November 2023
SUSTAINABLE
INVESTMENT NEW HORIZONS IN THE CONSTRUCTION INDUSTRY
PAGE 04 PROPERTY CERTIFICATIONS
PAGE 10 DISCUSSION: SUSTAINABILITY ASPECTS IN PLANNING AND CONSTRUCTION
PAGE 12
A marketing communication of Raiffeisen Kapitalanlage GmbH
CONTENTS PUBLICATION INFORMATION
03
PREFACE
04
LEAD ARTICLE
04
www.rcm.at/nachhaltigkeit
NEW HORIZONS IN THE CONSTRUCTION INDUSTRY
10 10
SPECIAL PROPERTY CERTIFICATIONS
12 12
RESEARCH DISCUSSION: SUSTAINABILITY ASPECTS IN CONSTRUCTION AND PLANNING
18
BEST PRACTICE SUSTAINABLE REVITALISATION
20
CORPORATE VOICES ON THE TOPIC OF CONSTRUCTION MATERIALS
24
COMPANY SPOTLIGHT
28 28
Media proprietor: Zentrale Raiffeisen Werbung A-1030 Vienna, Am Stadtpark Published and created by: Raiffeisen Kapitalanlage GmbH Mooslackengasse 12, A-1190 Vienna Responsible for the content: Raiffeisen Kapitalanlage GmbH Mooslackengasse 12, A-1190 Vienna
INSIDE FOOTPRINT TEAM LAUNCHES CYCLECHALLENGE
CONTENTS
General orientation: Information on the topics of investment funds, securities, capital markets, and investment; additional information pursuant to the Austrian Media Act can be found in the publication information at www.rcm.at. Project coordination: Irene Fragner, Sabine Macha Authors: Christoph Drdla, Bernhard Grubhofer, Alfred Hajdu, Pia Oberhauser, Herbert Perus, Alexander Toth, Mathias Zwiefelhofer Photos: iStockphoto (p. 06, p. 15, p. 22, p. 27) Delta, Andreas Hafenscher, private, Roland Rudolph (p. 12, p. 14) Raiffeisen KAG (p. 03, p. 05, p. 09, p. 11, p. 12, p. 15, p. 19, p. 20, p. 25, p. 29) Graphic design: [WORX] Multimedia Consulting GmbH Editorial deadline: 23 October 2023 This is a marketing communication of Raiffeisen Kapitalanlage GmbH. Raiffeisen Capital Management ist the umbrella brand of the following companies: Raiffeisen Kapitalanlage GmbH Raiffeisen Immobilien Kapitalanlage GmbH Raiffeisen Salzburg Invest GmbH Disclaimer Investments in funds involve higher risks, up to and including loss of capital. This document was prepared and designed by Raiffeisen Kapitalanlage-Gesellschaft m. b. H., Vienna, Austria (“Raiffeisen Capital Management” or “Raiffeisen KAG”). Despite careful research, the statements contained herein are intended as non-binding information for our customers and are based on the knowledge of the staff responsible for preparing these materials as of the time of preparation and are subject to change by Raiffeisen KAG at any time without further notice. Raiffeisen KAG assumes no liability whatsoever in relation to this document, in particular with regard to its timeliness, accuracy, or completeness. Similarly, any forecasts or simulations of earlier performance presented in this document do not provide a reliable indication of future performance. This document is neither an offer nor a recommendation to buy or sell, nor an investment analysis. It is not intended for use in lieu of investment advice or other consultation. If you are interested in a specific product, we and your bank advisor will be happy to provide you with the complete prospectus or the information for investors pursuant to § 21 AIFMG prior to purchase. No specific investments should be made until after a consultation and discussion, and after having reviewed the prospectus and the information for investors pursuant to § 21 AIFMG. It is expressly noted that securities transactions can involve significant risks and that taxation of such depends on personal circumstances and is subject to change in the future. Reproduction of the information or data, in particular the use of texts, text sections, or graphic material from this document, requires the prior written consent of Raiffeisen Kapitalanlage GmbH.
PREFACE
Dieter Aigner Managing Director of Raiffeisen KAG, responsible for fund management and sustainability
Dear Readers,
According to a UN report, 38% of glob-
thermal insulation, or electrical and digi-
brick buildings create a good interior cli-
al carbon emissions stem from the con-
tal building infrastructure will profit from
mate and the deep window inset provides
struction and building industry. That is
this initiative. Along with reducing carbon
natural shading. In any case, everyone in-
a very high share and it means that ex-
emissions, this initiative should also help
volved in construction and building needs
traordinary efforts are needed to make
to create new jobs.
to be planning and implementing measures that improve sustainability.
the building stock climate-neutral by 2050. The political will to do so is there.
Outside of politics, we have a myriad of
In its Green Deal, for example, the Euro-
players in the construction and building
The financial industry is also part of this
pean Commission announced a significant
industry, such as clients, architects, prop-
great undertaking. It must support the in-
increase in investments to improve the
erty developers, construction companies,
dustry in this process of change, promote
energy efficiency of buildings, since cur-
scientists, and many other stakeholders.
the circular economy, and temporarily
rently around 35% of buildings are older
The decisions they make also have and
withhold capital from companies that have
than 50 years and 75% are considered to
will continue to have a great impact on
not yet recognised the need for a new par-
be energy-inefficient. With a renovation
whether we are able to significantly re-
adigm. It is also vital to maintain and initiate
initiative, the EU wants to invest an ad-
duce carbon emissions from the construc-
dialogue with companies, working cooper-
ditional EUR 275 billion annually in this
tion sector and the building stock. There’s
atively together to reduce the industry’s
area up until 2030. These are enormous
no need to constantly reinvent the wheel,
ecological footprint. Sustainable invest-
sums of money. They also underline the
and bonds issued by construction clients
ment 2.0 means investing responsibly in
huge investment opportunities in various
from the past can also support sustain-
the future and moving forward together
sectors, because, among others, industrial
ability and a good climate. For instance,
on the path of transforming the built en-
and IT companies active in fields such as
the building physics of thick walls in old
vironment.
PREFACE
03
NEW HORIZONS IN THE CONSTRUCTION INDUSTRY
NEW HORIZONS IN THE CONSTRUCTION CHALLENGES AND Predicting the future based on past events is something of an Olympic sport among investors, as it can lead to the timely recognition of trends, promising business areas, and the challenges of the future. When it comes to assessing the sustainability of buildings and the construction industry, it is important to analyse all of the opportunities and challenges in this very diverse area.
In order to arrive at a solid ESG assessment
mographic change are also driving demand
of buildings, all of the components have to be
for housing. Cities are growing and the trend
taken into consideration, from the beginning
towards more residential space per capita is
of a structure’s lifecycle until its demolition.
also rising. As a result of all of these factors,
This includes the selection of building mate-
there is more and more construction activity.
rials, utilisation of the building, aspects of the
According to Statistics Austria, in 2012 hous-
circular economy, and dismantling. Ultimate-
ing completions amounted to around 50,000
ly, as with the sustainability assessment of so
new dwellings per year, with this figure climb-
many other investment goods, the situation
ing to roughly 70,000 by 2021, and the trend
is rarely black and white when it comes to
is accelerating. Viewed from an investor per-
what is “green”. For example, some emis-
spective, all of this indicates a growing sector.
sions-intensive construction materials have very long lifecycles and cannot be substitut-
Residential buildings promote good social
ed in many projects. You can’t build wind
cohesion and contribute strongly to people’s
farms without cement. Nevertheless, it is
sense of well-being. Suitable housing is a ba-
possible and necessary to improve sustaina-
sic need for everyone and thus also repre-
bility in construction, while at the same time
sents an important contribution to fighting
not losing sight of the “big picture”.
poverty. Along with residential construction,
MORE AND MORE DEMAND FOR BUIDLINGS
infrastructure, and administration. Economic growth and ensuring prosperity are also
residential space is increasing. A growing pop-
driving forces in the construction industry.
ally, families are becoming smaller and more people are living alone. Urbanisation and de-
LEAD ARTICLE
tion resources are also used for industry,
A number of trends suggest that demand for ulation needs more room to live. Addition-
04
a large portion of the available construc-
ENVIRONMENTAL IMPACTS
Erecting buildings, however, generates a
INDUSTRY: OPPORTUNITIES FOR INVESTORS number of problems. First and foremost:
hind soil sealing. Once the soil is sealed, it is
high carbon emissions. The construction of
very difficult to return it to normal conditions,
a conventional masonry house generates
and this has wide-ranging consequences, as
approximately 40 tonnes of CO2 emissions.
biodiversity is reduced and ecosystems are
Scaling this figure up to the European level, the construction industry alone accounts for 9.4% of domestic carbon emissions, and this does not even include the environmen-
destroyed.
