Green Governance – A Holistic Approach for Feasible and Successful Net Zero Transition Plans in the Real Estate Industry | IIÖ Institut für Immobilienökonomie

#ESG, #Netzero, #Realestate, #Sustainability

The report outlines a structured Green Governance framework for real estate companies to achieve Net Zero targets while avoiding greenwashing and enhancing competitiveness.

The real estate industry is under increasing pressure to decarbonize, driven by global Net Zero commitments and rising regulatory standards. This report emphasizes the need for a structured, transparent, and feasible approach to achieving Net Zero. Although many real estate companies have pledged to reach Net Zero by 2050, a significant gap remains between their commitments and actual measures. Greenwashing risks and potential legal consequences are growing concerns for those failing to implement genuine strategies.

A successful transition to Net Zero requires a comprehensive Green Governance framework. This includes setting clear, achievable targets, adjusting corporate structures, and implementing operational measures such as energy-efficient technologies. The report outlines a seven-step process, from assessing the current status to monitoring progress and ensuring accountability. Importantly, companies must consider the entire value chain, including Scope 3 emissions, to avoid reputational risks and fulfill their fiduciary duties.

Beyond regulatory compliance, embracing sustainability offers opportunities for innovation and competitiveness. Real estate players who adopt proactive strategies can unlock new business models, secure better financing terms, and enhance asset values through increased demand for “green” properties. Transitioning to a Net Zero future is not just a compliance requirement but a strategic advantage in today’s market.

Here is the link to access the document: https://bit.ly/4f6qauL