Sustainability and climate change are two essential issues that the real estate sector has been dealing with intensively for some time now. And not without reason: according to the United Nations Environment Programme (UNEP), the construction and real estate industry is responsible for around one third of global CO₂ emissions. This is a large percentage that calls for action and clearly highlights the urgency of an ecological transformation.
ESG criteria are increasingly being discussed in this necessary process of change. The acronym stands for aspects relating to environmental protection, social issues, and corporate governance. Together, these three points form the basis for future-proof and sustainable projects across all industries.
The crux of the matter is that there are still no binding, clearly defined regulations to guide us. However, we at Larbig und Mortag are keeping a close eye on the issue and know exactly which direction the real estate market must take in order to keep pace with ESG parameters.
How tomorrow's real estate will be built
The Paris Agreement, the UN Sustainable Development Goals, and the EU Taxonomy Regulation that has come into force set clear goals for a sustainable future. Carbon dioxide emissions and energy consumption must be drastically reduced.
If you look at the life cycle of real estate, climate protection, social compatibility, and holistic, transparent strategies play a major role in all phases of construction. This is particularly important in new construction projects, but also in the maintenance and renovation of existing buildings.
- Construction phase 1: Even at the planning stage, increasing attention is being paid to factors such as whether the location of a property has been chosen correctly and whether the construction process could have an adverse impact on the surrounding area.
- Construction phase 2: During implementation, it is essential from an ESG perspective to switch to more resource-efficient materials (rather than just concrete, for example).
- Construction phase 3: When it comes to building use, greater consideration will be given to whether there are more holistic approaches to use instead of purely commercial leasing or purely private acquisition.
- Construction phase 4: In future, sustainable factors should also be taken into account when it comes to the utilization of existing real estate. For example, would it be better to demolish an old warehouse or renovate it using climate-friendly elements such as photovoltaic systems and more efficient, recyclable insulation materials?
Rating systems for sustainable real estate
So-called "green buildings," which implement all EGS criteria as best as possible, will become the standard. And even today, it is already possible to determine how "green" a property is. There are a number of certifications that attempt to reflect the ecological quality of a property. Such independent seals of approval are awarded by BREEAM, LEED, and DGNB, among others. The latter—the German Sustainable Building Council—uses a specially developed rating system with platinum, gold, and silver categories to indicate how sustainably a building has been constructed.
There is also another rating method, namely ECORE scoring, which is used specifically in the real estate industry. This analysis takes all important ESG and environmental aspects into account and is often used as proof of sustainability for investors.
However, as long as there are no uniform, generally applicable regulations at EU and federal level, it will be almost impossible for customers in particular to classify the exact status of a property. Fortunately, experts can help here. If, for example, you are currently interested in renting a warehouse and would like to know how future-proof it is, Mr. Mortag and his team will be happy to advise you.
