Introduction: ESG Takes Center Stage in the PBSA Market

The Property Week’s Student Accommodation Conference, Showcase, and Awards 2022 brought together industry leaders to discuss the future of the Purpose-Built Student Accommodation (PBSA) market. A key takeaway was the unanimous emphasis on Environmental, Social, and Governance (ESG) considerations as a cornerstone for future investments in the sector. Experts highlighted the growing importance of ESG compliance in driving market growth and meeting sustainability goals.

Industry Leaders Advocate for ESG as a Core Investment Principle

Andrew Smith, Head of Student Accommodation at Cushman & Wakefield, stressed that ESG must form the foundation of all PBSA investments. He emphasized that ignoring ESG is no longer an option, as it has become a critical factor in decision-making. Josh Miller, Managing Director at Harrison Street, echoed this sentiment, stating that assets failing to meet ESG standards would struggle to attract investment or achieve liquidity in the market.

The Social Aspect of ESG: Building Communities and Addressing Mental Health

The panelists unanimously agreed that the social component of ESG is particularly vital in student accommodation. Creating a sense of community and fostering inclusivity were highlighted as essential for student well-being. Miller also underscored the importance of addressing mental health through onsite programs, ensuring that PBSA developments cater to the holistic needs of students.

Sustainability Challenges: Skills Shortages and Retrofitting Delays

Dan Mahoney, co-founder of Sunclix, pointed out that a lack of skilled professionals is hindering the sector’s ability to meet sustainability targets. He noted that retrofitting and other green initiatives are often delayed due to a shortage of qualified workers. Mahoney called for more apprenticeships and training schemes to bridge this gap and accelerate progress toward a zero-carbon future.

Upskilling the Workforce: A Path to Achieving Green Goals

Claire Petricca-Riding, National Head of Planning and Environment at Irwin Mitchell, emphasized the need to upskill the workforce to meet the demands of greener jobs. Charlie Hamilton of Plentific highlighted the looming shortfall of 500,000 tradespeople required for retrofitting UK properties. Both experts agreed that behavioral changes and technological advancements are crucial for achieving sustainable targets in the PBSA market.

The Role of Technology and Data in Driving Sustainability

Neill Birchenall, Managing Director of ASK4, emphasized the importance of leveraging technology and data to achieve sustainability goals. He urged student accommodation providers to adopt modern construction methods and gather actionable data to optimize energy efficiency and reduce carbon footprints. Birchenall’s insights underscored the need for a tech-driven approach to meet the evolving demands of the PBSA market.