Glossary

The term Brown Discount refers to the value reduction experienced by buildings with poor energy performance, insufficient ESG performance, or a lack of technical modernization. The main causes are increasing regulatory requirements, higher operating and CO₂ costs, and the growing risk of failing to meet climate targets by 2050. In contrast to the Green Premium, the Brown Discount results in lower rents, reduced sales prices, and higher investment risks, especially when buildings become stranded assets.

For the building sector, the Brown Discount underscores the urgent need for decarbonization and digitalization. As energy prices, CO₂ pricing, and sustainability requirements continue to rise, the economic pressure on inefficient existing buildings increases, leading to higher operating costs, greater vacancy risks, and declining attractiveness for investors and occupants.

aedifion helps systematically prevent Brown Discount in commercial buildings by identifying efficiency potential during ongoing operations, reducing energy and CO₂ costs, providing data for reporting, and enabling digital, intelligent building operation. This helps mitigate negative value developments, strategically plan retrofit investments, and prepare buildings for future regulatory requirements.