The three pillars of the EU's Sustainable Finance Strategy, comprising the Corporate Sustainability Reporting Directive (CSRD), the EU Tax Regulation (EU Tax-VO), and the Disclosure Regulation (SFRD), steer financial flows toward sustainable investments.
The CSRD regulates the mandatory disclosure of each company's sustainability goals and risks, such as individual greenhouse gas emissions, and is already mandatory for companies subject to the Non-Financial Reporting Directive (NFDR).
From 2024 onwards, compliance with the CSRD will be mandatory for all large companies, and from 2026 for listed SMEs as well as small, non-complex credit institutions and captive insurance companies.
Consequently, we assume that managers and decision-makers will no longer be able to treat ESG aspects as secondary in their decision-making processes, as the ESG performance of each company will be openly visible and comparable.
In order to acquire financing, attract and retain employees, and sell products and services, reporting on good sustainability performance will become even more important than it is today.
Accordingly, we assume that ESG criteria will become significantly more important in the selection of the space that a company will occupy in the future. Accordingly, the demand for green, new, and renovated, modern space in good locations will increase enormously.
