Boyd Watterson’s approach to ESG starts with placing the clients’ interests first. For our Real Estate portfolios, putting our clients’ interests first through ESG means careful scrutiny of our ESG initiatives to ensure that these decisions are aligned with our return targets and provide a similar or better risk and return profile than investing capital elsewhere. This scrutiny is especially difficult in real estate investing, as estimating the incremental savings generated from a building enhancement can be an onerous task with so many factors at play across a building’s systems. Furthermore, determining which buildings are the best candidates for upgrades that lower energy consumption adds an additional layer of complexity. To assist in meeting our goal of lowering our portfolios’ carbon footprint while enhancing our returns, Boyd Watterson has engaged data vendor iES MACH to provide a platform from which we can make more informed investments that seek to lower energy consumptions across our real estate portfolios.
iES MACH will work with Boyd Watterson to collect our real estate portfolios’ energy consumption, allowing us to determine which properties are relatively inefficient and which properties would benefit most from capital investment in energy saving measures. Additionally, iES MACH will enable Boyd Watterson to quickly estimate the incremental savings we could receive from an energy saving investment at a property, such as a lighting retrofit. This transparency into the potential operating expense reductions we could receive from these energy saving investments will likely allow Boyd to make more informed investment decisions in ESG areas and expand our capabilities for ESG initiatives. iES MACH will also allow our investment teams to verify whether targeted returns were achieved from these energy-saving investments by comparing actual consumption data before and after the investment was made. These features provided by iES MACH should assist in our decision-making process for ESG initiatives.
Boyd Watterson’s partnership with iES MACH will likely provide a platform from which we can expand our ESG mission in our real estate portfolios. By providing transparency into our portfolios’ energy consumption data, the ability to easily estimate the returns generated from energy saving investments, and the capability to verify and report on these returns, iES MACH will assist our mission to put our client’s interests first through ESG initiatives.
The views expressed herein are presented for informational purposes only and are not intended as a recommendation to invest in any particular asset class or security or as a promise of future performance. The information, opinions, and views contained herein are current only as of the date hereof and are subject to change at any time without prior notice.
Assistant Vice President, Acquisitions
Boyd Watterson Asset Management, LLC