ESG has disappeared from the headlines. However, anyone who deduces from this that sustainability is losing relevance is misjudging the reality of the market. Quieter does not mean less important. In fact, ESG is now deeply integrated into processes, valuation models and management decisions.
What was discussed a few years ago as an additional strategic issue is now an operational matter of course. The basic principles of sustainable management are firmly anchored in the property market. Sustainability has developed from a marketing-driven nice-to-have into a business-relevant management discipline. This is precisely where its maturity is evident.
Emission assessments are just as much a standard part of transactions as they are for existing properties. Conformity with decarbonisation paths is checked regularly. Consumption data is systematically recorded and analysed. Physical climate risks are an integral part of risk management. ESG key figures are routinely included in annual reporting. These topics are no longer managed as separate ESG projects. They are part of day-to-day business - often without a label, but with clear economic relevance.
From buzzword to management discipline
The current market phase acts as a filter. Budgetary pressure and selective capital markets have weeded out much that was not economically motivated and does not generate any reliable economic added value. What remains is what contributes to value growth. The key question is no longer whether ESG is taken into account, but what measurable contribution measures make to the performance of an asset. Sustainability directly influences cash flows, financing conditions, exit ability and risk profiles.
Climate change and biodiversity loss are not abstract debates, but real influencing factors. Rising energy prices, extreme weather events or changes in insurance conditions have a direct impact on cost structures, usability and valuation. Sustainability is therefore not a moral postulate, but a physical and economic reality. Anyone who ignores these factors is miscalculating risks.
Market selection makes quality visible
Selection in the property market reinforces this development. Large companies prioritise energy-efficient, modern and sustainable spaces in order to achieve their own ESG goals and offer attractive working environments. Properties that do not fulfil these requirements are more susceptible to vacancy and are subject to greater fluctuations in income. Sustainability therefore has a direct impact on usability, demand and income stability.
The focus is no longer on improving individual sustainability indicators, but on the effect on competitiveness and stable cash flows over the holding period. This shift is changing the value creation logic in the market, which is increasingly focussing on the further development of existing assets. The ZIA Spring Report 2026 underlines this structural development: while completions in the office segment will have fallen by 24 per cent to 1.95 million square metres in 2025, the volume of refurbishment projects will increase noticeably. According to the ZIA, their share of the project pipeline in A cities will be around 25 per cent by 2027.
Substance is decisive - not the label
This development shows: The market continues to respond to ESG regulation, but is increasingly evaluating corresponding measures through an economic and long-term perspective and making decisions based on real economic necessities and changing demand.
As regulatory requirements become more specific, particularly through the EU taxonomy, the capital market's view of substance is also becoming more precise. For banks and institutional investors, conformity with taxonomy criteria is part of the risk and credit assessment.
Certificates remain a quality feature, but the verifiable performance of a property is decisive. It directly influences financing, valuation and long-term competitiveness. Regulatory developments form the framework for this transformation, but in the end it is the substance of an asset that counts - not its label.
From principle to practice: implementation at Real I.S.
Against this background, sustainability is not an additional criterion at Real I.S., but has long been part of the economic management logic in investment and asset management.
We examine investments in energy efficiency and technical modernisation holistically: they should make ecological sense, strengthen the long-term quality of the asset and at the same time remain economically viable. The decisive factor is the respective property-specific assessment, which shows which measures make sense from a holistic perspective.
We make targeted use of photovoltaics and AI-supported building management systems to reduce the energy consumption of our properties, cut emissions but also reduce operating costs and ensure the long-term market attractiveness of our properties.
Conclusion: ESG has come of age
ESG is not on the retreat. It has left the phase of self-definition behind and has arrived in the operational business. Sustainability is no longer a separate issue, but part of the economic logic of investment decisions. Less buzzword, more management reality: ESG has come of age. Anyone who measures its importance by the media response is underestimating its impact on risk, resilience and returns.