The issue of sustainability is also becoming increasingly relevant in the real estate industry. That is why ESG criteria were established back in 2004. For real estate, ESG means that both projects and companies integrate sustainability aspects into their business processes. These ESG-compliant properties focus not only on their ecological footprint and renewable energies, but also on social responsibility and sustainable corporate governance. The aim is to achieve positive effects on the environment, society, and their long-term economic performance. The ESG rating is used to assess these sustainability aspects of real estate.

ESG criteria and ESG rating for real estate

The ESG rating analyzes and evaluates real estate based on various ESG criteria to determine the sustainability profile of a company or property. This enables investors and stakeholders to compare the ESG performance of real estate and make sustainable investment decisions.

Motivation, areas of application, and why you should consider ESG

Taking ESG criteria into account in your real estate management offers a number of advantages and covers various areas of application that are crucial for your long-term strategy.

Ensure the future viability of your property: By integrating environmental, social, and governance aspects, you can ensure that your property is equipped to meet future challenges and requirements.

Develop customized optimization approaches: Taking ESG into account enables tailored approaches to optimize your real estate based on specific sustainability goals and the needs of your target group.

Protection against stranded assets in existing properties: ESG-oriented decisions minimize the risk that your existing properties will lose value or become unprofitable in the future due to a lack of sustainability.

Assessment of project planning and planning horizons: Taking ESG criteria into account enables a well-founded assessment of new projects and long-term planning horizons by incorporating potential sustainability aspects into the development phase.

In addition, ESG criteria offer considerable financial potential by increasing the attractiveness of your property for investors and interested parties. They serve as a competitive advantage and improve the long-term performance of your properties, which can have a positive impact on your returns and reputation. This holistic approach positions you as a sustainable and future-oriented player in the real estate market in the long term.

Added value for your property

• Compliance with regulations and EU directives
• Fulfilment of contemporary requirements in a social and financial context
• Financially budgeted modular recommendations for action
• Comprehensive and systematic assessment by Larbig & Mortag
• Analysis by sustainability network experts
• An ESG rating that takes all factors into account

Scope and objectives

Our rating covers real estate, building parts, neighborhoods, and project planning. It is tailored to the needs of real estate owners, asset managers, and developers. The priority is on the "environment" factor, and full transparency is guaranteed in all categories.

Basis of the rating model

We base our ratings on actual and target values, cost indicators, building certifications, industry benchmarks, and other key figures. A total of 100 points can be achieved, with 50 points for environment, 25 points for social, and 25 points for governance.

How you benefit from our consulting services

• Systematic analysis of the E, S, and G factors
• Detailed examination of your property in light of the ESG rating
• Transparent and methodical approach
• Identification of action required through a comparison of target and actual values
• Objective measurability of target achievement

ESG reporting

ESG reporting is a process in which real estate companies regularly report on their ESG practices and performance. This includes disclosure of environmental impacts, social initiatives, and governance structures. Transparent ESG reporting enables real estate companies to demonstrate their sustainability efforts and gain the trust of investors, tenants, and other stakeholders.

ESG due diligence

ESG due diligence in the real estate sector refers to the thorough examination and analysis of ESG risks and opportunities associated with a real estate investment or project. Investors and buyers conduct this ESG due diligence to ensure that they consider all relevant sustainability factors before making a decision. This can help identify potential risks and better understand the long-term sustainability performance of the investment.

Starting point and information required

We take the climate impact of investments into account, including the three factors, right from the development phase. To do this, we need location data, inventory plans, photo documentation, building and equipment descriptions, energy performance certificates, and maintenance records.

ESG consulting from Larbig & Mortag

ESG consulting, as offered by Larbig & Mortag, helps companies assess their sustainability performance, set goals, and develop action plans to positively impact the environment and society through their ESG-compliant real estate, for example. The consultants can support companies in identifying their ESG risks, exploiting opportunities, implementing best practices, and establishing transparent ESG reporting to convince investors and buyers of their sustainable development.

As ESG factors become increasingly important and are demanded by investors, customers, and other stakeholders, ESG consulting offers companies the opportunity to strengthen their long-term sustainability strategy, improve their reputation, and thus generate long-term value.

Our approach

Sustainability: Best possible support in achieving sustainability goals through vision, long-standing expertise, and comprehensive competence.

Sparring partner: Cooperative support through various challenges and idea generator for achieving specific project goals.

Innovation: Advanced solutions for a sustainable future through continuous engagement.

 

We would be happy to offer you our ESG consulting services! Contact us, we will be happy to advise you.