Measurabl, a startup that offers ESG data management software for commercial real estate, has raised $18.7 million in Series B funding to exapand its ESG platform. New investors include Constellation Energy Technology Ventures, the venture investing arm of Exelon Corporation, and S&P Global. Led by Sway Ventures, repeat investors include Camber Creek, Building Ventures, Concrete Ventures, Impact Engine, and DivcoWest.
Measurabl believes that commercial real estate is heading toward a convergence where ESG indicators will be as highly valued as traditional financial metrics. As this new market reality takes hold, every real estate transaction will require easy access to accurate ESG indicators, says Matt Ellis, Measurabl founder and CEO.
Real estate is responsible for nearly 71% of US electricity consumption, 39% of carbon emissions, 14% of potable water usage, and 40% of raw materials usage, making it an industry in particular need of ESG data management.
ESG has become a critical point of differentiation and competitive advantage for real estate owners who can use it to gain preferred access to capital markets as well as lending and insurance products. For example, Boston Properties, the largest office REIT in the US and an early Measurabl adopter, recently oversubscribed a $1 billion green bond issuance.
“Investors, both institutional and individual, are embracing sustainable investing, not only because they care about our planet, but because they can earn high-quality returns,” says Doug Hodge, Measurabl board member.
With the new funding, Measurabl will invest in product R&D, partnerships, customer service, and expanding its platform services in Asia, and in the European and North American markets.
Investors in the United States consider environmental, social and governance (ESG) factors across $12 trillion of professionally managed assets, a recent report from the US SIF Foundation concluded. That represents a 38% increase since 2016.