6 tips for a sustainable property project that delivers a return
In the property sector, sustainability has evolved over recent decades from a ‘nice to have’ to an absolute ‘must have’. This is the result of greater awareness of climate issues among both businesses and private individuals, as well as the government tightening the reins on its regulations. Furthermore, we have observed that sustainable property projects are more popular in the market and therefore generate higher returns.
Does your company have plans for a sustainable property project, but are you unsure how to develop an integrated approach that meets all the requirements? We’ve teamed up with KBC Bank & Insurance and are sharing 6 crucial tips in this blog!
1. Identify the needs of your stakeholders
A sustainable project can only succeed if everyone involved is on board. First, identify who the stakeholders are, from investors to end-users. Ensure you have a clear picture of their needs and expectations. Their input is crucial for aligning sustainability ambitions.
2. Create sustainability criteria tailored to your project
Every property has its own context and requirements. For example, a healthcare property project requires different sustainability measures than a logistics asset. Take a critical look at which sustainability criteria will ensure your project achieves its specific objectives. This is how you maximise the impact.
3. Define measurable objectives and demonstrate progress
What is the exact scope of your project? What do you aim to achieve and by when? What specific resources do you need to do so? Define and implement Key Performance Indicators (KPIs) so you can make adjustments where necessary. By being transparent about these performance indicators, your stakeholders can also track sustainability performance in real time.
4. Keep a close eye on ESG regulations
ESG regulations are regularly refined, expanded and updated. Make sure you stay up to date with the latest developments regarding the environmental, social and governance criteria relevant to your project and sector. This way, you’ll reap maximum benefits, even in the long term.
Lost track of things or don’t have time to monitor this continuously? Encon and KBC organise regular events such as breakfast sessions and webinars to keep companies informed of new developments and regulations. Take a look, for example, at our webinar on EU Taxonomy
5. Get more out of your sustainability labels and use them as a communication tool
Sustainability labels such as BREEAM, LEED, DGNB or WELL can demonstrate a building’s quality and sustainability. However, do not lose sight of the essence: delivering a high-quality and sustainable property project. Do not use these labels as an end goal, but as a means of communicating with stakeholders about the building’s sustainability aspects. To achieve such a label, your project must meet pre-defined uniform criteria. This ensures that stakeholders can easily assess the degree and definition of sustainability and benchmark property projects against one another.
This also applies to government-imposed standards and tools such as TOTEM and the EU Taxonomy. The latter is also used by banks as a benchmark.
“Banks are also – quite rightly – expected to take responsibility for the sustainability transition. That is why KBC has had a sustainability strategy in place for many years, through which we not only make our own activities more sustainable, but also those we finance.
The EU Taxonomy serves as a guiding framework for determining whether a loan contributes to the sustainability transition. It provides a common definition of sustainability, makes it tangible and prevents greenwashing. A great help, therefore, as we give preference to investments that the EU Taxonomy deems to be sustainable. This allows us to make an effort to finance them on particularly favourable terms.”
6. Use sustainability as a commercial trump card
In addition to smoother financing, sustainable property offers a host of other benefits.
“Compliance with the EU Taxonomy has a positive impact on property value. Sustainable buildings are easier to sell and let. By focusing on aspects such as energy management, CO2 consumption and circular water use, you can also keep operational costs under control. Communicating your sustainability efforts also strengthens your company’s image and boosts the confidence of customers and investors.
A working environment that takes into account both the ecological footprint and the well-being of employees also attracts new staff. This is a key advantage in the current ‘war for talent’. A sustainable building is often also a better working environment. Pleasant lighting and effective ventilation, for example, can enhance working comfort.”
The collaboration between Encon and KBC demonstrates that sustainability is not only ethically sound but also economically beneficial. This partnership has already yielded some 450 successful projects and shows that investing in sustainability can help businesses grow. Rather than viewing sustainability as a cost, this collaboration proves that it is a strategic investment leading to profit and competitive advantages.
Do you have any questions or would you like to know more about how to make a sustainable property project financially viable? Feel free to leave your details via the form, whether you have a specific question or would like to schedule a meeting.