SOIL SEALING
Soil sealing also leads to higher tempera-
tal impacts of the subsequent use phase.
tures, which results in more hot days and
Around 40% of the energy consumption
tropical nights. That is the reason, for ex-
in the European Union can be traced back
ample, that an outdoor temperature of
to the use of buildings and 38% of global
30 degrees Celsius feels much warmer in
carbon emissions stem from buildings. With
Vienna than it does in more rural areas.
due consideration of these challenges, the
Not only is CO2 emitted directly by con-
EU initiative “Fit for 55” requires that all new
struction projects, due to the lack of green
structures must be zero-emissions buildings
areas less photosynthesis, i.e. the transfor-
by 2030 and that all existing buildings must
mation of carbon dioxide into oxygen, also
be turned into zero-emissions ones by
takes place. From 1995 to 2021, there was
2050. In light of these figures, it is important
a 53% increase in developed settlement
to look for alternative construction materi-
area in Austria, while the population only
als. Because one of the most common and
rose by 12%. As a result, Austria is perma-
cheapest materials is concrete.
nently losing around 0.5% of its agricultural
CONCRETE AS A PROBLEM
To use concrete as a building material, you need a binder: cement. Above and beyond this, reinforcing steel bar is also needed for
Mathias Zwiefelhofer Sustainability Office at Raiffeisen KAG
land every year.
WASTE CONSTRUCTION RUBBLE
Waste is also produced where resources
masonry construction. These materials are
are used. The construction industry is re-
usually used on the basis of cost consider-
sponsible for much of the waste generat-
ations, but they have a particularly negative
ed at the global level. The demolition of
impact on a building’s emissions footprint.
buildings literally results in mountains of construction rubble. In terms of waste
The substantial emissions are not the only
generation within the EU, the construc-
problem. New structures and the related
tion industry tops the table with a share
road construction are the biggest factors be-
of 36%, and a large part of this waste goes
LEAD ARTICLE
05
NEW HORIZONS IN THE CONSTRUCTION INDUSTRY
06
LEAD ARTICLE
SUSTAINABLE INVESTMENT | November 2023
into landfills. This in turns involves travel-
able in other aspects of the circular econo-
ling long distances and more soil sealing.
my, such as the reuse of construction ma-
Recycling options for construction mate-
terials and durability.
rials vary widely, but fundamentally there
CONSTRUCTION IN THE FUTURE
is still great potential in this field. For instance, the share of construction waste recycling in Germany is quite high, at 75%.
The wide-ranging sustainability risks in the
Considerable opportunities are also avail-
building industry
Chart: Environmental impacts
CEMENT
Construction industry generates
9.4%
of domestic
BUILDING MATERIALS
CO2 emissions
SUSTAINABLE MATERIALS
Source: Raiffeisen Kapitalanlage-Gesellschaft m.b.H. 2023
LEAD ARTICLE
07
„
NEW HORIZONS IN THE CONSTRUCTION INDUSTRY
“8% of global carbon emissions stem from cement production.”
must addressed in a variety of ways. Tech-
With “green” construction, the focus is on
nical innovation should integrate circular
sustainable materials without toxic problems,
economy aspects and the ideal selection
that are biodegradable, recyclable, and sus-
of construction materials. Pragmatic solu-
tainable, and which are available and trans-
tions are needed, and a construction in-
portable at the regional level when possible.
dustry that is fit for the future can only be created by combining different measures. The most important aspect is the selec-
CIRCULAR ECONOMY
The circular economy brings great hopes for
tion of the best construction material.
a turnaround in the construction industry
Concrete and cement are irreplaceable
and involves much more than just recycling.
for the energy transition (cf. wind turbines,
Aspects related to the circular economy
hydroelectric plants, etc.). However, from
must already be taken into account during
a sustainability perspective, these ma-
the planning stage of a project. The circular
terials are no longer the best option for
economy is very important if the goal is to
private residential construction and new
make construction materials reuseable in the
public structures. Solid wood solutions or
event of later dismantling. In this regard, the
brick masonry are practical alternatives for
principle of re-use can be a game changer,
many building purposes, even though con-
because from the planning phase through to
crete is currently still cheaper.
construction there are numerous possibili-
Chart: Circular economy in the construction industry
Reduce material use Make products last longer
08
LEAD ARTICLE
Re-use principle
Keepin-use principle
Build long-lasting buidlings Renovate old buildings
SUSTAINABLE INVESTMENT | November 2023
ties to reduce the use of materials and make products last longer. The principle of “keep in use” is also very important. Long-lasting buildings reduce the amount of soil sealing
CONSTRUCTION MATERIAL CEMENT
Thanks to its tried and trusted track
and the use of resources; and old structures
record, cement is the standard bin-
can be given a new lease on life with ren-
ding agent of choice in the cons-
ovation. It is vital to keep buildings, building
truction industry. However, over
components, and materials in use as long as
its entire lifecycle, this material has
possible and to recycle them at a high level
its drawbacks: First, it takes a lot of
of value. In line with this, the reconstruction
energy to make so-called reactive
and renovation of existing buildings is a very
cement clinker, which is produced
ground storage facilities. Concrete
promising option as a way to integrate sus-
by heating limestone to 1,450 de-
rubble generated from the demoliti-
tainability into the construction industry.
grees Celsius. In the future, it will
on of buildings is generally “re-used”
be possible to reduce this energy
as a filler, but this is not a closed-cyc-
The renovation of buildings not only in-
consumption through technical opti-
le solution. Accordingly, in the future
creases the lifespan of real estate, it also
misation, and in an ideal situation the
concrete should only be used very
helps to improve energy efficiency and
production facilities would be opera-
selectively and in long-term applica-
reduce the consumption of resources.
ted using renewable energy. Second,
tions, for which there are currently
Energy-optimised new structures are par-
the chemical process involved in fi-
no technical alternatives.
ticularly important from a sustainability
ring the limestone generates large
perspective. However, existing buildings
amount of CO2, which accounts for
also need to be considered if one is to
around two-thirds of the emissions.
take a holistic view of sustainability in this
Alexander Toth Fund Manager at Raiffeisen KAG
When discussing concrete as a construction material, it is also necessary to take into account the rein-
industry. In an ideal case, there would only
The cement industry’s solutions to
forcing steel used to provide tensile
be energy-efficient, perfectly sealed build-
reduce emissions are to partially sub-
strength, as this is also the basis for
ings. In reality, however, this is generally
stitute the clinker with additives such
technical progress like other indust-
not the case, and old buildings can often
as blastfurnace sand or fly ash, but
rial metals. Steel has good recycling
only be restored to new, sustainable glory
these materials are only available in
properties, as this metal can be reu-
through cost-intensive renovation work.
limited quantities and also generate
sed as often as desired and can be
carbon emissions, or alternatively to
recycled without quality loss using
More at
separate the carbon dioxide that is
far less energy than needed for new
www.rcm.at/kreislaufwirtschaft
produced and sequester it in under
production.
