Nature strategy in Real Estate

In this article, Virginia Castellucci (Head of Sustainability, XNatura) and Lucrezia Palma (Sustainability Specialist, XNatura) discuss how the XNatura platform assists real estate professionals in managing climate and environmental risks, acquiring data for environmental certifications, and integrating nature-related insights into site and portfolio decisions. XNatura is a comprehensive nature-tech platform that supports biodiversity, nature, and climate strategies through satellite imagery, bioacoustic sensors, and eDNA analysis. The article explores the role of Environmental Impact Assessments (EIAs) and Environmental Monitoring Plans (EMPs), while also covering the process of obtaining certifications such as LEED and BREEAM. Key topics include new trends in Building Codes and EU Taxonomy, EPBD, DNSH, and Biodiversity Net Gain, alongside tools for scenario analysis. Three case studies are presented through an in-depth demo of the XNatura platform.

The session is organized around a clear and structured agenda. It begins with an introduction to XNatura, outlining the organization’s mission and the core objectives of the platform. This is followed by an overview of the regulatory framework that affects the real estate sector, providing context for how environmental and climate-related data support compliance and strategic decision-making. A live demo segment presents three real-world case studies, showing the practical application of XNatura’s tools and features. The session concludes with key takeaways and a Q&A.

XNatura is a nature-tech environmental platform dedicated to monitoring and protecting biodiversity and nature. Two years ago, XNatura received funding from the European Union to develop the first biodiversity credit. This initiative has aligned closely with emerging EU policy developments. On May 5th, during the Global Solutions Summit in Berlin, EU Commissioner Jessica Roswald announced the upcoming launch of a biodiversity credit market. This new system, inspired by the EU Emissions Trading System (ETS), aims to involve farmers, local communities, and technology partners in biodiversity preservation efforts. XNatura is actively involved in shaping this emerging market and continues to collaborate with multiple stakeholders. In addition to support from EU institutions, XNatura works closely with scientific and academic partners, including the European Space Agency and various universities.

The company currently employs approximately 60 professionals and operates as a "nature-tech" organization, bridging the gap between advanced technology and environmental stewardship. With over 5,000 IoT devices deployed globally, XNatura is mapping and monitoring more than one million hectares. The platform is utilized by over 500 clients across both private and public sectors, and it is designed for use not only by companies but also by municipalities and natural parks. It integrates a wide range of data, combining remote sensing, ground-based sensors focused on bioacoustics, lab analysis, and on-field surveys.

Let's dive into the specifics of the real estate sector and explore the key benefits that the platform offers. Risk Analysis and Site Prioritization: XNatura assists in identifying sites most at risk from climate change, enabling prioritization of actions and investment decisions in real estate. Scenario Analysis for Construction Sites: The platform generates scenario analyses with future KPI projections to help understand the potential implementation and growth of construction sites. Benchmarking and Target Verification: XNatura helps define whether a plan meets environmental targets, such as biodiversity net gain, and performing benchmarking comparisons. Biodiversity Action Plan Development: A site-specific biodiversity action plan can be created to determine the necessary actions to make a project more biodiversity-compliant.

The XNatura platform offers a range of practical benefits designed to support organizations in meeting environmental compliance requirements and sustainability goals. From regulatory assessments to certification pathways and reporting alignment, the platform enables a streamlined, data-driven approach.
Environmental Impact Assessment and Environmental Monitoring Plan: The platform is essential for carrying out environmental impact assessments and creating monitoring plans. Support for obtaining certifications: XNatura provides valuable support in obtaining certifications such as LEED, BREEAM, and WELL. Click to generate report: The platform offers comprehensive data that complies with CSRD and TNFD framework, which can be easily incorporated into reporting documents.

