Case Study:
ESG Due Diligence investigation for new
build logistics centre

EnviroSustain GmbH (ES) was commissioned in 2020 by an investment management company based in Hamburg to conduct an ESG Due Diligence (ESG DD) for the new construction project "Zülpich" in Zülpich.

The project is a new construction of a logistics centre consisting of a hall, two office wings and a gatehouse. The areas below the mezzanine are used for handling incoming and outgoing goods.

The area on the mezzanine is to be used either for storage or for picking activities. There will be a parking area with 268 car parking spaces and in front of each of the two office areas, 8 additional car parking spaces will be created.

DGNB certification is planned for the project, which ensures ESG criteria in planning and execution. This includes the following:

• Use of materials of the highest possible ecological quality standard to minimise risk to the environment
• Environmentally sound construction site operations
• High levels of thermal comfort and indoor air quality (low VOC rate)
• Subcontractors will be selected according to DGNB sustainability/ESG criteria
• Technical equipment to be optimised for energy efficiency and adaptability to changing conditions and technical innovations

EnviroSustain has a broad range of experience with ESG strategy and policy and building certifications, ideally placed to support the client with this project.

Within this ESG due diligence, the following topics are assessed:

• Legal compliance
• Energy
• Water
• Waste management
• Indoor and outdoor space quality
• Natural risks & resilience
• Mobility concept
• Digitalisation concept
• Sustainability certification
• Stakeholder Engagement
  

After evaluating the available information in the data room and publicly accessible sources on the site, the ESG quality of the site can be rated as good overall.

Recommendations made include:

• Considerations for an alternative type of heat supply based on renewable energy
• Optimising water efficiency including installation of rainwater cisterns for irrigation of outdoor areas
• Implementation of waste streams such as glass and bio-waste
• Resilience measures in place for the roofing and outdoor facilities to protect against future weather events
• Explore opportunities for further stakeholder engagement and cooperation between building management, tenants and the local neighbourhood