Future-proof your contracts for ESG success: Navigating ESG strategy, accurate data, CSRD & EU Taxonomy

Contractual relationships underpin ESG performance and help with obtaining accurate data that allows you to plan your strategy. With the introduction of the CSRD (including Omnibus I) and the EU Taxonomy, both of which require more transparency and structured data collection, it's fair for real estate investors and developers to ask how deeply and extensively to engage with third-parties to get ESG data and information and to set targets. Where should limited resources focus their time?

To manage the uncertainty, we see leading investors and developers deciding to look beyond their reporting obligations to their underlying data needs. What do they need to know to make good strategic decisions, for example on fund structures, acquisitions and the management of transition and mitigation risks in real estate portfolios? That data will serve the business regardless of changes in regulatory requirements.

Once you know what data you need, it's necessary to obtain it. Clear, fairly balanced contract requirements can help you do this, particularly in long-term commitments like leases but also in your procurement practices and supply chain contracts. These contractual provisions are also increasingly important to comply with Minimum Safeguards under the EU Taxonomy. GRESB’s 2025 and projected 2026 updates also include new data requirements (for example renewable energy claims) and will increase scoring weight for green leases. Agreements you sign today will impact the ability to manage construction, acquisition, operation and disposal of real estate assets well into the next decade. It's wise to future-proof key contracts now.

Cooltree, with its combined expertise in ESG data collection and analysis, strategy and regulatory and legal topics can help. Get in touch at: info@cooltree.nl if you would like to discuss.