Can IBM & JLL Help Stop Low-Carbon Offices Tipping Point?

IBM and JLL are collaborating on a sustainability solution that they hope will help avoid the predicted tipping point of market demand for low carbon office space.

According to a recent JLL report, by 2025, 30% of demand for low carbon office space will not be met – creating a tipping point for net zero carbon target penetration in lease markets.

Now, powered by IBM Envizi technology and delivered by JLL’s sustainability services team, the two global firms have updated JLL’s Sustainability Program Management.

The programme, which provides sustainability services such as decarbonisation strategies to the commercial real estate sector, will be underpinned by ESG reporting and data management software in the form of the IBM Envizi ESG Suite.

What is the problem?

According to JLL and IBM, the CRE sector faces a number of challenges, including capturing and managing data across real estate portfolios for decision-making and public reporting.

The recent JLL report, ‘The Green Tipping Point’, said that, while some corporate lease demand is already shifting based on ESG requirements, the next 12 to 24 months will bring widespread change.

It added that, by 2025, 30% of market demand for low carbon office space will not be met – creating the tipping point.

Despite this, across organisations, the integration of ESG metrics into core functions is limited.

And now for the good news

According to the two businesses, the issue does not begin and end with the integration of core metrics – it also makes financial sense.

The IBM Institute for Business Value report, ‘The ESG Data Conundrum’, found that 20% of respondents are integrating ESG metrics into supply chain operations, 26% into procurement and sourcing and 11% into real estate and facilities management.

An IBM press release says: “It follows that in order to address their sustainability goals companies must increase this integration.

“In fact, according to the IBM Institute for Business Value report, ‘Beyond Checking The Box’, those organisations that operationalise sustainability are 52% more likely to outperform their peers on profitability and enjoy a 16% higher rate of revenue growth.

JLL and IBM say that one way to achieve these results is with the help of robust data management and reporting platforms.

Making reporting more robust

JLL says it “recognises the importance of data management and reporting software to support clients’ sustainability strategies and IBM Envizi is a critical part of the JLL Sustainability Program Management solution”.

The initial rollout will offer thousands of JLL clients’ sites the opportunity to move to the IBM Envizi software.

Guy Grainger, Global Head of Sustainability Services at JLL, said: “As ESG reporting requirements are increasingly mandated, our clients rely on us to help deliver decarbonization strategies across their portfolios.

“We identified IBM Envizi as our preferred solution that will allow our expansive team of sustainability subject matter experts to provide more robust reporting and data management around these strategies.”

Kendra DeKeyrel, Vice President of ESG and Asset Management at IBM, said: “Now more than ever, organisations need ESG data to underpin their sustainability performance initiatives and reporting.

“We look forward to working with JLL to enable their customer base with our AI-infused, specialised software to meet their evolving business needs.”

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