Real Estate ESG certificates in the building sector | an Overview

In times of rising energy and construction costs, hardly any other sector is more in demand to scrutinise its actions. This change must and will manifest itself in the properties themselves.

In recent years and in view of global efforts to achieve an ecologically sustainable economy, the demands placed on properties have increased considerably. Optimising individual components is no longer enough these days. Rather, a sustainable property combines the lowest possible environmental impact, a high level of attractiveness for investors and tenants and taxonomy conformity with optimum risk management.

To prove compliance with these requirements, many asset managers and property owners make use of common certifications from independent providers. However, with the growing selection of providers, the question sometimes arises as to which certificate is the most meaningful? At Commerz Real, our Global Head of Asset Management and Sustainability Jens Böhnlein is an expert on certificates and knows their strengths and weaknesses. He makes his judgement from the perspective of an expert - after all, he has already worked as a BREEAM and LEED auditor.

Even if there is little excitement in the derivation, our clear favourite in terms of ESG certificates is that of the DGNB. Thanks to a holistic assessment approach, DGNB-certified buildings not only offer ecological benefits, but also contribute to improving quality of life and sustainable urban development. However, due to its complexity, the DGNB certificate initially faced difficulties in terms of implementation and acceptance on the market. Furthermore, when it was introduced, it was in direct competition with internationally established certification systems such as LEED and BREEAM.

With its holistic approach, it was initially able to establish itself in Germany and later also in Europe. The DGNB's endeavours to adapt the system to national characteristics and different building types, as well as to facilitate its applicability, have increasingly borne fruit.

A key advantage of the DGNB certificate is its adaptability to the changing EU taxonomy requirements. The DGNB's assessment methodology is largely based on the principles of the EU taxonomy. The certification thus ensures transparency and comparability with regard to the sustainability performance of properties. At the same time, it emphasises its importance as an instrument for promoting sustainable construction and investment in line with European regulations.

Another advantage that sets the DGNB System apart from the competition: It can be used to apply for funding - also because it is accepted by the German government as a verification tool for obtaining the Quality Label for Sustainable Buildings (QNG) and the associated federal subsidy for energy-efficient buildings (BEG).

In order to export its certification system beyond Germany's borders, the DGNB has continuously adapted it to the specific conditions and requirements of other countries: For example, local climatic, cultural and legal conditions have been taken into account. In addition, the DGNB has established partnerships with various countries and strengthened its presence in Europe, Asia and other regions.

There are DGNB certifications and projects in countries such as Denmark, Austria, China and Brazil, to name but a few. The fact that many international construction projects have received or are seeking DGNB certification shows that international recognition is growing.