Achieving more than just climate targets with sustainable financial products

The EU taxonomy for sustainable economic activities

After two years of development work, the EU regulation came into force in June 2020. It results from the 17 Sustainable Development Goals of the United Nations and aims to create a transition to a low-carbon, more sustainable and resource-efficient circular economy. On the one hand, it is intended to advance the sustainability goal of the Agenda 2030, while at the same time preserving the competitiveness of the European economy.
 

What is regulated by the EU taxonomy?

The regulation obliges financial market participants and investment funds to report on the proportion of environmentally sustainable investments in their portfolio. However, only those who want to market a financial product as organic. In future, companies that are obliged to report on CSR must include in their non-financial statements information on how and to what extent the company’s activities are linked to environmentally sustainable economic activities.
 

GARBE also integrates sustainability into its corporate culture

Sustainability and ESG are also becoming increasingly important in the real estate industry. GARBE has been dealing with these issues for over ten years. Initially under the motto of “Conscious action – taking responsibility”, GARBE focused on sustainable construction and office organisation. Today, ESG has found its way into every one of our departments. Also in the adaptation of our financial products and investment funds.
In our efforts to always deliver the highest level of quality and to be prepared for future requirements in time, we are already dealing with the various reporting requirements and instruments, such as GRESB and CREEM, for our investors. We also act according to the principles of Cradle to Cradle, Embodied Energy and Green Lease. What they stand for exactly is explained in the following sections.
 
 

Cradle to Cradle, Embodied Energy & Green Lease: tools for sustainable economic growth

Recycle properly with the Cradle to Cradleprinciple

The term Cradle to Cradle refers to the selection of materials that can either be returned to biological cycles as nutrients or kept continuously in technical cycles as materials in their original or processed form. This is also known as recycled or upcycled
 

At GARBE, Cradle to Cradle means:

We focus on the use of recyclable or compostable building materials and the revitalisation of so-called “Brownfield Sites” and other former commercial sites. In addition, we extend the service life of existing properties, in order to preserve embodied energy
 

Rethinking resource consumption through embodied energy

Embodied Energy refers to the resources and energy used during new construction: Production of materials, installation, transport – in other words, everything that is part of the construction cycle of a property. This is “stuck” in the buildings. Therefore, the question arises whether new buildings really perform better in terms of their resource consumption than refurbished industrial buildings
 

At GARBE, embodied energy means:

In special portfolio funds, real estate is managed efficiently and the service life of the buildings is extended to the maximum with as little energy expenditure as possible. In the case of new construction projects, the properties are designed in such a way that alternative use and extension of the service life are an economically and ecologically attractive option.
 

Maintaining truly sustainable tenancies thanks to Green Le

ases
A Green Lease is a tenancy agreement geared towards sustainability. Through its special design, this is intended to encourage the tenant to use the property as sustainably as possible and the landlord to manage the property as sustainably as possible. This also applies in relation to any certification requirements. A Green Lease contains, therefore, at least one provision for sustainable use and management during operation. This includes the reduction of waste, consumption and emissions, as well as the ecologically sound implementation of maintenance, modernisation and other construction measures
 

At GARBE, green lease means:

In the case of new leases, it is checked with the owners and tenants whether these may be supplemented with green contract clauses. These must first allow at least one evaluation of the energy consumption data by the owner. We seek a relationship with our tenants based on partnership and are available to advise them on issues relating to the ecologically sustainable management of the rented properties. Modernisation measures are carefully examined in advance from the perspective of embodied energy and are only carried out in cases where the ecological benefits outweigh the costs Photovoltaic retrofits are made possible in consultation with the owner by means of an addendum to the lease agreements. This makes our existing leases “greener”.