ESG strategy and monitoring
Sustainability reporting is becoming increasingly important. National and European regulations are driving ESG reporting, while investors, customers, and stakeholders are demanding greater transparency. A strong ESG strategy helps businesses comply with these requirements.
In addition, it translates sustainability goals into concrete, measurable actions and improvements. This ensures companies are well-prepared for both current and future investor expectations.
ESG: Environmental, Social and Governance
ESG stands for Environmental (environment), Social (society), and Governance (corporate governance). Each of these pillars plays a crucial role in sustainability and responsible business practices:
- Environmental (E): Focuses on the impact of an organisation on the environment and how environmental factors affect the organisation. This includes energy consumption, CO₂ reduction, circular construction, and climate adaptation, as well as climate risks such as heat stress, flooding, and storm damage.
- Social (S): Relates to social responsibility, including working conditions, diversity and inclusion, and the well-being of the community, employees, and tenants.
- Governance (G): Covers good governance, transparency, and ethical business practices, including compliance with laws and regulations, shareholder democracy, and corporate accountability.
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ESG reporting
With the introduction of the Corporate Sustainability Reporting Directive (CSRD), more companies are required to report on sustainability. While discussions are ongoing about adjustments to its implementation, ESG reporting remains a key tool for ensuring transparency. An ESG report focuses on three elements—Environmental, Social, and Governance—enabling businesses to track sustainability progress, identify risks, and report on their performance.
Our consultants have extensive experience in sustainability reporting and can help you understand the different elements of an ESG report. We supported Van der Vorm Vastgoed in preparing an ESG report and assisted Argenta in developing a Methodology Report for green bonds. Additionally, we regularly conduct carbon analyses and reporting for our clients.
ESG Scorecard: Insights and a tailored strategy
For organisations looking to integrate ESG into their strategy and reporting, CFP Green Buildings offers a structured approach through the ESG Scorecard. We help organisations to:
- Identify the key ESG themes that align with their mission and long-term goals.
- Translate ESG standards such as GRI, SASB, and GRESB into a tailored ESG Scorecard.
- Define KPI’s and measurable objectives for both the short and long term.
- Develop concrete actions to comply with regulations such as the CSRD and EU Taxonomy.
- Strengthen stakeholder management by identifying relevant stakeholders and facilitating strategic sessions to define ESG goals, KPIs, and action plans.
With an ESG Scorecard, organisations not only comply with ESG reporting requirements but also take direct action toward their sustainability objectives.
Want to learn more about how CFP Green Buildings can support your ESG strategy, monitoring, and stakeholder management? Get in touch with us!
Climate adaptation & physical risks
In the long term, buildings will be increasingly exposed to climate risks such as strong winds, heat stress, and flooding. It is crucial to assess these physical risks, as they not only impact the operational continuity of buildings but also play a growing role in ESG reporting, carbon reduction targets, and financing conditions.
To help investors and businesses evaluate sustainable investments, the EU Taxonomy has identified climate adaptation as one of its six environmental objectives. This means that buildings resilient to climate change are more likely to align with sustainability guidelines and financing criteria. By investing in climate-resilient measures in time, buildings can not only maintain their value but even increase in worth.
Curious about the climate risks for your building(s)? Discover them with the Climate Adaptation Scan in our Green Buildings Tool.
Reporting standards: EU Taxonomy, PCAF & CRREM
The EU Taxonomy is a classification system that defines which economic activities can be considered sustainable. It helps businesses and investors make sustainable investments more transparent.
The taxonomy focuses on six environmental objectives, including climate mitigation, climate adaptation, circular economy, and pollution prevention.
Additionally, tools such as PCAF (Partnership for Carbon Accounting Financials) and CRREM (Carbon Risk Real Estate Monitor) support organisations in ESG reporting and quantifying climate risks.
GRESB
The Global Real Estate Sustainability Benchmark (GRESB) is an independent benchmark used to measure sustainability of real estate funds. This includes a focus on the three ESG components: Environmental, Social, and Governance. GRESB examines compliance and implementation of sustainability policies, environmental performance of real estate portfolios and greenhouse gas emissions and waste streams, etc. Understanding energy and waste flows is crucial in this respect. With the help of certifications such as BREEAM, WELL and energy scans, you will get the insights needed to obtain and improve a GRESB score.
Green Buildings Tool: Data-driven ESG insights for real estate
The Green Buildings Tool by CFP Green Buildings provides comprehensive ESG insights for real estate portfolios and individual buildings.
Users can upload entire real estate portfolios or single properties, and the tool instantly retrieves energy labels, CO₂ scores, and sustainability ratings. These insights form a strong foundation for ESG reporting and help organisations comply with PCAF, CRREM, and GRESB standards.
In addition to a 75% time saving, the tool delivers immediate, action-oriented insights. This not only ensures compliance with increasingly strict ESG regulations but also highlights the measures that contribute to a future-proof, energy-efficient, and sustainable real estate portfolio.
Frequently asked questions about ESG
What is ESG and why is it important?
ESG stands for Environmental, Social, and Governance and refers to the sustainability criteria used by companies to measure their impact on the environment, society, and corporate governance. ESG is important as investors, customers, and regulators are increasingly demanding transparency and sustainable business practices.
What does ESG mean for businesses?
For businesses, ESG means not only striving for financial returns but also considering their environmental impact, taking social responsibility, and ensuring good governance. Integrating ESG can lead to better risk management, enhanced reputation, and improved access to financing.
How do you create an ESG report?
An ESG report includes an analysis of environmental impact, social factors, and governance structures. Companies can use frameworks such as GRI, SASB, and GRESB. CFP Green Buildings supports organisations in preparing ESG reports and scorecards.
What tools are available for ESG reporting?
Tools such as the Green Buildings Tool, PCAF (Partnership for Carbon Accounting Financials), and CRREM (Carbon Risk Real Estate Monitor) help businesses with ESG reporting and quantifying CO₂ emissions and climate risks.
How can I improve the ESG score of my real estate portfolio?
Businesses can enhance their ESG score by:
- Reducing carbon emissions and energy consumption
- Using circular and sustainable materials
- Implementing climate adaptation measures
- Following sustainability standards such as GRESB and CRREM
