Yardi has joined the environmental, social, and governance (ESG) race with a new product called Yardi ESG.

"Yardi ESG is part of Yardi's residential and commercial suites for managing energy in real estate," a company press release says. "The ESG offering includes green energy procurement, 100% whole-building energy, water and waste data aggregation, reporting to ENERGY STAR and GRESB, and products to improve energy efficiency and reduce energy usage in buildings. Combining Yardi ESG with a single connected property management solution provides owners and managers with a comprehensive approach to energy management that streamlines processes and recovers costs."

ESG has become an important — maybe on the path to critical — aspect of real estate, because CRE is just part of the bigger business environment. Despite the backlash in some quarters, the issue goes well beyond politics, especially the environmental part. Questions about danger from extreme weather become disruptive threats. Maybe a business will be shut down for an extended period because of its specific location. Properties, and the companies in them, might be more or less vulnerable and have a risk profile that affects the value. The SEC will require disclosure of environmental risks and buildings play inseparable parts.