Pritzer, Florian

Diploma Thesis:
1917

Topic:
Impact of the classification system for sustainable financial products on the German construction industry

Editor:
Florian Pritzer

University Professor Responsible:
Univ.-Prof. Dr.-Ing. Dipl.-Wirt.-Ing. Jens Otto

Supervisor:
University Supervisor: Dipl.-Ing. Charlotte Dorn

Editing Period:
06.12.2022 until 09.05.2023

Abstract:
Regulation (EU) 2020/852 (EU Taxonomy Regulation) represents a novelty as a classification system for guiding financial flows towards environmentally sustainable economic activity. It assigns concrete values and conditions to the various economic activities through technical assessment criteria in order to create a sustainable investment structure. The declared aim of the taxonomy is to create transparency for investors, harmonise financial flows and provide easy access to green financing instruments in order to avoid green-washing. Within the scope of the thesis, the effects of the taxonomy on the German construction industry are analysed. This is done with the help of secondary and primary data collection. For this purpose, published sustainability reports are analysed and an expert survey is conducted. The effects are then analysed in the respective project phases. In project development, the taxonomy will be of significant priority. It must become a mandatory part of project planning to ensure conformity of execution. The awarding phase requires an adjustment of the evaluation and award criteria by the contracting authorities. Within the execution phase, it becomes clear that above all general and total contractors are favoured with regard to the provision of evidence. Public-private partnerships are becoming more important, as they allow a holistic view of the project. There are possibilities to influence the annual accounting, as long as the client and the contractor make concrete agreements on the timeframe of the verification. There is a need for education and training, especially for staff, to raise awareness of environmental sustainability. At present, the taxonomy is still open to many interpretations, and the difficult verification and auditing of the calculated key figures by auditors is criticised. The tight timetable for implementing the regulation and the lack of communication by the EU Commission are also points of criticism. The steering of financial flows through a uniform classification system will have an enormous impact on the German construction industry, but will bring us as a community significantly closer to the goal of a sustainable economy at the European level.