Smart Solutions, Sustainable Gains: Zurich Insurance & BuildingMinds

Written by Helen Richards

Directly connecting with utility providers through the power of smart metering - rather than non-granular invoice scraping - across Zurich's vast portfolio of over 1,000 assets, the newly implemented cutting-edge data management system delivers accurate, real-time energy insights. With BuildingMinds’ support, Zurich can now transform 15-minute sensor data into monthly operational measurements for ESG reporting, in line with CRREM 2.0, turning sustainability into a strategic advantage.

The project team has launched a smart metering project across the EU, in Germany, Spain, France and the Netherlands, empowering Zurich to slash carbon emissions, streamline operations, and stay ahead of regulatory demands - all while driving performance and value in an increasingly data-driven world.

The collaboration between Zurich Insurance and BuildingMinds began in December 2020, with a mission to tackle Zurich’s need for a transparent and reliable system to manage insights across their global portfolio. BuildingMinds stepped up to the challenge, delivering a unified, audit-ready platform for Zurich to rely on for ESG analysis and reporting.

Credit: GRI Club

Integrating such a sophisticated system across such a large portfolio, naturally, comes with challenges. One of the biggest hurdles, shared a representative from BuildingMinds, was in dealing with data quality and availability.

With missing data across three different sources, and area measurements available for only half of the 1,000+ global assets, the challenge was significant. To tackle this, BuildingMinds and Zurich conducted a meticulous data audit, diving deep into the quality of the existing data and pinpointing where crucial pieces were missing.

So, what are the results? Since the project’s inception, the management system has successfully integrated electricity, gas, heating, green electricity, water, and waste data for 1,000+ buildings worldwide, including utility syncs for electricity, fuel, heating, cooling, waste and water data for 35 sites in the US and 12 sites in Germany.

Through their collaboration, Zurich Insurance and BuildingMinds have successfully conducted multiple data audits, transforming their data foundation, and now holding 100% of area measurements across Zurich's entire asset portfolio.

Long Term Sustainability Goals

Since 2019, Zurich Insurance has been dedicated to the 1.5°C Pledge, aligning its business with the global goal of limiting temperature rises to 1.5°C above pre-industrial levels.

In September, Zurich announced an important step on the journey to net-zero: the launch of the Climate Transition Plan (CTP). As a global insurer and as leaders in the investment space, Zurich knows first-hand the direct impact of climate change and understands the vital importance of investing responsibly. The shift to a net-zero economy is more than just something Zurich aspires to do; it is a must do.

With BuildingMinds as their strategic partner, Zurich has gained unprecedented transparency into the current state of their assets, helping drive this mission forward.

BuildingMinds equips Zurich with powerful tools to project building performance, highlighting assets at risk of becoming stranded, determining when action is needed, and anticipating how they will evolve in the mid to long-term.

The insights also close the gap between portfolio performance and CRREM targets, as BuildingMinds’ Chief Scientific Officer, Jens Hirsch, also a co-founder of CRREM, has ensured the full integration of the framework into the platform.

As the first to adopt the latest version, CRREM 2.0, BuildingMinds reinforces its commitment to Zurich's sustainability journey, offering forward-thinking solutions that make real decarbonisation a reality.

Credit: GRI Club

The Future of Data-Driven Insights in Real Estate

Over the next 5-10 years, data-driven energy insights are poised to revolutionise the real estate industry. With stricter ESG regulations on the horizon, companies will need to adapt quickly, prioritising sustainability not just to stay competitive, but to attract investors who are increasingly focused on eco-conscious portfolios.

One of the biggest shifts will be the surging demand for ESG-compliant buildings, which are already commanding significant rental and sale premiums. This trend will lead to a wave of more energy-efficient and environmentally friendly developments, accelerated also by the rise in consumer interest in sustainable living.

Additionally, the way real estate companies manage their portfolios is set to evolve. By embracing ESG requirements and harnessing data insights, companies can gain a deeper understanding of their assets' performance, allowing them to mitigate risks, cut costs, and generate stable, long-term value for shareholders.

Data-driven energy insights empower companies to seamlessly implement ESG strategies, slashing consumption, emissions, and waste. The impact on net operating income (NOI) is clear: tenants benefit from lower energy costs, reduced expenses, and enhanced living experiences in eco-friendly, sustainable spaces.

This shift isn't just good for the environment - it's a game-changer for the real estate market.