Developing Green Building Neighbourhood Model: ESG Integration in Madrid Nuevo Norte

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Urban development is undergoing a profound transformation as cities strive to balance growth with sustainability. The concept of Green Building Neighbourhoods (GBNs), developed within PROBONO project, has emerged as a cornerstone for creating resilient, inclusive, and environmentally responsible urban spaces. Within this context, Madrid Living Lab located in Madrid Nuevo Norte, one of Europe’s most ambitious urban regeneration projects, serves as a living lab for integrating Environmental, Social and Governance (ESG) principles into neighbourhood-scale planning.

PROBONO partners, IDOM, MM, and SERCO, together with a post-graduate student from TU Berlin, are collaborating on a scientific paper that explores how to develop a GBN Target Model through a comparative ESG-based approach. This initiative reflects a shared commitment to advancing sustainable urban development through integrated strategies and innovative frameworks.

Why ESG Matters in Urban Development

The ESG framework has become a global benchmark for evaluating sustainability beyond environmental performance. ESG for cities is a framework that guides urban development toward sustainability, equity, and resilience. It ensures that environmental stewardship, social well-being, and transparent governance are embedded in the design, planning, and management of urban areas.

Environmental: aiming at reducing ecological impact and enhance resource efficiency. It integrates aspects such as: Green infrastructure (parks, urban forests, green roofs); Energy-efficient public buildings and street lighting; Low-emission public transport systems; Circular waste management and water reuse.
Social: promoting inclusivity, health, and cultural vitality. It focuses on dimensions like: Affordable housing integrated into mixed-use neighborhoods; Accessible public spaces for all ages and abilities; Community health centers and active mobility (bike lanes, walkable streets); Preservation of cultural heritage sites.
Governance: ensuring transparency, accountability, and resilience. It’s represented by participatory urban planning (citizen engagement platforms); Open data portals for city performance metrics; Long-term climate adaptation strategies

Applying ESG principles at the neighbourhood scale ensures that sustainability is not limited to individual buildings but embedded in the urban fabric, influencing mobility, infrastructure, and community life.

The Role of PROBONO

The collaboration stems from PROBONO task on GBN Integration Models & Transition Strategies, which focuses on defining integration models and transition strategies for GBN scenarios using Enterprise Architecture. These models aim to capture how innovations, ranging from smart energy systems to citizen engagement platforms, will be incorporated to meet stakeholder requirements and achieve project goals.

The scientific paper consolidates these efforts into a methodological framework that aligns technical innovation with ESG imperatives, ensuring that sustainability is systemic, measurable, and scalable.

Comparative ESG-Based Approach

A defining feature of this research is its comparative analysis of leading sustainability standards, which provides a structured foundation for integrating ESG principles into neighbourhood-scale planning. The standards assessed include:

LEED (Leadership in Energy and Environmental Design) – A globally recognised certification emphasising energy efficiency, water conservation, and indoor environmental quality.
BREEAM (Building Research Establishment Environmental Assessment Method) – A comprehensive framework that evaluates environmental performance across design, construction, and operation phases.
DGNB (German Sustainable Building Council) – A system that prioritises life-cycle assessment, resource efficiency, and socio-cultural factors.
ISO 37101 (Sustainable Development in Communities) – A management standard focused on resilience, governance, and community well-being.
UN Sustainable Development Goals (SDGs) – A global agenda that provides overarching targets for environmental protection, social equity, and economic prosperity.

By mapping these methodologies against ESG dimensions, the team creates a holistic evaluation matrix that identifies overlaps, gaps, and synergies.

Academic Synergy: Linking Research and Practice

This effort has been enriched through a unique synergy with the academic Master’s program from TU Berlin, Building Sustainability – Management Methods for Energy Efficiency MBA. Within this framework, Azadeh Rahmani developed her Master’s Thesis in collaboration with PROBONO, reinforcing the link between academic research and real-world application.

Such partnerships ensure that theoretical models are validated through practical scenarios, while academic insights inform policy and design decisions. This cross-pollination of ideas accelerates innovation and strengthens the knowledge base for sustainable urban development.

Regular meetings among PROBONO partners have enabled the exchange of insights and integration of diverse perspectives. Such processes are critical for addressing the complexity of urban ecosystems, where technological, social, and regulatory factors intersect.

Deliverable 1.10a: A Strategic Milestone

The outcomes of this collaboration have been consolidated into Deliverable 1.10a: GBN Integration Strategies and Transition Models (I). This document provides foundational guidance for future strategies on migration and embedding of Target Models, while mapping potential challenges and enablers.Deliverable 1.10a emphasises that GBN integration requires strategic planning, informed by data-driven insights and participatory governance.

It defines a GBN Target Model as a blueprint or reference framework that describes how a neighbourhood composed of green buildings should be planned, integrated, and operated to achieve sustainability goals. It acts as the ideal future state that stakeholders aim to reach when transitioning existing areas into fully functioning Green Building Neighbourhoods. The paper contributes to the characterisation of a GBN target model considering global frameworks and standards within the described ESG framework.

Madrid Living Lab

The PROBONO Madrid Living Lab is a part of the Madrid Nuevo Norte, a large-scale testbed for sustainable urban regeneration. It aims to create a Green Building Neighbourhood with zero-carbon emissions and positive energy balance, showcasing geothermal energy as a benchmark. Key actions include geothermal district heating and cooling network, eco-friendly construction materials, BIM and digital twins, second-life battery reuse, air quality monitoring, citizen engagement, zero-emission prototypes, and policy innovation. Together, these initiatives support scalable, people-centric, and climate-neutral urban transformation, positioning Madrid as a leader in sustainable design and rehabilitation.

Conclusion

The development of a Green Building Neighbourhood Target Model through ESG integration is not merely a technical exercise, it is a paradigm shift in how cities are conceived, designed, and managed. By leveraging comparative standards and fostering academic-industry collaboration, PROBONO and its partners are charting a path toward connected, sustainable neighbourhoods.

As urbanisation accelerates, such models will be indispensable for ensuring that growth is inclusive and resilient. Madrid Nuevo Living Lab stands as a testament to what is possible when vision, innovation, and collaboration converge.