One of the most used buzzwords in sustainable construction and real estate these days seems to be the acronym ESG. ESG covers three areas of sustainability: environmental, social and governance. However, a new report from the Climate Positive Europe Alliance (CPEA), of which the German Sustainable Building Council (DGNB) is part of, shows that most of the industry’s commitment to ESG is focused on the E in ESG, with the S and G getting short shrift.
It has been a decade since developers started erecting sustainable buildings. They now account for an increasing share of the property market. Now it’s existing buildings that need to catch up. An important point of leverage in achieving this will be to instil sustainability as a fixed feature of the financial industry. There are reasons to be optimistic, however, thanks to initiatives like the European Green Deal and the increasing use of carbon pricing.