ESG & Sustainability in Self-storage Real Estate
Sustainability in Self-Storage Real Estate
Within the real estate industry as a whole, self-storage facilities have a relatively low environmental impact due to lower than average energy, water, and waste usage, as well as fewer people spending prolonged periods of time on site on a regular basis.
That said, there remain opportunities for forward-thinking self-storage real estate funds and development companies with an eye on ESG sustainability targets to ensure they are doing everything possible to reduce the negative environmental impacts associated with their building portfolio.
These sustainability efforts can be executed physically through self-storage building construction and interior fit-outs as well as the business’s ongoing operations; that can then be combined with a more strategic, corporate level Environmental, Social, and Governance (ESG) piece to complete the picture.
Sustainable Self-Storage Building Strategies
Self-storage spaces take a more nuts-and-bolts sustainability approach in comparison to some of the more occupant heavy building industries.
Nonetheless, a number of strategies from the worlds of waste, water, energy, and materials can still be applied here to help reduce environmental impact.
Waste efficiency in sustainable self-storage real estate
Waste can be reduced and managed most effectively in both the construction phase and in-use phase of self-storage buildings, no matter what their previous sustainability credentials.
Overall, the goal is to divert as much waste from landfill as possible throughout all phases of the building cycle.
During construction, it is important to reduce the damage of materials or products whenever possible to avoid excess waste.
In addition, a site waste management plan should be employed to ensure proper disposal techniques and awareness of waste when it is produced.
Building strategies that produce less waste such as modular construction can also be deployed to reduce overall waste production in the manufacturing and building processes.
In the in-use phase, self-storage facilities should offer recycled packaging materials whenever possible to encourage sustainable client habits.
In addition, there should be recycling facilities available on-site, and whenever possible, paper use should be eliminated through the use of technology in all client relations.
Water in sustainable self-storage real estate
Water efficiencies and reductions should be included in both landscaping and internal plumbing design.
In the interior, self-storage facilities tend to have minimal water use, with maybe one or two bathrooms on-site.
Although this is a relatively low impact, it is important to install low-flow fixtures and efficient plumbing in all bathrooms to reduce water use.
On the exterior and within landscaping, strategies such as xeriscaping should be implemented to reduce the amount of water necessary to upkeep the flora on-site.
In addition to lowering irrigation needs, water runoff controls and stormwater retention schemes should be incorporated when possible.
Energy in sustainable self-storage real estate
Similarly to real estate water efficiency strategies, energy efficiency should be considered both in and outside of the self-storage buildings from a real estate sustainability perspective.
On the interior, the use of efficient LED bulbs and sensor-based lighting tactics should be integrated.
In addition, HVAC systems should be optimized for efficiency to avoid unnecessary temperature control and excess heating or cooling.
On the exterior, strategies such as the implementation of renewable energy sources, most commonly rooftop or even building facade solar panels, can be very effective.
In addition, strategies such as installing green (landscaped) or white roofs can reduce energy demands as they increase cooling / reduce the urban heat island effect.
Sustainable Materials in self-storage real estate
From a real estate ESG point of view, construction and fit-out materials in a self-storage building should ideally be selected by origin location, resiliency, and recyclability to increase project sustainability.
From a holistic perspective, life cycle assessments (LCAs) and/or leveraging 3rd party certifications such as Cradle2Cradle, Declare, EPDs and HPDs, will help to determine which materials are the most sustainable for each project.
Local materials are desirable as they reduce transportation emissions, and materials that are bio-based, rapidly renewable, and contain a high recycled content tend to be the most sustainable options.
In addition, materials that are durable and have high structural resilience are beneficial as they will last longer and therefore avoid emissions and costs associated with replacements. Decisions such as what kind of flooring should be installed should be considered carefully with sustainability factors kept in mind.
ESG Corporate Strategy in self-storage real estate
From a more corporate level, real estate ESG strategies should be implemented to ensure sustainability proliferates in all aspects of a self-storage business model.
Environmental efforts should be focused on managing a company’s environmental responsibility. This includes an overall goal of conserving resources and energy and reducing waste.
To monitor these objectives, companies should utilize data collection, LCAs and impact assessments, and incorporate company-wide climate initiatives. To aid in these endeavors, companies can utilize online ESG management software tools such as Measurbl.
Social objectives focus on the employees and the social impact that a company has. The aim should be to create a safe, healthy, diverse workspace that allows employees to do the best work for customers.
To achieve these goals, companies should provide career development and training opportunities, a health and safety strategy, social engagement within the community, and even provide affordable sustainable housing opportunities for workers.
As with other ESG management strategies, various online software tools such as the Brightest Platform can be utilized to aid in social performance.
Governance strategies aim to increase company transparency and integrity through effective management plans.
Creating policies to better monitor a company such as codes of conduct, data privacy regulations, and documenting ESG goals are all beneficial. In addition, risks associated with the business should be understood, including climate risks.
Governance is essentially the oversight of all systems within a company, so it therefore can help to set guidelines, and organize and report data to increase and promote a transparent, ethical company. Online tools such as Workiva can be used to help ESG tracking and reporting.
Sustainable Building Certifications for self-storage real estate
As self-storage companies are searching for ways to improve sustainability throughout their buildings and business, implementing green building certifications can help grasp these goals.
Sustainability focused standards such as LEED and BREEAM for example, can provide specific building strategies to improve sustainability.
If a certification is desired, project teams should outline goals and align with the desired standard(s) from the onset. If certification is not the end goal, the standards can still provide valuable information and can act as guides towards greater environmental sustainability.
Examples of sustainable self-storage real estate
There are several self-storage companies that have implemented numerous sustainability strategies within their businesses. Learning from other ESG reports can provide information about precedents and guidance on what is possible within the sector.
For example, in Public Storage’s most recent sustainability report, they mention their future-thinking goals of carbon, water, waste and energy reductions. Already, they have implemented strategies such as LED lighting, solar power generation, low-water-use landscaping, battery energy storage, and high structural resilience.
In addition, Life Storage has integrated cool roofs in all of their projects, as well as using LED lighting, efficient HVAC systems, a waste management policy, and low-water irrigation systems. Their ESG report highlights these building-level environmental initiatives as well as their company-level sustainability achievements and goals.
Extra Space self-storage real estate REIT with a sustainability plan
Extra Space are a US brand recognised by GRESB as No.1 for their ESG efforts that include an energy efficiency strategy with LED or T-8 lighting systems, a solar program maximizing the use of rooftops for clean energy production, a focus on recycled materials in their boxes and packing supplies, a paper-use reduction plan prioritising digital administration procedures, efficient plumbing devices and irrigation systems combined with xeriscaping all help to limit water demand. For more information on their Social Policy, see the annual report here.
https://www.extraspace.com/self-storage/sustainability/
contact us to discuss your self-storage ESG and sustainability project.