Transforming Non-Eco-Friendly Certified Assets into Eco-Friendly Ones through ESG Integration
Koramco Pursues Data-Driven ESG, Not Rhetoric
Koramco Asset Trust announced on the 11th that the "Gangdong East Central Tower," operated by the Koramco Sustainable Growth Office REIT, has received the Gold certification from the U.S. Green Building Council's (USGBC) eco-friendly building certification LEED (Leadership in Energy and Environmental Design).
LEED is an eco-friendly building certification system certified through rigorous evaluation by the U.S. Green Building Council and, along with GRESB (Global Real Estate Sustainability Benchmark), is the world's most prestigious eco-friendly certification related to real estate.
This certification comprehensively and strictly evaluates nine categories: ▲building integrated management process ▲location and transportation environment ▲sustainable site ▲water efficiency ▲energy management and indoor air quality ▲use of eco-friendly materials and resources ▲indoor environmental quality ▲innovative design ▲community inclusiveness. Recently, it has also specialized in real estate-related ESG certification by meticulously verifying efforts and achievements in reducing carbon emissions throughout the entire building development and operation lifecycle.
The "LEED Gold" rating obtained by Gangdong East Central Tower is the second-highest level among LEED certification levels. Domestic real estate assets that have received this rating include Jamsil Lotte World Tower, Yeouido IFC, and Yeouido Hana Securities Building.
Koramco plans to continuously reduce carbon emissions through energy efficiency and water conservation even after the building's LEED certification. To this end, a carbon reduction council has been formed, mobilizing the REIT operation team, ESG strategy team, and facility management company to regularly check the status.
Additionally, by regularly monitoring building air quality, Koramco aims to improve the working environment for tenant employees and reduce unnecessary energy use by introducing a real-time energy efficiency monitoring system. Ultimately, this strategy is intended to enhance tenant satisfaction while lowering building management costs, thereby increasing expected returns.
According to the U.S. Green Building Council, buildings with this certification use approximately 25% less energy and 11% less water compared to typical buildings of the same size, and emit over 50% less greenhouse gases. Furthermore, improvements in indoor and outdoor environments and air quality help enhance the health and productivity of tenant company members, enabling these buildings to maintain an average rental rate about 20% higher than non-certified buildings. This significantly impacts asset value appreciation.
Koramco’s recent certification is expected to serve as a good investment case for domestic and international investors seeking ESG investment opportunities. At the time of asset acquisition, there was no separate eco-friendly certification, but after asset incorporation, ESG value was added, transforming it into an eco-friendly asset. Currently, the proportion of globally ESG-certified assets among all domestic REIT assets is remarkably low, while demand for ESG investments is explosively increasing. For this reason, Koramco’s ESG value-add model is expected to spread widely within the industry in the future.
Jung Junho, CEO of Koramco Asset Trust, said, "Although new investments are limited due to recent interest rate hikes, Koramco will turn this period into an opportunity to enhance the value of existing assets," adding, "Koramco will strongly practice genuine ESG that translates into investor returns through actual activities and concrete data, not emotional rhetoric."
Meanwhile, Koramco was selected as the "Asia Sector Leader" last year by GRESB, the world's most prestigious ESG evaluation organization, receiving recognition for leading ESG in the domestic real estate industry. End.
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