RMB, REdimension Capital, GBCSA release ESG proptech report

Financial institution Rand Merchant Bank (RMB) has, in partnership with REdimension Capital and the Green Building Council of South Africa (GBCSA), released an environmental, social and governance (ESG) property technology (proptech) report.

The report, titled ‘Building the Future’, explores the intersection of ESG principles with proptech and is intended to serve as a resource for advancing sustainability in the South African real estate sector.

“We are living in an era of unique environmental challenges. A more volatile climate is exacerbating existing inequalities, disproportionately affecting vulnerable communities and amplifying the need for coordinated action across all sectors.

“As a significant contributor to global greenhouse-gas emissions, the real estate sector has an important role in reshaping this dynamic,” RMB real estate co-head Riyaad Khan said.

The report indicates that South Africa, with its unique environmental and economic context, has an urgent need for more inclusive and sustainable building practices. It highlights the convergence of sustainable finance in the form of green and sustainability-linked loans, green building certifications such as Green Star and Excellence in Design for Greater Efficiencies, and green proptech in the form of digital twins and smart metering, as essential tools for driving sustainable real estate development.

“The real estate sector has the potential to play a pivotal role in shaping resilient, inclusive and sustainable urban environments for future generations and there are many opportunities to deliver value to multiple stakeholders through a commitment to sustainability. The report underscores the critical role of the sector in addressing global environmental and social challenges,” GBCSA CEO Lisa Reynolds said.

The report was compiled to guide developers, investors, and stakeholders in the property market, providing actionable insights into leveraging green building certifications, sustainable finance instruments and proptech innovations to meet the growing demand for environmentally and socially responsible real estate.

"Achieving meaningful, sustainable change in the sector requires collective commitment, combining expertise and resources across finance, technology and certification.

“Together, we are paving the way for a more resilient and responsible built environment in South Africa," REdimension Capital managing partner Peter Clark said.