Impact of ESG on the real estate market in Poland

In recent years, the concept of ESG (Environmental, Social and Governance) has gained significance, influencing many industries, including the real estate market. The challenges faced by the real estate sector are highly diverse and complex. Construction in Europe has a huge impact on environment, accounting for nearly half of total energy consumption, about half of raw materials exploitation, one-third of water consumption and substantial waste generation. These figures highlight the extent of the construction sector’s impact on natural resources and ecosystems, underscoring the need for sustainable development. A responsible approach to resource management, along with the implementation of innovative technological solutions, can be essential for minimizing the industry’s negative environmental footprint.

What is ESG?

ESG stands for three key areas that form the foundation of corporate responsibility:

• Environmental – focuses on actions aimed at protecting the environment and minimizing the impact of business activities on nature. This includes energy efficiency in buildings, modern heating, ventilation and air conditioning systems, waste management, water consumption and the use of green technologies. Buildings should strive for carbon neutrality by reducing or eliminating greenhouse gas emissions both during construction and throughout their operational lifespan.
• Social – relates to the impact of business activities on society, including housing availability for different social groups, ensuring safety and health for occupants, as well as providing spaces for social integration.
• Governance – covers corporate governance and transparency in business processes, including ethics, compliance with legal regulations and executive accountability. This involves adherence to building standards, transaction transparency and responsibility for project development decisions.

ESG and the real estate market

The impact of ESG on the Polish real estate market is multidimensional. On one hand, it responds to global challenges related to climate change, and on the other, it reflects the growing awareness of investors and consumers regarding sustainable development.

1. Green construction and energy efficiency

One of the key ESG aspects in real estate is green construction, which focuses on creating energy-efficient and environmentally friendly buildings. In Poland, as in other countries, there is increasing demand for office buildings and residential properties that meet high ecological standards.

2. Social responsibility and integration with local communities

ESG also emphasizes social aspects. In Poland, as in many other countries, the demand is growing for housing that is not only functional, but also accessible to a broad range of users. Investors and developers are paying more attention to:

• diversified housing offers that cater to various social groups, including seniors, families with children and people with disabilities;
• integration of public spaces with residential areas, such as parks, recreational spaces and remote work areas;
• improving access to public transport and infrastructure, which enhances residents’ comfort and reduces carbon emissions.

3. Property Management and Process Transparency

In terms of management, ESG principles influence the organization of processes related to construction, property management and sales. Transparency, legal compliance and responsible project management are essential for building trust among investors and users. These aspects include:

• compliance with construction and environmental protection standards;
• adherence to local regulations and legal requirements;
• sustainable investment planning, considering long-term impacts on the surrounding environment.

ESG Reporting

ESG reporting is a cyclical process aimed at regularly providing information on a company’s sustainability progress. The key stages include:

1. Data collection – organizations must gather relevant data across all ESG areas, such as CO2 emissions measurements, water consumption analysis, employment policies and workplace safety information.
2. Selection of indicators – determining which indicators will be reported, such as energy efficiency metrics, workplace diversity statistics or adherence to ethical standards in the supply chain.
3. Analysis and evaluation – the collected data must be analysed and assessed to track the organization’s progress toward ESG goals. This analysis also helps identify areas that need improvement.
4. Report development – the ESG report is compiled based on collected data and analysis results. It presents company achievements, challenges, future goals and specific ESG initiatives. Typically, this report is made publicly available to stakeholders.
5. Audit and verification – ESG reports are often subject to external audits to ensure accuracy and reliability. Verification confirms that the company meets required ESG standards and principles.

ESG reporting helps companies build trust among investors, consumers and other stakeholders. It also demonstrates corporate engagement in sustainable development and awareness of the social and environmental impact of business operations. Additionally, ESG reporting is increasingly becoming a regulatory requirement, particularly within the European Union, where companies are obligated to disclose sustainability-related data.

On February 26, 2025, the European Commission announced the Omnibus I package, the first simplification package in the field of sustainability. The purpose of this package is to reduce the administrative burden on businesses in the European Union. However, the proposals in this package are not yet final and are currently under negotiation in the EU Council and the European Parliament.

Conclusions

ESG criteria are increasingly influencing the real estate market in Poland, transforming the way that buildings are designed, constructed and used. Sustainable development, responsible management and environmental awareness are no longer just trends but necessities from both an investor and resident perspective. Considering ESG factors in real estate is crucial for success in today’s market, which demands more responsible and conscious business decisions.

Klaudia Jastrzębska
Buildings Database Project Coordinator