Green Due Diligence

In an era of increasing environmental awareness and rapidly changing environmental protection regulations, the sustainability of buildings and investments is becoming a crucial decision-making factor for investors, developers, banks, and property owners. Green Due Diligence, a comprehensive analysis of the sustainability of investments, is gaining popularity as an essential tool for assessing project compliance with ecological standards, optimizing operating costs, and increasing property attractiveness in the market.

Our legal and tax services in the area of Green Due Diligence offer comprehensive support in analyzing the sustainability of building and investment documentation. With the help of Deloitte Legal specialists, you will receive a complete picture of the environmental status of your projects, identifying potential risks and suggesting opportunities for implementing eco-friendly solutions. We invite you to take advantage of our Green Due Diligence services, which will help you carry out investments in accordance with the highest ecological standards.

A green building, also known as a sustainable or eco-friendly building, is designed, constructed, and operated to minimize its negative impact on the environment and the health of its occupants. The key characteristics that define a green building are:

1. Energy Efficiency: Green buildings consume less energy by utilizing energy-efficient heating, ventilation, and air conditioning (HVAC) systems, thermal insulation, energy-efficient windows, and renewable energy sources such as solar panels or wind turbines.

2. Water Efficiency: These buildings use less water by installing low-flow sanitary fixtures, rainwater harvesting systems, and advanced irrigation systems that minimize water waste.

3. Indoor Environmental Quality: Green buildings ensure healthy and comfortable living or working conditions by using low-emission building materials, efficient ventilation systems, and providing access to natural light and fresh air.

4. Material Selection:Eco-friendly buildings use materials with a low environmental impact, such as those with high recycled content, locally sourced materials, and renewable or long-lasting materials.

5. Waste Management:During construction and operation, green buildings aim to minimize waste generation and maximize recycling and reuse.

6. Land Management:Green buildings are often designed with land management in mind, incorporating green roofs, rain gardens, preserving natural vegetation, and minimizing hard surfaces that contribute to stormwater runoff.

7. Greenhouse Gas Emission Reduction:By employing energy-efficient technologies and renewable energy sources, green buildings help reduce greenhouse gas emissions.

8. Location and Transportation:Green buildings are often situated to provide easy access to public transportation, reducing dependence on cars and the associated emissions.

Verification of energy performance certificates
We check the certificate issued for the building in order to confirm compliance with the statutory requirements and the validity period and to check the energy parameters of the building.

Verification of obtained green certificates (BREEAM, LEED, HQE, DGNB, WELL)
We check which certificates (if any) have been issued for the building (and the prerequisites in respect of each certificate), their validity and the levels of certification of the building.

Checking publicly available registers (Historical Land Contamination Register and Environmental Damage Register) and a list of potential historical land contamination
We apply to the relevant authorities to verify that the property does not require remediation/removal of pollution activities.

Analysis of lease agreements in terms of compliance with ESG standards
We analyse lease agreements for the building in order to check whether they meet ESG standards, in particular whether they allow/oblige the landlord and tenant to apply sustainable practices in the management of the building and the use of leased space.

Verification of local law regulations
We examine planning acts (in particular the local spatial development plan, if any) and other provisions of local law (e.g. revitalization resolutions) in order to determine what (if any) the resulting ESG requirements are.

Verification of obtained administrative decisions (environmental decisions, occupancy permits, water law decisions) in terms of environmental protection obligations
We check the decisions issued for the property and the building in order to determine what environmental protection obligations are included in them, as well as to determine whether the necessary decisions in this respect have been correctly obtained.

Analysis of property management contracts in terms of compliance with ESG standards
We analyse the management agreement(s) to check whether they meet ESG standards, in particular whether they oblige the manager to apply sustainable practices in building management.

Analysis of the building regulations
We check the provisions of the building/property regulations in order to verify their compliance with ESG standards and to determine the guidelines/obligations related to the sustainable use of the building included in the regulations.

Verification of contracts for the supply of utilities to the building
We analyse contracts for the supply of utilities and sewage disposal and waste disposal in order to check whether the building has a sustainable supply of utilities, in particular with regard to energy sources and appropriate waste management

Analysis of other contracts related to the operation of the building in terms of compliance with ESG standards
We check other contracts related to the operation of the building and real estate in order to verify whether and what ESG obligations are included in them, in particular in terms of the obligation of contractors/service providers to comply with specific ESG standards. Verification of expenditures incurred in connection with the adaptation of the building to the requirements of the ESG policy
We verify whether a new solution has been introduced in the building in the last 3-5 years or investments made to improve the green level of a given development.