LEAD ARTICLE
09
SUSTAINABILITY CERTIFICATES FOR PROPERTIES
The definition of clear, comprehensible standards should contribute to a high level of objectivity and transparency. On the one hand, independent certification can strengthen the awareness of sustainability issues, and
PR PERTY CERTIFICATIONS Sustainability certifications for properties are intended to help real estate companies to develop, maintain, manage, and in some cases reposition their properties in a sustainable manner, by promoting environmentally and socially sustainable practices, ideally over the entire lifecycle of a property.
on the other hand it makes it easier for building users (tenants, for example) and investors mobility. The klimaaktiv building standard of-
Sustainable Building Council (DGNB,
fers various levels of certification (Bronze,
Deutsche Gesellschaft für Nachhaltiges
The most commonly found certifications are
Silver, Gold) for buildings, concentrating on
Bauen) also takes into account econom-
those issued by the providers LEED, BREEAM,
infrastructure quality, high energy efficiency,
ic factors, assessing, among other things,
and DGNB/ÖGNI, while the klimaaktiv certi-
the use of renewable energy, the utilisation
energy and resource efficiency, ecologi-
fication is frequently used within Austria. The
of environmentally-friendly materials, and
cal and technical quality, and user-friend-
large providers certify both new buildings and
thermal comfort.
liness. It offers several certification levels
to identify sustainable properties.
existing structures (according to different cri-
(Bronze, Silver, Gold, Platinum), as well
teria), and distinctions are also made between
as special certifications such as DGNB
different utilisation profiles.
Diamond (for outstanding design quality) or ÖGNI Crystal (for outstanding social
The following certifications are found most
sustainability). It is also possible to obtain
commonly on the European real estate mar-
bauXund
another
certifications for entire neighbourhoods
kets. It should also be noted that each certi-
Austrian certification system that focuses
schadstoffgeprüft
is
that are planned and implemented with
fication has different focal points or different
on building materials. This certification is
sustainability in mind.
emphasis in various areas (such as environ-
awarded to buildings whose chemical and
mental, social, and economic aspects).
product management aspects are assessed in an in-depth review and which are erected in accordance with environmentally-sound construction requirements. The results are also checked by way of interior air sampling.
The klimaaktiv certification is an initiative
In Austria, buildings are certified by the
of the Ministry of Climate Action, Environ-
Austrian Sustainable Building Council
ment, Energy, Mobility, Innovation, and Tech-
(ÖGNI).
nology, and is part of the Austrian climate strategy. This programme promotes sustain-
10
able construction and renovation, the use of
In addition to ecological and social aspects,
renewable energy, energy conservation, and
the certification system of the German
SPECIAL TOPIC
LEED
The LEED certification system (Leadership in Energy and Environmental Design)
Christoph Drdla Transaction Manager at Raiffeisen Immobilien KAG was developed by the U.S. Green Building
of a property, which are assessed in terms
Council (USGBC). It establishes stand-
of the following ten categories: air quality,
ards for energy-efficient, environmental-
water quality, nourishment, visual comfort,
ly-sound, sustainable buildings. Here again,
movement, thermal comfort, interior and
there are several certification levels (Cer-
building acoustics, low-emissions and re-
tified, Silver, Gold, Platinum) and various
source-efficient construction materials,
criteria are assessed, such as environmen-
HQE (Haute Qualité Environnementale) is a
satisfaction, community, and innovation.
tal performance, water efficiency, energy
French sustainability certification, which is also
Again, the certification levels range from
efficiency, materials and use of resources,
fundamentally applicable at the internation-
Bronze, Silver, and Gold to Platinum.
interior quality, and innovation. As it often
al level as well. It is used for buildings under
references US standards, it is mainly found
construction or in use, as well as sustainable
One common feature of all of the building
in the USA, or used when US tenants lease
neighbourhoods and infrastructure. The main
certifications is that the sustainability as-
larger areas.
focal points are environment, quality of life,
pects of a property are analysed by inde-
economic viability, and responsible manage-
pendent third parties and documented in
ment. The certification levels are Good, Very
accordance with a standardised assessment
Good, Excellent, and Outstanding.
system, generally featuring several different
BREEAM
The BREEAM programme (Building Research Establishment Environmental As-
quality levels (such as Bronze, Silver, Gold,
sessment Method) was developed in the
etc.). Some of the certifications (such as
United Kingdom and assesses buildings
WELL and bauXund) consciously focus on
in terms of their ecological, social, and
individual subcomponent aspects, while
economic sustainability on the basis of
others take a broad, holistic approach to the
criteria such as energy, water, materials,
topic of sustainability and also consider eco-
health, and well-being. The certification
nomic criteria (such as DGNB for example).
levels range from acceptable, satisfactory,
WELL is a building certification that
good, and very good to excellent. In the
concentrates on the human health and
Since the EU Taxonomy Regulation en-
German-speaking area, the certifications
well-being of building occupants. This sys-
tered into force, some of the providers
are issued by the organisation TÜV Süd.
tem focuses strongly on the interior spaces
listed above also perform reviews of real estate for conformity with the Taxonomy. The EU Taxonomy is a classification system
Chart: Certification level, based on the example of DGNB
for economic activities which make significant contributions to the achievement of
FROM PLATINUM TO BRONZE Total score Minimum score
defined environmental objectives. One can expect that this topic will receive greater from 80%
from 65%
from 50%
from 35%
65%
50%
35%
–%
Source: DGNB
* This level is only available for certification of existing structures or for the certification “Building Operations”.
attention in the future in relation to property certifications and that, over the medium term, these two kinds of assessments will overlap or even merge together.
SPECIAL TOPIC
11
Round-table discussion on the integration of sustainability aspects
Moderated by Dieter Aigner, Managing Director of Raiffeisen KAG
Marc Guido Höhne Managing Director, Delta Projektconsult Wien
Johann Marchner Managing Director, Wienerberger Österreich
Karin Stieldorf Technical University Wien, Institute for Building Construction
Alexander Toth Raiffeisen KAG
12
ROUND-TABLE-DISCUSSION
in planning and construction
For many decades, speed, profit, and effi-
Are your customers open to more sustainabil-
ciency were the key factors in the construc-
ity in their construction projects?
tion industry. Is the focus now shifting more
Marc Höhne: Unfortunately, I have to say
towards ESG?
that many of them simply don’t understand
Marc Höhne: The topic on everyone’s
why it is so difficult. And now, with energy
minds right now is energy, obviously also
prices lower again, the question arises as to
as a result of the war and the related ener-
whether the measures taken are the right
gy crisis. In particular, the goal is to reduce
solution from a long-term perspective. In
primary energy consumption, amongst
particular, when I am working with industrial
other things by using more renewable en-
customers and we have a depreciation pe-
ergy. Naturally, in relation to this, it is also
riod of more than four years, then the top-
important to achieve much higher energy
ic is irrelevant anyway. There is no further
efficiency for buildings, because otherwise
discussion about it. And even though prop-
it doesn’t do any good. With modern
erties in the industrial sector play a major
buildings, this is not the major challenge
role, the emphasis is often on the core busi-
and there are solutions, but there are
ness, while the property itself is a second-
significant difficulties with older buildings.
ary consideration. Of course, very different
And when we talk about energy produc-
approaches are taken by property owners.
tion, we mean using geothermal and solar.
