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#08 Know-how

In the Paris Agreement, 196 states signed up to keep the rise in global temperate to well below 2 degrees Celsius above pre-industrial levels.

Sustainable finance – challenges for the property sector

The European Commission estimates that achieving this target will require annual investments of approximately EUR 180 billion in the period up to 2050. The financial sector has a crucial role to play in the transition to a more sustainable economy.

This is the background to the European Commission's action plan on financing sustainable growth, which was published on 8 March 2018. The plan comprises 10 measures aimed at:

  • Re-orienting capital flows towards sustainable investments,
  • Managing financial risks stemming from climate change, natural disasters, environmental degradation and social issues, and
  • Fostering transparency and long-termism in financial and economic activity.

In 2018, Aareal Bank Group launched a series of workshops together with the Verein für Umweltmanagement und Nachhaltigkeit in Finanzinstituten e.V. (VfU – the association for environmental management and sustainability in financial institutions), which are designed to identify and discuss the challenges the action plan poses for the property industry. The workshop series aims to acquire and share knowledge by discussing property sector trends and developments at national, European and international level, developing best practice examples and reporting on the lessons learned in their implementation.

Two events were held in 2018. The main focus of the first workshop, which was about investing, was on sustainable commercial properties – i.e. properties that will retain their value – and on key sustainability issues for investors. The second workshop was devoted to financing. Among other things, it discussed what sustainability means in the context of property finance, and new developments in the areas of smart metering, green labels, green leases and green bonds. It also looked at sustainability analysis and rating methodologies and tools from the perspective of a variety of different target groups. The series of workshops will be continued in 2019.

What we are working on

  • Developing and expanding our knowledge portals – for our clients (e.g. on how to use Aareon Smart World functions) and for our employees in order to make specialist knowledge that is required in our day-to-day business available throughout the Group
  • Recruiting talent by expanding our social media activities in order to be able to interact with young employees in particular (e.g. Instagram)
  • Continuing the Open Lab format for facilitating information sharing and dialogue on key topics for the future – as an inspiration to look beyond our day-to-day business

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