- Compliance with environmental certifications increases the profitability of properties, with offices being one of the main beneficiaries
- Executives from CBRE, Colonial, Construcía, EPRA, Indoorclima, LAR España, Mesurabl, Novaxia, Prologis and Savills will share at The District their sustainable strategies to optimise costs and gain efficiency
Real Estate is undergoing a major transformation as a result of the disruptions of recent years. One of them, which is setting the industry's path for the next decade, is the climate emergency. Energy efficiency, refurbishment plans or construction aspects are elements that concern the real estate sector and capital players, who are in charge of making investment decisions.
In this sense, ESG (Environmental, Social and Governance) criteria have marked a turning point in the real estate sector, guaranteeing that assets comply with sustainable, social and good governance requirements. Likewise, environmental accreditations act as a lever to boost the profitability of the different assets, with offices being the ones that are obtaining the highest revaluation. According to Savills sources, in the case of Barcelona's 22@ district, which is characterised by the availability of workspaces, clear differences in value have been observed between properties with and without certifications, with those with certifications having higher rents, lower operating costs and a higher level of occupancy.
Another example of the weight of ESG in the valuation of assets is provided by reports from the same industry. In these reports, it is specified that offices that meet sustainable accreditations can obtain on average, in Europe, rents 6% higher than non-certified buildings, while in Madrid or Barcelona this figure rises to 15%-20%.
The District, the largest European real estate summit for all capital players, which will take place from 20th to 22nd September at Fira de Barcelona - Gran Via, will devote a forum to analysing the opportunities offered by ESG criteria for investors. International experts from CBRE, Colonial, Construcía, Indoorclima, LAR España, Mesurabl, Novaxia, Prologis, Savills, or The European Real Estate Association (EPRA), among other companies, will meet at the event to explain how to increase the profitability of assets based on environmental strategies.
The opportunities of the green revolution
The real estate industry is one of the industries that can do the most to reduce the impact of its carbon footprint. To do so, The District will examine how to achieve this using ESG accreditations and technology. Carlos Krohmer, Chief Corporate Development Officer of Inmobiliaria Colonial, together with Alejandro Adan, partner at Arcano, will delve into the regulatory environment driving the adoption of green certificates, the effects of these certificates on the market on property value and demand, the investment requirements to achieve approvals, and the benefits and challenges of implementing sustainability in the sector.
For his part, Marc Basany, CEO of the circular economy consultancy, EIG, will study the latest sustainable trends in Real Estate, as well as highlighting the impact of green construction in the fight for decarbonisation. The aim is to show the potential of the real estate sector as a whole to transform itself and build projects that respect the environment and society.
One of the projects starting in 2021 that aims to ensure the adoption of sustainability in building design and investment is the European Commission's New European Bauhaus (NEB). The initiative aims to be the catalyst for the European Green Pact, which aims to achieve the cessation of emissions by 2050, through specific actions and measures that integrate sustainability, design and innovation. Anna Gener, CEO of Savills Barcelona, will present, at The District, the measures of the NEB and how it will benefit the sector, with a budget of 106 million euros for the 2023-2024 period.
Energy efficiency for certification and cost-effectiveness
The current economic context, with prices rising by 2.6% this August according to the INE, is affecting energy costs and supply. In this respect, Real Estate investors are facing new financial challenges that can be addressed through the use of renewable sources or exponential technologies. Javier Zarrabeitia, Managing Director of BentallGreenoak, one of the largest real estate funds in the world; Cristian Oller, Vice President and Country Manager Spain at Prologis; Patricia García de Ponga, CFO & Head of ESG at CBRE Spain, and Daniel Fernández, Business Development Director at Indoorclima, a company that works with AI for the energy management of buildings, will share success stories from which capital can cut costs and increase its optimisation in assets.
Dominique Moerenhout, CEO of EPRA, and Nuno Brito e Cunha, Lead ESG Advisor at Measurabl, an ESG data management company present in more than 90 countries, will also emphasise the role of energy efficiency, renewable energy, water management, and sustainable financing as key drivers to achieve environmental certifications and contribute to reducing carbon emissions.
The social challenges of Real Estate
The ESG criteria, apart from having a significant sustainable, good governance and transparency aspect, also deal with aspects related to social issues. This includes gender, age and cultural diversity, a plurality that acts as an enriching element within the company itself and the real estate sector as a whole. Cristina Villén, Country Head for the Spanish market at Fiduciam, will delve into the challenges facing an industry that is still linked to a traditional image, while at the same time facing an accelerated change due to the new generations. In turn, Jon Armentia, Corporate Director & CFO of LAR Spain, will address the responsibility and opportunities that arise in Real Estate in different issues affecting urban areas, such as gentrification.