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.”

Hermann Horster
Hermann Horster
Head of Sustainability

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.


Our ESG checklist uses 14 criteria to assess your property. Based on the results and target group, we can put your property in the best light when it comes to ESG.

Our annual Green Building Investment Report is an essential point of reference for investors and asset managers in their decision-making processes. The data contained in the report can be used to identify target groups for asset and portfolio investments and to create the perfect marketing strategy.


Our investment consulting team is here to give you advice and help you decide whether it would be beneficial to conduct ESG due diligence or energy monitoring or to obtain proof of taxonomy compliance or sustainability certification for your stock building or property development.


Our property management team understands your requirements and effectively compiles and analyses the performance data of your assets. This information can be used to reduce life cycle costs, environmental risks and contaminants at your asset in order to secure tenant loyalty and efficiency. Perfect for GRESB or ECORE ratings or for certification.


Integrating ESG has become one of the five guiding pillars in BNP Paribas REIM’s corporate strategy. BNP Paribas REIM outlined three key targets in its 2020 ESG strategy: cutting carbon emissions, managing assets responsibly and boosting stakeholder engagement to have a positive impact.

Your contact

Hermann Horster
Hermann Horster MRICS
Head of Sustainability / Director
Ob ESG-konforme Portfolio-Ausrichtung oder Klimapfade und Green-Building-Zertifizierung für einzelne Assets, ob marktgerechtes, nachhaltiges Nutzungskonzept für einen Neubau oder die Begleitung eines Investors bei der Objektakquisition – für mich steht im Vordergrund, mit dem spezifischen Know-how unseres Consulting & Valuation-Teams die Ziele der Kunden im Bereich Nachhaltigkeit erfolgreich umzusetzen.
Consulting & Valuation