New study to help real estate negotiate ESG regulations and standards
A new study has mapped out global ESG regulations and reporting standards for real estate.
Mapping ESG: A Landscape Review of Certifications, Reporting Frameworks and Practices was led by the European Association for Investors in Non-Listed Real Estate Vehicles (INREV), the Principles for Responsible Investment (PRI) and the Urban Land Institute (ULI), and carried out by PwC with the support of a range of experts from leading real estate fund managers and investors.
The report is intended to provide the industry with a practical guide to navigating the myriad of ESG regulations, standards and certifications around the world.
PRI real estate specialist, Hani Legris said: “No single reporting standard, framework or certificate can cover all the wide-ranging regulatory and stakeholder requirements when it comes to ESG in real estate. Real estate investors face a dizzying array of options and obligations. Whilst the “right” choices will depend on the organisation’s ESG strategy and the jurisdictions they operate in, this report provides essential information to inform the process and is supplemented with case studies, which really helps to bring these topics to life.”
ULI Europe CEO Lisette van Doorn added: “We know that the variety of standards and regulations is bewildering, but it is possible to cut through the noise and accelerate real estate’s progress to net zero. Each organisation needs to choose the standards and metrics appropriate to their ESG strategy and their stakeholders. With this approach, there might well be an opportunity to reduce the ESG reporting burden.”
The report flags new challenges from regulations which are not harmonised and coordinated but which affect the entire industry. This lack of harmonisation and partly undefined legal terms pose a major challenge.
It also provides a number of case studies as well as a set of self-assessment questions to produce greater awareness of the core issues and areas that are anchored in the company’s ESG strategy.
The 14 standards mapped by the report, including ten with metrics specific to real estate, cover the EU, UK, USA, Canada, Hong Kong, Singapore, Japan and Australia.
The report can be downloaded here.