Review of the 110th Swiss Real Estate Forum
Is the issue of sustainability losing its relevance? The three speakers on the panel at the real estate forum instead demonstrated how environmental goals can be achieved in an economically viable way—and why the effort required is likely to increase in the future.
«Sustainability Instead of Climate Bureaucracy»—the title of the event on June 25 was intended as a question. The backdrop was the withdrawal of major companies such as Vonovia and UBS from the GRESB benchmark, coupled with a thicket of reporting standards that is becoming an increasing burden for companies. Moderator Christian Kraft (HSLU) put it this way: simply do more and report less? The response from the three practitioners was less one of doubt and more one of pragmatism.
Impact, Not Labels
Clemens Högger, Head of Market Development for Energy Solutions at Energie 360°, kicked off the event. His message from the perspective of an energy provider: What matters is not the certificate, but the impact—and cost-effectiveness. Anyone looking to renovate must calculate the total energy costs over the entire life cycle, including financing, operation, and energy consumption. He illustrated this using the example of an apartment building in Olten (SO): The annual total costs of the old oil-fired heating system were CHF 81,900, while those of the new renewable energy system were CHF 78,500; at the same time, heating-related emissions fell from 168 to 25 metric tons of CO₂ per year. The focus here was on the tenant as the energy consumer. Höggers’ conclusion: There is no fundamental contradiction between sustainability and economic efficiency goals, and renewable solutions reduce dependence on geopolitical shocks.
Opportunity Costs as a Guide
Rafik Awad, real estate portfolio manager at Swisscanto Investment Foundation, shifted his perspective to that of a property owner—and took a deliberately provocative stance: Sustainability comes at a cost, and that’s a good thing, because only then does the question of the right measures arise. His benchmark is avoidance costs—that is, the amount a property owner must spend to save one metric ton of CO₂ per year. A non-representative analysis of his approximately 240 properties from 2023 revealed some surprises: Insulation, as well as solar power, sometimes performed worse than expected, with costs exceeding 1,000 CHF per metric ton avoided—Swiss electricity is simply too „green“ for this. In Germany, this energy source fares better in the balance sheet. That doesn’t mean Swisscanto would forego solar power in Switzerland—but it’s used only in very targeted ways: «For example, we’re currently equipping a large shopping center with solar panels on the roof, where the tenant draws electricity directly for its operations,» said Awad. Swisscanto has found a compelling benchmark for assessing the affordability of avoidance costs: There is a startup that filters CO₂ from the air and stores it in Iceland at a cost of around 1,000 CHF per metric ton. Priority is therefore given to measures that cost significantly less than that. This is integrated into the portfolio strategy via a valuation matrix; the result is a reduction path that falls below the federal government’s target path. “It pays off for us that we started addressing sustainability ten years ago, rather than just two or three years ago,” said Awad.
The Challenge of "Gray Energy"
Laurence Duc, Sustainability Officer at Pensimo Management AG, clearly refuted the notion that the issue had lost its significance: The focus had shifted from headlines to Capex management; the question was no longer «if,» but «how.» Reporting has become standardized—using key performance indicators from AMAS, KGAST, and ASIP, as well as the calculation methods from REIDA. It is evident that these efforts are already yielding results: According to the Federal Office for the Environment, greenhouse gas emissions from households are declining even as the population and floor area continue to grow. At the same time, new issues are coming to the forefront. “Gray energy,” for example, is becoming the dominant lever: within the Swiss building sector’s CO₂ budget of 173 t CO₂, the share of construction in decarbonized operation is shifting from 40 % to 80 %. Added to this are the enhancement of outdoor spaces, including biodiversity, and social sustainability, the performance of which is made measurable by the SOSDA benchmark, surveyed for the first time. Regulatory requirements are also expanding: In Geneva, limits on gray energy will apply to municipal buildings starting in 2027, a CO₂ life cycle assessment will be required for every project starting in 2029, and limits will apply to all buildings starting in 2034; Vaud and Basel-Stadt are preparing similar measures.
More topics, not fewer
In the end, the discussion did not take on the fundamentally more critical tone that the title had suggested—and from the operational perspective that the experts shared with the audience, this was understandable and reasonable. Nevertheless, the overall result came as a surprise, as Kraft noted in the closing round: Instead of fewer topics and metrics, more are being added. And yet there is good news: Progress is being made in the operationalization of sustainability standards. The days when sustainability reports were supposed to be as comprehensive as possible are apparently over—Swisscanto’s, for example, is condensed into twelve pages. In addition, some redundant data requests—such as those from rating agencies—are now being eliminated. Awad cautioned that the regulation of “gray energy” must be balanced with economic considerations so that construction does not become so expensive that it is hardly worth the effort anymore.
