ESG and green deals: why investing in sustainability matters

Over the past few years, the concept of sustainability has gained increasing relevance across all economic sectors, and the real estate industry is no exception. Investments that adhere to ESG (Environmental, Social, and Governance) criteria are at the heart of many companies’ and investors’ strategies, as they represent not only an ethical commitment but also a solid opportunity for growth and economic return.

The application of ESG principles to real estate investments is an example of how integrating these criteria can transform the traditional approach to real estate, with particular attention not only to environmental issues but also to enhancing the territory and supporting social housing policies.

It's important to mention that investing in deals that meet ESG criteria is not just an ethical choice, but also an investment strategy that delivers tangible returns, proving that sustainability and profit can go hand in hand. Now more than ever, focusing on sustainability isn't charity, but an opportunity to achieve significant gains.

Not only new building: investing in renovations to avoid exploiting new land

When we talk about sustainable investments in real estate, the mind immediately turns to new constructions designed according to green building standards and NZEB (Nearly Zero Energy Buildings). However, it is important to remember that sustainability in construction does not end with the creation of new-generation buildings. At Yeldo, for instance, we adopt a broader and more comprehensive vision of sustainability, which includes a strong commitment to the renovation and restoration of existing buildings.

Renovating existing buildings not only helps preserve the architectural heritage but also represents an effective strategy to avoid the consumption of new land, a resource that is becoming increasingly scarce and valuable. The redevelopment of existing residential or commercial complexes allows for the improvement of buildings' energy efficiency while simultaneously reducing the environmental impact associated with new construction. This approach aligns with the latest European directives that promote green building through the recovery of existing structures, significantly contributing to the reduction of CO2 emissions and the achievement of the climate goals set out in the European Green Deal.

The transformation of obsolete buildings into modern and sustainable structures also presents a unique opportunity to enhance the territory by revitalizing entire disused areas and offering new economic opportunities, as well as a more sustainable future for local communities.

ESG beyond the environmental issue: affordable housing to support local communities

Sustainability is not only a matter of environment. The acronym ESG also encompasses social and governance aspects, which are crucial in Yeldo’s investment philosophy. In particular, our social commitment is realized supporting affordable housing projects and territorial revitalization, aimed at improving the quality of life within communities and promoting social inclusion.

Affordable housing provides a concrete response to the growing demand for homes at accessible prices in a real estate market increasingly characterized by high costs. Through targeted investments in Italian projects like the one in Via della Blandoria in Monza, Yeldo contributes to ensuring the fundamental right to housing, with a special focus on the most vulnerable social groups who risk being excluded from the traditional real estate market.

Another key area of focus is the remediation of disused or underutilized areas, as demonstrated by the redevelopment of an old industrial area in Varedo. These interventions not only restore value to areas suffering from decay but also generate new jobs and economic development opportunities, contributing to the revitalization of local communities.

Yeldo’s ESG approach is based on a holistic vision of sustainability, where environmental, social, and governance aspects are harmoniously integrated to create lasting value: our Real Estate Private Debt Fund has applied for Article 8 and ESG parameter are always taken into consideration during the deal selection process.