Hardly any industry is more demanding to put its actions to the test in times of rising energy and construction costs. This change must and will manifest itself in real estate itself.
The demands on real estate have not become insignificant in recent years and in view of the global efforts to achieve an environmentally sustainable economy. Nowadays, optimising individual components is no longer sufficient. Rather, sustainable real estate combines the lowest possible environmental impact, high attractiveness for investors and tenants, and taxonomy alignment with optimal risk management.
To demonstrate compliance with these requirements, many asset managers and property owners rely on common certifications from independent providers. But with the growing selection of providers, the question sometimes arises which certificate is the most meaningful? For Commerz Real, our Global Head of Asset Management Nadia Eichelberger is an expert in certificates and knows their strengths and weaknesses.
A clear favourite: the DGNB certificate
Even if it offers little tension in the derivation, our clear favourite in terms of ESG certificates is the German Society for Sustainable Building (DGNB). Thanks to a holistic assessment approach, DGNB-certified buildings not only offer environmental benefits, but also contribute to increasing the quality of life and sustainable urban development. However, due to its complexity, the DGNB certificate initially struggled with enforcement and acceptance on the market. It also competed directly with internationally established certification schemes such as LEED and BREEAM when it was introduced.
With its holistic approach, it was able to prevail initially in Germany and later also in Europe. DGNB’s efforts to adapt the system to national specificities and different types of buildings, as well as to facilitate its applicability, have increasingly borne fruit.
EU Taxonomy: Adaptability is required
A decisive benefit of the DGNB certificate is its ability to adapt to the evolving EU Taxonomy requirements. The DGNB’s assessment methodology is largely based on the principles of the EU Taxonomy. Certification thus ensures transparency and comparability with regard to the sustainability performance of real estate. At the same time, it underlines its importance as an instrument for promoting sustainable construction and investment in line with the European regulatory framework.
Another advantage that sets the DGNB system apart from the competition: It can be used to apply for subsidies - also because it is accepted by the German Federal Government as a verification instrument for obtaining the Sustainable Building (QNG) quality label and the associated Federal Subsidy for Energy-Efficient Buildings (BEG).
Beyond EU borders
In order to export its certification system beyond the borders of Germany, DGNB has continuously adapted it to the specific conditions and requirements of other countries: For example, local climatic, cultural and legal conditions were taken into account. In addition, 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 aiming for the DGNB certificate shows that international recognition is growing.