Susanne Eickermann-Riepe: sustainability, ESG and AI in real estate financing and valuation

She stressed that, despite periodic discussions around “ESG fatigue,” sustainability remains a central pillar for banks, institutional investors, and clients, while it is now increasingly embedded in corporate strategy through dedicated committees and mechanisms for the oversight of non-financial data.

ESG and cost of capital

According to Ms. Eickermann-Riepe, sustainable buildings and energy-efficient construction are directly linked to lower operating costs and reduced financing risk, as banks progressively incorporate stricter ESG criteria into their lending decisions. At the same time, green bonds and other sustainable finance instruments offer lower borrowing costs, thereby enhancing the overall competitiveness of investments in green assets.

Improving ESG positioning in Greece

Special reference was made to Greece’s position within the European sustainability landscape, with the speaker noting that the country—alongside Spain—has recorded an improvement in international ESG assessments, in contrast to earlier years when Western European countries dominated the rankings.

A significant part of her intervention focused on the role of artificial intelligence in real estate valuation. As highlighted, automated valuation models and AI-driven tools are expected to reduce the scope of “commodity” valuation work, exerting downward pressure on fees, while simultaneously elevating professionals towards more complex analytical and advisory functions. The profession, it was noted, is evolving toward that of a “judgment expert,” with increased emphasis on data interpretation, model governance, and the assessment of complex transactions.

The Red Book and transparency requirements

Particular emphasis was also placed on the RICS Red Book, which marks 50 years of publication, as well as on its updated guidance integrating ESG considerations into valuation processes. The focus, she explained, is shifting from whether value is affected to how that impact is evidenced and documented, with the aim of strengthening transparency and accountability in markets.