Sustainable development in uncertain times. An interview with Eyel Keltsh, CEO of ROBYG and Vantage Development
ROBYG, as one of the largest real estate developers in Poland, manages complex residential projects – from identifying potential investments, to developing them, to completing them. The company develops apartments for sale and, as part of the TAG Immobilien AG group, builds long-term rental projects managed by Vantage Development.
Recent years have been a time of intense change – political, economic, regulatory. How can a company in the construction industry navigate this?
Stability in today’s world is not a state that is simply achieved – rather, it is a process of constant adaptation. For us, one of the key elements in building this stability – both internally, organizationally and in the eyes of the market – for years has been sustainability. Approaching the environment and managing projects in a way that takes into account not only the bottom line, but also the growing risks, quality of processes and impact of investments is at the core of our growth strategy. We have been voluntarily reporting on sustainability for 4 years now. I am convinced that transparency and accountability create lasting value in the market.
You mentioned reporting – as of January, the revised Accounting Law, which implements the Corporate Sustainability Reporting Directive, went into effect, and the Omnibus was already announced in February. Do you still intend to continue reporting? How are you coping with the volatility?
In line with our approach so far, ahead of regulatory obligations, we are also reporting this year on a voluntary and consolidated basis, i.e. at TAG Group level, in accordance with the European Sustainability Reporting Standards (ESRS). This is demanding, but needed in the eyes of the market – investors, financial institutions, partners and customers, as evidenced by the acquisition of €100 million in financing from the European Bank for Reconstruction and Development. Such an outcome requires not only organizational maturity, but also strategic consistency and real commitment on all levels – from operational teams to the board of directors. All the more so because our processes have been attested.
This sends a clear signal to investors and stakeholders: we are developing in a responsible, transparent and long-term manner. With the local market in mind, we are also preparing abbreviated versions of ESG reports for ROBYG and Vantage Development – in Polish. Therefore, even if the “stop the clock” directive, postponing the reporting deadline by 2 years, comes into effect before the end of the year, reporting by ROBYG and Vantage at the consolidated level will remain the practice.
Reporting is one thing, but does it entail real change?
For us, reporting is just a tool – not an end in itself. The most important thing is concrete actions. That’s why this year we are launching two pilot projects of construction for rent, which will be fully compliant with the EU Taxonomy (construction of new buildings). This is a very challenging undertaking – especially in the housing industry, where many of the costs and risks are on the investor’s side, and there are not yet many good practices or standards. Many taxonomic conditions do not have precise interpretations, and some will be subject to change. We realize that the market is moving toward an energy transition. And we are already prioritizing the construction of residential buildings that use less energy, which translates into lower operating costs and a smaller carbon footprint. For customers, it’s security and comfort, and for the environment, it’s a step toward climate neutrality.
Is sustainability in the construction industry today solely a matter of internal regulations and company strategies? Are there other factors emerging that affirm the course of action you have adopted?
We are definitely seeing a growing need and willingness to work with local governments – especially in the context of climate change. Increasingly, the activities of companies and cities are beginning to overlap – and that’s a good thing, because the challenges of climate change are shared. The mandatory development, implementation and monitoring of climate change adaptation strategies for large cities starting in 2025 entails the involvement of various stakeholder groups – including business. This opens up space for dialogue and the development of solutions that are coherent and implementable in practice. For example cities such as Wroclaw and Warsaw are participating in the NetZeroCities project. ROBYG and Vantage have joined the Neutral Cities Mission in Wroclaw. In turn, together with representatives of Warsaw, we piloted the “Building Mosaic” training course, based on the world-famous Climate Mosaic, focusing on the specifics of the construction sector. The common goal of cities and real estate developers is to increase the adaptive capacity of cities in the face of climate risks – and if we can build lasting cooperation around this goal, we have a chance for investment processes to also gain efficiency and predictability. This would be an important step – not only for the sector, but most importantly for the quality of the urban space we all use.
It would seem that implementing such changes requires not only technology and strategy, but most of all people…
Definitely. Change would not be possible without our people – they are our greatest asset and a source of pride. For a year now, there has been an Interdisciplinary ESG Team in our company – all departments are represented, from investments to HR, from sales, leasing and marketing to law or IT. This team is a real structure, responsible for the implementation and monitoring of strategies, synergy of activities, recommendations and implementation of changes. As a result, ESG is not assigned to one person or department – it is the responsibility of the entire organization. And importantly – it works. We see tremendous commitment, initiative and agility.
What competencies of leaders and teams do you consider key today, in terms of implementing sustainable development?