The big institutional players have had this
In this regard, however, the options are
topic on their radar for the last three or
very, very limited when inner-city are-
four years. They are well prepared and have
as are involved, where the rooftops and
at least a rough idea of what they want to
lots are very small. So, what can one do?
achieve, and that’s important. On the other
What we see is that a lot of our customers
hand, I still run into plenty of public sector
think that all they need to do is check off
housing developers who are just getting
5 points on a list of 10 checkpoints and
started and have not formulated any strat-
then they’re done. If it was that easy, we
egy at all about how they want to approach
wouldn’t all be constantly working on this
this topic. They are still in the dark. In our
topic. In our experience, it’s ultimately a
opinion, it is currently extremely important
combination of different measures that
to raise awareness about this topic, in or-
leads to success. And for every project, it
der to point out the criteria and the ways
might be a similar solution, but it’s real-
they can move towards more sustainability.
ly never exactly the same one. So, a lot
Sometimes they are simply overwhelmed by
of time and energy has to be invested in
the variety of options. Unfortunately, when
every project to really find the right solu-
they don’t have a strategy it’s often the case
tions, with the right cost-benefit ratio.
that they immediately focus on what they
SUSTAINABLE INVESTMENT | November 2023
“ESTABLISH THE PRINCIPLES AT AN EARLY STAGE” think has the biggest impact on the climate.
figure out if the building works or not.” This
straw and loam being used in new buildings
Instead of doing exactly the opposite: look-
is just not the way it works anymore. Even
in the future. However, you can use straw
ing at what is easiest to implement. And
at the planning stage, I have to know that
mats, which work well as an insulation ma-
where they can achieve the biggest impact
the project is moving in the right direction
terial. A lot of research remains to be done
with small, focused measures. To some de-
and won’t have to be scrapped in the end.
for loam construction to be economically
gree, there is a lack of orientation about
Networked thinking has become a very im-
and ecologically successful, so that it is also
how to handle the subject of sustainability
portant goal. And because construction is a
finally accepted. There also needs to be
and how to expand the horizon.
highly diverse field, this ranges from region-
some development in terms of design. And
al planning and urban planning all the way to
of course, people’s awareness and under-
Ms Stieldorf, you’re head of the programme
details such as considering what construc-
standing needs to be enhanced, so that they
“Sustainable Building” at the Technical Uni-
tion materials to use. Ultimately, however,
accept buildings that are made of loam.
versity of Vienna. What is your experience of
the first decision at the start of the planning
this paradigm change, if it is indeed one, and
process is whether I want to build using
Mr Marchner, as managing director of the
where do you still see deficits?
wood, concrete, straw, other regenerative
world’s leading brick manufacturer Wiener-
Karin Stieldorf: Our programme provides a
materials, or out of bricks. Every construc-
berger – what do you think about buildings
very good overview of this subject. We’ve
tion material is justified, if it is used correct-
made out of loam?
recently seen a shift that is very exciting. In
ly in the right location and is the best solu-
Johann Marchner: I’d like to emphasise that
the past, participants were mainly interest-
tion there. Networked thinking, from very
we already have everything we need for
ed in supplementing their existing knowl-
large to very small dimensions, is important.
sustainable construction: there is no need to
edge of the subject. Now, we have a lot of
But the location is also crucial for finding
really invent anything new. We simply have
young academics and architects who want
the right solution, in regional, topographical
to define our requirements for the buildings
to expand their knowledge and work to-
and geographical terms.
and their utilisation. If we decide to go with
gether more confidently with property de-
loam construction, then we just have to ac-
velopers. They don’t want to get bogged
Will wood, loam, and straw play a bigger role
cept that certain applications and require-
down in discussions; they want to be able to
in the future?
ments are not possible. For instance, with
present solid arguments. In principle, I think
Karin Stieldorf: One of the things we fo-
a normal wall thickness, you just won’t be
this is a great basis. In my opinion, I think it
cus on is the construction and renovation
able to hang kitchen cupboards on the wall.
is really important to reach a consensus on
of historical loam structures. But things
We have to be clear about our expectations
the criteria for sustainable construction, so
change, and loam will have to be used differ-
for each individual structural unit. The only
we don’t end up saying, “Well, I have my
ently in the future on order to be econom-
reason for this is that we always try to plan
focus, and you have yours”. That was pretty
ically successful. For this to happen, a new
each building individually, from the ground
typical in the past. An architect designed a
approach is needed in terms of production.
up. If you look at the automotive industry
building and then said, “OK, I’ll pass this on
This may also include how the connection
though, you can see that it uses platforms.
to the structural engineer now, and this on
with insulation looks. The traditional insu-
And then it builds variants based on these
to the construction engineer, and this on to
lation material in loam construction was
platforms, thousands of variants on an in-
the building physics engineer, and they can
straw, but I can’t really imagine the mix of
dividual platform. But we are always trying
ROUND-TABLE-DISCUSSION
13
to invent each building new every time. This
don’t ask where the wood comes from. It’s
transport routes are short. And if we are
results in more work and higher costs.
really important to get the whole story.
also able to decarbonise our production process, then I think that bricks can beat
14
What strategies are you pursuing to make
How are you working to make brick an envi-
practically any other construction material
your products more suitable for a sustainable
ronmentally-sound building material?
in terms of the ecological footprint.
construction industry?
Johann Marchner: We are building the
Johann Marchner: Sustainability is a highly
world’s first-ever carbon-free brick facto-
What is the investor perspective on this topic?
motivating topic for us. And two big parts of
ry in Uttendorf right now, which doesn’t
Alexander Toth: If one looks at the global
this issue are energy and CO2. At the same
use fossil gas; it only uses green electricity.
carbon footprint of the construction sector,
time, I have to say that up to now we have
The plant is already under construction.
cement accounts for around 8% of it. That
not faced any supply problems or any prob-
This means that in the future there will be
is very high. Of course, we are interested
lems with energy costs, because we have
a brick that essentially has no carbon foot-
in identifying which innovations can help to
long-term contracts and thus we are not
print from production. I can only underline
reduce this ratio, and what technical options
impacted by the fluctuations. But it is clear
what Ms Stieldorf said: the point is to work
there to press forward with the transfor-
that manufacturing bricks still results in car-
together, frankly, so that we can achieve
mation of this sector. And there are a large
bon dioxide emissions, because on the one
results together and not make our plans
number of very small components involved.
hand we use natural gas and on the other
without people. First of all, we all have the
Technology plays a major role. As for the
hand as a raw material clay contains dolo-
responsibility to be transparent with the fig-
materials themselves, a lot of work has al-
mite or carbonate, for example. Of course,
ures, data, and facts, and secondly we have
ready been done in the field of producing
if I take a look at the Ringstraße in Vienna,
to make the lifecycle of the building the
cement and clinker. Production has already
it’s clear that masonry buildings last 100, 150
centre of attention. For us, sustainability is
become a lot more sustainable and some
or even 200 years, and so they are sustaina-
something that we are putting in practice.
of it can be substituted. But when we are
ble simply based on their lifespan. And if you
For decades now we have only used green
talking about substitution, we quickly arrive
compare the energy data for an old brick
electricity for our production. We are re-
at the issue of the regulatory framework,
building with an identical structure built with
habilitating our quarries and our clay mines.
which only allows certain qualities for specif-
modern construction techniques, you often
Not just because of the legal regulations,
ic applications. And if I have to take delivery
find that the old building substantially out-
but because biodiversity is a key topic for
of different batches of concrete and pre-
performs the new one in terms of energy
us. And of course, we are working to con-
mixed concrete, it quickly become difficult if
efficiency. If we do not attempt to distort
serve the raw materials as much as possible
not impossible to get any work done.
things that are dictated by building physics,
and to fire them with the highest possible
then we have everything we need to be
level of energy efficiency. For several years
What innovative developments play a role in
able to build sustainably. And of course, it’s
now, many of our companies have been us-
this regard?
