability. PropTech enables us to build more sustainably, manage our energy consumption better and reduce waste and inefficiency in property management. With the ever-increasing demand for sustainable buildings and eco-friendly practices, PropTech is poised to play a crucial role in shaping the future of real estate. By leveraging the latest technologies and innovations, PropTech is helping to create a more sustainable and efficient built environment that benefits both the environment and the bottom line. As we face the critical challenge of climate change, PropTech will continue to be a vital tool in our quest to create a more sustainable future.

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