S in ESG: Assessment of Social Sustainability in Real Estate - Critical Analysis of Social Taxonomy and Limitations of Certification Systems

This document is a master's thesis authored by Marianne Sar and published at TU Wien. It explores the social sustainability aspect within the Environmental, Social, and Governance (ESG) framework, specifically focusing on real estate. The work critically assesses the social taxonomy and the limitations of existing certification systems in the context of sustainable housing.

In the ongoing dialogue about sustainability in real estate management, ecological concerns such as energy efficiency often dominate discussions. However, the social dimension is increasingly recognized as vital. Many companies struggle to integrate social aspects into their sustainability strategies effectively. The thesis highlights a significant gap between the theoretical acknowledgment of the "S" in ESG and its practical application in real estate projects.

The complexity is exacerbated by the multitude of ESG regulations, reporting obligations, and standards that hinder uniform implementation and assessment. The thesis argues for clarifying this complexity and providing pathways to design buildings that generate social value. This includes considerations like infrastructure design and community engagement to ensure accessibility and active participation.

The study examines the social taxonomy as a tool for systematically collecting social sustainability criteria. It conducts a critical analysis of the ÖGNI certification system for sustainable buildings in Austria to evaluate its effectiveness in capturing and assessing social criteria. The findings indicate limitations in the alignment between theoretical frameworks and practical applications.

The research identified additional social criteria to enable a more comprehensive evaluation of social sustainability in buildings. A criteria catalog is presented, covering social criteria fully aligned with the taxonomy system. The indicators are exemplified within a proposed assessment model, the "Score Card," providing a practical approach to evaluate social sustainability.

The thesis emphasizes the need for ongoing development of certification systems to address identified gaps. It suggests that a unified standard for assessing social sustainability in real estate is crucial for improving transparency and accountability in the sector.

In conclusion, the work contributes to a deeper understanding of social sustainability within the ESG framework, offering practical approaches for its implementation. This is particularly relevant for stakeholders in the European real estate market, where the integration of social aspects is essential for achieving sustainability goals and enhancing the quality of life in urban environments.