EU Taxonomy for buildings

The EU Taxonomy is a classification framework aimed at guiding companies, investors, and policymakers towards sustainable economic activities. It is a vital part of the EU's Green Deal, promoting a shift towards a greener economy by setting standards for sustainable real estate investment.

The real estate industry is witnessing a noticeable shift towards green financing and sustainable business practices. This includes aligning with the EU Taxonomy. Sustainability regulations such as the Nearly Zero Energy Building standard (NZEB standard) and Energy Performance Certificate (EPC) ratings have become key indicators of property value and market appeal. TÜV SÜD helps you fulfil these requirements and demonstrate the sustainability of your properties.

The key criteria of EU Taxonomy are:

• New constructions must achieve primary energy consumption at least 10% below the NZEB standard.
• Renovations and retrofits require a minimum 30% reduction in primary energy demand.
• Buildings need to hold high energy performance certificates such as the Energy Performance Certificate (EPC) Class A.

The EU Taxonomy is crucial for transforming the real estate sector to support the EU's climate targets, such as achieving net-zero emissions by 2050. By adhering to the taxonomy, companies can ensure compliance with current and future regulations, gain access to green financing, enhance the value of their properties, and improve their environmental and social reputation.

There are many overlapping requirements from various directives such as the EU Taxonomy, Energy Performance of Buildings Directive (EPBD), and others. Complying with all of them requires a holistic approach.

EU Taxonomy demands not only energy efficiency but also climate resilience, which requires incorporating comprehensive ESG standards from the initial planning stages. Failure to meet EU Taxonomy guidelines can limit access to green financing options such as green bonds and loans, which are increasingly sought after by investors focused on sustainable real estate investment portfolios.

As consumer and investor expectations grow, the demand for sustainability-focused practices in real estate is putting pressure on developers and owners to align their operations accordingly. Effective alignment reduces the risk of owning non-compliant properties that may lose value and marketability in the future.

TÜV SÜD has significant expertise in sustainability with global experts who have an insightful understanding of ESG data management.

We generate precise, reliable, high-quality ESG data with our combination of on-site visits and cutting-edge technology.

We have developed LIME, a user-friendly platform with data reporting functions that help clients monitor ESG status, reduce risks, and optimise decarbonisation measures. This makes it easier for clients to achieve their specific sustainability goals.

Our comprehensive support includes access to technical advice from specialists, energy efficiency tracking, and portfolio-level data management for effective compliance.

Our comprehensive services to ensure compliance and enhance value include:

• Risk and vulnerability assessment – We provide detailed risk assessments that identify climate-related vulnerabilities, such as flooding or extreme weather, using advanced data tools.
• Tailored improvement plans – From energy-efficient installations to renewable energy upgrades, we develop customised action plans to help your properties meet EU Taxonomy criteria and stay future-proofed for the long term.
• Reporting and transparency – We help you stay ahead of ESG and CSRD reporting requirements. Our comprehensive reporting services include CapEx, OpEx, and revenue assessments. This guarantees transparency and taxonomic compliance.