Article by Diana Frommwald


ESG in the real estate market: The impact of environmental, social and governance issues

In recent years, the concept of ESG (environmental, social and governance) has gained unprecedented attention in the business world. It encompasses a wide range of practices, from reducing CO2 emissions to promoting diversity in the workplace and transparency in corporate governance. While many industries have only recently embraced the principles of ESG, the topic has been present in the real estate market for some time and is becoming increasingly important. This article looks at why ESG is of particular relevance to the real estate industry, how it influences construction and planning processes and what job profiles are emerging as a result.


Why has ESG been relevant to the real estate industry for longer than other sectors?

The real estate industry is one of the main sources of CO2 emissions worldwide and a significant consumer of natural resources. It is therefore not surprising that sustainability issues have been discussed in this sector for some time. In addition, the direct effects of climate change are forcing the industry to implement sustainable practices to minimize long-term risks and costs. 

These are the three main reasons for the relevance of ESG in the real estate sector:  

  • Climate change and scarcity of resources: The consequences of climate change and the increasing scarcity of resources make it necessary for companies to act more sustainably.  

  • Rising demand for sustainable real estate: Investors, tenants and buyers are increasingly looking for properties that meet environmental and social standards.  

  • Rules and regulations: The EU and other countries are increasingly issuing rules and regulations that oblige companies to act more sustainably.

Impact of ESG on construction/planning

The integration of ESG principles into construction and planning processes leads to a fundamental change in how real estate projects are developed. From site selection to building materials and energy management, all aspects of a project must be considered from a sustainability perspective. This means using environmentally friendly materials, optimizing energy efficiency through innovative technologies and designing buildings that promote the health and well-being of users. ESG also calls for greater consideration of the social impact of construction projects, including the creation of affordable housing and the promotion of community development.


Additional training for property developers is in demand

In view of the growing importance of ESG in the real estate sector, the need for specialist knowledge in these areas is also increasing. Property developers, architects and planners need to be familiar with the latest sustainable construction methods, legal regulations and ESG rating systems. Additional training and certification in sustainable construction, energy efficiency and environmentally friendly materials science are becoming increasingly important in order to remain competitive. These training courses enable professionals to integrate best practice into their projects and thus make a positive contribution to sustainability

Training and further education courses and seminars are offered by the imh Institute, the WIFI and the ARS Academy, for example. 

New ESG job profiles in the real estate sector

Due to the increasing importance of ESG in the real estate sector, various specialized job profiles have developed. These specialties focus on integrating sustainability practices into all aspects of real estate development, management and investment. Here are some key ESG job profiles in the industry: 

  1. Real Estate ESG Manager: These professionals are responsible for implementing and monitoring ESG criteria within real estate companies. They develop sustainability strategies, conduct risk analyses and ensure that real estate projects and portfolios meet ESG standards.  

  2. Sustainability consultants: Sustainability consultants help real estate companies, investors and developers implement sustainable practices. They advise on the planning, development and renovation of buildings to ensure that they are energy efficient, environmentally friendly and socially responsible.  

  3. Green building certifiers: These professionals specialize in the assessment and certification of real estate according to recognized standards such as LEED, BREEAM or DGNB. They analyze and evaluate the environmental friendliness of construction projects and ensure that they meet international sustainability standards. 

  4. Energy efficiency analyst: These experts focus on optimizing the energy consumption of buildings. They develop energy concepts, carry out energy audits and implement measures that help to reduce energy consumption and CO2 emissions.  

  5. CSR managers (Corporate Social Responsibility) in the real estate sector: CSR managers take care of the social aspects of sustainability in the company. They develop programs aimed at improving the quality of life of the residents and communities in which the real estate projects are located.  

  6. Investment analyst for sustainable real estate: These analysts specialize in the evaluation and selection of real estate investments that meet strict ESG criteria. They help investors create portfolios that are not only financially profitable, but also have a positive environmental and social impact. 

These roles require a combination of technical expertise in areas such as construction and energy efficiency, as well as knowledge of sustainability management and social aspects. They are crucial for the real estate industry to achieve its ESG goals and become a leader in sustainability.

Read more about new job profiles created by ESG here ->The new ESG job profiles at a glance. 

Our conclusion:

Consultant, ESG, real estate market

The concept of ESG has gained central importance in the real estate market. Not only is it fundamentally changing construction and planning processes by focusing on sustainability, but it is also creating new job profiles and increasing the demand for specialized training.  

Are you looking for (ESG) personnel in the real estate sector? We are happy to help - contact us today!



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