An ESG Technology Platform Designed To Give A Return On Investment, Quickly

Asset owners and building managers increasingly face the same problem: They need to reduce energy consumption. However, installing technology to monitor energy usage and encourage residents to take action can be costly and complex. 

Proptech company Utopi’s software can generate up to 10 times the return on investment, founder and CEO Jonathan Burridge said. This is because the company has designed a product based on the needs of investors, property managers and residents, and it has innovated to help them get the best results.  

“All our products are a direct result of working with our clients,” Burridge said. “It’s easy for a property manager to spend money on energy control systems, then walk away and hope it works. We work closely with our clients to give them ongoing visibility of how the technology is performing to make sure it’s delivering on the promises we’ve made.”

Utopi provides an environmental, social and corporate governance technology platform for multitenant real estate. The majority of its clients are owners and operators of student accommodation and build-to-rent blocks. These clients came to Utopi with two clear challenges, Burridge said.

First, the technologies and systems clients had in place were siloed. The data they generated was embedded in systems that were difficult to access, particularly in real time, if it was collected at all. 

“There are systems available to control energy use, but even now you can have a brand-new building with the data buried in a system that no one can access,” Burridge said. “Building management systems can be very powerful, but they’re not designed for the operational teams whose main job is to liaise with residents.”

The second challenge is that they have no idea what is happening in their spaces, Burridge said. There is a lack of transparency and visibility into who is occupying the space, when and for what purpose. Residents, particularly students, are often unaware of the energy they consume and how to reduce it, but the operators are unable to help.

Utopi’s technology not only measures energy consumption but also occupancy levels through a passive infrared sensor. Once in place and generating real-time data, property managers can start to spot patterns in behaviour and address outliers in the data. 

Student accommodation operators often discover a small number of overheated spaces in a building, where students are opening a window to regulate temperature rather than turning it down, Burridge said. There are clear patterns visible at certain times of the year. At Easter or Christmas, students often leave the temperature at a livable level but go away for weeks. 

“If you set parameters for temperature, clients can spot where people are working around these measures,” Burridge said. “Students are known to use plug-in blow heaters to provide extra heat, which consume energy and are a fire hazard. Having real-time data allows a landlord to identify these outliers, do a root cause analysis and make a targeted intervention.”

Utopi works with clients on such interventions. At Christmas, a BTR accommodation operator ran a campaign called Grinch Mode to encourage residents to turn off the heating when they were going away. The result was 74% lower energy consumption in one BTR building alone during the Christmas period compared to the previous year.

Another measure is designed to incentivise students to reduce their energy consumption through rewards. Utopi client CRM Students offered a £100 Amazon voucher to the student who managed to reduce their consumption the most in a 30-day period. The result was an overall decrease in average temperature at a block from 23.1 degrees Celsius to 22.5 degrees in one month. Over a 200-day heating season, that equates to a saving of £28,443. 

Reducing energy consumption provides more benefits than an immediate cost saving, Burridge said. Asset owners need data to meet ESG regulations and reporting requirements, and the return on investment is extremely important. 

“When clients invest in our solution, their return on investment is 10 times their capex in terms of the increase in property value,” Burridge said. “That has been verified by valuers. Our client Harrison Street Real Estate saw a £12M increase in their portfolio valuation as a result of investing in our solutions.”

Utopi has grown rapidly since its inception four years ago. The company monitors more than 40,000 beds, which will increase to 100,000 by mid-2024. 

The team is also about to launch a series of products to help operators control energy use, not just monitor and analyse it. A thermostatic radiator valve will allow operators to reduce energy use and immediately benefit from the investment. A smart panel heater and smart thermostat will follow later in the year.

Burridge puts Utopi’s success down to the fact that all solutions have been designed in collaboration with its first clients. 

“I’m not from a real estate background. I’m from the tech sector. And I’ve been surprised by the amazing reaction we’ve had,” he said. “Incredible early adopters have helped us innovate with our product to make sure it works for the sector. We’ve got great relationships with investment funds who’ve shared their challenges with us, what’s important to them and what the product needed to deliver to support their requirements.”

This article was produced in collaboration between Utopi and Studio B. Bisnow news staff was not involved in the production of this content.

Studio B is Bisnow’s in-house content and design studio. To learn more about how Studio B can help your team, reach out to studio@bisnow.com.