The real estate sector faces significant risks related to climate change, which can be divided into two main categories: physical threats and transition risks. Physical threats refer to extreme weather events such as hurricanes, floods, and wildfires, which can cause substantial damage to properties and infrastructure. Transition risks, on the other hand, involve factors like declining market attractiveness, as certain areas become less desirable due to climate-related impacts. To highlight the severity of these risks, real estate assets could experience a valuation decrease of between 15% and 35% by 2050 if they fail to mitigate or adapt to climate change. In the U.S. market alone, real estate is projected to lose up to $1.5 trillion over the next 30 years. Additionally, insurance premiums for real estate have doubled in the past decade due to the increasing frequency and intensity of climate-related events.

The real estate sector is not only exposed to climate risks but also to a range of other environmental challenges. Proximity to sensitive natural areas can create significant issues; developments near protected or biodiversity-rich zones may face stricter permitting processes, land use restrictions, and opposition from stakeholders, which can affect project timelines, feasibility, and long-term attractiveness. Additionally, soil contamination is a major concern, especially for sites located near former industrial zones, landfills, or brownfields, where legacy pollution can limit land use and reduce property values. Groundwater and surface water pollution, as well as air quality issues, can further complicate real estate development. The potential for damage to building materials and various geographical and systemic hazards add additional layers of risk, making the real estate sector highly vulnerable to environmental challenges.

The real estate sector also has a significant impact on the environment, not only contributing to climate change (it is responsible for nearly 39% of global CO₂ emissions) but also affecting land use. Real estate development often leads to habitat fragmentation, biodiversity loss, and disruptions to ecosystem functions. Other environmental impacts include soil sealing and pollution, as well as water, air, ight and noise pollution. The high demand for raw materials in construction leads to resource overuse: to put this in perspective, the real estate sector is responsible for approximately 30% of global biodiversity loss, around 68% of artificial land cover worldwide is dedicated to housing and global annual construction waste is projected to reach 2.2 billion tons by 2025. These statistics highlight that for the real estate sector, both biodiversity and nature are material topics. Not only does it face environmental risks, but it also plays a major role in impacting the environment.

The real estate sector is governed by a complex regulatory framework that includes both mandatory and voluntary regulations. At the national level, mandatory regulations such as building codes and environmental impact assessments are crucial. At the European level, regulations like the EU Taxonomy, the Energy Performance of Buildings Directive, and the Corporate Sustainability Reporting Directive (CSRD) with its European Sustainability Reporting Standards (ESRS) impose additional requirements. Sector-specific frameworks include the voluntary Taskforce on Nature-related Financial Disclosures (TNFD) and private certifications such as LEED, BREEAM, and WELL, which focus on sustainability in real estate development. Overall, the sector is influenced by a variety of regulations designed to address environmental impact, energy efficiency, and sustainability.

Building codes are a set of legally enforceable standards that govern the design, construction, alteration, and maintenance of buildings and structures. These codes establish criteria to ensure buildings meet specific requirements, including environmental considerations. The most important environmental criteria in building codes are energy efficiency, which aims to reduce energy consumption and carbon footprint, and resilience, which focuses on incorporating protections against environmental hazards. These regulations are essential for ensuring that buildings are not only safe and functional but also environmentally responsible.

Environmental Impact Assessments (EIA) are a key requirement for most real estate projects, as well as other types of developments. They are mandatory for urban projects, shopping centers, car parks, industrial facilities, tourism and leisure developments (such as holiday villages and hotels), and waste and water infrastructure. The primary goal of an EIA is to identify, predict, and mitigate potential negative effects on the environment. This includes impacts on soil, water, air, biodiversity, and local communities.

The Environmental Impact Assessment (EIA) process, while varying from country to country, generally follows a set pattern. The first step is screening, followed by scoping, where the key issues are identified. Then, the preparation of the report takes place, followed by public consultation, decision-making, and finally, monitoring and compliance. These six steps are crucial for ensuring that potential environmental impacts are adequately addressed. For the real estate sector, the EIA is essential, and platforms can support developers in efficiently managing all these steps. It's also important to note that the EIA is not limited to real estate. EIAs are mandatory in the energy sector and are also required for infrastructure and waste management projects, including the development of motorways, railways, roads, and waste disposal facilities.

