No simple answer to recouping cost of energy improvements

Although the “E” in ESG is the more easily defined and measured sustainability characteristic and improving the energy consumption of a building is practically achievable, recouping the sometimes considerable cost can be more challenging, Sébastien Berden, chief operating officer at listed Belgian healthcare real estate specialist Cofinimmo, explained.

“How do you get back the investment because obviously investing in energy is primarily to the benefit of the tenant. It would be unfair if we funded everything while the only one gaining the advantage is the tenant,” he added.

“We have been talking a lot about how we can get some kind of a return on the investment,” he said.

Berden says the conclusion was that the answer will differ from building to building. Improvements could be reflected in an extended lease, for example, or a higher rent. Or it may be something that the company does without remuneration.

Please click on the video above to watch the full interview or listen to the podcast below.