A practical guide for the entire real estate and investment life cycle
E-Book, Deutsch, 585 Seiten, E-Book
Reihe: Haufe Fachbuch
ISBN: 978-3-648-16349-8
Verlag: Haufe
Format: EPUB
Kopierschutz: Wasserzeichen (»Systemvoraussetzungen)
The authors – an expert team of economists, lawyers, investors, asset managers and engineers – provide an overview of national and European regulatory requirements as well as current market developments.
They show what role ESG plays not only in the areas of new construction, renovation and real estate management, but also in investment processes and real estate valuations.
Contents:
- ESG and the real estate market
- ESG and regulatory environment
- ESG and real estate management
- ESG in urban and project development
Autoren/Hrsg.
Fachgebiete
Weitere Infos & Material
Foreword by the editors
ESG as a solution for the core problems of global change and the implications for the real estate industry Global change has triggered a process of knowledge and transformation at a rapid pace, especially since the 1980s. The increase in core problems such as climate change, environmental pollution, and social imbalance, especially in emerging and developing countries,1 has led to the idea of sustainability becoming2 established as a global development model. Probably the best-known definition of the term »sustainable development« dates back to 1987, established by the so-called Brundtland Commission, a special United Nations (UN) commission headed by Norwegian Prime Minister Gro Harlem Brundtland. It states that »development that meets the needs of present generations without compromising the ability of future generations to meet their own needs« is considered sustainable.3 Taking up this basic idea, the UN Conference on Environment and Development in Rio de Janeiro in 1992 set an important course for the importance of sustainable development. Since then, it has been recognized that promoting environmental, social and governance aspects (»ESG«) as equally as possible is the prerequisite for a stable society. Even though a broad interpretation of environmental and social goals has been established, climate protection measures were subsequently prioritized due to the increasing noticeable consequences of climate change (extreme weather events, floods, etc.). The Paris Climate Agreement is the first binding climate protection agreement under international law; it was adopted at the Paris Climate Conference (COP21) in December 2015 and entered into force on 4 November 2016. The almost 190 parties agreed to limit the long-term increase in the global average temperature to well below 2°C compared with pre-industrial levels (target: 1.5°C).4 By 2020, the global mean temperature at ground level had already risen by more than 1.2°C compared with 1880.5 Without rapid ambitious action, there is a risk of a significant shortfall in national action plans to implement the Paris climate targets, making the feared instability due to large-scale climate change impacts more likely. Marc Carney, Governor of the Bank of England, began his landmark speech called »Breaking the tragedy of the horizon – climate change and financial stability« to insurance industry representatives in London in September 2015 with the words: »I am going to give you a speech without a joke, I am afraid …« In his speech, he noted that »once climate change becomes a defining issue for financial stability, it may already be too late«. Looking ahead to the upcoming Paris Climate Conference, he pointed to three risks that could affect financial stability: physical risks, such as damage from floods and storms; liability risks, which could arise when those suffering from the effects of climate change seek compensation from those, they deem responsible; and transitory risks, which arise from the revaluation of assets due to the shift to a carbon-neutral economy.6 The COVID-19 pandemic has brought further challenges in terms of achieving climate change goals and sustainable development more broadly: poverty, hunger and social imbalance have increased globally and significantly worsened the economic outlook regionally.7 UN Secretary-General António Guterres noted in July 2020 that if implementation of the 17 key Sustainable Development Goals (»SDGs«) released at the UN Summit in New York in September 2015 had progressed further, the world would have been more resilient and better prepared for the COVID-19 pandemic.8 Recovery efforts must have the additional goal of »building back better« and reflect the importance of the SDGs for building sustainable and resilient societies.9 The real estate industry plays an important role here. Depending on the estimate, up to 40 per cent of global CO2 emissions are attributable to the construction and management of real estate.10 Furthermore, half of the total energy and raw material consumption and one-third of the total water consumption and waste generation are attributable to the construction and real estate industry.11 In addition to the consideration of contributions to causation, it must be considered that the real estate industry is also significantly affected by the core problems of global change and can thus make a clear contribution as a shaper of a positive transformation. As a capital- and land-intensive sector, it has a great influence on long-term CO2-reducing measures and investments, which are becoming increasingly important in the light of the threat of missing climate protection targets. It also plays an important role in promoting social aspects. Adults in Central Europe spend on average about 80–90 per cent of their time indoors,12 so healthy, environmentally friendly, and affordable living and working spaces are of considerable importance. Due to increasing regulatory requirements – for example, as a result of the European Union’s action plan for financing sustainable growth13 – and demands of stakeholders, the real estate industry has been focusing more and more on the development and implementation of ESG strategies for several years. Virtually all sub-sectors of the real estate industry are affected, particularly financing, construction, and operation but also investment and accounting. The broad interdisciplinary implications already show the complex and interdependent relationship that is emerging for the real estate industry in connection with ESG. While in some areas the topic of ESG has already gained exponential importance due to regulatory requirements and there are already concrete effects on practice, in other areas the far-reaching effects are still unrecognized – for example, due to a lack of generally recognized valuation standards. This is reinforced not least by the supposedly all-encompassing, but at the same time also unclear, definition of the term, which is still associated with opaque effects on sub-sectors of the real estate industry for individual players. The aim of this book is to explain the developments and effects of ESG on the real estate industry, and in particular the different sub-aspects of the industry, in a scientifically sound and at the same time practical manner, and in a structured way. The individual contributions illuminate the topic of ESG in an interdisciplinary manner with the focus respectively on the different legal, economic, and technical dimensions, as well as from the perspective of different management perspectives. The book is intended to serve as a handbook for academics and practitioners alike to explain the ESG transformation taking place in the real estate industry in a transparent way, addressing the implications for individual sub-sectors of the industry. In the first part, after a basic introduction to the political and regulatory framework, the effects on the real estate markets are analysed. In addition to general market trends and value drivers, as well as an international outlook, the handling of climate risks and benchmarking possibilities are addressed, and the contribution of digitalization is presented. The second part deals with specific regulatory aspects in the real estate industry. In addition to certification and rating systems, the focus is on tax aspects, special features of energy law and the energy industry, as well as the effects of ESG on real estate funds and insurance companies. The third part deals with the influence of ESG on real estate management aspects. In addition to strategic considerations and asset management aspects, these include the influence of ESG on the financing, valuation, and transaction process of real estate. In the fourth and last part of the book, the impact of ESG on urban development concepts as well as project development is examined. In addition to procedural and constructional requirements, the legal requirements for construction and planning contracts are explained. Due to the multi-layered effects of the topic of ESG, this book would not have been possible in its breadth and, above all, professional depth without the interaction of the many authors from the various sub-disciplines of the real estate industry. It was only through their extensive knowledge and, above all, their practical experience in implementing ESG criteria in their respective fields that this book was able come into being. Therefore, our special thanks go to all authors who contributed. Furthermore, our thanks go to Bettina Noé from Haufe Lexware Verlag for her tireless support and long-suffering dedication to this project. We, the editors, are very concerned that the internalization of social and ecological consequential costs in the real estate industry is standardized in the short term. It is essential to counteract the market failure that still exists today through effective ESG...
