Expert Guide on ESG in Real Estate in Austria

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Buildings produced 8.1M tons CO2 in 2019, 10% of Austria's emissions. Property values tie to sustainability.

The 2011 Austrian climate act sets emission limits by sector, including real estate, reviewed by an independent committee. Austria passed varied ESG laws, including for real estate, to hit targets. The 2020-2024 plan aims for climate neutrality by 2040, surpassing the EU Green Deal. The 2017 amendment limited emissions until 2020, with more changes and real estate-focused ESG laws pending. The Renewables Heating Act promotes renewable heating, phasing out fossil fuels by 2035/2040.

Austrian real estate developers must stay current on evolving EU and national ESG regulations. Challenges encompass rigorous energy efficiency mandates dictated by federal and state Construction Codes and the Renewable Energies Expansion Act. This law propels costly retrofits, impacting development costs and viability. Moreover, developers navigate social compliance, tenant rights, safety regulations, and sustainable practices, all under the umbrella of ESG laws. Striking a balance between these factors, costs, and property performance is imperative.

Project site selection is pivotal for energy efficiency and ESG compliance in real estate development. Key considerations involve:

• Regional spatial planning act (Raumordnungsgesetz): Municipal zoning plans (Flächenwidmungsplan) must align with neighboring zoning to meet ESG and energy goals.
• Development plan (Bebauungsplan): Construction guidelines within municipality plans focus on efficient land use and settlement patterns.
• Register of contaminated sites (Altlastenkataster): Sites posing health/environmental risks are identified in the register, informing site selection.
• Construction Code (Bauordnung): State-specific codes cover permits, energy efficiency, and ESG factors like solar panels or EV charging.
• Austria's Environmental Impact Assessment Act (Umweltverträglichkeitsprüfungsgesetz - UVP-G) mandates assessments for specific property projects, evaluating biodiversity, air quality, noise, and more. Mitigation measures guided by regional plans and zoning address impacts.

On the EU level, the Energy Performance of Buildings Directive (2010/31/EU) and the Energy Efficiency Directive 2012/27/EU introduced Zero Energy Buildings (nZEBs) concept. National Building Codes (Bauordnungen) in Austria adopt nZEB requirements. The Austrian Institute of Construction Engineering (OIB) issues harmonization Guidelines, including "OIB Standard 6" for energy-saving rules. Austria offers broad ESG incentives for sustainable real estate, spanning federal and state levels. Incentives encompass nZEB construction/retrofitting and renewable energy installation, outlined in the 2021 Renewable Energies Expansion Act. (Erneuerbaren-Ausbau-Gesetz)

Properties located in hazard zones often face usage restrictions due to natural threats. Land planning aims to mitigate such hazards when complete exclusion isn't possible. Natural hazards include avalanches, floods, landslides, and more. These can directly impact properties, especially in hazard zones. Building permits, development plans (FWP), local development concepts (ÖEK), hazard zone plans, and reference maps inform about risks. Based on hazard potential, zones include "red hazard," "yellow hazard," and "information areas." Increasing event frequency means ordinances, expert reports, and mapping may not be up to date. Environmental Impact Assessments may be obligatory under certain circumstances per the Act on EIA (Umweltverträglichkeitsprüfungsgesetz, UVP-G 2000). The Act's Annex 1 lists different  project types requiring EIA due to potentially significant environmental impacts, such as waste treatment plants, roads, power plants, pipelines, and more.

The Waste Management Act (Abfallwirtschaftsgesetz 2002, AWG 2002) is the core of waste legislation in Austria. It emphasizes separate waste collection, storage, transport, and treatment. Recyclables should be recycled if ecologically suitable and feasible. Regulations such as the Recycling Building Materials Regulation, Landfill Regulation, and Contaminated Sites Remediation Act add to waste management requirements. The Federal Waste Management Plan (Bundes-Abfallwirtschaftsplan – BAWP) is issued every six years for realization. The Waste Catalogue Regulation defines waste types, and the Waste Control Regulation oversees waste owners. For new buildings, mandatory waste separation applies, with certain materials to be segregated on-site.

