JLL and EDC Poul Erik Bech ready to prepare ESG reports for commercial properties
JLL (Jones Lang LaSalle) is one of the world’s largest real estate companies. As a Fortune 500® company, JLL operates in over 80 countries, with a revenue of DKK 147 billion and more than 106,000 employees. EDC Poul Erik Bech serves as JLL’s partner in Denmark.
Helle Nielsen Ziersen is Head of EDC International Poul Erik Bech and works closely with JLL on a daily basis, focusing on international companies. She has completed a mini-MBA program as a Sustainable Manager to navigate the many professional, technical, and ethical aspects of ESG. She states:
“The ESG agenda is evolving rapidly, and the real estate industry needs to become more specific in this area. There is a significant need to understand how ESG impacts the value of individual commercial properties, property portfolios, and residential rental properties. Many clients want an overview of how their properties measure up against ESG standards. How much will it affect the value? And how can we meet the ever-increasing demands from tenants and regulatory authorities?”
Various ESG Reports
EDC Poul Erik Bech, in collaboration with JLL, now offers several types of ESG reports tailored to meet clients’ specific needs. Helle Nielsen Ziersen, Head of EDC International Poul Erik Bech, explains:
“We are very pleased to now provide various ESG reports to the Danish real estate market in partnership with JLL. If a client needs a brief overview of a property, we prepare an ESG Value Check. However, if a client requires an in-depth ESG report for a transaction or due diligence, whether for a single commercial property, property portfolios, or residential rental properties, the scope and complexity of the work is entirely different and much more detailed. Additionally, there are cases where an ESG report also includes financing aspects.”
“Property owners and investors need ESG insights for their buying and selling strategies, as this can increasingly help secure their investments. This also includes developing existing properties, as it is not sustainable to simply demolish and start over. The growing demands from tenants for CO2 reductions and climate impact require the real estate market to act now. That’s why we are very satisfied to be able to offer this ESG service to the Danish market in collaboration with JLL.”
JLL and ESG
Kaisu Pienimäki, Head of Valuation & Strategic Consulting at JLL Finland, is the overall JLL lead for ESG Value Check in the Nordic region. She states: “We have already been actively preparing ESG reports in several other markets, and we are very pleased to now be ready to deliver these ESG reports to the Danish market in collaboration with EDC Poul Erik Bech. We have worked on assembling a large team with the right expertise to provide valuable ESG reports to our clients. This is an area with significant client demand, and there is no doubt that ESG reporting for commercial properties will become a major focus within the real estate brokerage industry.”
“We have already been actively preparing ESG reports in several other markets, and we are very pleased to now be ready to deliver these ESG reports to the Danish market in collaboration with EDC Poul Erik Bech. We have focused on assembling a large team with the right expertise to provide valuable ESG reports to our clients. This is an area with significant client demand, and there is no doubt that ESG reporting for commercial properties will become a major focus within the real estate brokerage industry.”
ESG Impacts Property Value
According to Helle Nielsen Ziersen, EDC International Poul Erik Bech, the goal of the ESG reports is the following: “With the ESG reports, we, together with JLL, identify the latest ESG parameters that we see both indirectly and directly influencing leasing, financing, and transactions in the Nordics and Europe. We check the quality of ESG parameters on commercial properties and provide both qualitative and quantitative evidence, along with insights into the key value parameters. Additionally, we recommend the next development steps. In other words, we provide knowledge, overview, and development opportunities regarding ESG to our clients.”
“The reports are based on our and JLL’s collective knowledge of transactions, deals, financing, and projects. It is important to recognize that market assessments are constantly changing, and it is complex to separate ESG from other factors. ESG is already becoming more and more significant, and we need to start incorporating ESG factors into the pricing of commercial properties. ESG will become a key factor in valuation, and we expect this area to play a large role in advising our clients.”
Kaisu Pienimäki, Head of Valuation & Strategic Consulting, JLL Finland, Phone: +358 40 7032783
E-mail: kaisu.pienimaki@jll.com, Kaisu and the team can conduct ESG screening assessments on individual property levels or as a part of portfolio assessments across the Nordics.
Tom Lord, Head of Building Consultancy (TEDD GDD ESGDD), JLL Sweden, Phone: +46 (0)79 142 5674
E-mail: Tom.lord@jll.com, Tom and his team can carry out deeper ESG assessments, and Tom’s team serve the entire Nordic region.