ESG & sustainability
Regulation, markets and strategies in the real estate sector
Energy-efficient, green and sustainable have all become familiar terms in the real estate sector. The acronym ESG, however, started to become highly relevant to investors, property owners, asset managers and property/facility managers in March 2021 at the latest. What does this acronym actually stand for and how can companies make sure their products are ESG compliant?
What does ESG mean?
The term has become standard when referring to sustainable investments. These three letters stand for three ways in which companies are responsible for sustainability. ESG, however, is not a specifically defined term. To date, each company and each rating agency has been able to give their own meaning to ESG and specify their own compliance levels.
E = Environmental
Refers to aspects such as climate, resources and biodiversity.
S = Social
Includes employees, ease of use, safety, security and health
G = Governance
Covers topics such as risk and reputation management, supervisory structures, compliance and corruption.
What is the significance of ESG in the real estate sector?
A European standard was introduced in March 2021. The EU Sustainable Finance Action Plan and the EU Taxonomy and Disclosure Regulation, in particular, are the first regulations to specify mandatory criteria and legal classification for vehicles such as real estate funds that wish to be designated as green, ESG compliant and sustainable. The question now has become how to best comply with specific legal requirements as well as all of the other ESG criteria that have been established over time in order to make sure that your assets are ESG compliant.
“Taking environmental, social and governance aspects into consideration in property development, acquisition and asset management activities has become essential, not only when it comes to sustainability performance but also when it comes to guaranteeing financial performance. This is a trend that we will see intensify going forward.”
Our services for sustainable real estate
As real estate advisors for a changing world, we consider making a lasting contribution to climate and society not only an opportunity but also our responsibility. With our services, we work with you to structure this transformation in a way that guarantees returns while also helping achieve climate targets.