Case study: developer Trikaya prepares for compliance with the EU Taxonomy and ESRS reporting

In real estate, long-term cooperation pays off, thanks to which we at Frank Bold Advisory are able to penetrate the client's needs and at the same time have an overview of their projects. Solutions are then faster and more effective. One example is our cooperation with the developer Trikaya, with whom we worked on other ESG issues in addition to assessing compliance with the EU Taxonomy.

Trikaya Real Estate Group brings together companies involved in the construction and investment in real estate in the Czech Republic and has long been one of the so-called green developers. The motivation for the ESG solution is therefore not only to improve the company's position in attracting more profitable investments, but also to strengthen its position as a green developer on the market.

How collaboration works

At Frank Bold Advisory, we provide clients with a full range of ESG services from initial training, to dual materiality processing, to regulatory reporting. Based on our experience with a range of clients, we know what is material in the real estate sector and so we practice based on proven sector practices and benchmarks.

Three key themes for Trikaya

1. How to get better funding by complying with the EU Taxonomy

Trikaya has long sought to not only contribute to greater environmental protection and mitigation of the negative impacts of construction through superior sustainability projects, but also sees this as a way to achieve more favorable financing. 

Therefore, in spring 2024, we prepared a report for the client's bank to assess compliance with the EU Taxonomy, which was a follow-up to the preliminary assessment of compliance with the EU Taxonomy in 2022. In this report, based on input from the client, we assessed how significantly the client's Čtvrť Pod Hády project contributes to climate change mitigation or adaptation.

In the summer of 2024, the client received a draft framework for a green bond from us according to the Green Bond Principles. This is to be used to issue a green bond that will enable Trikaya to partially finance the implementation of the Čtvrť Pod Hády project.

2. Setting ESG strategy according to the best practices in the sector, taking into account the EU Taxonomy

Already in the summer of 2023, we prepared a draft internal ESG strategy for Trikaya, which defines the main objectives and what topics need to be addressed in the near future. The strategy focuses on key topics for the real estate sector and is based on the revision of the Energy Performance of Buildings Directive (EPBD) or the EU Taxonomy criteria, in addition to sector initiatives such as the World Green Building Council (WGBC).

Following the ESG strategy, the next step was to create an Implementation Roadmap for comprehensive ESG reporting according to ESRS for the client, in which we practically described what issues should be prioritized and how to proceed over time.

3. Preparation of ESG reporting in accordance with ESRB standards

Although the ESRS report will not be mandatory for Trikaya Group in the foreseeable future, its early preparation is a way to gain a competitive edge and a real boost to its status as a green developer. We have therefore prepared a report for Trikaya taking into account the then current draft ESRS standards. The client can now provide it to its financial and business partners. The report includes a Scope 1 and 2 carbon footprint calculation, and a challenging Scope 3 calculation, among others.

We have also previously helped the client to prepare basic contractual terms and conditions for suppliers so that he could regularly obtain the necessary data from them in the future about the materials used on the site.

Get ahead with ESG reporting

We help companies set up an ESG strategy and prepare ESG reporting in accordance with the new European legislation, thus obtaining key data for their clients, business partners and financial institutions.