Sustainable real estate - Across All Life Stages
Businesses, organizations, and individuals are all encouraged to contribute to achieving the 17 Sustainable Development Goals (SDGs) and the commitments signed by world leaders at the 2015 Paris Climate Conference. The real estate sector can—and must—make a difference when it comes to Environment, Social, and Governance (ESG) factors. But how can real estate owners and managers translate ESG policies and goals into a tangible and measurable action plan? SGS Search can assist you in this endeavor.
Driven by legal requirements and a strong sense of commitment, the real estate sector is actively addressing building sustainability. More and more real estate funds, investors, owners, and managers are seeking insights into the ESG performance of potential investments. This focus is not without reason: the ESG score of a property and its alignment with taxonomy criteria are key indicators of long-term profitability. A sustainable building is better equipped for the future: it has higher market value, lower operating costs, and is also more attractive to tenants.
Big Footprint = Big Impact
The real estate sector has a large footprint, meaning that positive changes can have a significant impact. Therefore, the sector can make a substantial contribution to achieving the SDGs and the goals of the Paris Agreement.
The real estate sector:
• Accounts for approximately 80 percent of all materials used.
• Is responsible for 40 percent of the world’s primary energy consumption.
• Contributes to one-third of all human-caused CO2 emissions.
• Represents half of the world’s wealth.
• Plays a crucial role in the development and management of living and working environments.
• Is directly vulnerable to climate change, including global warming, flooding, and earthquakes.
ESG and the EU Taxonomy in the Real Estate Sector
The EU Taxonomy is a scientifically grounded classification system expected to become the global standard for assessing whether an economic activity is sustainable. This system was created to guide investments and align them with the EU’s climate goals, as outlined in the Paris Climate Agreement. The EU Taxonomy aims to provide investors with greater certainty and protection, help companies become more climate-friendly, and direct investments to where they are most needed.
Want to know more about the EU Taxonomy? Check out our FAQ on the EU Taxonomy!
ESG performance and the EU Taxonomy criteria are high on the policy agenda. This goes beyond making statements in annual reports: the sector is working hard to make portfolios more sustainable, with high priority given to sustainable construction and circular demolition.