The EU Taxonomy is a regulatory classification system designed to define which economic activities can be considered environmentally sustainable under EU law. This framework was established to support the EU’s climate neutrality goal, which aims to be achieved by 2050. The taxonomy outlines seven real estate-related activities that contribute to sustainability, including: the construction of new buildings, renovation projects, installation of energy efficiency equipment, installation of electric vehicle (EV) charging stations, measurement and control of energy performance, installation of renewable energy technologies, and the acquisition and ownership of buildings. These activities are considered crucial for promoting environmental sustainability within the real estate sector.

Within the EU Taxonomy, there is a key principle known as the "Do No Significant Harm" (DNSH) principle. This principle is applied not only to the real estate sector, ensuring that activities do not cause significant harm to the environment or societal goals.To apply the DNSH principle, several criteria are considered, including: Vulnerability assessment: identifying relevant environmental risks and opportunities. Evidence of Solutions: Providing proof that solutions or measures are in place to mitigate harm. Monitoring and Reporting: Tracking the activity’s impacts over time and ensuring transparency. Scope of Impact: Determining the extent of the environmental or social impact. Alignment Across Objectives: Ensuring that the activity aligns with broader environmental and sustainability objectives.

Another principle under discussion, but not yet integrated into the EU Taxonomy, is Biodiversity Net Gain. This emerging policy is already formalized in the UK, and discussions are ongoing within the EU. The principle mandates that real estate and infrastructure projects must deliver measurable biodiversity improvements compared to pre-development levels. Why is this important? Integrating Biodiversity Net Gain into projects now would help anticipate future expansions of the EU Taxonomy. For developers, this is especially crucial when seeking investment, as investors are increasingly focusing on sustainability and environmental impact. By proactively incorporating biodiversity improvements, developers can ensure their projects align with evolving regulations and attract environmentally-conscious investment.

The Energy Performance of Buildings Directive (EPBD) is an EU directive that was recently reviewed in March and is part of the Fit-for-55 package. This directive introduces several key elements aimed at improving energy efficiency in buildings. One of the major components is the requirement that all new buildings must be zero-emission buildings by 2030. Other important elements include the introduction of a standardized energy performance certificate (EPC) scale for all EU countries. The EPBD also sets specific targets for non-residential buildings: all such buildings must reach EPC Class E by 2030 and Class D by 2033. Finally, the directive emphasizes the introduction of smart readiness indicators, encouraging the digitalization of buildings to improve their energy efficiency and overall performance. These measures are crucial for aligning the real estate sector with the EU's sustainability goals.

The Corporate Sustainability Reporting Directive (CSRD) is a key directive focused on sustainability reporting. Although its timeline was adjusted through the Omnibus legislation, the CSRD remains crucial for large companies in the real estate sector, as it mandates sustainability reporting. For these companies, reporting on environmental, social, and governance (ESG) factors is essential, and platforms can assist in managing and fulfilling these reporting requirements.Moving on to voluntary frameworks, the most relevant one is TNFD (Taskforce on Nature-related Financial Disclosures). TNFD has developed specific metrics tailored to the real estate sector, which include measures such as change in fragmentation caused by linear infrastructure, volume of spills, manure and compost use. These metrics help real estate developers and companies assess and report on their impact on nature, encouraging better practices and accountability in the sector.

Certifications play an important role in the real estate sector, and the platform can support you in obtaining them. Certifications like LEED, BREEAM and WELL, and others are voluntary, but they are highly valuable as they help enhance the building's value and reduce its environmental impact. By providing essential data and insights, the platform aids in meeting the criteria required for these certifications, ensuring that projects align with sustainability standards and can stand out in a competitive market.

XNatura can help your business you develop a Nature Strategy by providing biodiversity, nature, and climate data that is fully compliant with ESRS and follows the TNFD Leap approach. The first step is Locate, using satellite images to locate land use and detect biodiversity hotspots. The platform also supports in Evaluate phase, assessing nature-related impacts and dependencies, helping businesses understand their reliance on ecosystem services and the effects of their activities on biodiversity. Then XNatura Assess by quantifying nature-related risks and opportunities and, finally, Prepare by supporting target setting based on industry benchmarks, control areas, and regulatory goals. The actions carried out together include data collection, risk analysis and site prioritization, strategy development, and disclosure and reporting.

