The European Union is strongly committed to making its economy more sustainable. That is why the CSRD regulation was issued: a mandatory reporting on ESG progress for larger companies, effective from this fiscal year. Recently, Commission President Ursula von der Leyen announced easing ESG reporting requirements.
“But despite those policy changes, it remains important to focus on sustainable real estate to avoid future declines in value,” argues André Stolk, partner at the real estate consultancy firm Stadim. “At the same time, it is often the logical choice today. Those who ambitiously commit to sustainability in new projects or through renovation will have lower and more predictable energy costs. Moreover, you comply with the increasingly stringent rules around energy performance, you are better protected against climate risks and the profile of the building remains aligned with market standards.”
"},"alignedImage":{"position":"bottom","transformBaseUrl":"https://assets.ing.com/transform/56504205-d17c-45cf-a6d4-409fc53c64c6/Andre-Stolk-Stadim","original":"https://assets.ing.com/m/22fc6fc33022fde3/original/Andre-Stolk-Stadim.webp","extension":"webp"}},{"componentType":"sectionTitle","title":"How can SMEs address this concretely?"},{"componentType":"paragraph","richBody":{"value":"André Stolk: “SMEs can get a return on their investments in existing buildings fairly short term. LED lighting and solar panels, for example, pay for themselves after a few years. In addition, it is crucial to look at sustainability integrally and map how sustainable your buildings really are today. That will be the starting point for a building-specific multi-year plan. Increasing energy efficiency is crucial, but the well-being and comfort of users also play a very important role (think, for example, about views of greenery or charging infrastructure).”
"}},{"componentType":"sectionTitle","title":"What does an ESG building screening entail?"},{"componentType":"paragraph","richBody":{"value":"“Companies considering investments in their real estate can have an ESG screening of their building assets,” says Stefaan Martel, CEO at Bopro, a company that advises and helps realize sustainable construction projects. “Such an ESG screening consists of two parts. We map out the sustainability performance of the building, and on the other hand, we examine the potential risks of climate change. Then we determine what measures are needed to future-proof the building.”
"},"alignedImage":{"position":"bottom","transformBaseUrl":"https://assets.ing.com/transform/8f81528e-2d22-4b9c-b91a-cf932639efcb/Stefaan-Martel-Bopro","original":"https://assets.ing.com/m/f417bad6f526f95/original/Stefaan-Martel-Bopro.webp","extension":"webp"}},{"componentType":"sectionTitle","title":"What criteria are used in such a screening?"},{"componentType":"paragraph","richBody":{"value":"Stefaan Martel: “We look at energy performance and carbon emissions, as well as water consumption, waste management and biodiversity. As the term ESG screening suggests, we also analyze social aspects such as well-being, accessibility and mobility. And for buildings in operation, we examine whether they are maintained sustainably and whether any modifications are carried out responsibly.”
"}},{"componentType":"sectionTitle","title":"What do sustainable investments mean for a building's value?"},{"componentType":"paragraph","richBody":{"value":"André Stolk: “Valuation is a complex interaction of various factors such as property type, location, quality and - increasingly - the sustainability characteristics of a building. In the office market, we already see clear differences in value and the demand for sustainable offices far exceeds supply. In other segments, such as the retail market, sustainability is less decisive. There, the sales potential and the location in particular are decisive for the time being.”
Stefaan Martel: “Above all, you want to avoid that a building's CO2 emissions are not aligned with the climate goals by 2050. That causes a hefty drop in value. Such buildings are called 'stranded assets' in technical terms. With new construction or renovations, you can take this into account right from the design stage. But for buildings that are already in use, it is less straightforward and step-by-step adjustments are needed to make them future-proof.”
"}},{"componentType":"sectionTitle","title":"How does ING guide its clients in the sustainability transition of their real estate assets?"},{"componentType":"paragraph","richBody":{"value":"Marc Callier, Head of Sustainability ING: “Climate change impose risks. Ultimately, banks do not want to be left with 'stranded assets'. This is why we make sure that our clients are well informed about the obligations that are coming their way, and we want to advise and support them to make the right choices. Thanks to our partnerships with specialized agencies such as Bopro and Stadim, they can also count on guidance for the technical aspects of this transition.”
"}},{"componentType":"paragraph","title":"Wondering what ING can do for you?","richBody":{"value":"Find out how ING supports businesses in the sustainable transition.
These article was previously published in Trends/Tendances.
"}}]},"legalZone":{"flexComponents":[{"componentType":"paragraph","richBody":{"value":"Society is transitioning to a low-carbon economy. So are our clients, and so is ING. We finance a lot of sustainable activities, but we still finance more that’s not. See how we’re progressing on ing.com/climate.
This article is for informative purposes only and the information set out herein may change with time. We therefore recommend that you always reference specific regulations and requirements with the competent authorities for the latest information. Additionally, we advise that you seek professional advice on a case-by-case basis before making any decisions. Please note that ING Belgium SA/NV cannot be held liable for any decision taken on the basis of the information provided.
"}}]}}}