#Go4ESG – UE Taxonomy

#Go4ESG – UE Taxonomy

The EU taxonomy is a classification system that introduces uniform criteria to assess whether an activity can be considered sustainable. It aims to channel the flow of private capital to investments that are climate and environmentally friendly.

In order for an economic activity to be considered sustainable, it must make a significant contribution to one of the six objectives while not causing significant harm to the other objectives. The obligation for major companies to report compliance with the Taxonomy is due from 1 January 2022.

Impact of the EU Taxonomy on the real estate market

The EU Taxonomy will result in significant changes to the real estate market. The new EU regulation is expected to initiate:

– the facilitation of fundraising for projects supporting sustainable development,

– declines in the value of properties that do not comply with the Taxonomy,

– acceleration of the development of a circular economy in construction.

Requirements for new buildings by the Taxonomy

The Taxonomy introduces a number of requirements for sustainable investments. According to the delegated acts, in order for new buildings to make a significant contribution to climate change mitigation they must have lower primary energy demand (at least 10% less than national requirements) and for buildings larger than 5,000 m2: have test results for air tightness, thermal integrity or internal threshold defects and a calculation of the global warming potential over the life cycle of the building.

For new buildings to make a significant contribution to climate change adaptation, they must introduce adaptations that significantly reduce the most important climate risks that are relevant to the building.

In addition, buildings must introduce a range of solutions to avoid harming the other five objectives. These requirements include: consumption-saving sanitary installations and a consumption-saving plan during the construction phase, min. 70 per cent of construction waste reusable, design suitable for dismantling and adaptation, no harmful materials, location outside agricultural land, forest and endangered species.

Renovation and acquisition of buildings and Taxonomy

We now also have technical criteria (for the first 2 purposes) for the renovation of existing buildings and the acquisition of properties.

Building renovations must make a significant contribution to climate change adaptation or climate change mitigation and introduce solutions to reduce water consumption, hazardous substances i.e. formaldehyde and support closed resource circulation.

Acquired properties must make a significant contribution to climate change adaptation or climate change mitigation and have high energy efficiency (buildings constructed before 31 December 2020) or low primary energy demand (constructed after 31 December 2020).

Taxonomy system under development

A 'brown taxonomy’ is planned, which will classify economic activities that negatively impact the climate and the environment. Work has also begun on a 'social taxonomy’ that will characterise inclusive and socially sustainable activities. Ultimately, the acts are intended to form a coherent Taxonomy system, taking into account all areas of ESG.

What can Go4Energy do for you?

We offer our clients an analysis of investment compliance with the EU Taxonomy:

– EU Taxonomy compliance analysis for new buildings,

– EU Taxonomy compliance analysis for building renovations.

We also support the implementation of ESG and sustainability measures:

– creation of ESG reports for buildings and organisations,

– carbon footprint calculations for the building and the organisation,

– preparation of decarbonisation strategies,

– preparation of a strategy to achieve climate neutrality for the company,

– development of a client-specific sustainability strategy,

– identification and verification of compliance with the EU Taxonomy to confirm the sustainability of the investment in line with EU requirements for both existing and new buildings,

– conducting an analysis of the impact of BREEAM, LEED and WELL certification on the Taxonomy,

– advice on EU climate change regulations.

If you need support in the process of calculating the carbon footprint of your building or organisation, please do not hesitate to contact us. Our experts will provide your organisation with expert advice and support at every stage of the process