Saturday, August 9, 2025

Despite anti-ESG pushback, real estate manager commits to sustainability

The certification processes that Hazelview’s properties fall under involve multiple sets of stringent criteria around areas including energy consumption, air quality, waste management, greenhouse gas emissions, and environmental management. Achieving them means taking steps like adding high efficiency boilers, making energy and water retrofits, and replacing windows. Many of these improvements can also make units more attractive to tenants and therefore help them command higher rents.

Krempulec cites the example of one property in Toronto’s midtown near Yonge & Eglinton. Originally built in 1962 the building didn’t have individual thermal controls in each unit. A common radiator system provided heat and there was no air conditioning. As part of meeting these sustainability standards, Hazelview installed individual heat pumps in each unit, giving tenants heating and cooling with independent control in each unit. The result has been more sustainable energy usage as well as more desirable units and higher rents.

Some of these sustainability upgrades involve cutting edge technology, too. Hazelview has used a heating additive called endotherm in some of their natural gas heated buildings. That additive resulted in a 20 per cent reduction in natural gas consumption and a 33 per cent reduction in greenhouse gas emissions. That translates into immediate operational savings.

They have also begun using a product called Lamarr.AI, which uses drones and thermal imaging to rapidly inspect a building’s exterior. By flying drones around a building they are able to quickly identify where heat is being lost, a process that would take days to determine through traditional audits. From there they can make quick fixes and further improve building efficiency.

All of these improvements, Krempulec explains, can control for certain risks. She mentions the risk that assets without these sustainability practices might become stranded. As more institutional investors and pension funds apply ESG criteria to their approaches, not having these improvements means the purchase market for properties becomes smaller. Moreover, having lower operating costs and higher overall efficiencies can also make an asset more attractive for a buyer.

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest Articles