a question of transparency as well. While
ing construction rubble as a valuable source
Alexander Toth: The big solution that is
people are happy to say that wood is an en-
of material. We are also producing locally;
currently a topic aims at net zero by 2050.
vironmentally-friendly building material, they
our value chain is rooted locally, and the
This means that unavoidable carbon emis-
“ESTABLISH THE PRINCIPLES AT AN EARLY STAGE”
NACHHALTIG INVESTIEREN | Juni | Ausg. 39
Discussion with Marc Höhne, Johann Marchner, Karin Stieldorf, and Alexander Toth
sions will have to be used elsewhere or ex-
new construction. I am sure of that. What’s
of a 100-km race, we’ve maybe run five. If
tracted from the air. Carbon capture may
more important is that we really need to
that much. The main reason for this is that
then become a major issue, and there is
significantly increase the renovation rate
the stakeholders in the construction indus-
already a lot of capital flowing into this area.
from the current level of 1%. We have to
try are not yet cooperating with each other
It would be great if cement were only used
get to 3–4%. Otherwise, we won’t come
strongly when it comes to manufacturing
where it is necessary, for certain construc-
even close to achieving the EU’s climate
their materials and components. Many of
tion projects such as hydroelectric power
targets, because too much of our existing
them are too focused on their own little
plants or other special applications. Possible
stock of buildings is just too energy-ineffi-
market niches. There needs to be a lot
future alternatives to cement are naturally
cient. As for new construction, careful use
more communication with each other. Af-
also interesting for investors. And the top-
of resources is the key point, in particular
ter all, what is the circular economy about?
ic of energy is very interesting. Because in
that we prioritise the selection of building
We want to reuse materials, but not in a
Europe a large amount of energy resources
sites completely differently than we have
downcycling process, for example that I
are pumped into buildings, and this could be
in the past. It’s simply the case that far too
crush concrete after demolition and then
significantly lowered, for example with re-
much is done backwards when it comes to
use it as foundation layer for infrastruc-
cuperation. Water consumption could also
zoning. For instance, I think it is sad that the
ture construction. The idea is to reuse the
be lowered. From an investment perspec-
city of Vienna is rezoning really excellent ag-
component, i.e. the material, in a kind of
tive, building engineering is also a major area
ricultural land in Rothneusiedl for construc-
upcycling, in the condition it was before.
of interest. Along with smart cities: How
tion purposes. The use of other brownfield
And right now there is simply not enough
is it possible to shorten transport routes?
sites in Vienna and the vicinity would be a
of this. There are good approaches, but I
How can resources be used more optimal-
better alternative. What’s really important
think there is too little sharing among the
ly? Everywhere you look, development and
for me, and this brings me to the investor
parties; for instance, when we ask our cli-
innovation are driving forces. And our focus
perspective is that brownfield investment
ents to consider standardised, modularised
is always on things that can be measured. In
should always be preferred over greenfield
technologies, a lot of them are not willing
this regard, not everything can be measured
investment. Greenfield sites should only
to pay the additional costs in the planning
in quantitative terms; you also need quali-
be an option if certain conditions are met,
phase and/or to do the development work
tative assessments from experts within the
for example unproductive soils that can no
as first movers.
field. For orientation, we use the data that
longer be used. Every single square metre
the companies provide to use, and the an-
of land that is sealed is just one too many.
swers that we get directly from the compa-
How would it be possible to improve or initiate communication?
nies in dialogue as part of our shareholder
What role does the circular economy play in
Marc Höhne: There just have to be fo-
engagement activities.
the construction industry?
rums where the various stakeholders can
Marc Höhne: I’ve been studying the subject
exchange ideas. And the legislator also
Is it true that renovation beats new construc-
of the circular economy for more than eight
needs to be involved. Because a lot of
tion when it comes to sustainability?
years now. Unfortunately, we are still really
the aspects of the circular economy are
Marc Höhne: There is always going to be
just at the very beginning in this field. Out
well-intentioned, but they can’t be im-
ROUND-TABLE-DISCUSSION
15
ROUNDTABLEDISCUSSION
plemented due to legal regulations. For
frame” construction. This is essentially a
instance, if I want to reuse an insulation
framework with concrete floors, that can
board from an existing building, some-
have quite large spans and can also be ac-
times I am not allowed to do that. I am
tivated. This is a big advantage. I could also
forced to dispose of it. The stakeholders
use recycled concrete for this. It results in
involved have to talk to each other and
a load-bearing structure which has a long
there has to be an understanding that
lifespan and can be adapted all around,
things have to change. This extends deep
inside and out, to the needs of the local
into the regulatory framework. If we ap-
climate or the local building characteristics.
ply some of the current standards and in-
Between the load-bearing elements, I can
terpretations, then some of our buildings
use wood, I can build it myself, or of course
are just simply overdimensioned, in terms
I can also use brick masonry. Ultimately, I
of the technical aspects. We clearly have
have a long-lasting load-bearing structure,
to move in the opposite direction. When
which is surrounded by more flexible, re-
it comes to designing technical facilities,
placeable components. This is really a sus-
sometimes we only need 40 to 50% com-
tainable approach.
pared to the standard, in order to be able to operate economically. So, there’s a very
What role does the circular economy play at
wide range of factors at play, and they all
Wienerberger?
have to be addressed in parallel.
Johann Marchner: For a long time, construction just consisted of putting one
16
Ms Stieldorf, I guess you agree?
stone on top of the other. But nowadays
Karin Stieldorf: Yes. But for me, what’s
we have five plants manufacturing prefab
missing from this is the climate. When
brick components in Austria to make it
we look at which building materials are
easier for people on construction sites and
being used where, we can see that a lot
to save time. But aside from bricks, there
more wood is used in western Austria.
is no construction material that works
This makes sense too, because the higher
completely on its own, and I think I pretty
up I am, the fewer problems I have with
much know them all. Wienerberger is cur-
summer conditions. In the eastern part of
rently building the project Wildgarten at
Austria, wood does not have such a strong
the Rosenhügel, which has eight stories. It’s
tradition in building, and I just need more
monolithic construction, using only brick
mass to make buildings fit for summer. We
masonry. It can be completely dismantled
have done a lot of research on this issue
at the end of the lifecycle. The principle,
and developed some solutions. One ex-
a well-known, large property developer,
ample, which I really like for multi-floor
is building it like this, because it will retain
residential buildings, is so-called “space-
ownership. And it knows what it is doing,
“ESTABLISH THE PRINCIPLES AT AN EARLY STAGE”
„
SUSTAINABLE INVESTMENT | November 2023
“With regard to the circular economy, we will have to pay a lot more attention to the selection and management of construction materials.”
because this building will have significantly
used before 1996, before the regulations.
cle looks like will become increasingly im-
lower maintenance costs, at least for the
These old materials are nothing at all like
portant. This may even result in a new de-
walls. It’s this kind of thing that demon-
the insulation that is used nowadays, which
sign look, which is not just possible but also
strates that we don’t need to invent any
is integrated directly into the bricks. Some
very desirable. In any case, we will have to
thing new. What we need to do is bring
companies have made a lot of progress
work with building materials differently in
all of the stakeholders together to make
in this field. Our standpoint is to use old
the future, and more consciously. I think
more progress with sustainable building.
buildings as long as possible, when it is
that Building Information Modelling offers
In Vienna’s Seestadt district, we are erect-
technically feasible. Because even if I gut a
great opportunities, because the individual
ing a structure based on a 10-year old idea
building and have to reconstruct it, say be-
materials can be included in the planning
from the architects Baumschlager Eberle,
cause I have an office building and I want to
process, together with their specific prop-
called ROBIN. The buildings essential-
make it into residential space, this is still far
erties. This may result in better coopera-
ly do not have heating or cooling. It has
better in terms of the emissions and eco-
tion going forward and a higher degree of
dual-layer, massive walls, using 2 x 38cm
logical footprint, and ideally it’s combined
digital networking as well. I think that new
bricks. But after many years of experience,
with the installation of modern technol-
forms of production will emerge, maybe
I can tell you: it works. What makes this
ogy for heat recovery and ventilation. Of
not in brick production, but in other areas.