To me, three things that are the most important: the ability to think strategically, resilience to the volatility of the environment, and the ability to operate in an environment of incomplete information. Sustainability is not a project “to-be-implemented”, but a process that permeates all areas of operations – from investment planning to construction, digital technologies to stakeholder communication. We need people who are able to combine environmental, economic and operational threads, and at the same time do not lose the sense of business operation, implemented with the growing regulatory requirements in mind. In present situation, it is analytical, strategic and organizational competencies – embedded in a real business context – that are key. Consistency is also of utmost importance – because actions for sustainable development require determination, especially since the effects are not immediate. And one more thing: in this subject, no one knows everything. That’s why it’s equally important to be open to cooperation and learning from others – including those outside your own industry or generation. Indeed, we have the advantage that the ROBYG team is very stable – nearly 40% of employees and associates have been with us for more than 5 years, including 43% of those with more than 10 years of seniority with ROBYG. That’s experience and continuity that really make a difference, especially on projects that require patience, responsibility and long-term thinking.
You mentioned a stable team, competencies and adaptability as internal advantages. What does this look like on an industry-wide level? With such complex challenges, is there room for ESG cooperation – including between companies that compete on a daily basis?
Definitely yes. In the area of ESG – and more broadly, responsible business conduct – individual action is limited. In addition, with ever-changing regulations and a lack of binding interpretations, many challenges are systemic. This is why a common stance and exchange of experience are so important today. ROBYG, as a member of the Polish ESG Association, actively participates in the work of the Energy Transition Working Group – we share good practices, look for new solutions to support decarbonization. What’s more, our Head of ESG coordinates the activities of the Working Group dedicated to the real estate development and construction industry. We have also joined PLGBC – the Polish Green Building Council – and have a long-standing relationship with the Executive Club and the Polish Association of Real Estate Developers. Personally, I think that being a leader is not only about setting the direction, but also about building relationships and working together – including with competitors, even more so in areas with common goals, such as energy transition or climate neutrality.
What do you think ESG development is going to look like in the industry?
It’s an interesting moment of verification – which actors in the market actually treat it as a value that takes years to build. For investors, in turn – whether ESG risks will determine their decisions. In my opinion, taxonomy targets will set the direction not only in new construction, but also in revitalization and property portfolio management. In such a rapidly changing environment, it is crucial not only to be responsive, but above all to be able to stay ahead of trends.
How does ROBYG’s and Vantage’s activity play into broader European and global trends in the real estate industry
I think we are exactly where the industry’s center of gravity is shifting today – both in Europe and globally. First, there is an increasing focus on energy efficiency, decarbonization, digitalization and climate resilience of buildings – and these are the areas we are focusing on. Pilot projects in line with the EU Taxonomy are just the beginning – we are building competencies to scale this direction.
Second, there is a clear trend toward institutional rentals as a response to changing housing needs and lifestyles in cities. Within TAG Group, we are developing the rental segment based on a long-term approach and project quality. Third, there is more and more talk about the responsibility of companies to shape urban space – not only in terms of urban planning, but also in terms of accessibility to services, mobility and living comfort. Our investments are responding to these expectations – and not just in theory, but in everyday design practice.
From this perspective, the actions of ROBYG and Vantage are part of a larger shift in the way we think about real estate in Europe.
Which ESG areas do you consider to be the most underappreciated, and which ones do you think will grow in importance in the coming years?
The focus is still on environmental indicators – understandably so, as they are the most heavily regulated and easily measured. On the other hand, in my opinion, too little is said about the social dimension of ESG, understood not only as relations with the environment, but primarily as the organization’s ability to operate in conditions of instability.
In this sense, the underestimated “S” today is, among other things, structural flexibility, continuity of competence, the ability to maintain efficiency despite changing conditions. Companies that can react quickly, adapt to new regulations, identify dependencies and risks – will be in a better competitive position in the coming years. All the more so as customer expectations are predicted to continue to rise, paying attention to utility costs or energy efficiency of buildings in addition to location and price. This trend can only strengthen – especially if the market sees more mortgages on significantly more favorable terms for apartments with lower energy demand (EP). This would be a real boost for both customers and the industry as a whole.
Therefore, I believe that an area that will become increasingly important is risk management – integrated, interdisciplinary, and constantly updated. In this view, ESG becomes a viable tool to support decision-making in a changing environment.
So – ESG as a risk-management tool?
That’s exactly right. It’s a toolkit that helps you run your business better in difficult times. It facilitates dialogue with investors, reduces the cost of wrong decisions, increases predictability. Of course, it won’t solve all the problems, but it certainly allows you to make more informed decisions.
Eyal Keltsh – Alumnus of the Faculty of Economics and Accounting at Haifa University. Has more than 25 years of experience in the real estate development market in Central and Eastern Europe. From 1994 to 2008 – a director of a number of Kardan Investment Group companies. Since 2000 – a director of Nanette Real Estate Group. In May 2009 – appointed as a member of the board of directors at ROBYG S.A. In 2022 – assumed the position of Chairman of the Board (CEO) of ROBYG Group and Vantage Development – as part of building synergies in TAG Immobilien Group.
Last Updated on May 29, 2025 by Anastazja Lach