ESG - environmental and social sustainability in the real estate industry

Transforming the building sector: How you can transform your property in a value-enhancing and sustainable way

Three letters stand for some of the greatest challenges of our time: ESG - Environment, Social and Governance. The real estate sector plays a prominent role in solving urgent environmental and social challenges. In Germany, around 40% of CO₂ emissions are attributable to the building sector. It is therefore essential to invest in sustainable measures for your property now.

Engel & Völkers Commercial Berlin is committed to a sustainable real estate future. Our goal is to help you protect the value of your property while minimizing its environmental impact.

We are proud to work with our partner Purpose Green to offer you these services for a sustainable real estate future:

Initial energy assessment: Receive an initial energy assessment of your existing property and an overview of the general future development of your building.

Plan energy-efficient refurbishment: After the assessment, Purpose Green supports you in the optimization and refurbishment process. The aim is to future-proof your properties and develop them in line with ESG standards. From strategy development and the preparation of an individual refurbishment roadmap to the procurement of subsidies and project management of the necessary measures, everything is provided from a single source.

ESG factors in the real estate industry: sustainability as the key to real estate value

For modern real estate owners and investors, environmental and social aspects are not only ethical considerations, but also crucial economic factors. A building's energy efficiency, its compliance with social and societal standards and its adaptability to new technologies influence operating costs, rentability and market value.

However, implementation is not always easy. The current subsidies at federal level and other local subsidy programs play a significant role in the economic consideration of implementation. Additional challenges, such as the balance between energy-efficient refurbishment and environmental protection or tax considerations when installing PV systems, can make the process challenging.

Engel & Völkers Commercial Berlin is your expert for sustainable real estate solutions. Benefit from our advisory services, webinars and extensive information resources:

ESG in the real estate industry: focus on the environment, social issues and governance

E for Environmental: Climate protection takes place in buildings

Protecting the environment has become an existential task, and climate protection dominates political discussions worldwide. In order to achieve the climate goals of the United Nations, the EU and the nation states, the consumption of fossil fuels must be drastically reduced. This can only be done with the real estate industry, because buildings are responsible for around 40 percent of greenhouse gases. It is not only a matter of energy-efficient new buildings, because the majority of existing buildings will still be in use decades from now. The energy-efficient refurbishment of existing buildings is therefore a decisive factor in advancing climate protection.

S for Social: Buildings determine people's living conditions

Governments and international organisations have identified social inequalities, poverty and discrimination as some of the most important obstacles to global development. The real estate industry plays an important role in eliminating these grievances and improving people's living conditions.

This is especially true for the housing segment, because housing is a basic human need and the provision of affordable housing is therefore one of the most pressing political and economic tasks. Buildings also have an impact on the physical and mental health and social participation opportunities of the people who live or work in them. Development and refurbishment projects, but also real estate acquisitions, therefore also involve numerous social issues.

G for Governance: A sense of responsibility ensures long-term success

Responsible corporate governance that takes into account the interests of all internal and external stakeholders is important for the long-term success of a company. Good governance thus goes far beyond compliance with regulations and laws. It requires a system of values that also and above all includes the described aspects of ecological and social sustainability. In order for management and employees to live these values, they must be firmly anchored in the company's organisation and secured with control mechanisms.