The relevance of energy efficiency and ESG for apartment buildings and residential and commercial buildings: What you as a private owner or asset manager should know

With the growing global awareness of sustainability, topics such as energy efficiency and ESG criteria (Environmental, Social, Governance) are becoming increasingly important in the real estate industry. These topics have profound implications for the strategies of private property owners and asset managers. This article highlights the relevance of these topics for multi-family houses and residential and commercial buildings.

The relevance of energy efficiency

The energy efficiency of a building has direct impacts on its operating costs, market value, and attractiveness to tenants.

• Operating costs: Energy-efficient buildings typically have lower operating costs, as they consume less energy for heating, cooling, and lighting.

• Market value: Buildings with high energy efficiency can achieve a higher market value as they are more attractive to buyers and tenants.

• Tenant attractiveness: Tenants, especially younger generations, are increasingly focused on sustainability and energy efficiency. They prefer to live and work in buildings that reflect these values.

The importance of ESG

ESG criteria provide a framework for evaluating the sustainability and ethical impacts of an investment.

• Environment: This involves evaluating the environmental impacts of a property, including aspects such as energy efficiency, water consumption, and waste management.

• Social: This refers to the social impacts, including the well-being and satisfaction of tenants.

• Governance: This pertains to the management and leadership of the company or property, including transparency, accountability, and risk management.

For private property owners and asset managers, consideration of ESG criteria is crucial as it can mitigate risk, enhance long-term performance, and improve reputation.

Conclusion

Energy efficiency and ESG are not "nice-to-haves" but rather "must-haves" for private property owners and asset managers. Considering these aspects contributes to improving the long-term profitability and sustainability of real estate. Purpose Green offers comprehensive services to support you in optimizing the energy efficiency of your properties and help you achieve your ESG goals.