How to turn sustainability requirements into business advantages in the real estate sector

Sustainability has become business-critical

The real estate industry is undergoing extensive transformation. New national and international legal requirements entail increasingly stringent sustainability demands, and long-term regulatory compliance, financing and permit granting now require systematic and strategic sustainability thinking.

For real estate companies, this means that the ability to secure financing, execute transactions and win land allocations is becoming increasingly dependent on the presence of well-considered and well-documented sustainability work. At the same time, many companies lack a clear strategy for managing the requirements.

Regulations affecting the Swedish real estate sector

Legislation within the sustainability area is developing rapidly and imposes requirements on everything from documentation and traceability to climate performance and social key performance indicators. More specifically, the implementation of the EU's CSRD and ESRS directives entails a number of laws and regulations of relevance to the Swedish real estate sector. In addition to this come extensive changes to Swedish planning and building legislation.

Examples of current changes are:

• EPBD (Energy Performance of Buildings Directive, entering into force no later than 29 May 2026) – entails stricter requirements for buildings' energy performance.

• EU ETS2 – extends emissions trading to include, amongst other things, combustion of fuels in households and commercial buildings. (Trading commences in 2027 but requirements for permits for greenhouse gas emissions that must be monitored and reported already apply).

• SOU 2025:51 – proposes a new law as well as amendments to existing legislation (including the Environmental Code, PBL, the Roads Act and the Utility Easements Act) with the aim of enabling climate adaptation of real estate, including new liability provisions and financing models.

• The Planning and Building Ordinance's (PBF) provisions on charging points – entails that commercial buildings with more than 20 parking spaces must install charging points. The requirements will be further tightened in 2027.

• The National Board of Housing, Building and Planning's new building regulations (BBR and EKS) – mean that buildings must fulfil functional requirements such as safety and sustainability instead of following detailed rules.

• The new Planning and Building Act (PBL, entering into force 1 December 2025) – entails, amongst other things, new rules for building permit-exempt construction. The new rules promote sustainability in many cases whilst placing greater demands on the individual developer's legal knowledge.

What is at stake if you do not act?

Companies that do not ensure regulatory compliance in the sustainability area risk:

• Reduced real estate values and difficulties with sales.

• Lost land allocations and development agreements.

• Higher premiums or absence of adequate insurance cover.

• Penalty fees, prohibitions and other supervisory sanctions.

8 steps for turning requirements into advantages:

1. Integrate sustainability into the business strategy

   Sustainability is no longer a "nice-to-have" but a business-critical prerequisite for profitability. Companies with clear sustainability goals and implemented strategies succeed better in the market, not least during economic downturns.

2. Map your risks against forthcoming requirements

   Conduct a systematic risk analysis of both your existing real estate portfolio and planned real estate acquisitions from a sustainability perspective. Prioritise correctly in the transformation work and engage legal expertise in good time.

3. Secure financing and insurance in good time

   Sustainability-linked financing is becoming increasingly common and review of sustainability key performance indicators should be integrated into both acquisition processes and when renegotiating loans. Risks of financing halts and higher premiums increase for companies that do not adapt. A proactive approach provides significant negotiating advantages.

4. Build up a strong reporting structure

   Several environmental and social sustainability factors must now be documented with full traceability. Proactive work with reporting structures reduces the risk of pitfalls.

5. Position yourselves for sustainable community development

   Municipalities increasingly use sustainability requirements as selection criteria in land and development processes. To win land allocations, for example, you need to integrate social and ecological sustainability already in the project planning and present concrete measures and measurable results, not just visions.

6. View new building regulations as innovation drivers

   The National Board of Housing, Building and Planning's new building regulations and forthcoming implementation of the new PBL give you the opportunity to develop your own technical solutions and create technical differentiation from competitors.

7. Think circularly from the start

   Material selection, flexibility, water and sewerage management and dismantlability are central components for the real estate of the future. Include these circular principles in the planning already now.

8. Follow developments continuously

   Keep yourself updated on CSRD, ESRS, EPBD, ETS2, PBL, the National Board of Housing, Building and Planning's building regulations, social key performance indicators and new municipal guidelines.

Your advantage begins now

The sustainability transformation in the real estate industry is already underway and the earlier you act, the greater competitive advantages you can build. We at Lindahl help you to navigate the legal requirements and convert them into strategic business opportunities.

Would you like to discuss how your company can approach the eight steps? Contact us and we will tell you more!