approach so successful? It exploits normal
course, we are also interested in the most
And so I see opportunities for loam, straw,
building physics effects, such as deep win-
effective possible use of resources.
and other regenerative materials in specific projects.
dow recess, which leads to natural shading, and it also utilises the natural thermal mass
Do you have any final requests, interests or
Marc Höhne: People often think that sus-
of the brick.
remarks?
tainability and architecture are inseparably
Johann Marchner: I have a request directed
linked with each other, but this really isn’t
What opportunities does the circular econo-
at the legislators. Please get rid of the exces-
the case. But the situation is improving
my offer on the capital markets?
sive subsidies for specific construction ma-
and especially the young generation of ar-
Alexander Toth: Circular economy means
terials based on ideological considerations.
chitects is very keen on the topic of sus-
that at the end of their lifecycles, build-
If we are supposed to use wood, then let’s
tainability. That said, they are often totally
ings can be dismantled into their compo-
use Austrian wood, from sustainable for-
frustrated, because in 90% of the projects
nent parts without generating any toxic
estry. And that has to be transparent and
that happen, sustainability is often the first
waste and that these parts can then be
demonstrated with certification of origin.
thing to be sacrificed to economic consid-
reused for new construction again. From
Karin Stieldorf: With regard to the cir-
erations. In order for this not to happen,
an investment perspective, there’s a lot of
cular economy, we will have to pay a lot
sustainability has to be anchored in corpo-
complicated topics to unpack here. For ex-
more attention to the selection and man-
rate strategy and working on that basis it
ample, the bricks: for regulatory reasons, I
agement of construction materials. This
has to be developed at the project level, so
am not allowed to reuse bricks. Or com-
is a new element in the planning process,
that it can ultimately be implemented in all
ponents like the ceiling elements, which
which is linked to the other parameters of
of the key processes. What this also means
are poured and cannot be separated. Leg-
sustainability. This means that which ma-
is that one has to establish the principles at
acy pollutants are also a major topic. One
terials one selects, which characteristics
an early stage, which can only be changed
need only think of the insulation materials
these materials have, and what their lifecy-
with great difficulty later on.
* Neue Grundschulen
Edited by: Pia Oberhauser
ROUND-TABLE-DISCUSSION
17
TRANSFORMING THE JEUNEURS PROPERTY INTO UFO PARIS
BEST PRACTICE: SUSTAINABLE R VITALISATION mo-KAG was interested in certifying its
The story of the “Jeuneurs” office building and Raiffeisen Immobilien KAG got off to a slightly frightening start in 2006, when a fire broke out in a 5th-floor kitchenette on the day of closing, when the purchase price was to be transferred. Ultimately, however, Immo-KAG was able to successfully complete the transaction for one of the real estate funds it manages, albeit with a slight delay.
properties in the interests of sustainability, as a long-term investor. However, before the project could be carried out, it was necessary to go through a very meticulous process of agreeing with the majority of the roughly 120 co-owners of the car park and also terminating the
The six-story building was originally erected
of the building, in 2014 there was an ar-
existing leases to enable timely execution.
in 1972 with approximately 5,800 square
chitectural tender for the renovation of
Once this work was done, the project de-
metres of floorspace, as well as a separate,
the property, which was won by Axel
velopment and construction permitting
seven-level underground car park providing
Schoenert Architectes. The very good
could get underway.
300 parking spaces, which – rather unusually
construction quality of the load-bearing
– was jointly owned. Basically, the property
structure from the early 1970s and the
In 2016, an application for the renovation
was in its original condition when it was pur-
fact that the building plot was already fully
including a completely new glass façade
chased, i.e. it had never been thoroughly ren-
utilised made it easy to decide in favour of
was submitted to the authorities. Howev-
ovated. The massive concrete curtain-wall
full renovation, rather than a new build.
er, the Commission du Vieux Paris (a com-
façade was typical for the architecture of the
Along with economic considerations, the
mission of experts advising the construc-
1960s and 1970s. Despite the condition of
following sustainability aspects were also
tion authorities on historical preservation
the building, it was fully leased out thanks
defined as parameters for the renovation
matters) insisted that the façade from the
to the good location: it is situated in the so-
project in 2014:
1970s be preserved. At a number of meet-
called “Sentier” neighbourhood, a historical
- Preserving the existing structure as
ings, it was finally possible to convince the
part of town in the second district of Paris,
much as possible (cost savings)
Commission and the authorities that a new
near the city’s old stock exchange. Over the
- Ensuring maximum flexibility in utilisa-
façade was preferable, in particular so that
last 250 years, this part of town was mainly
tion (leaseability)
the task of removing the asbestos from the
characterised by textile trading, but start-
- Asbestos-free building (health and re-
building was not left to future generations.
ing from the 1990s it also became home to
use)
many Internet start-up companies thanks to
- Optimising energy efficiency (reducing
the good data connections. Nonetheless, at
operating costs)
the time of purchase, it was not part of cen-
- Certification of the property (quality
tral business district (CBD) in Paris, and most
certification)
of the tenants were from the IT sector. Although building certifications were not
18
Due to the mounting pressure on rents
such a common feature on the real es-
and considering the age and condition
tate market in 2014, even back then Im-
RESEARCH
Alfred Hajdu Senior Asset Manager at Raiffeisen Immobilien KAG
In order to establish a link to the appear-
development, in the interests of both the
ance from the 1970s, a new façade was de-
property owner and the tenant. Back then,
signed in agreement with the Commission.
it took a lot of hard work and convincing to
The project was then finally approved in
reach such an agreement.
2017, and the last remaining tenant left the
KEY DATA ON UFO PARIS: www.ufo-paris.com Address: 22–26,
property shortly before construction be-
After the project was completed, the en-
rue des Jeuneurs, 75002 Paris
gan at the end of 2017.
tire property was transferred to the ten-
Built: 1972
ant on March, 15, 2020, which just hap-
Purpose: Office
Comprehensive renovation work started
pened to be the day that the first COVID
Renovation: 2018–2020
in 2018, with only the load-bearing struc-
lockdown started. The successful transfer
Client: Raiffeisen Immobilien
ture (skeleton) being left in place. The car
amidst these difficult conditions once again
Kapitalanlage-Gesellschaft mbH
park with its roughly 300 parking places
underlines the commitment and dedica-
Architect: Axel Schoenert
remained in operation throughout the
tion of both the tenant and the lessor, as
Architectes / Paris
project. During the same year, a lease was
well as the quality of the building itself.
Certifications:
concluded with a single tenant for all of the
- BREEAM Excellent
office floorspace. One key point in this re-
Now, in 2023, the difficulties and enor-
- HQE Excellent
gard was certification of the lease contrast
mous efforts required have faded into the
- BBC Renovation
as a “green lease” for its whole duration. An
past and “UFO Paris” is one of the flagship
- Wired Score Platinum
agreement was also reached to have a say in
properties in the portfolio managed by
- Well Gold
the tenant’s selection of finishing materials,
Immo-KAG. UFO Paris ranks among the
Key facts:
so for example no PVC may be installed.
most modern office buildings in the centre
7,800 m² leasable floorspace /
of Paris and is also one of just five buildings
7 floors
Nowadays, five years later, this is complete-
with a Platinum certification by Wired-
1,360 m² per standard floor
ly normal, and certifications documenting
Score. This downtown area has developed
Subdividable into 3 variable
the quality of the property and the careful
into an excellent location and is now also a
units per floor
selection of building materials are a funda-
prime business location as part of the CBD
6.5 m² / person,
mental prerequisite for sustainable project
(“location, location, location!”).
for up to 1,000 employees Open spaces: landscaped interior courtyard / roof terrace / green wall
If you are wondering what UFO Paris means, the answer is “Unique Flexible Offices”.
