Sustainable real estate investments : insights for direct real estate investors

Archer-Svoboda, Laura; Kimmerle, Hendrik

Publication type:	Working paper – expertise – study
Title:	Sustainable real estate investments : insights for direct real estate investors
Authors:	Archer-Svoboda, Laura Kimmerle, Hendrik
et. al:	No
Extent:	24
Issue Date:	Nov-2023
Publisher / Ed. Institution:	Swiss Sustainable Finance
Publisher / Ed. Institution:	Zurich
Language:	English
Subject (DDC):	332.6: Investment
Abstract:	As the world deals with the realities of climate change, sustainability has been gaining traction across business and political domains. Global frameworks like the UN Sustainable Development Goals (SDGs) and, notably, the Paris Agreement, have raised awareness about the urgency of addressing climate change and sustainability challenges. Governments worldwide, driven by the Paris Agreement, are enacting regulations and policies aimed to curtail carbon emissions and promote sustainable development. In Switzerland, the Swiss Federal Council has set ambitious targets, aiming to reduce carbon emissions by 50 percent by 2030 compared to 1990 levels, with a long-term aim of achieving net-zero emissions by 2050 (FOEN, 2023). A significant milestone in Switzerland’s journey was the approval of the Climate and Innovation Act through the June 2023 referendum, firmly embedding the net-zero 2050 goal into law. The transition towards a sustainable future requires the active involvement of the finance sector. By integrating climate considerations into decision-making processes, investors, banks and asset managers can play a pivotal role in financing renewable energy projects, supporting green technologies, and driving the overall transition towards a low-carbon economy. An urgent area for action lies within the real estate sector. In Switzerland, residential and commercial buildings contribute to approximately one quarter of the nation’s carbon emissions due to carbon-intensive heating systems and poor energy efficiency within the building stock (FOEN, 2022). Real estate owners and investors are increasingly recognising their potential to contribute to Swiss climate objectives and realise economic benefits through sustainable practices. Incorporating sustainable practices and measures often contribute to higher rents, lower vacancy rates, and ensure that real estate assets and portfolios remain efficient and economically attractive. Additionally, sustainable practices that incorporate risk analysis can provide risk mitigation advantages and bolster resilience against environmental and market fluctuations. This, in turn, offers investors a more stable and secure investment environment. The interest in transparent and sustainable real estate practices from investors and industry stakeholders combined with increasing regulatory requirements has led to a large offering of sustainable building certificates and labels, benchmarks, and reporting frameworks. Each offer their own unique methodology and areas of focus. As a property owner trying to develop a strategy, or as an investor seeking to make an investment decision based on specific targets and requirements, finding the right tools and frameworks can become a challenging exercise. This publication serves to provide an overview of sustainable real estate practices for direct real estate investors in Switzerland. It defines sustainable real estate and outlines the main regulations and initiatives in Switzerland and in the EU. Furthermore, an overview of a selection of sustainability related tools and frameworks is provided, and a suggested process for integrating sustainability factors in a real estate portfolio is outlined.
URI:	https://www.sustainablefinance.ch/api/rm/33DYR5T92XPH3G4/ssf-pub-report-real-estate-en-final.pdf https://digitalcollection.zhaw.ch/handle/11475/30829
License (according to publishing contract):	Licence according to publishing contract
Departement:	School of Management and Law
Organisational Unit:	Institute of Wealth & Asset Management (IWA)
Appears in collections:	Publikationen School of Management and Law

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Archer-Svoboda, L., & Kimmerle, H. (2023). Sustainable real estate investments : insights for direct real estate investors. Swiss Sustainable Finance. https://www.sustainablefinance.ch/api/rm/33DYR5T92XPH3G4/ssf-pub-report-real-estate-en-final.pdf

Archer-Svoboda, L. and Kimmerle, H. (2023) Sustainable real estate investments : insights for direct real estate investors. Zurich: Swiss Sustainable Finance. Available at: https://www.sustainablefinance.ch/api/rm/33DYR5T92XPH3G4/ssf-pub-report-real-estate-en-final.pdf.

L. Archer-Svoboda and H. Kimmerle, “Sustainable real estate investments : insights for direct real estate investors,” Swiss Sustainable Finance, Zurich, Nov. 2023. [Online]. Available: https://www.sustainablefinance.ch/api/rm/33DYR5T92XPH3G4/ssf-pub-report-real-estate-en-final.pdf

ARCHER-SVOBODA, Laura und Hendrik KIMMERLE, 2023. Sustainable real estate investments : insights for direct real estate investors [online]. Zurich: Swiss Sustainable Finance. Verfügbar unter: https://www.sustainablefinance.ch/api/rm/33DYR5T92XPH3G4/ssf-pub-report-real-estate-en-final.pdf

Archer-Svoboda, Laura, and Hendrik Kimmerle. 2023. “Sustainable Real Estate Investments : Insights for Direct Real Estate Investors.” Zurich: Swiss Sustainable Finance. https://www.sustainablefinance.ch/api/rm/33DYR5T92XPH3G4/ssf-pub-report-real-estate-en-final.pdf.

Archer-Svoboda, Laura, and Hendrik Kimmerle. Sustainable Real Estate Investments : Insights for Direct Real Estate Investors. Swiss Sustainable Finance, Nov. 2023, https://www.sustainablefinance.ch/api/rm/33DYR5T92XPH3G4/ssf-pub-report-real-estate-en-final.pdf.