Green buildings are more than just a vision. They represent both an investment opportunity and a climate strategy. Investing in sustainable real estate and green infrastructure today is helping to shape our urban future – making sense from both an ecological and economic perspective.
The diversity of buildings characterises a town, making it attractive and pleasant to live in. At the same time, real estate contributes to global greenhouse emissions. According to the Federal Office for the Environment (FOEN), the construction sector accounts for around 25% of CO2 emissions in Switzerland, mainly due to outdated infrastructure, inefficient energy systems and insufficient thermal insulation.
With the 2023 Climate and Innovation Act, Switzerland has set itself ambitious targets: to halve emissions by 2030 and achieve net zero by 2050. These targets are in line with the European Union’s climate goals and the United Nations’ Sustainable Development Goals. But achieving these goals requires more than just political intent. It requires targeted investments in renovations, energy efficiency and green technologies.
Investors providing the momentum
To implement these projects, capital is needed. Institutional investors can contribute to the emergence of sustainable cities and play an active role in this process. This is because green buildings act as a lever for decarbonisation and, at the same time, are a high-growth investment area with a long-term perspective.
When selecting a real estate equity fund, care should be taken to reflect the entire value chain of sustainable construction: from planning and refurbishment to the property when in use. This includes not only ecological criteria, but also social and economic ones. The UN Sustainable Development Goals – in particular SDG 9 (Industry, innovation and infrastructure) and 11 (Sustainable cities and communities) – provide clear guidelines on this. For a portfolio to be sustainable, it is therefore essential to carry out a Fundamental analysis of the companies is therefore essential for a sustainable portfolio. The focus of investments should be on companies that can demonstrate a measurable impact.
From green buildings to urban ecosystems
A forward-looking investment strategy takes into account not only real estate, but also other relevant areas and sectors, such as:
- Real estate investment trusts (REITs) that own and operate certified “green buildings”,
- Engineering and construction companies that focus on sustainable urban development,
- Infrastructure operators that facilitate low-emission mobility and logistics,
- Technology providers that deliver smart energy and building management systems,
- Manufacturers that develop low-carbon building materials and components.
An urban, green infrastructure encompasses much more than the building shell; it also involves future-proof real estate management, energy-efficient lighting, resource-efficient water and sewage systems and environmentally friendly mobility solutions. All this improves not only the environmental footprint, but also the quality of life in cities thanks to clean air, better traffic flows and lower energy consumption.
Companies that are active in the above-mentioned areas add value to society and so become more relevant over the long term. However, not every “green” company delivers on its promises. It is therefore important to carefully assess whether sustainability is an integral part of a company’s business model – with a clear vision, measurable impact and transparent implementation. Credibility is crucial. Only those who demonstrate this convincingly will gain long-term trust.
Building the future with impact and vision
Green buildings and the corresponding infrastructure are more than just a trend; they are a strategic and long-term growth area. They are an answer to the important issues of our time, such as climate change, urbanisation and a scarcity of resources. Companies that actively address these challenges find themselves in a good position – even when faced with growing regulation and an increased demand for environmentally friendly solutions.
Investing in this change means focusing on companies and real estate equity funds that not only promise sustainability, but also embed it firmly in their investment strategy. Combining sound financial analysis with a clear ESG focus creates solid, long-term portfolios with a future – resilient, effective and responsible.
Swiss Life Asset Managers is one of Europe's leading real estate investors with over 130 years of experience in managing real estate.
