Introduction
The conference “From Risk to Return: Leveraging Sustainability for Real Estate Value Creation”, initiated by the CBRE Luxembourg team mainly aims at asset managers, family offices or property owners of all kinds. It explores how sustainability can drive long-term value creation in real estate, through a cross-sectoral perspective involving legal represented by Caroline Bocklandt (Elvinger Hoss Prussen), innovation represented by Anthony Auert (Luxinnovation), and real estate expertise represented by Ludovic Chambe (CBRE).
The conference is moderated by Benoît Cruysmans, Director of the ESG & Sustainability Solutions of CBRE BeLux.
The context
- Ludovic Chambe (CBRE)
The European sustainable real estate market is undergoing major changes, driven by increasing regulatory requirements (Green Claims Directive, EPBD, Omnibus Package). Despite increased complexity, sustainability is becoming a strategic constant. Client priorities are shifting towards decarbonization, biodiversity, and social issues, with strong demand for reliable data to guide decisions. Investors are increasingly aware of the added value of sustainable projects, often going beyond compliance to anticipate market expectations.
- Caroline Bocklandt (Elvinger Hoss Prussen)
The regulatory landscape is evolving, notably with the partial rejection of the Omnibus Package and the transposition of the CSRD in Luxembourg. These reforms aim to simplify obligations, harmonize standards (CSRD, SFDR, Taxonomy, CSDDD), and enhance competitiveness. Voluntary reporting is becoming a strategic tool for companies outside the CSRD scope, enabling them to meet investor demands and improve their sustainability management.
- Johnny Brebels (Luxinnovation)
Digitalization is becoming essential to meet ESG requirements. Luxembourg has a rich ecosystem, with more than 4,300 companies in the construction sector, supported by institutions such as MeluXina, Terra Matters, and the AI Factory. Luxinnovation plays a key role in supporting companies through programs such as Fit 4 Sustainability and Fit 4 AI, facilitating access to financing and innovative partnerships.
Challenges
- Caroline Bocklandt (Elvinger Hoss Prussen)
Implementing an ESG strategy requires a full company diagnosis, adapted governance (e.g. ESG committee, CSO), and an effective reporting system. Key obstacles include limited time and resources, and the complexity of aligning stakeholders around ESG objectives.
- Johnny Brebels (Luxinnovation)
Renovating the existing building stock is a major challenge in achieving Luxembourg's climate goals. This involves integrating energy-efficient technologies, healthy materials, and a circular approach to the end of life of buildings. Climate resilience and indoor air quality are becoming priorities, requiring collective mobilization and public-private cooperation.
- Ludovic Chambe (CBRE)
Clients face several data-related challenges: making decisions based on benchmarks, complying with reporting requirements, investing to improve sustainability performance, and executing clear action plans. Monitoring progress and aligning with European standards (TOP 15–30%) are also key concerns. Balancing short-term profitability with long-term sustainable returns is a key issue.
Opportunities & solutions
- Ludovic Chambe (CBRE)
Sustainability must be integrated at all levels: home, portfolio, asset. CBRE emphasizes value creation, both financial (rents, vacancy rates, attractiveness) and qualitative (comfort, sustainability). Analyzing the link between ESG performance and economic performance is essential, with success stories to back it up. Integrating sustainable CAPEX into business plans is becoming a strategic lever. ESG-labeled funds show competitive returns. Turning risk into opportunity is a reality.
- Johnny Brebels (Luxinnovation)
Luxembourg offers a comprehensive range of public support measures: subsidies, calls for projects, tax incentives (up to 18% of CAPEX/OPEX), institutional support (Klima Agence, Luxinnovation, etc.). These measures facilitate the energy transition and implementation of sustainable solutions in the real estate sector.
- Caroline Bocklandt (Elvinger Hoss Prussen)
Adopting a sustainable approach helps reduce regulatory risks, improve reputation, attract and retain talent, and access new markets. Voluntary reporting becomes a strategic tool to meet investor expectations and effectively manage ESG issues. It also supports competitive growth and long-term resilience.