海角视频

The European Union鈥檚 taxonomy for sustainable activities is a multifaceted definition for .

It was adopted Europe-wide in 2020. Its aims are wide-reaching, stretching from considering climate change mitigation and adaption, to sustainable use of materials and a move towards a circular economy, to pollution control/reduction. These are significant changes, and as such, all businesses need to understand how it will impact their operations now 鈥� and for the future.

To meet the criteria outlined in the taxonomy, property developers face a new landscape of climate risk analysis and environmental, social and governance (ESG) requirements. Developers must now keep their assets compliant with rigorous, science-based climate targets and have a wider understanding of how their assets must conform with regulations and legislation. If not, they might diminish the numbers of possible investors and even face penalties.

The taxonomy is a significant driver of the market. As the effects of the climate crisis become more pervasive and pronounced. A , commissioned by the International Chamber of Commerce, estimates that climate-related extreme weather events have cost the global economy more than $2 trillion over the past decade. To take just one example, according to Swiss analysis institute , flooding in Germany鈥檚 Ahr Valley in 2021 resulted in over 130 deaths and more than 鈧�40,5 billion in damage, of which only around 鈧�8,5 billion was covered by insurance. This demonstrates the importance of taking climate risk analysis seriously in any consideration of property development, starting with the acquisition phase.

A transformed industry will require transdisciplinary support

Four years on from its implementation in 2020, the EU taxonomy has introduced fundamental changes to the working practices of the design and construction professions. The taxonomy includes a mandatory system of reporting on activities for ESG. For the built environment, the taxonomy covers acquisition, new builds and refurbishments as well as the management of the building. If an EU taxonomy verification is required, all of these aspects need to consider climate adaptation strategies. In addition, water, circularity and pollution issues should be looked at for new and existing buildings. Biodiversity consideration is an additional factor for new build projects.

Using the right tools (e.g. energy consumption tool for portfolio strategies) is the right place to start.  Supporting clients 鈥� insurance companies, developers, cities) 鈥� to establish if their property is at serious risk through combined climatic effects such as fluvial and pluvial water, heat stress and wind pressure can prevent huge losses, if damage has occurred and operations come to a stop. Thorough risk assessment and management strategies can mitigate the impact of the climate crisis, as changes in design, building structure or technologies can significantly prevent or reduce damage from climate risks.

A large international insurance company commissioned 海角视频 to develop a comprehensive, EU Taxonomy compliant ESG strategy and to focus on specific topics that cover the regulations, standards or certifications that match their requirements. We know how important climate risks increasingly are to our clients, so we start there. When these risks have been determined and reviewed by our climate team, all relevant other fields of expertise come together and collaborate extensively depending on what is required. It is this kind of transdisciplinary working that is needed to consider the whole picture 鈥� working in silos is of no use when operating within the ESG landscape, and when needing to transform how a business operates. Here is one practical instance to consider. When applying external shading to an existing structural glazing facade (to reduce heat ingress from solar radiation), structural changes need to be considered. This is when our structural engineers shine. Then our nature experts improve biodiversity applying green measures to rooftops, facades and courtyards. ESG teams must look at projects holistically, considering all the factors needed to comply with regulations and achieve outcomes that are in line with what our clients need.

Clear pathways towards net-zero portfolios 鈥� with expert support

Support from 海角视频鈥檚 ESG portfolio advisory team, including the integration of our various fields of expertise, starts at corporate level. At this level, most companies have likely started to thoroughly consider and build up the integration of ESG aspects across their organisation. Some of our clients have asked us to develop carbon strategies to focus on operational and embodied emissions, as well as create a roadmap to follow. For this, an internal collaboration of experts from MEP, structures, energy efficiency and others is established to define building typologies and materials, and perform calculations of energy consumption and embodied carbon emissions. The development of such strategic approaches provides clear pathways for companies to direct their portfolio towards net zero.

It also means that organisational structures will need to change to monitor portfolio and asset performance against the pre-determined values for the relevant asset classes. It also means that knowledge on fundamentals of key topics (as well as cross-disciplinary interdependencies) within a company exist to co-create target setting and implementation strategies.

Portfolio holders with assets in various countries need to develop templates and internal procedures to enable the comparison of KPIs for their sustainability measures, e.g. lifecycle assessments. One 海角视频 client from the insurance industry commissioned us to develop an ESG framework that would create internal policies and guidance for the country asset managers, covering topics such as circularity, biodiversity, water, wellbeing and inclusivity. These are all areas that sit within the wider ESG umbrella.

Clients with portfolios spanning various asset classes or countries need a partner that combines expertise from different disciplines with both local and international knowledge to define a flexible and adaptive response to the specific conditions under scope.

Making sustainability part of corporate culture is critical

Working within the current ESG landscape and meeting particular targets is not just about implementing certain measures or achieving KPIs. It is also about changing ways of working and 鈥� crucially 鈥� changing mindsets. It needs back-up by C-suite to define the level of ambition for their roadmap to embracing ESG principles. Making sustainability a central part of corporate culture and workflows is critical to making any kind of systemic shift towards climate responsiveness in the built environment.

At its core, the EU taxonomy is a way of mandating the responsibility that businesses (and for us, that includes architects, engineers and developers) all share towards the state of the planet. Its sphere of influence is Europe (and non-EU companies may need to comply too, in some circumstances), but the taxonomy has implications for the global problem of how the property industry should respond to the changing climate.