Sustainability in Real Estate: From a Compliance Topic to a Business Model

The EU taxonomy, introduced to promote sustainability and climate protection, is putting additional pressure on various players in the real estate sector. The new intuitive QuickCheck Tool, developed at FHWien der WKW’s Real Estate Management study programs with involvement of RBI, promises support in navigating through the complex regulatory jungle. In the following interview, Anna-Vera Deinhammer, Endowed Professor for Sustainable Real Estate Development at FHWien der WKW, RBI real estate finance expert Klaus Michal, and RBI sustainable finance expert Evamaria Hammerschmid give insights into the process, discuss the role of sustainable finance, and show why we need to view sustainability as a business case. 

Evamaria Hammerschmid (RBI): The EU taxonomy is basically a classification system the European Union set up to clarify what actually counts as an environmentally sustainable economic activity. Think of it as a common language for “green.” That clarity is important because it helps investors, banks, and asset managers channel money into activities that are truly sustainable, and it also reduces the risk of greenwashing.  

Anna-Vera Deinhammer (FHWien): The real estate sector is both a driver and victim of climate change. Specifically, buildings in the EU cause around 40% of final energy consumption and approximately 36% of energy-related CO₂ emissions. In Austria, the construction and real estate industry is responsible for about 25% of CO₂ emissions, 40% of waste generation, and around 12% of economic output. 

Simultaneously, climate change significantly impacts the real estate sector: extreme weather events, changing heating and cooling demands, and regulatory requirements increasingly determine the value and usability of properties. Without taxonomy-aligned renovation, existing buildings face the risk of becoming so-called "stranded assets" - assets that lose substantial value due to regulatory or market-driven changes. So, transforming the building stock is not just a climate policy goal, it’s also an economically imperative for maximum value retention. 

The EU taxonomy is also relevant in the context of the Corporate Sustainability Reporting Directive (CSRD). Large companies have to disclose what share of their revenues, investments, and operational expenditures are taxonomy-aligned. That makes taxonomy-aligned properties more attractive for financial institutions, that also need to disclose on their taxonomy-aligned ratios. In practice, this can open up better access to green finance products.  

Evamaria Hammerschmid (RBI): One of the biggest challenges for clients is the complexity of the criteria and the difficulty of interpreting them in practice. Real estate projects require very detailed data, things like energy performance benchmarks or lifecycle assessments. These are often hard to obtain, particularly for older buildings. On top of that, technical assessments are costly, the criteria are still evolving, and interpretations may vary. All of this creates uncertainty throughout the market. And while building codes in Europe are already quite rigorous, the EU taxonomy introduces an extra layer of sustainability criteria, which raises the bar further. 

For us at RBI, active across CEE, another challenge is the inconsistent implementation of the Energy Performance of Buildings Directive (EPBD). That makes it difficult to apply the taxonomy consistently across our network. Projects can only be classified as taxonomy-aligned with solid evidence, which is not always readily available. 

Overall, the real challenge is translating highly technical regulation into practical, project-level requirements that clients and banks can work with. 

Klaus Michal (RBI): Yes, Prof. Deinhammer and we are currently working on this tool which is designed to make customer interactions smoother by translating complex EU taxonomy requirements into clear, practical criteria. It works as an initial screening and assistant instrument and highlights whether a project is likely to meet key taxonomy criteria and specifies the data and documentation, such as EPC class or energy demand benchmarks, needed to demonstrate alignment. That clarity reduces uncertainty and back-and-forth. It also gives clients an early indication whether their project is on track to meet taxonomy criteria and what adjustments may be needed. In that way, the tool shifts the conversation from compliance challenges to constructive guidance. 

Anna-Vera Deinhammer (FHWien): The QuickCheck Tool itself is a practical, Excel-based screening instrument, complemented by a detailed publication. It should be noted that this tool represents merely a preliminary assessment stage preceding a comprehensive EU taxonomy check, such as those conducted by the Austrian Green Building Council (ÖGNI). The QuickCheck relies specifically on energy performance certificate data concerning NZEB (Nearly Zero Energy Building) criteria. Professional EU taxonomy checks can subsequently build upon this initial QuickCheck assessment. 

The tool's strength lies in its simplicity. It transforms the 100+ page EU taxonomy regulation into a 5-minute assessment. Banks like RBI can use it for assisting in rapid loan assessments, developers like BUWOG for helping with project planning verification, and portfolio managers for identifying which assets may qualify for green financing. By reducing assessment time from weeks to minutes, we remove a major bottleneck in sustainable real estate transactions. 

Another benefit is that it facilitates a common assessment standard. That makes collaboration between previously disconnected stakeholders much easier. And because it runs on Excel, the tool is universally accessible without special software or training. Any organization, from small regional banks to international developers, can implement it immediately. This low-barrier approach is essential for rapid adoption.  

Finally, the tool can also act as an early warning system. Property owners can identify non-compliant buildings early and plan renovations strategically. This is crucial, as Austria must increase its renovation rate from 1.4% to 2.8% to meet 2040 climate targets. 

Anna-Vera Deinhammer (FHWien): RBI brings the financial market perspective and demonstrates how taxonomy alignment influences credit conditions and financing access. They have also been on one of the first Austrian banks to account for its financed emissions according to the Partnership for Carbon Accounting Financials (PCAF) standard since 2022, so they already have practical experience in evaluating real estate portfolios with sustainability in mind. 

Our feedback sessions with RBI and other stakeholders have been crucial. They allow us to iterate quickly and make sure that the tool actually meets the real requirements of the financial market. 

Through this collaboration, we better understand how sustainability transforms from a compliance topic to a business model. Banks like RBI demonstrate what we call the "quadruple win": financial stability through lower default risk, energy efficiency and supply security, building quality and comfort, plus health and environmental benefits. This comprehensive value creation makes green finance attractive beyond regulatory requirements. 

Klaus Michal (RBI): Our goal is to be a trusted partner by providing clients with guidance on EU taxonomy requirements and best practices. While we are not technical or legal experts and cannot replace a full technical and legal assessment, we can offer some early guidance and direction to help clients navigate the process and make informed decisions. 

At RBI, we integrate ESG factors into our financing processes for real estate projects through a comprehensive ESG framework aligned with international standards, including the EU taxonomy. We also work closely with stakeholders, from project developers to regulators, to make sure projects fit with broader sustainability goals. In that way, we don’t just look at ESG as a risk factor. We also incentivize positive examples that bring value to our customers. Our role doesn’t stop once financing is granted. We continue monitoring the ESG performance of funded projects and regularly report on compliance and improvements. Our commitment to continuous enhancement of ESG practices ensures that we support projects that deliver financial returns while positively impacting the society and the environment.