Zurich – The Swiss Sustainable Finance Association is introducing the topic of sustainable real estate investments with a new publication. In addition to various orientation aids, it also offers a possible approach for integrating sustainable factors into real estate portfolios.
In its SSF Spotlight section, Swiss Sustainable Finance has published a guide for companies, banks, funds and private individuals who invest directly in sustainable real estate in Switzerland. In view of the major contribution that the building sector must make to achieving the Swiss net-zero target by 2050, it offers guidance and recommendations for action.
For example, he explains the most important frameworks for sustainability assessment and reporting, ESG (Environment, Social, Governance) and the UN Sustainable Development Goals (SDG), and gives specific examples for the real estate sector. The publication also provides an introduction to the current and planned regulatory framework in Switzerland and the EU. It also provides an overview of national and international certifications, seals of approval, benchmarking and monitoring instruments that measure the sustainability profile of real estate with regard to ESG factors, for example.
The benefits of a sustainable investment strategy could outweigh the expenses involved “and ultimately have a positive impact on society, the environment and the valuation of the real estate portfolio”, according to the association. A four-step approach is recommended for investors seeking guidance on implementing a sustainability strategy.
This begins with strategy development and a portfolio evaluation. In a second step, an action plan is formulated with specific improvement measures for the real estate portfolio. This is followed by its continuous evaluation on the basis of predefined targets. Finally, transparency should be created by regularly communicating performance indicators and progress to stakeholders. ce/mm