Sustainability in the Real-Estate Industry

Thu | 25.02.2021

Real Estate

CTP Invest informs over the sustainability in the real-estate industry, not just a trend, but a quantifiable benefit.

Sustainability has become a popular topic that is not only on the agenda of big organizations such as the UN, but also on the agenda of governments, companies and many NGOs.

Although the concept of sustainability was seen only as a trend at its beginnings, an asset which could have brought benefits in terms of image, today, sustainability has a quantifiable benefit for companies in terms of costs, but also related to the value perceived by investors.

Especially in the Nordic and Western European countries, sustainability has become an important criterion for the positive evaluation of a company. Beyond this, it can also a means for more efficient operations and in turn reduce costs.

During construction, real estate constructions inevitably produce considerable amounts of waste gas, wastewater, solid waste, dust, and noise, which causes pollution and damages the environment. By using sustainable practices in building construction, such as using stronger, lighter, and more sustainable building materials or controlling waste management, developers can become the promoters of a responsible way of working, which contributes to reducing pollution and negative effects on the environment and the population.

The BREEAM certification system is the first step that any company in the real-estate industry can take to start building sustainable spaces. CTP, the largest developer and owner of logistics facilities in Central and Eastern Europe, relies on specialists in the field of sustainability to reduce its negative impact on the environment in areas where it builds logistics parks. Although there are initial capital costs to this process, it ensures the quality of the building making its lifespan longer and cheaper for all stakeholders.

CTP's mission is to neutralize its carbon footprint by 2023 is supported by the developer's success to certify its entire portfolio of 292 properties in over 100 locations in six countries to BREEAM In-Use standard "Very Good" or "Excellent”. The goal of obtaining the BREEAM certification for the entire portfolio was set in 2019 and took two years to be achieved. This fact is encouraging for any real estate developer in Romania or in Eastern Europe.

Implementing sustainable elements and operation design has positive effects on the operational costs. For example, the use of photovoltaic panels on roofs produces cheaper electricity than the one obtained from other sources, and the use of a LED-based energy system also leads to lower costs associated with lighting. The reuse of wastewater or the use of rainwater are two other methods that lead to reduced operational costs, and these are just a few examples of streamlining the operations of real estate companies.

Another way in which CTP aims to achieve its goal of neutralizing its carbon footprint by 2023 is by investing in green landscaping and forests which balances CO2 emissions. The company's strategy concerns both the planting trees and green landscaping in the vicinity of its properties, in addition to investing in existing forests. To date, CTP owns nearly 562 hectares of forests and it works with environmental specialists to restore their native biodiversity. In turn, this helps make these forests more resilient to bark beetle out breaks and climate change.

On February 18th 2021, the Group issued its third green bond with a nominal of €500 million, raising the total they have raised over five months to €1.55 million. As with the first two issues, this third bond was also concluded under its Green Bond Framework, continuing CTP’s strategy to only issue Green Bonds as this underpins the Groups’ sustainability commitment.

Sustainability contributes to the decrease of long-term operational costs for the tenants of the logistics spaces, but also to the increase of the company's value for investors. Although there is a learning curve, sustainability practices are beginning to show visible results, as has been the case with CTP.

Read more about CTP initiatives in the field of sustainability and get inspired to start your own steps in this field within your company: https://www.ctp.eu/company/we-are-sustainable/

This article was provided by our Real Estate Partner, CTP Invest.

Share this on: