In recent years, ESG (Environmental, Social, and Governance) criteria have gone from a plus to an essential requirement for investors and operators in Real Estate. The transition towards a sustainable real estate sector is now driven not only by ethical awareness and market pressure but also by an increasingly stringent European regulatory framework.
The integration of ESG criteria radically changes the way real estate assets are developed, managed, and enhanced. Today, return on investment cannot be measured solely in economic terms but must also consider the building’s ability to meet environmental standards, generate a positive social impact, and ensure transparent governance practices.
Sustainability is no longer a secondary consideration, but a true driver of competitiveness that impacts credit access, investor choices, and operator reputation. As highlighted by Angela D’Amico, Partner at Deloitte Real Estate: “In recent years, ESG factors have revolutionised investment decisions in the real estate sector, steering the market towards safer and more sustainable buildings. Investors are increasingly paying attention not just to financial returns, but also to the ability to generate a positive impact”.
The new EU directives, from the CSRD (Corporate Sustainability Reporting Directive – Directive (EU) 2022/2464), which expands reporting obligations, to the EPBD (Energy Performance of Buildings Directive), which stipulates minimum energy efficiency standards, to the EU taxonomy for sustainable activities that dictates the access to funds, are reshaping rules and perspectives for the sector.
In this scenario, applying ESG criteria in the Real Estate sector translates into 3 concrete choices:
- on the environmental front, more efficient buildings, smart technologies, and sustainable materials;
- on the social side, attention to occupants’ well-being and inclusion;
- in governance, transparent processes, anti-corruption systems, and recognised certifications.
ESG is defining the future of real estate.
Adopting an ESG approach means integrating sustainability, risk management, and value creation into a single strategic vision. Properties that do not comply risk becoming obsolete and less desirable assets; in contrast, compliant ones position themselves as resilient assets, capable of attracting investors and obtaining more favourable funding conditions.
European Real Estate is entering a phase of profound transformation. For operators, compliance means not only responding to regulatory obligations, but seizing the opportunity to innovate development models and strengthen competitiveness in a market increasingly oriented towards shared and sustainable value.