Regulations impose health and safety considerations for real estate developers and constructors, especially in commercial projects. These cover federal mandates for worker safety, Austrian trade act (Gewerbeordnung; GewO) rules, and regional/state statutes like construction codes and zoning requirements. Key laws include:

• Construction Work Coordination Act (Bauarbeitenkoordinationsgesetz, BauKG): Governs safety and health coordination obligations at construction sites with employed workers.
• Safety and Health Protection Plan (Sicherheits- und Gesundheitsschutzplan, SiGe-Plan): Mandates plans for construction sites with risks to worker safety.
• Employees Protection Act (ArbeitnehmerInnenschutzgesetz, ASchG): Ensures workplace safety and health for employees.
• Construction Workers’ Protection Regulation (Bauarbeiterschutzverordnung, BauV): Specific regulation under the Employees Protection Act for construction workers.

Only authorized professionals like architects can issue valid energy certificates in Austria, adhering to guidelines from the Austrian Institute of Construction Engineering (OIB). Apart from mandatory energy certificates, there are recognized voluntary certifications like BREEAM, LEED, ÖGNI, ÖGNB, and klimaaktiv. These certifications assess diverse criteria including sustainability, energy efficiency, materials, and air quality. While not obligatory, they can indicate ESG compliance and support "green" financing under the EU Taxonomy Regulation.

The legal framework for energy performance certificates (EPCs) and energy requirements in Austria is derived from EU directives and transposed into national law. EPCs provide insight into a building's energy efficiency, rated from AAA++ to G. They are required for property sales, rentals, and leases, with heating requirements and energy factors also advertised. New buildings or major renovations generally need EPCs. Components in a residential building's energy certificate include heating demand, primary energy demand, CO2 emissions, energy performance factor, hot water heat demand, heating energy demand, and final energy demand. Pending the Renewables Heating Act, specific heating types are not banned, but heating demand significantly influences the certificate and property value.

Approval for rooftop photovoltaic systems depends on factors like location, zoning, and neighboring rights, as outlined in the state's Construction Code. EU Solar Rooftops Initiative mandates gradual solar energy installation in different building types, starting with new public, commercial, and residential buildings. Legal obligations for photovoltaic systems on new buildings derive from the EU's Energy Efficiency of Buildings Regulation, implemented by state Construction Codes. Condominium Act amendments ease upgrades for condo rooftop systems:

• Individual systems: Owners notify others of plans; no objection within two months implies consent.
• Shared systems: Majority decides for installation based on co-ownership shares or votes cast. Profit-driven installations fall under the Trade Act, requiring licenses and operation permits. Regulatory rules under the Electricity Industry and Organisation Act might also apply to PV systems' operation.

Installing electric vehicle (EV) charging points may require informing or gaining approval from regulatory bodies, following the Construction Code of the specific federal state. Approval depends on factors like location, zoning, and neighboring rights, relevant to both new construction and property upgrades. The 2022 Condominium Act amendment simplifies charging point installation in existing condominiums. For individual systems, owners notifying others can secure consent in the absence of objection within two months. Shared systems require majority agreement based on co-ownership shares or votes. Commercial charging setups might fall under the Trade Act, mandating a trade license and operation permit. Operation could also be subject to Electricity Industry and Organisation Act regulations.

Austrian public contracting authorities must incorporate ecological considerations when entering into construction contracts, as environmental justice is a fundamental principle of public procurement under Sec 20 para 5 of the Austrian federal procurement act. This principle applies universally to all contract types and values. Environmental justice is integral to contract terms, tenderer suitability assessment, and award criteria formulation. Breach of this principle leads to serious violations and can invalidate decisions or tender documents in review procedures. Tenderer suitability assessment may consider accreditation in environmental management systems like EMAS. Serious breaches of environmental regulations could lead to bidder exclusion under Sec 78 para 1 no 5. Award criteria may factor in environmental aspects if relevant to the contract's subject matter, particularly costs linked to environmental impact during the performance's life cycle under Sec 92 para 1 no 2.

