Arabesque S-Ray has announced a new multi-million dollar funding line as it gears up to launch its artificial intelligence real estate sustainability tool.
Allianz X, Commerz Real, DWS, and German federal state Land Hessen have co-invested $20m to aid Arabesque S-Ray’s development of new ESG data products, including its proposed S-Ray Real Estate service.
Arabesque has made waves in the sustainable investment industry for its approach to ESG analytics and is widely regarded as a market leader.
The AI-based tool will evaluate the sustainability of real estate objects using traditional data sources on an asset level, together with new emerging digital sources from Internet of Things (IoT) sensors and devices within buildings.
Andreas Feiner, chief executive officer of Arabesque S-Ray GmbH, said: “The demand for ESG data and services is increasing exponentially. Our partnership with three of the leading financial institutions in Germany, together with the state of Hessen, with its focus on sustainability and technology, will enable us to meet this global demand from Frankfurt.”
Andreas Muschter, chief executive officer of Commerz Real, expects sustainability to become a key indicator for customers and investors in their purchase or leasing decisions.
“Alongside digital transformation, the responsible use of the world’s precious resources is the dominant topic of our age. As a specialist for real assets we have the opportunity, and also the responsibility, to make a significant contribution to sustainability.”
“In this respect, Arabesque S-Ray is a perfect example of how digitalisation acts as a catalyst for the swift implementation of sustainability,” Muschter added.
Mr Tarek Al-Wazir, Hessian minister of economics, energy, transport and housing, said stopping climate change and its dramatic effects requires enormous investment that is not achievable without private capital. “Investors, however, need to be able to recognise whether their investments are indeed sustainable or simply a product of “greenwashing.
“Transparent criteria and tools for decision-making are therefore crucial elements in attracting private investment. That is one of the goals of ‘Green Finance Clusters Frankfurt’.”