The three pillars of the EU's "Sustainable Finance Strategy" with the Corporate Sustainability Reporting Directive (CSRD), the EU Tax Regulation (EU Tax-VO) and the Disclosure Regulation (SFRD) direct financial flows towards sustainable investments.
The CSRD regulates the mandatory disclosure of each company’s sustainability goals and risks, such as the individual GHG emissions, and is already mandatory for companies that are subject to the Non-Financial Reporting Directive (NFDR).
As of 2024 (!), compliance with the CSRD will become mandatory for all large companies, and from 2026 onwards for listed SMEs, as well as for small, non-complex credit institutions and captive insurance companies.
Consequently, we assume that managers and decision makers will not be able to treat ESG aspects in their decision-making processes secondarily anymore as each company’s ESG performance will be openly visible and comparable.
To acquire funding, gain and retain employees and to sell products & services, reporting good sustainability performances will become more essential than it already is today.
Accordingly, we anticipate that ESG criteria will leap in importance when selecting the space that each company will occupy in the future. Accordingly, the demand for green, new, and renovated, modern space in good locations will increase enormously.
