The IVSC has recently published a Perspectives Paper: ESG and Real Estate Valuation as the third in a series designed to initiate discussion and debate on the topic of ESG.

Specifically, this paper focuses on environmental factors that relate to real estate valuations, an example of which is sustainability – one of many subcomponents of the E in ESG.

Environmental, Social, and Governance (ESG) are criteria increasingly used to assess the impact of the environmental, social and ethical practices of companies on their operations, financial performance and attractiveness to investors. The three components; Environmental, Social and Governance which are metrics considered to evidence effective performance, reach beyond the individual organization out to the wider markets, society and world as a whole.

While it is very frequent to have ESG criteria assessed and measured from a company’s perspective, they should also be considered from a tangible asset’s perspective as the ESG principles affect not only the behaviour of owners and operators of assets but also other matters related to the physical properties themselves, such as energy efficiency.

To access the IVS ESG paper, click here.

IVS ESG Member Feedback 

Members are encouraged to review the Perspectives paper and provide a response directly to the IVSC by emailing the IVSC Tangible Assets Board at [email protected]. 

Should any Members wish to provide a response directly to the API in relation to the paper please contact the standards team on [email protected].