Asset manager Alfred Hajdu, who is responsible for France, discusses this highly successful property development project which had some close calls.
RESEARCH
19
Herbert Perus Sustainability Office at Raiffeisen KAG
CORPORATE O THE TOPIC OF Due to its relatively high share in global greenhouse gas emissions, the construction industry is one of the most important areas with regard to the Paris climate objectives. The shareholder engagement activities of Raiffeisen Capital Management’s fund management on the topic of construction materials include dialogue with some of the largest producers of concrete, bricks, and cement. As part of these activities, roughly
Mathias Zwiefelhofer Sustainability Office at Raiffeisen KAG
20 companies around the world were questioned about their efforts to make the construction materials industry more sustainable. The following questions were sent to these companies: 1 How does your company contribute to sustainable building practices with the construction materials you supply, in particular with regard to the high level of carbon intensity in the construction industry? 2 What measures and strategies have you introduced to reduce the carbon footprint of your products and to have a positive effect on environmental sustainability? 3 How does your company integrate technologies or practices for carbon capture in its operations, and what effects do you anticipate from such in relation to offsetting the carbon emissions stemming from the manufacture and utilisation of your materials? 4 If your company uses technologies or practices for carbon capture, are you able to quantify the resulting reduction in carbon emissions?
20
RESEARCH
SUSTAINABLE INVESTMENT | November 2023
VOICES CONSTRUCTION MATERIALS 5 How does your company approach the issue of resource consumption in the manufacturing of your products, and what steps have you taken to ensure the durability and recyclability of your products in order to promote a more sustainable circular economy in the construction industry? 6 What is the significance of employee safety at your company, and what measures have you taken to reduce workplace accidents? Are you able to produce statistics or data on the frequency and severity of job-related injuries at your company in recent years?
1 & 2 (Buzzi Unicem, Italy)
could cut the company’s greenhouse gas
Cement production is one of the biggest
emissions by up to 8%. The company is
factors behind climate change, as it ac-
also focusing on carbon capture, product
counts for 8% of global emissions. There
optimisation, and the use of renewable
are a number of approaches to improv-
energy. The production of sustainable
ing the sustainability of cement produc-
construction materials is part of Buzzi
tion. One way is to reduce the ratio of
Unicem’s business strategy. The compa-
energy-intensive clinker in the cement.
ny underlines the growing demand for
Cement clinker is the component in the
low-carbon buildings and also identifies
material that is necessary for the concrete
the regulatory requirements as a business
to harden. The Italian firm Buzzi Unicem
advantage. According to Buzzi Unicem, all
has set the goal of reducing the ratio of
of this results in rising demand for its sus-
clinker from 75.4% in 2021 to 67.3% by
tainable products.
2030. This measure alone could lower the company’s total carbon emissions by up
3 & 4 (Heidelberg Materials, Germany)
to 9%. Another possible way to reduce
Since a large portion of the carbon emis-
carbon emissions is to improve the nat-
sions are generated by the chemical pro-
ural carbon uptake of the concrete. In
cesses in cement production and these
this regard, rapid carbonation is impor-
are difficult to reduce, there is often a
tant and according to Buzzi Unicem this
focus on later production stages when it
RESEARCH
21
ORPORATE C VOICES ON CONSTRUCTION MATERIALS
22
RESEARCH
SUSTAINABLE INVESTMENT | November 2023
comes to making the products more sus-
Holcim, the world’s largest construction
tainable. Within the cement industry, one
materials producer, already uses 20% re-
of the possible solutions is carbon cap-
cycled materials in its Swiss production
ture and storage (CCS), which involves
facilities, while maintaining the same
capturing and storing carbon emissions.
level of product quality. In its dialogue
Heidelberg Materials, which is headquar-
with Raiffeisen Capital Management, the
tered in the German city of the same
company stresses that different build-
name, sees itself as a pioneer in the appli-
ings have different quality requirements.
cation of this technology. The company is
More liberal regulations would be need-
testing the capture of high-purity carbon
ed by the construction supervisory au-
dioxide from the clinker production pro-
thorities, which would allow higher ad-
cess. The captured carbon dioxide will be
mix levels of many structures. According
used by the company in the production
to Holcim, concrete is perfectly suited
of synthetic fuels, for the cultivation of
for recycling and can be reused again and
microalgaes, and for the decarbonisation
again, by pulverising and sor ting it.
of recycling concrete. Heidelberg Materials is the first company industry-wide to
6 (Builders FirstSource, USA)
operate a large-scale facility for carbon
Workplace accidents cannot be ruled
capture, which is located in the Norwe-
out in the production of construction
gian town of Brevik and will capture 50%
materials. Accordingly, it is even more
of the plant’s annual emissions starting
impor tant for producers to take pre-
from 2024. This project has been under
ventive measures to protect employees
construction since 2021, without inter-
and to focus on continuous staff training
rupting current production, and will be
and instruction. Builders FirstSource, the
completed by 2024. The unit uses amine
second largest construction materials
technology, filtering out sulphur and ni-
producer in the USA, has lowered its ac-
trogen oxides and then storing them un-
cident rate by 15% since 2020. In order
derground.
to foster a lasting awareness of safety-related issues, all employees in production
5 (Holcim, Switzerland)
must par ticipate in a daily safety briefing.
Adding recycled materials in cement
For 2023, the company has set the goal
production can result in a lower con-
of reducing the number of accidents by
sumption of resources, but also repre-
another 10%. The company’s most im-
sents a risk for the quality of the cement.
por tant goal is to lower this figure to 0.
RESEARCH
23
STORA ENSO
COMPANY SUSTAINABILITY SPO TLIGHT “Our purpose statement is ‘Do good for people and the planet. Replace non-renewable materials with renewable products’. This underpins our belief that everything that can be made with fossil-based materials today can be made from a tree tomorrow, and highlights Stora Enso’s opportunity to contribute to a more sustainable future. Our goal is to offer fully regenerative solutions by 2050 – products that remove more carbon than they emit and support biodiversity restoration. We have set science-based targets for 2030 in three areas where we have the biggest impact and opportunities: climate change, biodiversity, and circularity. These ambitions stand on a foundation of conducting our business in a responsible manner.” Hans Sohlström, CEO
COMPANY HISTORY
than 20,000 employees, goup turnover
One has to look back deep into the an-
of almost 45 billion Swedish krona, and
nals of European economic history, all
was the owner of 2.3 million hectares of
the way to the 13th century, to reach
forest (equivalent to about one third of
the beginning of the fascinating story of
the area of Austria) in Sweden, Canada,
Stora Enso. The cornerstone of the com-
Por tugal, and Brazil.
pany’s history was laid when the Swedish bishop Peter acquired a concession
The roots of Enso in Finland reach back
to mine copper ore in the year 1288.
to 1872, when the sawmill W. Gutzeit
According to many commentators, this
& Co was founded, which was later re-
means that the Stora Enso Group is the
named to Enso-Gutzeit after its home
oldest company in existence today. For
industrial town in 1924 and finally to just
700 years, copper mining was the core
Enso.
business of the company called Stora in
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RESEARCH
the Swedish town of Falun. In the 17th
In October 1998, three companies –
century, it held a two-thirds share of the
Stora, Enso, and Schweighofer, an Aus-
global market. In 1997, one year before
trian firm that had developed into one
the fusion with Enso, Stora had more
of Europe’s largest sawmills and lumber
Herbert Perus Sustainability Office at Raiffeisen KAG
companies after its foundation in 1642
vision is clear: to reach a fossil-free fu-
– merged together to form Stora Enso,
ture and have a positive impact on the
one of the world’s biggest wood pro-
environment. This stands to benefit eco-
cessing and paper groups. This status
nomic regions and their societies around
was also achieved with the acquisition
the world.
of many other companies, such as the Nor th American paper group Consolidated Papers for EUR 4.9 billion in 2000.
