IREM Certified Sustainable Property (CSP) program in action

IREM’s Certified Sustainable Property Program (CSP) was founded in 2015 in response to demand from real estate professionals and tenants seeking to demonstrate their commitment to sustainability and ESG principles, which are increasingly important to the industry. Now, after nine years and nearly 2,000 certifications, the CSP has become a valuable IREM program and a leading green certification amongst its peers. The Journal of Property Management (JPM) sat down with four industry professionals to discuss the operation, value, and future of the CSP program.

Charles Cayce, CPM^®, CSM, RPA, LEED Green Associate

Charles Cayce, CPM^®, CSM, RPA, LEED Green Associate

Regional vice president, property management and property sustainability
InvenTrust Properties Corp.

JPM: IREM’s CSP program has grown by over 30% in each of the last two years. What’s making this certification so desirable among property owners and managers?

Charles Cayce: Over the past six to 10 years, many owners and their management teams have invested time and money in their properties to generate operational efficiencies. The efficiencies, by their very nature, were smart, sustainable options. Ownership was investing in ESG before it was such a prevalent issue. The CSP program offers those owners an avenue to recognize the investments and efforts previously made. 

JPM: InvenTrust Property Management is enrolled in the volume program, meaning you’ve been granted checklist credits for portfolio-level programs and certified at least 10 properties. Why did InvenTrust enroll in the volume program and what has that meant to your team?

CC: InvenTrust Property Management chose to pursue CSP certifications to publicly recognize the many sustainability programs put into place throughout our portfolio. However, with workforce constraints to pursue the program, smart shortcuts were necessary. The volume program offers just such a critical smart shortcut, shortening our team’s efforts to prepare a submission.

JPM: IREM has always prioritized spreading property management best practices. How does the IREM CSP build on that effort, and how can it contribute to overall quality in property management? 

CC: Achievement of a CSP certification isn’t realistic if ownership and the management team haven’t been operating with many of the best practices available. The CSP certification reinforces the value of pursuing best practice property management. Moreover, as these best practices become the standard practice of property management, the newer generation of managers will only learn best practices and IREM will have continued to contribute to their mission.

Hannah Tillman

Hannah Tillman

VP of sustainability
Berkshire Residential Investments

JPM: The CSP offers seven different property types for certification. Why do you think the multifamily sector has embraced the CSP more than any other property type?

Hannah Tillman: Multifamily owners and operators need high-value, low-cost certifications that accommodate the unique aspects of multifamily real estate. Multifamily properties are often ineligible for existing certification schemes due to the lack of access to whole building data. The IREM CSP certification provides flexibility by evaluating properties based on available utility data, allowing multifamily properties to bypass this certification hurdle. From a fiduciary perspective, it’s beneficial to seek cost-effective certifications to attract and retain residents. The IREM CSP designation meets this need by providing a credible certification at a more affordable price point than other market options.

JPM: What benefits have property management teams for Berkshire experienced while working through CSP applications for their specific properties?

HT: We like to refer to the IREM CSP application process as hands-on sustainability 101 training for our property management teams. The application documents sector-specific sustainability best practices in utility efficiency, waste management, health and wellness, and sustainable procurement. By crosschecking their property’s operations against the CSP application criteria, our teams learn sustainable building management practices and can more effectively share the value of their property’s sustainable attributes with their current and prospective residents.

JPM: How does the CSP program integrate with the BerkshireTHRIVE program? How has it contributed to achieving your corporate ESG goals?

HT: BerkshireTHRIVE is our branded in-house sustainability program. Via BerkshireTHRIVE we work to futureproof our multifamily properties by reducing costs, mitigating risks, and adding value. The IREM CSP program fits nicely within the purpose of BerkshireTHRIVE as it helps us run our properties more efficiently, train our property teams on sustainable building attributes, and better market our properties to residents.

Robert McGuinness

Robert McGuinness

Director – property management and ESG
Kite Realty Group

JPM: KRG has a systematic approach to recording, measuring, and reporting corporate responsibility performance. How has IREM’s CSP program been a successful tool in supporting and/or enhancing this approach?

Robert McGuinness: As an owner of triple-net-leased retail properties, our ability to achieve building certifications is limited. Although we have made great strides in our green leasing program, we do not control much of our property’s energy-producing equipment. To effect change and make a building operate as efficiently as possible, the property management team must work with our merchants to be more sustainable. That’s where IREM’s CSP program steps in. The CSP program is centered around the way we manage our properties and how we engage with our external stakeholders for ESG. From indoor air quality inspections and energy and water consumption reviews to the things we are doing at a corporate level to be more sustainable, the CSP program helps guide that engagement, which helps across the ESG spectrum.

JPM: Kite’s five-year ESG goals involve new installation projects such as LED parking lot lighting, smart irrigation systems, and electric vehicle charging. How has the CSP program guided these policies and installations?

RM: At the core of the CSP program is a property-level checklist that takes the property manager step-by-step through an array of sustainability inspections and verifications. Our team spends a lot of time visiting our properties, but those visits vary from week to week or month to month. Using the CSP platform to dial in on energy, water, waste, and sustainable purchasing at the property level trains the eye to engage in sustainability practices when on site. At the end of the day, everything that happens on the property rolls up into our portfolio-level reporting, so you need those little changes across many properties to make a difference.

Chris Corsten

Chris Corsten

Sustainability consultant
EBI Consulting 

JPM: EBI Consulting has been at the forefront of sustainability consulting for decades. Why does your firm recommend the IREM CSP certification as a means of furthering a property’s sustainability performance?

Chris Corsten: There are several certifications that we do for our clients. I prefer the IREM CSP as it is a less complicated and less expensive program compared to others. I like that the categories focus on the five key areas of energy, water, waste, health, and procurement. If a property manager focuses on improving these five areas, they can make the best impact on the sustainability of their property.

JPM: EBI excels at energy management, savings, and reductions. How does a CSP certification play a role in energy progress at the property level?

CC: The best thing the IREM CSP does is make a property manager think about the best ways to lower energy use and then act on those ideas. IREM helps the property manager think about some of the key areas for sustainability, such as alternative transport, EV charging, lowering their ENERGY STAR^® score, and similar concrete actions.

JPM: Owners with ESG goals like the CSP certification to enhance ESG reporting, including GRESB. What else do they get out of the program once they start participating? 

CC: I have noticed that property owners get bragging rights and can show their investors and other stakeholders that the property is performing well and helping to meet sustainability objectives. This is a transparent way to show everyone that the building owners take sustainability seriously.