A conceptual framework for sustainability strategy decision-making in the EU real estate sector

Abstract

The urgency of sustainable development in the European Union's (EU) real estate (RE) sector underpinned this thesis, addressing the critical need for effective sustainability practices. The EU RE sector, as a major consumer of energy and raw materials, a significant producer of greenhouse gases and waste, and a vital provider of housing, requires clear, practical guidance to meet the European Green Deal’s 2050 climate neutrality target, as it currently falls behind in achieving its decarbonisation goals. This research therefore adopted a business management perspective and examined how companies within the EU RE sector are currently implementing sustainability practices and the foundations on which they base their sustainability strategy decision-making.

Employing a mono-method qualitative design, the study used narrative inquiry to explore the sustainability practices of EU RE firms, focusing on asset management (AMG), development (DEV) and investment management (IMG) activities. Data were collected through purposively sampled, in-depth semi-structured interviews with senior level executives/corporate elites in the EU real estate sector, analysed via template analysis and supplemented by insights from narrative and systematic literature reviews. This approach facilitated a nuanced understanding of current sustainability frameworks, standards, their practical application and efficacy as well as the motivators driving RE companies towards sustainable practices. This research further revealed gaps in existing conceptual frameworks and toolkits for sustainability knowledge that limit practical application across AMG, DEV and IMG activities.

To address these gaps, this research developed a novel conceptual framework to provide EU RE firms with a comprehensive, yet flexible resource for their sustainability strategy decision-making. The conceptual framework simplifies complex sustainability knowledge into practical themes, helping companies identify relevant sustainability frameworks and standards based on key criteria, such as their focus on environmental, social and economic (EES) sustainability dimensions and real estate activities of AMG, DEV and IMG.

The significance of this research lies in its development of a novel conceptual framework that empowers EU RE firms to navigate sustainability strategy decision-making effectively. Further, this research offers insights that extend beyond practice, informing academic researchers and policy makers aimed at fostering comprehensive sustainability practices across the EU real estate sector.

Date of Award	23 Jan 2025
Original language	English
Awarding Institution	Northumbria University
Supervisor	Zaina Gadema (Supervisor) & Adrian Small (Supervisor)