CORESTATE together with the Green-Fintech Sustainaccount and the PropTech CAALA, has developed a unique forecast system that calculates the impact of transitory risks such as CO2 pricing and physical climate risks like storms, heat waves and extreme precipitation on the value of the property based on a few basic data of the property. This enables analyses of climate risks and options for action to reduce CO2 emissions as early as the purchase of buildings.
Frankfurt, March 18, 2021. The real estate investment manager Corestate, together with the Green-Fintech Sustainaccount and the PropTech CAALA, has developed a unique forecast system that calculates the impact of transitory risks such as CO2 pricing and physical climate risks like storms, heat waves and extreme precipitation on the value of the property based on a few basic data of the property. This enables analyses of climate risks and options for action to reduce CO2 emissions as early as the purchase of buildings.
Justus Wiedemann, Group Sustainability Officer at Corestate: “Climate change and climate policy are having an increasing impact on the real estate sector and are often the decisive factor in the management of real estate portfolios that determines the success or failure of the investment. With our novel forecasting system, we can anticipate these success variables for our clients at a particularly early stage.”
Prerequisite for investment planning
With the new system, Corestate is also able to provide investors with crucial quantitative information on sustainability and ESG compliance when assessing the purchase of real estate. The developed solution thus forms a fundamental prerequisite for investment planning and enables clients to implement their sustainability strategy in a simple way.
Legislature requires market participants to disclose emission and energy metrics of buildings in order to create transparency for investors. Currently, climate risks and efficient CO2 reduction measures for individual properties and portfolios are not yet sufficiently considered in the purchase review and portfolio management. Without a structured approach, growing energy and CO2 costs are causing ever greater losses in value and thus contributing more and more to investors’ diminishing returns.
Justus Wiedemann continues: “The optimization of existing buildings significantly minimizes the risks for the portfolios we manage. We want to identify the major savings levers right from the start, because it is important for us to understand when today’s efficiency measures are paying off and how the cost structures react to them. In short, what investment should we factor in to keep a building within the regulatory requirements? And what additional environmental risks do we have to protect it against? The answer to this serves as a basis for sustainable real estate management.”
Dr. Christian Spindler, Managing Director Sustainaccount GmbH: “Risk analysis is the basis of every real estate investment. Scenario analyses on the impact of climate policy and climate change in the real estate sector make sustainability risks transparent and allow necessary hedging and measures to be identified at an early stage.”
Philipp Hollberg, Managing Director of CAALA GmbH: “Asset managers and investors are enabled to make information-based and forward-looking decisions taking into account real risks. Soon, this type of analysis will form the basis of all investment decisions.”
About CORESTATE Capital
CORESTATE is an investment manager and co-investor with around € 28 billion in assets under management. The company sees itself as a manager for the entire length of the real estate value chain. Thanks to its fully integrated real estate platform, it is able to offer investors a wide range of services, especially the opportunity to invest in large-scale societal trends such as urbanisation, demographic shifts or sustainability – trends that will continue to have a decisive influence on the living and working environment in the long term. The consistent focus on asset classes that will be successful in the long run constitutes a central cornerstone of the company strategy. At CORESTATE, all concepts are supported with ESG expertise that is unique to the industry. With some 800 experts, CORESTATE offers clients and investors a full range of services and consultation from a single source, from project financing and real estate management to sales. CORESTATE is listed on the Frankfurt Stock Exchange (SDAX) and operates as a respected business partner for institutional and semi-institutional investors as well as high-net-worth private investors in 13 countries across Europe, with offices in Frankfurt, Vienna, Zurich, Paris, Madrid and London.
About CAALA GmbH
CAALA is a Munich-based software and consulting company that offers software-based parametric life cycle analyses, 3D model-based renovation potential analysis and CO2 risk analysis at portfolio level. Asset managers, property owners, project developers and architects will thus be able to make informed planning and investment decisions.
About Sustainaccount GmbH
Sustainaccount is a Green Fintech based in Zurich. The company develops data-driven solutions for dynamic measurement of climate impact (Product Carbon Footprints), as well as for the granular analysis of financial climate risks. By combining proven Internet-of-Things technology with advanced data analytics, Sustainaccount creates Digital Carbon Twins of buildings, products and business processes, enabling their efficient and effective decarbonization.
Forward-looking statements
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