News Report, February 12, 2024
Nature-inclusive building and development to address climate risks is a topic in the real estate world, and rightfully so. 'Strategic greenery' makes the living and working environment for people healthier and it naturally protects against heat stress and flooding, for example. Reporting on these and other climate risks is becoming increasingly important because, on the one hand, this fits in with legally required reporting such as CSRD, SFDR and EU Taxonomy and, on the other hand, because banks are applying increasingly strict conditions for financing real estate. As of February 17, the Sustainability Paragraph 2.0 is a mandatory appendix to commercial real estate appraisals. NL Greenlabel (climate tech) and Stainable (legal tech) are working together to give companies up-to-date and high-quality insight into the climate risks for the real estate sector and the associated mandatory reports.
What are climate risks?
Climate risks are the threats and harmful effects resulting from our climate. In the Netherlands for example, flood risks from precipitation and the effects of heat stress and drought. Other climate risks are the rise of the sea level, extreme weather events, loss of biodiversity and health risks. Climate effects have a huge impact on people, environment, migration and economy. Governments, business and individuals will have to work together to manage the risks and minimize the damage.
Why are climate risks important (for the real estate sector)?
By 2050, our cities and villlages must be nature-inclusive, climate-robust and energy-neutral. Everyone involved in the living environment must get to work on this. For the real estate sector in the Netherlands, flood risks (due to precipitation) and heat stress are currently the most important climate risks. The impact of these risks is considerable: floods are currently primarily a financial risk, as are dike failures. Heat stress brings health risks to the living and working environment in addition to the costs of insulation and cooling, for example. Understanding the risks is the first step in taking the right measures.
What Role Do Climate Risks Play in Legislation such as the CSRD, SFDR and EU-Taxonomy?
The European Union wants to accelerate the transition to a sustainable economy through legislation. It does this by, on the one hand, making transparent information on ESG (Environmental, Social, Governance) subjects mandatory. This also includes climate risks. On the other hand, the EU sets clear standards for whether companies may call their activities “sustainable” in the EU Taxonomy. In this case, reporting on climate risks is also mandatory.
What Is the ‘Sustainability Section 2.0’ for Appraisers?
Appraisers have a crucial role in valuing the sustainability of a building. The new Sustainability Section 2.0 (DUPA 2.0) is an updated joint standard of the Dutch association of banks, appraisers, trade associations (NVM and VBO) and technology providers, such as KATE and fluX. Stainable delivers virtually all sustainability data automatically. Fast, easy and high-quality up-to-date data, including climate risks based on NL Greenlabel's digital twins.
What Services do Stainable and NL Greenlabel Offer?
NL Greenlabel (climate tech) and Stainable (legal tech) work together to provide companies with up-to-date and high-quality insight into climate risks for reporting as prescribed by the SFDR, CSRD, Taxonomy and the Sustainability Section 2.0. The high-quality and up-to-date climate data are delivered automatically. They also help to take the right measures with planable and measurable results.
Stainable and NL Greenlabel will present a webinar on March 5, 2013 on Climate Risks and Solutions for Real Estate. Especially for DUPA 2.0, EU Taxonomy and CSRD. Register via the link: https://www.bootadvocaten.nl/event-details/webinar-klimaatrisicos-en-oplossingen-voor-vastgoed
What Does Stainable Do?
European legislation imposes increasingly stricter reporting requirements on businesses. Stainable is the EU-compliant ESG reporting system for the real estate and financial sector. Stainable helps organizations structure and simplify the data verification process, but also delivers the required reports in the mandatory EU templates. The processes and reports generated with Stainable meet the compliancy rules of the SFDR, CSRD and EU Taxonomy . For appraisers there is a special DUPA 2.0 module, which generates up to 95% of the paragraph automatically. Stainable is powered by Boot Advocaten and Blue Building Institute.
What Does NL Greenlabel Do?
NL Greenlabel offers concrete, measurable nature-inclusive solutions that help manage climate risks. The effects of greening buildings and areas are both plannable and measurable. It works as follows: NL Greenlabel expresses the quality of the living environment in a score A to G with the Register Sustainable Living Environment. The score helps to determine ambition and improvement goals, with which tangible improvement programs are drawn up. Thanks to the underlying digital twin of each building, the impact of the package of measures can be tested, before helping to realize it - together with partners - in, for example, area and site developments and renovation projects. With the advanced data models, NL Greenlabel can map climate risks and impacts down to 25x25cm. This data is essential for high-quality climate risk reports as required by the Sustainability Section, CSRD, SFDR and EU Taxonomy.
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