Non-EU nationals require specific work and residence permits, like the "Red-White-Red" Card or labor market authority authorization. The Employment of Foreign Nationals Act (AuslBG) governs foreign worker entry to the Austrian labor market. Real estate developers and constructors must adhere to the Wage and Social Dumping Prevention Act (Sozialdumping-Bekämpfungsgesetz, LSD-BG) since 2017. Modified provisions increase liability for principals of construction orders. They should adjust contracts and seek contractual recourse. This law separates key wage and social dumping provisions from the Labour Contract Law Amendment Act (AVRAG) and Temporary Employment Act (AÜG), aiming to ensure fair remuneration. Contractors subcontracting construction work bear liability for social security contributions and debts. Liability emerges upon payment, limited to 20% of remuneration.

The Federal Disability Equality Act (BGStG) in Austria, active since January 1, 2006, strives for equal participation of individuals with disabilities in society. It mandates comprehensive accessibility in various aspects of life, encompassing not only physical disabilities but also visual and hearing impairments. Building on the UN Convention on the Rights of Persons with Disabilities and OIB Guideline 4, ÖNORM B 1600 "Barrier-free construction" sets the foundation for construction standards, complemented by ÖNORM B 1601 for accessible dwellings. Building laws fall under state jurisdiction and are key tools to mitigate barriers for people with disabilities. While new buildings must adhere to accessibility standards, existing structures lack similar legal obligations. Public buildings have longstanding accessibility mandates, while private housing standards vary across federal provinces. Implementation of accessibility measures involves added costs, prompting state-level financial incentives for barrier-free construction.

Buildings produced 8.1M tons CO2 in 2019, 10% of Austria's emissions. Property values tie to sustainability.

The 2011 Austrian climate act sets emission limits by sector, including real estate, reviewed by an independent committee. Austria passed varied ESG laws, including for real estate, to hit targets. The 2020-2024 plan aims for climate neutrality by 2040, surpassing the EU Green Deal. The 2017 amendment limited emissions until 2020, with more changes and real estate-focused ESG laws pending. The Renewables Heating Act promotes renewable heating, phasing out fossil fuels by 2035/2040.

Real estate investors must keep up with EU regulations and their national adaptations related to ESG, such as:

• Energy Efficiency and Emissions: Stringent energy and sustainability standards under Construction Codes and the Renewable Energies Expansion Act drive compliance, potentially leading to costly retrofits affecting investment decisions.
• Tenant Rights and Social Considerations: Upholding social norms, health and safety rules, and ESG practices entails balancing these factors with investment goals.
• Liability and Due Diligence: Due diligence is crucial for assessing ESG-related risks before property acquisition, considering environmental and social liabilities.
• Sustainability Disclosure and Reporting: Compliance with EU Taxonomy Regulation and reporting ESG performance are rising expectations. Austrian adaptation of directives like the Corporate Sustainability Reporting Directive is pending.
• Green Financing: Meeting "green" investment criteria poses challenges due to EU Taxonomy Regulation requiring ESG integration in financing decisions.

Project site selection is pivotal for energy efficiency and ESG compliance in real estate development. Key considerations involve:

• Regional spatial planning act (Raumordnungsgesetz): Municipal zoning plans (Flächenwidmungsplan) must align with neighboring zoning to meet ESG and energy goals.
• Development plan (Bebauungsplan): Construction guidelines within municipality plans focus on efficient land use and settlement patterns.
• Register of contaminated sites (Altlastenkataster): Sites posing health/environmental risks are identified in the register, informing site selection.
• Construction Code (Bauordnung): State-specific codes cover permits, energy efficiency, and ESG factors like solar panels or EV charging.
• Austria's Environmental Impact Assessment Act (Umweltverträglichkeitsprüfungsgesetz - UVP-G) mandates assessments for specific property projects, evaluating biodiversity, air quality, noise, and more. Mitigation measures guided by regional plans and zoning address impacts.

On the EU level, the Energy Performance of Buildings Directive (2010/31/EU) and the Energy Efficiency Directive 2012/27/EU introduced Zero Energy Buildings (nZEBs) concept. National Building Codes (Bauordnungen) in Austria adopt nZEB requirements. The Austrian Institute of Construction Engineering (OIB) issues harmonization Guidelines, including "OIB Standard 6" for energy-saving rules. Austria offers a broad range of ESG incentives for sustainable real estate, spanning from federal to state levels. Incentives encompass among others nZEB construction/retrofitting and renewable energy installation, as outlined in the 2021 Renewable Energies Expansion Act. (Erneuerbaren-Ausbau-Gesetz).

