Blog
2.7.2025
ESG strategy

Top 7 pain points in the ESG strategy - and how portfolio holders can avoid them wisely

ESG and the challenges of asset management

The real estate industry is under pressure to act. The requirements for sustainability have increased, from the regulatory side, from investors, from banks and increasingly also from tenants.ESG (Environment, Social, Governance) is therefore no longer an optional label, but increasingly a prerequisite for value retention, financing and sustainable portfolio strategies.

However, portfolio holders who want to strategically anchor:in ESG today are faced with a number of challenges.

Here are the seven biggest pain points in ESG consulting - and how Purpose Green can help you overcome them.

Modern residential and commercial building with solar panels on the roof, surrounded by green areas, symbolizing ESG-compliant modernization and energy-efficient real estate development.
ESG strategies and ESG consulting are crucial for the energy efficiency of real estate and its long-term value retention in the context of increasing regulatory requirements.

1. lack of standardization in the portfolio

Large portfolios in particular often lack a uniform valuation: different tools, heterogeneous data bases, individual property strategies.‍

Our solution: Our Energy Light Report in the Green+ Portal provides a standardized, initial energy assessment for all properties. This provides you with a systematic basis for small or large-scale refurbishment measures.

2. financing pressure due to ESG requirements

Basel IV, the EU taxonomy and sustainability ratings have changed access to capital. ESG-led properties receive better conditions - others are becoming less attractive. The condition of properties can be improved through modernization and energy measures, with value increases of up to 30%.‍

Our solution: Our ESG detailed reports provide a reliable basis for investment decisions with detailed recommendations for measures and associated cost and subsidy calculations. This creates trust with banks, reduces investment costs and ensures value growth. All our reports comply with recognized standards (DIN V 18599, iSFP) and can be audited. So you are on the safe side.

3. lack of reliable data & consumption transparency

There is often a lack of accurate energy data and digital metering systems such as smart meters. ESG processes are often still manual and unstructured - physical files often pile up where digital transparency is required. Inconsistent digitalization in the real estate industry is still one of the biggest challenges, with significant consequences for resources, time and money on the part of owners, investors, brokers and managers.‍

Our solution: The Green+ Portal provides you with a powerful cloud platform with modular functions for the analysis, planning and documentation of modernization and energy-efficient refurbishment measures as well as the sustainable transformation of your property portfolio - including automated energy efficiency and ROI analysis, 3D measure configurator and real-time reporting.

4. lack of profitability analysis

ESG measures are often seen as an expensive compulsory exercise - and meet with resistance. Without clear CAPEX planning, funding transparency and value development forecasts, many lack the economic basis for argumentation.‍

Our solution: The analysis data of the energy measure configurator with interactive 3D model display clearly shows: Which measures bring which savings, how high the investments are and which subsidies can reduce the investment.

5. lack of ESG strategy despite growing requirements

Whether banks, insurers, the public or employees - ESG is expected by more and more stakeholders. However, there is still a lack of expertise in companies on how the benefits of ESG can be strategically and economically integrated into day-to-day business and effectively used for expansion strategies. Individual measures without strategic ESG anchoring remain a flash in the pan.‍

Our solution: Purpose Green works with clients like you to develop individual ESG strategies with clear priorities, key figures and investment roadmaps - measurable, economical and taxonomy-compliant. Our energy consulting for buildings creates the basis for a sustainable future for your real estate.

6. skills shortage and know-how gap

Sustainability experts with regulatory and technical know-how are rare. ESG requires interdisciplinary expertise. Many companies report that they lack the necessary ESG expertise internally, particularly in the interplay between technology and regulation.‍

Our solution: Our interdisciplinary team, consisting of ESG, energy and funding consultants, DGNB-certified energy efficiency experts and experienced civil engineers and architects, provides you with holistic support: from the initial portfolio analysis, through the development of individual refurbishment roadmaps including the procurement of funding, to efficient project management and construction implementation.

7. coordination between owners, managers and tenants

Energy-efficient modernizations are often fraught with conflict. Owners can apportion the costs of sensible energy-efficient refurbishments proportionately, but tenants usually only see their rents rise. Clear communication, reliable CO₂ cost estimates and concrete savings potential help to create acceptance on all sides.‍

Our solution: The comprehensive ESG detailed report is the basis for a profitable & ESG-compliant real estate strategy and an ideal argumentation aid in dialog with tenants and condominiums. If required, we also provide support with our "tenant appointment support" service.

Conclusion

ESG implementation in the real estate industry often fails due to a lack of standards, data and resources. Purpose Green provides scalable solutions and real expertise to implement ESG requirements efficiently, economically and future-proof - digitally, measurably and strategically integrated. Arrange a free initial consultation now!

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About Purpose Green

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Purpose Green is one of the leading German climate tech companies based in Berlin, transforming the building sector with comprehensive end-to-end solutions for energy-efficient refurbishment and ESG-led asset management. Purpose Green is the only company in Germany to offer a holistic, modular, combinable approach for the real estate sector: its own Green+ portal links intelligent software solutions with specialist ESG and energy consulting as well as operational construction management.

Real estate owners, managers and institutional funds thus receive tailored support in the transformation of apartment buildings, residential and commercial buildings as well as office buildings - both at individual property and portfolio level. In this way, Purpose Green enables individual sustainability goals to be achieved efficiently, CO₂ emissions to be significantly reduced and properties to be future-proofed in terms of value retention and sustainable value appreciation.

Purpose Green was founded in 2023 by Okitonga Memba and the brothers Lucas and Lennart Christel. Backed by leading early-stage investors such as Speedinvest, Atlantic Labs and Fifth Wall, Purpose Green is driving sustainable change to decarbonize the real estate sector.

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