Sustainability and risk management in real estate business and financing
FI / EN
Sustainability has become a central aspect of the real estate business and its financing. Customers, investors, and legislation demand transparency and more responsible decisions from real estate operators. This means that companies must adapt not only to changing legislation and increasing regulation but also to the expectations of customers and society at large.
ESG (Environmental, Social, and Governance), sustainable development, and responsibility are key factors in today’s real estate business. They help companies operate sustainably and responsibly, which is important for both the environment and society, as well as for sustainable business practices.
Why are sustainability and risk management important?
ESG and sustainability are no longer just optional additions; they are an essential part of a successful and sustainable real estate business for several reasons:
- Reducing environmental impact: Real estate consumes a lot of energy and natural resources, so responsible practices help reduce environmental impacts..
- Compliance with increasing regulations: Many countries and regions are imposing stricter environmental requirements, and compliance is mandatory.
- Economic benefits: Energy efficiency and other responsible practices can lead to cost savings, enhance property value, and improve risk management.
- Risk management: Responsible practices help identify and manage risks, improving business resilience.
- Company reputation: Responsibility enhances the company’s reputation and attracts investors and customers.
What types of risks do the real estate and financial sectors face?
The real estate industry and the financing of real estate businesses face various risks that can affect their operations and profitability. We help our clients identify these risks and make more sustainable decisions.
Market and value risks
Real estate prices can fluctuate due to economic cycles, changes in supply and demand, and interest rate variations. When market risks materialize, they can significantly impact the value of an investment or its future development.
Environmental risks
Physical environmental risks in the real estate business can be significant. Climate change, natural disasters such as floods, heavy rains, and heat stress, as well as the wear and tear of buildings, can cause damage to properties and increase maintenance costs. Understanding and managing these physical risks is crucial for the financial health of businesses.
Changing regulation
Changing regulation in the real estate and financial sectors guide companies towards more sustainable business decisions. The CSRD (Corporate Sustainability Reporting Directive) requires companies to publish sustainability information, and the EU taxonomy defines environmentally friendly economic activities. These changes can significantly affect the strategies and operations of both sectors.
Our solutions for sustainability and risk management
Asuntopuntari
Asuntopuntari is an advanced AI service for real estate professionals, providing the best price estimates for properties on sale and for rent. With Asuntopuntari, you ensure the market value of your investment and its future development, whether it’s a single property or a portfolio of thousands of properties. Asuntopuntari also provides ESG insights to help assess a property's environmental risks and energy efficiency.
Climatrix
The Climatrix climate risk tool offers a comprehensive solution for analyzing climate risks and their impacts. The tool shows where, when, and how severe a potential risk is, as well as its financial impact. With the Climatrix climate risk tool, you can assess the physical climate risks and their financial impact for a single building or an entire portfolio and report physical climate risks in accordance with the EU taxonomy. Climatrix provides a comparable and numerical assessment of risks instead of verbal descriptions.
Aluepuntari
With the comprehensive market data and clear differentiators provided by Aluepuntari, you can identify the most potential and profitable areas. The service enables the examination of residential areas by bringing together all the necessary data and the most significant trends to support area assessment at three different levels: city, postal code area, and residential area. With Aluepuntari, you can closely monitor the development of supply and demand in the housing market and assess the investment potential of residential areas.
DOKS® – Supplier management tool
DOKS® provides your company with a comprehensive tool for continuous supplier management. With this service, you can monitor partners’ responsibility information and automatically check sanction and PEP lists, helping to identify risky stakeholders early. The DOKS service allows you to send various background and responsibility assessments, making it easier to know your stakeholders and investigate background information. The responses to the responsibility assessments are considered in an automated risk assessment based on customer information, and a manual risk assessment can also be conducted for each customer.
The PEP and sanctions list inquiry
The PEP and sanctions list inquiry helps determine whether a person is a politically exposed person (PEP) or subject to sanctions. This inquiry brings clarity and transparency to the KYC (Know Your Customer) process for obligated companies.
API Solutions
Property Insights API solutions offer a flexible and efficient way to integrate critical data for risk management and decision-making into the core processes of a company.