ESG's growing importance makes real estate financing pricier and tougher without "environmentally sustainable" options for lenders. To gain this label, investments must align with EU Taxonomy Regulation (2020/852/EU), set by the EU to define eco criteria for investments and bolster sustainable finance. Sustainability assessment relies on specific delegated acts alongside the Taxonomy Regulation. In real estate, the EU Taxonomy Climate Delegated Act covers new buildings, renovations, maintenance, repair, and ownership acquisition. Internationally, Austrian financing embraces guidelines such as the Green Bond and Sustainability-Linked Bond Principles, the Green and Sustainability Linked Loan Principles, and EBA's Guidelines on Loan Origination and Monitoring, incorporating ESG.

ESG's growing influence is evident in Austrian real estate transaction agreements, impacting:

• Extended Due Diligence Scope: Thorough environmental due diligence is crucial to assess potential risks and liabilities linked to the property. Compliance with regulations, contamination assessment, and energy efficiency evaluation minimize future environmental liabilities.
• Expanded Warranty and Liability Regime: ESG matters significantly shape warranty and liability. Transparent ESG disclosure, circular economy, compliance with laws, certifications, sustainability, and ESG's impact on property value at exit are crucial considerations.
• Energy Efficiency and Retrofitting: Investors must assess property energy efficiency and retrofitting needs to meet energy targets. Balancing upfront costs, long-term savings, and energy performance standards poses challenges.
• Heightened MAC Provisions Relevance: Material adverse changes (MAC) rules gain importance, allowing parties to address unforeseen circumstances affecting deal feasibility or value.
• Green Financing and Valuation: Accessing green financing and accurately valuing ESG attributes is intricate. Navigating varied valuation methods and working with ESG-aware lenders is key.

Only authorized professionals like architects can issue valid energy certificates in Austria, adhering to guidelines from the Austrian Institute of Construction Engineering (OIB). Apart from mandatory energy certificates, there are recognized voluntary certifications like BREEAM, LEED, ÖGNI, ÖGNB, and klimaaktiv. These certifications assess diverse criteria including sustainability, energy efficiency, materials, and air quality. While not obligatory, they can indicate ESG compliance and support "green" financing under the EU Taxonomy Regulation.

Energy performance certificates (EPCs) and energy performance requirements for Austrian buildings are established through the Energy Performance of Buildings Directive (2010/31/EU) and the Energy Efficiency Directive (2012/27/EU), translated into Austrian law by acts like the Energy Efficiency of Buildings Act and Energy Performance Certificate Submission Act. EPCs indicate a building's energy efficiency (from AAA++ to G) and are required for sales, rentals, and leases. They must be no older than 10 years and include heating requirements in advertisements. New buildings and major renovations typically need EPCs. Diverse regulations among federal states may cause variations. While there's no strict ban on specific heating methods, attention should be given to heating demand for energy certificates and building value.

Depending on the size and performance of a proposed rooftop photovoltaic system, approval from competent authorities, often under the Construction Code of the relevant federal state, may be necessary. This hinges on factors like zoning, building plans, and neighboring rights. The EU Solar Rooftops Initiative, aligned with the REPowerEU plan and solar energy strategy, mandates gradual installation of solar energy in various buildings, starting with new public, commercial, and residential structures. This stems from the EU Energy Efficiency of Buildings Regulation (2010/31/EU), implemented in Austria through Construction Codes of federal states, requiring PV systems for certain projects.

Upgrading rooftop photovoltaic systems in condominium buildings benefits from administrative facilitations under the 2022 amendment to the Condominium Act (WEG). For individual systems, an owner can inform others about planned installation, with no objections after two months indicating consent. Shared systems require a majority of co-ownership shares or two-thirds of cast votes for installation in the common interest.

If a rooftop photovoltaic system is established for profit or benefit, it's considered a commercial facility under the Trade Act (Gewerbeordnung, GewO), potentially needing a trade license and operation permit. Operation of such a system could also fall under regulations of the Electricity Industry and Organisation Act (Elektizitätswirtschafts- und Organisationsgesetz, ElWOG).