BUILDING WITH WOOD
In our meeting with Stora Enso, we were
After this, Stora Enso continued to grow,
able to pose many questions and also
in par ticular thanks to expansion in Latin
discuss the company’s various business
America and Asia. The company star t-
areas in depth. Among other things, we
ed focusing more and more on digital
were interested in the growth in the
publishing, by expanding its printing and
field of renewable materials in the con-
publishing activities to Internet and mo-
struction industry. The company had the
bile telephone platforms. Additionally, it
following answer:
has increasingly been pursuing a business model based on the circular economy.
“Our journey star ted about 15 years ago. Back then, we were strongly concentrat-
The 2010s saw the development of prod-
ed on the market for single-family homes
ucts using biomass as a base material and
in the DACH region. The business grew
suppor t for the general issue of sustain-
steadily and nowadays we deliver CLT
ability star ted in the Group. Since then,
(Cross Laminated Timber) globally from
this commitment has been strengthened
our four CLT plants. We also offer LVL
year after year, as clearly demonstrated
(Laminated Veneer Lumber). We sup-
in the statements made by CEO Hans
ply various different customer segments
Sohlström.
(ranging from installers and general contractors to proper ty developers) and a
At present, Stora Enso has operations
broad spectrum of building types, from
in over 30 countries, with more than
single-family homes and multi-story res-
26,000 employees. It is one of the
idential buildings to schools, offices, and
world’s leading companies in the field of
business proper ties. The long-term pros-
sustainable resources and is constantly
pects look very promising, as regulatory
developing innovative solution for the
conditions and other megatrends, such
wood- and paper-based products of the
as environmental awareness, suppor t the
present and the future. The company’s
underlying growth potentials. Moreover,
RESEARCH
25
STORA ENSO
compared to buildings that are erected
than wood, but in turn they too are not
with fossil-based materials, wood creates
durable in the case of poor planning,
a healthier living environment for peo-
construction, and maintenance. Right
ple, and it is a flexible material, both in
now, we are building our new headquar-
terms of its use in construction and as a
ters in Helsinki, which should guarantee
material in its own right, for example for
a lifespan of 100 years, and we think that
ear thquake-prone areas. Wood prod-
it will last even longer.”
ucts store CO2 over their entire lifetime, and depending on the type of product,
Stora Enso estimates that the construc-
i.e. the building, this can be very long.
tion timber segment accounts for roughly
Building with wood using our solutions is
20% of the total turnover in wood prod-
faster than with other materials and also
ucts, and the goal is to increase this ratio
saves labour, as the construction occurs
to over 40% in a few years. At present,
with components.”
Stora Enso says that it is building around
DURABILITY WITH WOOD
2,000 to 2,500 projects annually. Examples are the University of Singapore and
Many people wonder about the durabil-
a par tial new construction of the Tech-
ity and stability of wood construction.
nical Museum in Stockholm, which will
Stora Enso responded to our question
open in December. In the last 15 years,
as follows:
almost 20,000 projects have been implemented, including some award-winning
“We think that one can rightly say that
structures using the sustainable materials
many of the oldest buildings in the de-
produced by Stora Enso.
veloped world are built out of wood.
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RESEARCH
What does that mean? It does not mean
Stora Enso is a very old but still highly
that wood is a durable solution for every
innovative company, which we are happy
application. It means that the lifespan of
to accompany as a constructive, sustain-
wood is almost unlimited in the case of
able investor in the years to come. On
good planning, construction, and mainte-
this journey, we will have more and more
nance. Materials like steel and concrete
to repor t on its progress on the path of
are often thought to be more durable
sustainability.
SUSTAINABLE INVESTMENT | November 2023
RESEARCH
27
FOOTPRINT TEAM LAUNCHES CYCLECHALLENGE and achieved some significant results:
Raiffeisen Capital Management (Raiffeisen KAG) places great emphasis on sustainability and not just in the investment solutions it offers. The company was an early mover in the field of operational ecology, for instance with its participation in the ÖKO Business meetings from 2008 to 2013. 2018 marked another milestone, when the company established its own footprint team with the primary goal of creating a dedicated group for continuous activities related to the guidance, measurement, and reduction of the company’s operational carbon footprint. The team is always working to connect the many different aspects of work life and private life and to draw on ideas from both of these spheres. One of its results was to launch the CycleChallenge initiative.
– In the month of May they cycled around 2,700 kilometres, – That’s equivalent to around 210 kilometres a day, mostly within Vienna itself! – The calculated amount of CO2 emissions that was avoided was around 500 kg.
The values for CO2 savings are based on the number of kilometres ridden and the assumption that these kilometres would otherwise have been travelled by automobile. A standard vehicle fleet was taken as the basis for calculating the average
One important aspect of Raiffeisen KAG’s
look at this and included this travel in Raif-
footprint is transport-related carbon emis-
feisen Capital Management’s climate bal-
sions. This can be easily quantified and is al-
ance, with the goal of improving this aspect
ways a balancing act for a service-oriented
along with the other measures. And ulti-
company which has to take care of its cus-
mately, actions speak louder than words...
achieving personal goals and reducing
tomers. We are committed to working to-
In May 2023, Raiffeisen Capital Manage-
gether closely with our customers as often
ment’s CycleChallenge was launched, as
CO2 emissions is that by cycling for a
and as intensively as possible, and this nat-
part of the “Austria’s cycling” campaign.
urally leads to business travel. Of course,
CO2 emissions.
PLUS ANOTHER 350 TREES
And even almost more important than
month these 13 employees supported
the planting of 350 trees, which Raiffeisen KAG donated as part of the campaign
we already have a range of measures and
13 company employees took the many
“Wald4Leben” for reforestation efforts in
principles in place in this regard, such as
good reasons to ride to heart:
Austria. One can just imagine how much
– travelling by train rather than by car,
– Reducing Raiffeisen KAG’s carbon foot-
reforestation would be possible in Austria – advocating for hybrid or completely virtual meetings, and – gradually replacing the vehicle fleet, etc..
AUSTRIA’S CYCLING
28
if everyone could support the planting of almost 27 trees every month by simply
– Cycling improves physical fitness
riding their bike to work, regardless of the
– Movement makes for better mood
amount of carbon emissions that would
– Only those who change themselves can
be saved.
motivate other to change
Another aspect that should not be ne-
– Success every day
Links:
glected is employees’ travel to and from
– Achieving personal goals
www.radelt.at, www.wald4leben.at
the office. The footprint team took a close
– …
INSIDE
Edited by: Bernhard Grubhofer
Top: Thanks to the CycleChallenge initiative by Raiffeisen Capital Management’s employees, another 350 trees were planted by the Wald4Leben project. Right: The CycleCommunity (Lidija Semlak, Martina Rigatti, Bernhard Grubhofer, and Claudia Palmetzhofer) is motivated for 2024!
INSIDE
29
LET’S INVEST TOGETHER IN A SUSTAINABLE FUTURE. PRESERVING VALUE. CREATING VALUE.
Raiffeisen Capital Management stands for Raiffeisen Kapitalanlage GmbH. created by Raiffeisen Kapitalanlage GmbH, Mooslackengasse 12, 1190 Vienna, Austria, as of: June 2022.