For data collection, the platform gathers extensive environmental data through various technologies, including remote sensing, sensors, field surveys, and lab analysis. These diverse methods ensure comprehensive and accurate data to support informed decision-making throughout the process. Risk analysis and site prioritization aim to organize data in a way that helps identify which sites should be prioritized. This data-driven approach enables real estate developers to make informed decisions, ensuring that actions are directed towards sites that require immediate attention due to exposure to climate and environmental risks. By assessing the risk levels of different sites, developers can focus their efforts on the most vulnerable areas, ensuring effective resource allocation and timely interventions.

The third step is strategy development, which includes creating a biodiversity strategy for the entire organization as well as a specific biodiversity action plan for individual sites. Finally, disclosure and reporting follow, with the platform helping to gather all the necessary data for compliance. It ensures full adherence to CSRD, ESRS, TNFD, and the LEAP approach. To recap, here are the benefits the platform provides to the real estate sector: Risk analysis and prioritization Scenario analysis for construction sites Benchmarking and target verification Development of a site-specific biodiversity action plan Data for Environmental Impact Assessment and Environmental Monitoring compliance Support for obtaining certifications Click-to-generate report These features enable real estate developers to effectively manage sustainability, mitigate risks, and ensure compliance with regulatory standards.

First, there is the overview page, where all details can be modified. The description can be updated, and the geographical impact of all sites worldwide, including their environmental impact, can be viewed. In the monitoring section, additional data regarding all the sites is available. This section provides an overview of the sites being monitored, along with a summary of their impacts, dependencies, and risks. It is possible to identify how many sites are located near protected areas, as well as gain insight into the impact drivers and dependencies. This section forms part of the prioritization phase, where different KPIs can be combined. For instance, the MSA and the hydrological risk can be selected, and all sites will be displayed: the orange dot on the map indicates the specific site to be analyzed.

The focus begins with a site located in the UK, where Biodiversity Net Gain (BNG) regulations are already mandatory. According to the LEAP approach, the initial step is the "Locate" phase. During this phase, essential baseline data is gathered, including GPS coordinates, regional classification, site dimensions, and biome typology. By viewing the site at a broader scale, it becomes clear that the location lies near Birmingham, a major urban center. Analysis of land cover in the surrounding area reveals a predominantly agricultural landscape, interspersed with infrastructure, artificial surfaces, and patches of discontinuous urban fabric. The site is embedded in a context that has experienced an increase in both population density and built-up area over time. On the map, agricultural areas are typically represented in green, while built-up zones appear in red.

In the real estate sector, one of the most critical factors to evaluate is hydrogeological risk. It is essential to determine whether a site is located in an area with a high likelihood of flooding and to identify the necessary preparedness measures. In this particular case, the site is situated in a flood-prone area, with a hydrogeological risk rating of five out of five - indicating a high-risk zone. Historical data confirms this assessment, as the broader surrounding region has experienced numerous flood events over recent years. This information can be further analyzed through the hydrogeological risk dashboard, which provides detailed insights into past and potential future events. According to the data, a total of 22 hydrological events have been recorded in the area. The probability of a generic flood event occurring within the next two years stands at 35%, while the likelihood of a high-intensity event is also significant, at 26%.

Flood resilience must also be incorporated into the design of any planned facility. Key design strategies should include elevated foundations, the use of permeable surfaces to enhance water absorption, and a comprehensive drainage system to manage runoff effectively. To assess the site's current capacity for water infiltration, permeability data can be used. The Impermeable Land report KPI reveals that approximately 80% of the surface area on this site is impermeable. This means that the majority of the land does not allow water to drain naturally, significantly increasing the risk of surface runoff during periods of heavy rainfall or flooding.

