Climate & Resource Efficiency
Energy Efficiency and emission reduction.
Buildings are central to the climate transition. We reduce emissions by improving energy performance, optimising heating systems, replacing fossil-based heating, and prioritising investments with the greatest climate impact.
In 2025, we improved energy performance in 32,178 units and reduced weather-corrected energy intensity to 148 kWh/m².
These actions contributed to a 14.2% emissions reduction compared with our recalculated 2020 baseline, keeping us on track towards our SBTi-aligned 2030 climate target.
Paris 1.5°C
Our climate transition plan is guided by validated Science- Based Targets initiative targets and aligned with the Paris Agreement’s 1.5°C pathway.
EU Taxonomy reporting helps show how our capital supports energy-efficient buildings and retrofit activity.
In 2025, 22% of turnover, 18% of capex, and 4% of opex were taxonomy-aligned. Our green assets totalled SEK 75.9 billion.
This reflects our continued focus on directing capital towards more sustainable, resilient, and energy-efficient residential assets.
Energy performance certificates help us track the energy performance of our portfolio and identify where improvements are needed most.
In 2025, 5,425 units improved their EPC label, and 2,002 units moved from EPC E or worse to D or better. EPC A assets increased to 11% of the portfolio.
Improving EPC performance supports our climate targets, strengthens the quality of our assets, and helps prepare the portfolio for future regulatory requirements.
Water is part of our broader work on resource efficiency and climate resilience.
In 2025, total building water intensity improved to 0.90 m³ per sqm per year, around 31% below the 2019 baseline. This progress was supported by smart metering, leak detection, and more efficient fixtures.
We continue to focus on practical measures that reduce water use, improve building performance, and support more resilient homes.
We assess climate-related risks across our portfolio to understand how changing regulation, energy systems, and physical climate risks may affect our buildings over time.
Our main transition risks relate to fossil-fuel dependency and regulatory requirements. These risks are reflected in our sustainability strategy and investment priorities.
Since 2020, more than 40% of oil-heated units across the total portfolio have been phased out. At year-end 2025, 593 units with central oil heating remained, all located in Germany.
We also assess physical climate risks, including flooding and heat, across multiple data sources, scenarios, and time horizons. The results help guide maintenance and adaptation measures such as improved stormwater systems, green roofs, and passive-cooling solutions.
Our climate-risk assessment is aligned with TCFD recommendations and ESRS requirements. Updating this assessment is a key project for 2026.
Related case study: Germany oil-to-heat-pump transition
We are increasing the share of certified green buildings in our portfolio.
Green building certifications support consistent standards for energy performance, resource efficiency, and climate resilience. Green financing also helps direct capital towards more sustainable assets and improvement projects.
From 2026, all new buildings must achieve a recognised green certification.
Related case study: Green building certifications
Our case studies show how sustainability targets are translated into practical action across our portfolio.
Germany oil-to-heat-pump transition
We are replacing central oil heating with heat-pump solutions as part of our heating-system transition programme.
The project supports our climate transition plan, which targets a 42% absolute reduction in Scope 1, Scope 2, and Scope 3 Category 13 emissions by 2030 from a recalculated 2020 baseline, and net zero by 2050.
In 2025, 811 units in Germany and Denmark were transitioned from central oil or natural-gas heating to heat-pump solutions. At year-end, 593 centrally oil-heated units remained, all in Germany, with transition planned for 2026–2027.
This work helps reduce fossil-fuel dependency, improve portfolio resilience, and turn long-term climate targets into building-level action.
