Investment Board
The EAM Investment Board gives a structured form to the ongoing and responsive
dialogue with and among sustainability research agencies. The Board provides the
opportunity for the consultation process between own research and external research
to take place. It also discusses rating details, the ESG‘s assessment of the IPOs of
new issuers and sustainability issues in general.
Investment Board: Through the jungle of building certificates
The development and construction of sustainable buildings are flourishing. While according to a “Green Building”
study, sustainability criteria were being taken into account only in 28% of the planned construction projects in
2012, a survey taken among architects and construction engineers suggests that this percentage will rise to 60%
by the end of 2015.*
Top Triggers Driving Growth
of Green Building Around
the World
According to Respondents Over Time,
in percent
The positive trend has also manifested in the multitude of sustainable construction certificates: the so-called
“Green Building Labels” are becoming increasingly popular.
The majority of the certificates available are restricted to individual countries. Only a few labels transcend
national borders or are truly international. Cross-border certificates are usually more superficial and often
facilitate a more straightforward basic certification. Country-specific certificates, on the other hand, take into
account detailed statutory and geographic requirements. For example, a South African label will put stricter
emphasis on water consumption than a Norwegian certificate, which in turn will be very concerned with the
insulation of buildings. Most of the sustainable construction certificates show similar basic concepts and differ
only in certain areas or in extent.
The internationally known labels such as LEED, BREEAM, DGNB, etc. are assessed positively by all members of
the Erste Asset Management investment board. At the same time, the board members point out that it takes
more than compliance with the minimum criteria of various labels for a building to be “sustainable”. But many
operators, having earned their label, are quite content with that achievement. The board criticises in particular
the fact that certificates focus largely on ecological and energy efficiency criteria. Further aspects such as the
overall sense of a construction project or the effects during construction and operation have so far not really
been taken into consideration.
Status:
The certification of sustainable buildings enters Erste Asset Management’s ESG company rating in an indirect
fashion only, since at this point we regard the available labels as insufficiently comprehensive and meaningful
(see above). Through their superior energy and water efficiency values, labels tend to have a positive effect
on the respective ESG company rating.
*World Green Building Trends 2013 Smart Market Report
(Richard Boulanger)