Installing electric vehicle (EV) charging points may require regulatory approval, governed by the state's Construction Code. Location-specific factors like zoning and building plans influence this, relevant for new projects and property enhancements. The 2022 Condominium Act amendment eases EV charging in existing condo buildings, similar to PV systems (individual notice or shared majority resolution).

Profit-oriented charging points fall under the Trade Act, necessitating licenses and operation permits. Regulatory rules under the Electricity Industry and Organisation Act might also apply to e-charging points' operation.

The Corporate Sustainability Due Diligence Directive (CSDD) shall promote sustainability in business operations and basically mandates certain companies to conduct comprehensive due diligence within their supplier chain to identify, address, and mitigate certain environmental and social risks. Since the CSDD is currently still at the drafting stage, it does not trigger specific obligations for real estate investors in Austria. Other than, for instance, the German supply chain act (Lieferkettengesetz), the Austrian legislator has not implemented national laws that would precede the subject matters of the CSDD.

Austria enforces ESG reporting through the EU Non-Financial Reporting Directive (NFDD) in its commercial code (UGB). Reports include non-financial data per Austrian Financial Reporting and Auditing Committee Opinion 9, for example, non-financial indicators, environmental impacts, and social aspects.

Obligations cover:

• Publicly significant firms with limited duties.
• Large entities exceeding 2 of 3 thresholds: EUR 20m balance, EUR 40m revenue, or 250 avg. employees (limited duties).
• Large publicly significant firms with 500+ avg. employees (full obligations under NFRD).

The Corporate Sustainability Reporting Directive (CSRD) expands obligations, pending Austrian transposition since Jan 2023.

Real estate investors may require ESG-compliance reporting due to the EU Taxonomy Regulation. Real estate funds must also address the EU Regulation on Disclosures in the Financial Services Sector (EU 2019/2088) for "green" property project ESG criteria disclosure.

Buildings produced 8.1M tons CO2 in 2019, 10% of Austria's emissions. Property values tie to sustainability.

The 2011 Austrian climate act sets emission limits by sector, including real estate, reviewed by an independent committee. Austria passed varied ESG laws, including for real estate, to hit targets. The 2020-2024 plan aims for climate neutrality by 2040, surpassing the EU Green Deal. The 2017 amendment limited emissions until 2020, with more changes and real estate-focused ESG laws pending. The Renewables Heating Act promotes renewable heating, phasing out fossil fuels by 2035/2040.

Real estate owner/operator must keep up with EU regulations and their national adaptations related to ESG, such as:

• Energy Efficiency and Emissions: Stringent energy and sustainability standards under Construction Codes and the Renewable Energies Expansion Act drive compliance, potentially leading to costly retrofits affecting investment decisions.
• Tenant Rights and Social Considerations: Upholding social norms, health and safety rules, and ESG practices entails balancing these factors with investment goals.
• Liability and Due Diligence: Due diligence is crucial for assessing ESG-related risks before property acquisition, considering environmental and social liabilities.
• Sustainability Disclosure and Reporting: Compliance with EU Taxonomy Regulation and reporting ESG performance are rising expectations. Austrian adaptation of directives like the Corporate Sustainability Reporting Directive is pending.
• Green Financing: Meeting "green" investment criteria poses challenges due to EU Taxonomy Regulation requiring ESG integration in financing decisions.

Project site selection is pivotal for energy efficiency and ESG compliance in real estate development. Key considerations involve:

• Regional spatial planning act (Raumordnungsgesetz): Municipal zoning plans (Flächenwidmungsplan) must align with neighboring zoning to meet ESG and energy goals.
• Development plan (Bebauungsplan): Construction guidelines within municipality plans focus on efficient land use and settlement patterns.
• Register of contaminated sites (Altlastenkataster): Sites posing health/environmental risks are identified in the register, informing site selection.
• Construction Code (Bauordnung): State-specific codes cover permits, energy efficiency, and ESG factors like solar panels or EV charging.
• Austria's Environmental Impact Assessment Act (Umweltverträglichkeitsprüfungsgesetz - UVP-G) mandates assessments for specific property projects, evaluating biodiversity, air quality, noise, and more. Mitigation measures guided by regional plans and zoning address impacts.

