Sustainability data in real estate: Catalyst for future growth in the age of AI
Abstract
This paper offers a comprehensive analysis of the evolving importance of sustainability data in the real estate sector, highlighting the challenges posed by fragmented systems, complex processes, and inconsistent data management. It argues that, historically viewed as a burden, sustainability data is now recognised as a strategic asset capable of enhancing investment performance, fostering innovation, and creating long-term value. The study examines the deficiencies of legacy systems, siloed datasets, and lack of standardisation, alongside regulatory pressures such as the EU Sustainable Finance Disclosure Regulation, the UK Sustainability Disclosure Requirements, and the Task Force on Climate-related Financial Disclosures, which demand greater transparency. Effective governance of sustainability data is shown to be a key differentiator for better decision making and risk mitigation. The paper identifies eight transformative trends, including centralised data systems, advanced metrics, and the integration of financial and non-financial key performance indicators. It highlights real-world initiatives such as automated data collection and digital logbooks that narrow the gap between sustainability ambitions and operational realities. The intersection of sustainability data and artificial intelligence (AI) is explored, emphasising the necessity of trustworthy governance for effective AI-driven decisions. The authors call for industry leaders to develop robust data governance models, advocating a shift from mere compliance towards strategic value creation, positioning sustainability data as a catalyst for future growth and sector transformation. This article is also included in The Business & Management Collection which can be accessed at https://hstalks.com/business/.
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Author's Biography
Katerina Papavasileiou is Director of the Real Estate team at Federated Hermes Limited, specialising in environment, social, and governance (ESG) and responsibility. Since joining in 2022, she has led the sustainability agenda across real estate and real estate debt, advancing environmental and social performance across portfolios. With over 14 years’ ESG experience in the built environment, Katerina brings deep expertise in embedding sustainability into investment decisions, operations, and development activities. Her prior roles include leading portfolio-wide ESG integration and developing decarbonisation, climate resilience, and biodiversity action plans. Katerina has delivered sustainability strategies for major construction and regeneration projects, advised large infrastructure organisations, and contributes to sector progress through advisory roles. She holds a BSc in management science and technology, an MSc in applied economics and finance from the Athens University of Economics and Business, Greece, and an MPhil in environmental policy from the University of Cambridge, UK.
Sally Bashuan is Senior Vice President and Head of Global Data Governance at Federated Hermes, a global leader in active responsible investment and a pioneer in sustainability, with over US$900bn in assets under management. A global data leader with more than 20 years’ experience in the financial services industry, Sally specialises in enterprise data governance, analytics, and the application of emerging technologies across real assets and investment management. Sally holds an LLB (Hons) law degree and a master’s in legal practice, bringing a strong regulatory and corporate governance perspective to data-driven transformation. Prior to joining Federated Hermes, she was Head of Data and Analytics, Real Assets at Aviva Investors, where she led large-scale data and digital initiatives. Sally’s career spans senior leadership roles across data, operations, audit, and technology, giving her a multidisciplinary view of how data, risk, and ESG intersect in complex global organisations. Sally is also an accredited AI professional, ethicist, and auditor, with a particular focus on responsible artificial intelligence, data quality, and trust in decision making.
