IBM & JLL launch new ESG reporting solution for commercial real estate

IBM and JLL have jointly launched a sustainability solution designed to improve ESG (Environmental, Social, and Governance) reporting and data management for commercial real estate (CRE) properties. This 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 capturing and managing sustainability data across real estate portfolios. This is in response to the growing demand for comprehensive ESG reporting, which is expected to increase significantly over the next couple of years. According to JLL's research report, "The Green Tipping Point," 30% of the market demand for low carbon office space will not be met by 2025, highlighting the urgent need for enhanced ESG metrics within the industry.

Limited integration of ESG metrics within corporate structures has been identified as a significant barrier. An IBM Institute for Business Value report indicated that only 20% of organizations integrate ESG metrics into supply chain operations, 26% into procurement and sourcing, and just 11% into real estate and facilities management. The report further suggests that companies prioritising sustainability are 52% more likely to outperform their competitors and can achieve a 16% higher rate of revenue growth.

Guy Grainger, Global Head of Sustainability Services at JLL, emphasized the importance of this development: "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, 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 enable their customer base with our AI-infused, specialized software to meet their evolving business needs."

The initial roll-out of this solution is expected to provide thousands of JLL client sites with the opportunity to adopt IBM Envizi software, thereby enhancing their ability to integrate and report ESG data effectively. This underscores the collaboration's commitment to address the increasingly complex sustainability challenges faced by the CRE sector, aiming to promote more substantial and measurable environmental outcomes through improved data management and reporting capabilities.