On the EU level, the Energy Performance of Buildings Directive (2010/31/EU) and the Energy Efficiency Directive 2012/27/EU introduced Zero Energy Buildings (nZEBs) concept. National Building Codes (Bauordnungen) in Austria adopt nZEB requirements. The Austrian Institute of Construction Engineering (OIB) issues harmonization Guidelines, including "OIB Standard 6" for energy-saving rules. Austria offers broad ESG incentives for sustainable real estate, spanning federal and state levels. Incentives encompass nZEB construction/retrofitting and renewable energy installation, outlined in the 2021 Renewable Energies Expansion Act. (Erneuerbaren-Ausbau-Gesetz)

Properties in hazard zones face usage constraints due to natural hazards. Land planning aims to mitigate these risks, as natural hazards endanger lives and property, including avalanches, floods, mudslides, and more. Events impact properties, especially if located in hazard zones. Building permits, development plans (FWP), local development concepts (ÖEK), and hazard zone plans offer hazard risk insights. Areas are categorized as "red hazard zone," "yellow hazard zone," or "information areas" based on risk levels. Frequent events shorten update intervals for ordinances, expert reports, and hazard zone plans, impacting their accuracy (reference date of the expert report).

The Waste Management Act (Abfallwirtschaftsgesetz 2002, AWG 2002) is pivotal in Austrian waste regulations. Key principles include separate collection, storage, transport, and treatment of waste. Real estate owners must also adhere to:

• Recycling Building Materials Regulation (Recycling-Baustoffverordnung): Demolition and waste separation rules apply, with specific provisions for construction site waste in addition to general waste laws.
• Landfill Regulation (Deponieverordnung): Differentiates landfill classes for various waste types.
• Contaminated Sites Remediation Act (Altlastensanierungsgesetz, ALSAG): Contributions apply for waste related to construction under the Waste Management Act 2002.
• Federal Waste Management Plan (Bundes-Abfallwirtschaftsplan – BAWP): Issued every six years, this plan aligns with waste management objectives and principles.
• Waste Catalogue Regulation (Abfallverzeichnisverordnung 2020): Lists waste types with designations and specifications.
• Waste Control Regulation (Abfallnachweisverordnung): Mandates waste owner recording, reporting, and verification.

Additionally, new buildings require compulsory separation. Hazardous and non-hazardous waste must always be separated on-site. For new constructions exceeding a total gross volume of 3,500 m3, specific material groups must be separated on-site, unless technically infeasible or disproportionately costly.

Regulations encompass health and safety laws at federal and state levels, influencing real estate investor decisions. These include worker safety mandates and the Austrian trade act (Gewerbeordnung; GewO), along with regional codes and environmental health rules. Green lease clauses, like communicating power use to landlords, are generally upheld but vary with lease terms, parties, and consumer protection laws. Austria's robust consumer protection regulations promote fairness and transparency. Green lease terms must align with energy efficiency goals and respect consumer protection laws and data privacy requirements outlined in the Austrian consumer protection act (Konsumentenschutzgesetz, KSchG).

Only authorized professionals like architects and civil engineers can issue legally binding energy certificates in Austria, following guidelines from the Austrian Institute of Construction Engineering (OIB). Alongside mandatory energy certificates, there are recognized voluntary certifications in Austria including BREEAM, LEED, ÖGNI, ÖGNB, and klimaaktiv building standard. These certifications cover various criteria like sustainability, water efficiency, energy, materials, air quality, and more. While not obligatory, they signal ESG compliance and can serve as evidence for contractual obligations or obtaining "green" financing under the EU Taxonomy Regulation.

Austria's energy performance regulations stem from EU Directives and are implemented through acts like the Energy Efficiency of Buildings Act and Energy Performance Certificate Submission Act. Energy certificates rate building efficiency (AAA++ to G) and are mandatory for property transactions, with heating data required in advertisements. Residential certificates detail heating and energy demands, CO2 emissions, efficiency factor, and recommendations. No heating bans exist currently, but gas phase-out and conversion costs are challenges. High costs hinder conversion despite technical feasibility, but market pressure may lead to new solutions due to the energy crisis.

