Top 15% criteria for international real estate: EU taxonomy and Drees & Summer Unveil

Top 15% criteria for international real estate: EU taxonomy and Drees & Summer Unveil

Which criteria must be fulfilled so that real estate is in accordance with the taxonomy and are among the top 15 % of the building stock? The advisory company Drees & Sommer, which specializes in construction and real estate, created a new benchmarking on behalf of VDPreSearch to support internationally active credit institutions in fulfilling the top 15 %criteria and the EU taxonomy conformity. The results offer a variety of evidence of various criteria from energy requirements to CO2 emissions.

The benchmarking contains criteria for selected European countries and indicators of real estate in the USA and Canada. Reiner Lux, Managing Director of Vdpresearch, explains that many credit institutions in Europe and North America are difficult to check the taxonomy conformity of their real estate. A corresponding benchmarking was therefore urgently required. The top 15%criteria for France, the Netherlands, Poland, England, the USA and Canada are intended to offer banks valuable to analyze the sustainability of their real estate loan portfolios in a comprehensible and transparent manner.

The extensive study contains criteria for the asset classes, office, trade, logistics and hotel. In addition to fundamental recommendations that apply across bodies, the study contains detailed criteria for the respective country and the asset class as well as a detailed method report on the derivation of the benchmarks. Claudio Tschätsch, responsible for the topic of ESG and Sustainable Finance at Drees & Sommer, emphasizes the importance of fulfilling the top 15%criterion in ESG and sustainability reporting. The concrete recommendations and comprehensible criteria should give credit institutions the necessary orientation towards EU taxonomy and also create transparency in the international market.

The so-called Top 15 %criterion is determined in the EU Faxonomics Ordinance. A building is classified as a taxonomy if either an energy certificate with energy efficiency class A is available or can be proven that a building is one of the top 15 % in terms of national or regional market and with regard to its primary energy requirement. The study was created exclusively for VDPreSearch and the VDP member institutes and serves to prove the EU taxonomy conformity in the acquisition of and ownership of real estate in Europe, the USA and Canada.

Here is a summary of the facts mentioned above in the form of a table:

| Facts |
| - |
| - Client: Vdpresearch |
| - developed by: Drees & Sommer SE |
| - benchmarking for: credit institutions |
| -Goal: Support in fulfilling the top 15 %criteria for real estate |
| - Contains criteria for: European countries, USA and Canada |
| - asset classes: living, office, trade, logistics and hotel |
| -Top 15 %criterion: EU taxonomy Ordinance |
| -Order options: Via the website of VDPreSearch or by email to esg@dreso.com |

The results of the benchmarking are of interest to regional credit institutions and the real estate industry in Berlin. They offer orientation towards EU taxonomy and help with the analysis and reporting on the sustainability of real estate loan portfolios. The topic of ESG and sustainability is also becoming increasingly important in the capital region, since more and more investors and customers are emphasizing sustainable and green financing. The results of the study can contribute to the design of the real estate market in Berlin and help to ensure that the city reaches its climate goals. It is important that regional credit institutions meet the criteria of EU taxonomy in order to remain internationally competitive and offer sustainable financing solutions.

The study is based on representative, publicly accessible information sources and is updated annually. Interested parties can order the full study and detailed benchmarks for the respective country and the asset class for a fee via the specified email address.

The presence of such a benchmark can also be an advantage for Berlin, since it helps to improve the city's ecological footprint and promote sustainable real estate projects. A transparent and comprehensible analysis of energy efficiency, energy consumption and the CO2 emissions of real estate can contribute to the renovation and improvement of the building stock. Sustainable construction and management of real estate is a step towards climate neutrality and can help to improve the city's energy balance.

Source: drees & summer se/ots