Reporting Principles
ESG Metrics for Real Estate - 29 January 2025
The reporting principles contained in this 'ESG Metrics for Real Estate' paper represent the views of a working group (‘Working Group’) of representatives from AREF and six other associations1 (‘Associations’)
Click here to read the paper or the blue button below:
The paper was originally drawn up in April 2022 (The original and other updates to the paper can be found below2) in response to a request from the FCA for input on best practice principles:
- to inform the development of real estate-specific metrics that enable consistent, transparent, and comparable reporting and disclosure for real estate portfolios and covering all real estate asset classes (committed via equity and/or debt); and
- that are aligned with International Sustainability Standards Board (ISSB) guidelines, the IFRS S2 Climate-related Disclosures and intended to supplement the IFRS S2 Industry-based Guidance on implementing Climate-related Disclosures Volume 37—Real Estate Services (pages 322- 326), and the FCA’s Policy Statement (PS 23/16) on FCA - Sustainability Disclosure Requirements (SDR) and investment labels.
The principles and real estate specific metrics aim to facilitate consistency of disclosures across the UK as well as internationally where the ISSB’s recommendations will apply. While the principles are aimed at supporting consistent reporting and disclosure by international asset managers, local supplements or simplified versions may be appropriate or needed for smaller organisations focussed on domestic markets. In the context of realising this aim, the Working Group looks forward to progressing their dialogue with the FCA and resolving a time frame for appropriate implementation, recognising that some metrics are implementable sooner than other metrics.
Organisations may not be able to report on all of these metrics from day one nor are these proposed as a set of criteria for the four sustainability investment labels under PS23/16. Therefore, the Working Group puts forward these principles and suggested metrics on the basis that they are not mandatory but voluntary metrics that provide investment and asset managers, and other industry stakeholders with freely available, material, and comparable real estate specific metrics that support consistent and transparent disclosure.
As policy - alongside technological advances and industry ambitions for ESG performance – evolves, ESG metrics for real estate will need to be updated.
The updated paper has been shared with the FCA and the IFRS Foundation
If you would like to contribute to the ongoing dialogue on ESG metrics for real estate, please contact [email protected].
1 Associations involved in drafting the ESG Metrics for Real Estate paper:
Association of Real Estate Funds (AREF)
British Property Federation (BPF)
Commercial Real Estate Finance Council Europe (CREFC Europe)
European Association for Investors in Non-Listed Real Estate (INREV)
Investment Property Forum (IPF)
Pensions for Purpose (PfP)
The Good Economy (TGE)
2 Previous versions of the ESG Metrics for Real Estate paper:
ESG Metrics for Real Estate - Proposals 12 January 2024
ESG Metrics for Real Estate - Proposals 13 January 2023
ESG Metrics for Real Estate - Proposals 13 April 2022
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