Depending on the size and capacity of a rooftop photovoltaic (PV) system, approval or notification to the relevant authority might be necessary under the Construction Code of the property's federal state. This approval considers factors like zoning, building plans, and neighboring rights. The EU Solar Rooftops Initiative, as part of the REPowerEU plan, gradually mandates solar energy installations in various building types, starting with new public and commercial structures, later extending to residential ones. The legal obligation derives from the EU Energy Efficiency of Buildings Regulation and is implemented in Austrian state-specific Construction Codes. Upgrading PV systems in condominium buildings is facilitated under the 2022 amendment to the Condominium Act (WEG). For profit-oriented PV systems, Trade Act and Electricity Industry Act regulations may apply.

Installing electric vehicle (EV) charging points requires regulatory notification or approval, guided by the state's Construction Code. Location specifics and neighboring considerations affect approvals for new or enhanced properties. Similar to PV systems, the 2022 Condominium Act facilitates EV charging installations in condos. For individuals, notifying others of planned EV charging points gains consent if no objection arises. Shared systems require a majority vote. Profit-driven setups fall under the Trade Act, potentially needing licenses. Regulatory rules under the Electricity Industry and Organisation Act may also apply to EV charging points' operation.

Austrian public contracting authorities must incorporate ecological considerations when entering into construction contracts, as environmental justice is a fundamental principle of public procurement under Sec 20 para 5 of the Austrian federal procurement act. This principle applies universally to all contract types and values. Environmental justice is integral to contract terms, tenderer suitability assessment, and award criteria formulation. Breach of this principle leads to serious violations and can invalidate decisions or tender documents in review procedures. Tenderer suitability assessment may consider accreditation in environmental management systems like EMAS. Serious breaches of environmental regulations could lead to bidder exclusion under Sec 78 para 1 no 5. Award criteria may factor in environmental aspects if relevant to the contract's subject matter, particularly costs linked to environmental impact during the performance's life cycle under Sec 92 para 1 no 2.

The Corporate Sustainability Due Diligence Directive (CSDD) shall promote sustainability in business operations and basically mandates certain companies to conduct comprehensive due diligence within their supplier chain to identify, address, and mitigate certain environmental and social risks. Since the CSDD is currently still at the drafting stage, it does not trigger specific obligations for real estate investors in Austria. Other than, for instance, the German supply chain act (Lieferkettengesetz), the Austrian legislator has not implemented national laws that would precede the subject matters of the CSDD.

Austria enforces ESG reporting through the EU Non-Financial Reporting Directive (NFDD) in its commercial code (UGB). Reports include non-financial data per Austrian Financial Reporting and Auditing Committee Opinion 9, for example, non-financial indicators, environmental impacts, and social aspects.

Obligations cover:

• Publicly significant firms with limited duties.
• Large entities exceeding 2 of 3 thresholds: EUR 20m balance, EUR 40m revenue, or 250 avg. employees (limited duties).
• Large publicly significant firms with 500+ avg. employees (full obligations under NFRD).

The Corporate Sustainability Reporting Directive (CSRD) expands obligations, pending Austrian transposition since Jan 2023.

Real estate investors may require ESG-compliance reporting due to the EU Taxonomy Regulation. Real estate funds must also address the EU Regulation on Disclosures in the Financial Services Sector (EU 2019/2088) for "green" property project ESG criteria disclosure.

The Federal Disability Equality Act (BGStG) since 2006 aims for comprehensive accessibility to empower people with disabilities. Austria adopted UN Convention on Rights of Persons with Disabilities in 2007, resulting in ÖNORM B 1600 and B 1601 guidelines for barrier-free construction based on UN Convention and OIB Guideline 4. While building law is regulated by states, regulations demand new structures to be accessible, yet not for existing buildings. Accessible public buildings are mandated, while private housing lacks extensive requirements. Provinces' regulations vary, often referencing ÖNORM B 1600 and OIB Guideline 4. Financial support from federal states aids barrier-free implementation, addressing increased costs.