Looking at precipitation trends provides additional insight into the site's environmental risk profile. Historical data shows that, until recently, precipitation levels were relatively moderate. However, toward the end of the last decade, a noticeable increase in extreme rainfall events can be observed, with several significant peaks recorded. Future projections, based on IPCC climate scenarios, offer a range of possible outcomes: users can explore both the most optimistic and the most severe scenarios to understand how precipitation patterns may evolve over the coming years. Even under moderate projections, the frequency and intensity of rainfall events are expected to increase, indicating a growing need for climate-resilient planning.

When examining temperature trends, in the site they increased by approximately 1.5°C over recent years. While temperatures have already been rising, this trend is expected to continue, with future projections based on IPCC scenarios indicating further increases. This highlights the potential for the urban heat island effect, where built-up areas such as those with concrete or asphalt retain more heat. These materials not only lead to higher daytime temperatures but also keep the area warmer at night, preventing temperatures from cooling down as they should. This sustained heat can have a significant impact on residents’ well-being, particularly in areas with mixed-use developments, which include both residential and commercial units. To mitigate these effects, urban regeneration projects that focus on enhancing land cover can be crucial. Incorporating vegetation, such as nectariferous plants, into the landscape can help lower temperatures, both during the day and at night.

An important factor to consider when evaluating the site is its current biodiversity status. According to the dashboard, the biodiversity score stands at just 17 out of 100, indicating a very low level of biodiversity in terms of both plant and animal species, based on the Mean Species Abundance indicator. This information is further reflected on the map, which shows that the area and its surrounding environment are not performing well in terms of biodiversity. This is another critical factor to take into account when considering any regeneration efforts for the site. In this context, it means improving the ecological quality of the area. It not only aims to enhance biodiversity but also contributes aesthetic value to the new facility, supports residents' well-being, and improves air quality.

The second case study focuses on a municipality in Valencia, specifically Benetùsser, a city that has experienced significant flooding in recent years, particularly last year. Though it is a small area, the goal of this project is to demonstrate the potential benefits of regenerating part of the municipality. In this case, the focus is on regenerating a central square within the municipality. The objective is to modify key parameters and analyze how this regeneration project can positively impact the area. This includes assessing whether the project will improve biodiversity, reduce temperatures, and contribute to other environmental improvements.

The first step in evaluating the area is to assess its current characteristics. The site is situated in a predominantly residential area, surrounded by important protected zones, including the Albufera Park, a significant natural reserve in Valencia. The proximity to these protected areas suggests that the biodiversity in this location is more secure than in other regions where such areas are farther away. Upon examining the land cover, it becomes clear that the site is heavily developed, with substantial infrastructure and urban fabric. The red areas on the map indicate artificial services, including continuous urban fabric, which predominates in the landscape. This insight allows to consider potential changes to the land cover: by replacing some of the built-up areas with more biodiversity-friendly services, it is possible to significantly enhance the ecological value of the site.

Upon reviewing the internal site, it is clear that the red areas are still dominated by continuous urban fabric, including footways and residential roads. However, by introducing shrub and herbaceous vegetation associations, the biodiversity state of the site can be significantly enhanced. This change is reflected in the updated MSA (Mean Species Abundance), which increased to 21 out of 100, compared to the original score of 5. This improvement brings the site closer to achieving the first target, regenerating 30% of the area, as represented on the scale. This was accomplished only by removing concrete and cement from the square and replacing them with plants. It is important to note that this is a simulation, which can be used to test various scenarios and assess how different changes might impact the area’s biodiversity and environmental quality (like reaching the Biodiversity Net Gain).

It is also essential to consider soil temperature. In this case, December temperatures show only minor variations, but areas with significant built-up surfaces remain notably warmer. These red areas indicate regions where artificial surfaces dominate, which is a critical factor in the context of urban heat islands. As mentioned earlier, this contributes to elevated temperatures, reduced well-being, and poorer air quality. Given the history of frequent flooding in the area, despite a hydrological risk rating of 3 out of 5, it remains crucial to incorporate permeable surfaces that allow water to percolate into the soil. By transforming more of the city's squares and internal parking areas into permeable zones, the site’s permeability rate can be significantly improved. Currently, the permeability is at 46.4 out of 100, a relatively high figure that will help mitigate the intensity of future flood events, compared to the severe floods experienced in recent years.

