A nature-inclusive approach has major benefits for property owners

“Having a tree near your property is fantastic,” says Lodewijk Hoekstra, co-founder of NL Greenlabel, a platform promoting nature-inclusive building. “Trees have a cooling effect in the summer thanks to their foliage, but let the warmth of the sun through in the winter.” Just a few trees can reduce the need for air conditioning in an office building, he says. “The ground around a nature-inclusive building is more absorbent. That’s really important, since spongy soil will help prevent flooding – a growing problem for many Dutch property owners.”

“Owners often overlook the natural surroundings of a property when making it more sustainable,” admits Bas Rutten, Senior Managing Director of Commercial Real Estate, Hotels & Leisure at ABN AMRO. The reason, he says, is that there’s a general lack of knowledge about the economic and social benefits of greening. But ABN AMRO wants to change that. “We’ve teamed up with NL Greenlabel to provide our clients with as much knowledge as possible about nature-inclusive building,” he says. “The strategy aligns perfectly with our climate goal to cut the carbon emissions linked with our commercial real estate financing portfolio by 46 percent, relative to 2021, by 2030. We also need to ensure that the environment is more resilient to climate change by minimising heat stress (major increases in temperature in the built environment as a result of climate change – eds.), flooding and other impacts of climate change.”

Sharing knowledge

With careful planning, greening can enhance the benefits of a sustainable property, says Bas: “A property in a green environment is a pleasant place to work and retains its value better.” ABN AMRO has long helped its clients make their properties more sustainable by sharing knowledge and by financing energy-saving and other measures. Now it’s actively sharing with them its knowledge of greening the built environment. Bas continues, “NL Greenlabel is training our colleagues so that they, in turn, can give strategic advice to clients on greening with a focus on cutting carbon emissions, combating the effects of climate change and improving biodiversity.”

A green business case

All the knowledge the bank and NL Greenlabel have acquired is helping property owners make a green business case. And that’s crucial, since they need capital now to fund their investment, even though it may not pay dividends until later. Lodewijk says, “For a long time, it’s been hard for property owners and developers to assess with any accuracy the return on an investment to green the built environment.”

Now NL Greenlabel has developed an approach to get a clear picture of the financial and non-financial benefits of greening. The process combines years of knowledge about plants and geographical areas with smart technology. Lodewijk continues, “We use geodata to scan an area to see how it scores in terms of biodiversity and climate change resilience.” The scores are then used to assign a label to the area in much the same way an energy label is attributed to a building.

Scenarios

Bas says the practicality of the label already appeals to many property owners: “It’s useful for showing us where further greening initiatives are needed and what the benefits are.” Lodewijk adds, “Our digital replicas of specific areas and climate models allow us to simulate multiple greening scenarios.” These scenarios are used to assess the short- and long-term returns greening can yield. “Property values can be up to 15 percent higher in a nature-inclusive green environment,” he says. “Plus a green environment contributes to a healthier, happier workforce.”

Computer modelling can predict how the planting of native trees and shrubs can improve biodiversity in an area over time. The Hessenpoort business park in Zwolle is the perfect test case, having recently been transformed from a drab industrial estate into a green oasis that is now home to sand martins and bees.

The simulations also provide insight into making an area more climate-proof. Lodewijk says, “More greenery can help prevent flooding and heat stress.” The strategic use of green roofs, trees and vertical gardening can mean a business property uses less air conditioning and heating, thereby helping to reduce a company’s on-premises carbon emissions.

Assessing value

ABN AMRO has partnered with NL Greenlabel to make the label and related financial products available – initially to business clients. Bas says, “The label gives a clear indication of how sustainable a property and its natural surroundings are and their impact on society.” That information will help property owners comply with a growing number of reporting requirements. The Corporate Sustainability Reporting Directive (CSRD), for instance, means that more and more companies will have to start reporting on the impact they have on people and the planet. He continues, “Essentially, we’re offering our clients the label and helping them finance sustainability measures at favourable rates in order to minimise negative and maximise positive impacts.”

Bas says he sees sustainability as an increasingly important factor in determining property values: “At ABN AMRO, we’re already one step ahead of the DuPa 2.0 sustainability provisions in the valuation standards. Incorporating into our models sustainability criteria as they relate to properties and their surroundings helps us better manage risk while promoting sustainability. Sustainability used to be all about the building – now we’re looking at the building and the environment it’s a part of.”