Expo Real 2026: 5 key takeaways on sustainable real estate

In October 2026, Expo Real brought together real estate stakeholders from around the world. Over three days, attendees explored the latest industry developments including in sustainable real estate.

Frieder Frasch, Director ESG at RSM in Germany, shared: "It was encouraging to see strong global interest in decarbonisation, with speakers and attendees from multiple markets."

Following the event, Frasch shared his five key takeaways:

1. Regulatory requirements accelerate integrated sustainability reporting

"The European Sustainability Reporting Standards (ESRS) of July 2026 provided greater clarity for real estate businesses. They defined which companies are expected to report and what their obligations are. Since then, real estate businesses have worked to improve their materiality assessments and strengthen their readiness before the revised standards take effect in January 2027.

"As part of this activity, businesses are often taking a more integrated approach to reporting. Many want to establish robust, centralised data systems that support a range of regulatory requirements. These include ESRS disclosures and energy ratings, as well as pay transparency.

"Developing efficient, long-term reporting processes that reduce duplication and deliver value beyond immediate compliance obligations is now emerging as a priority."

2. Sustainability fatigue exists, but there are business cases for reporting

"Interest in sustainability is cyclical and has fluctuated in recent years. Demand for sustainability data, however, comes from multiple places beyond regulators.

"For example, commercial relationships with clients can still depend on businesses providing information on product carbon footprints. Staying competitive as a supplier can also rely on responses to sustainability questionnaires. Banks, meanwhile, consider sustainability performance when assessing financing opportunities. All of this makes voluntary reporting a valuable tool.

"By publishing a comprehensive sustainability report, real estate businesses can proactively address stakeholder expectations and reduce the administrative burden of completing individual questionnaires."

3. The low-carbon transition requires a proactive approach

"As the shift to a low-carbon economy continues, real estate businesses face three key transition risks. Namely, rising energy costs, tightening building regulations, and growing circularity and carbon requirements.

"Fluctuating fossil fuel prices create financial uncertainty. Investment in alternative energy sources is important for managing costs and reducing exposure to price volatility.

"Regarding energy efficiency, stricter standards and building codes are increasing compliance risks and potential retrofit costs. In Germany, for instance, we're seeing ongoing discussions around heat pumps and heating requirements. These highlight the need to stay prepared for regulatory change.

"Finally, growing expectations around circular construction and limits on embodied carbon emissions in new buildings are creating challenges for developers. Integrating circular design principles into projects can help businesses adapt to these evolving requirements."

4. Sustainable financing creates opportunities for real estate investment

"To align financing strategies with environmental objectives, businesses are using instruments such as green bonds and sustainability-linked bonds.

"Green bonds let companies raise capital or refinance existing investments, with proceeds allocated to projects that meet specific criteria. We've seen clients commit to allocating 100% of green bond proceeds to buildings meeting recognised sustainability standards. Similar approaches are emerging in other sectors, including transport, to finance sustainable infrastructure projects.

"Sustainability-linked bonds offer another route, linking financing terms to agreed performance targets. Industrial businesses might also benefit from more favourable financing terms if they achieve set targets.

"These instruments enable businesses to fund sustainability initiatives and demonstrate their commitments to real estate investors."

5. Energy efficiency and circular construction can unlock real estate sustainability

"The real estate industry has significant opportunities for progress. Buildings and construction currently account for more than one-third of global CO₂ emissions.

"Improving energy efficiency is vital to addressing this. From designing and constructing more efficient buildings to optimising energy consumption during operations, there are ways to reduce emissions at every stage of a building's lifecycle.

"Adopting circular economy principles is another path forward. These principles focus on reusing building materials, minimising waste, and making sure buildings can be easily adapted and repurposed. The end goal is to be resource-efficient and reduce the environmental impact of the built environment."

Turn sustainability commitments into business value

"Sustainability was a prominent theme throughout Expo Real's forums, reflecting its importance to the real estate industry," concluded Frasch. "There's a clear next step to go further than regulatory compliance. By making better use of sustainability data, companies can improve operational efficiency, secure financing, and build stronger stakeholder relationships."

For practical guidance on evolving ESRS requirements and how sustainability data can support long-term growth, read RSM in Germany's latest white paper: Executive Advice: ESG Reporting for Medium-Sized Companies.