EU Taxonomy and Real Estate: C2N Demonstrates the Connection with BREEAM

Since January 1, 2022, the first section of the EU Taxonomy has been mandatory for asset managers and funds. This first part focuses on the substantial contribution an investment makes to climate mitigation and climate adaptation. Additionally, investments must not cause significant harm to the other four objectives, such as biodiversity and circularity. The substantial contribution criteria for the remaining four objectives will become mandatory starting in 2023.

The EU Taxonomy provides a classification system that indicates whether a fund, investment, or financial product is sustainable, with a focus on being Paris-proof, transitioning to a sustainable economy, and combating greenwashing.

The construction and real estate sectors are among the industries included in the EU Taxonomy. Of course, there are already various classification methods in place to measure sustainability, such as BREEAM, GPR, LEED, WELL, etc. The EU Taxonomy now offers a unified sustainable framework for all financial activities across Europe.

Research by C2N has shown that BREEAM certification directly aligns with the EU Taxonomy. The EU Taxonomy criteria, which became mandatory in 2022, focus largely on climate change and its limitation. For example, BREEAM credits WST 05 "Climate Adaptation" and ENE 01 "Energy Efficiency" align with the criteria set out in the EU Taxonomy.

These are just two examples of the many interrelationships between the EU Taxonomy criteria and BREEAM credits. From this, we conclude that BREEAM certification prepares real estate for the EU Taxonomy requirements.

C2N has been active for years with all relevant sustainability certifications. With our expertise and experience, C2N can provide well-founded insight into how your real estate transaction, development, or renovation aligns with the EU Taxonomy.

Want to know more? Feel free to contact Max Hoog at +31 (0) 6 18 82 83 85 or m.hoog@c2n.nl.

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