Over the past several years, considerable attention has been given to environmental, social and governance (ESG) criteria. This trend has been accelerated by the recent regulations, the sanitary crisis and the growing expectations of investors on ESG topics.
The World Economic Forum has mapped the global risks in its Global Risks Report 2021, and it is clearly established that the environmental risks account for most of the dominant global risk factor in terms of both likelihood and impact, hence today’s strong focus on the “E” as in ESG. Moreover, in the KPMG CEO Outlook 2021, CEOs of major organizations ranked the environmental and climate change risk as a major threat.
The Real Estate industry is well aware of the role they have to play and the challenges ahead in regards to the EU Green deal and the Paris Agreement.
In this context, real estate companies have already performed a tremendous job of defining and measuring the relevant indicators in order to implement a suitable action plan and adjust their internal processes at each level of the value chain accordingly.
Through the EPRA “Best Practices Recommendations on Sustainability Reporting”, the REITs were able to structure and characterize their non-financial reporting and for that reason, their KPIs have been aligned for the past 10 years.
This report is only the first of many, and that it will constitute a reference point towards a better understanding of the listed real estate sector’s commitment to sustainability reporting.
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