Reviewing the hydrogeological risk data again, the area has seen eight past flood events, with a high probability of future events. There is no risk of landslides or erosion due to the site’s lack of hills or mountainous terrain. Nevertheless, these factors should still be considered during planning. The regeneration activities simulated for the area demonstrate that biodiversity can play a pivotal role in improving the local environment. As seen in the comparison of the MSA before and after the project, enhancing biodiversity should be a key objective. Ensuring that the project incorporates natural elements, such as native plants and wildlife-friendly design, is critical. Although the area being considered for regeneration is small, it offers valuable lessons in environmental planning. Continuous monitoring, through the installation of sensors, will help track the improvements made by the regeneration project and its impact on the area’s biodiversity.

The last site is located in Singapore, situated in a tropical and subtropical forest biome, adjacent to a large urban center. Unlike the previous sites, this location has limited green spaces nearby. The site itself is primarily commercial, and adding plants within the units could significantly improve the aesthetics and views, while also contributing positively to biodiversity. The area currently consists largely of artificial surfaces, and the soil is impermeable, which is problematic, especially in the context of sea-level rise, a phenomenon that is already affecting Singapore. The site's location also experiences heavy rainfall, and projections suggest that precipitation will increase in the future. Given this, it is critical to ensure that water can drain properly, rather than pooling on the site, especially in the commercial areas.

The level of urbanization in this area is increasing, which presents additional concerns in terms of biodiversity and protected areas. The site is situated near sensitive areas that must be considered when planning new developments. Another factor to take into account is the soil temperature, particularly with regard to the urban heat island effect. To calculate and visualize this, the platform allows users to generate data for different years and assess changes in urbanization. By selecting the desired year and clicking “Generate,” new data will be available in just five minutes. It is important to note that all elements visible on the platform can be modified. Light pollution, for instance, can also be analyzed and generated using the platform.

If the goal is to share the regeneration activities with clients or stakeholders, the platform allows for easy community engagement. Users can share the platform with others, display the regeneration efforts underway, and even add comments to provide context for the analyses being conducted. This feature ensures transparency and facilitates collaboration among all parties involved in regeneration projects. As mentioned earlier, the final step is to click on “Generate Report”, located directly on the platform. By using generative AI, a comprehensive report can be quickly produced. This tool offers an efficient way to summarize the analysis and provide insights into the regeneration process.

A case study of a regeneration project in Milan, focused on a railway yard, serves as a concrete application of the concepts discussed. This is not a demo, but rather an actual study that includes scenario simulations for biodiversity net gain during the planning phase, allowing for a before-and-after comparison of the site’s biodiversity. In this project, sensors have been installed to monitor biodiversity levels. Three types of sensors were used: HiveTech Spectrum and PollyX sensors, which track wild pollinators and honey bees and their activity in the area. Additionally, a Bug Hotel has been set up, providing a nesting and living space for pollinators. This initiative not only helps in monitoring the biodiversity impact but also plays a significant role in community engagement. Informational posters are placed around the site to educate the public about the ongoing efforts and the importance of biodiversity in urban regeneration.

The white paper with more insights on the real estate sector is available for download. Understanding the environmental and climate impact of construction and real estate assets is essential in a world where development must align with sustainability objectives. Today, the built environment faces growing exposure to both physical and transition risks driven by climate change, biodiversity loss, and ecosystem degradation. At the same time, evolving European and global regulations are setting higher standards for environmental performance and corporate transparency. This white paper examines these topics while highlighting how XNatura data-driven approach enables developers, designers, and ESG professionals to meet requirements, validate performance, and make informed decisions. With expert insights and real-world case studies, this guide provides practical tools to drive the sustainability transition.