ULI, INREV, and PRI provide useful overview of ESG certifications and regulation

Dealing with ESG regulations and standards in the real estate industry is complex, especially when meeting specific investor requirements. Clarity is crucial for making progress in the real estate capital markets and combating climate change. ULI, INREV, and PRI are collaborating with PwC to map and compare global ESG regulations, standards, and certifications. They evaluate their environmental, social, and governance aspects. The first report is now available.

Globally, we face significant environmental and social challenges, such as climate change, biodiversity loss, water scarcity, and social inequality. The real estate sector plays a crucial role in addressing these issues, as buildings are responsible for almost 40% of global greenhouse gas emissions. Furthermore, the construction and real estate industry accounts for half of energy and resource consumption and a third of total water usage.

Over the past twenty years, sustainability in the sector has become increasingly important, with a focus on governance, environment, and social impact. In the absence of regulation and clear definitions, the sector developed its own frameworks, standards, and certifications, such as BREEAM, WELL, and GRESB. At the same time, regulations in different countries and regions have been tightened due to the global financial crisis and climate change.

Navigating the diverse mandatory regulations and voluntary standards has become complicated, especially with specific investor requirements. To make the real estate capital markets function effectively and sustainably and counteract climate change, more clarity is needed for investors.

ULI, INREV, and PRI aim to create a better overview of global ESG regulations, standards, and certifications with their joint project, and assess them on environmental, social, and governance aspects. This should help investors make well-informed decisions in the field of ESG.

Click here to download the ULI, INREV, and PRI report.

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