RICS Draft Guidance Note: Sustainability and ESG in commercial property valuation and strategic advice, 3rd edition

Sustainability and ESG in commercial property valuation and strategic advice 3rd ed

Appendix A List of international sustainability/ESG rating, benchmarking and measurement schemes

This list is not exhaustive and contains details of schemes correct at the date of publication. It is a list of international schemes and does not refer to details of country specific items.

Inclusion in this list is not an RICS endorsement. RICS does not accept any responsibility, duty or liability to any party in respect of the contents of this appendix. Any such responsibility, duty or liability is expressly disclaimed.

Standard

Summary

Building Research Establishment Environmental Assessment Method (BREEAM)

A third-party certification system assessing an asset's environmental, social and economic sustainability performance, using a set of standards developed by the Building Research Establishment (BRE).

Dow Jones Sustainability Indices (DJSI)

A 'family' of indices evaluating the sustainability performance of thousands of publicly traded companies globally.

Global Real Estate Sustainability Benchmark (GRESB)

An ESG benchmarking system for real assets. Collected data is also used to create and present ESG analytics.

EU Taxonomy

A range of regulations, standards and initiatives applicable in the European Union, including the Sustainable Finance Disclosure Regulation (SFDR) and Corporate Sustainability Reporting Directive (CSRD).

FTSE4Good

A series of indices measuring the performance of companies demonstrating strong environmental, social and governance in a number of territories globally.

Leadership in Energy and Environmental Design (LEED)

A building certification and rating system stated to provide 'independent verification of a building or neighbourhood's green features, allowing for the design, construction, operations and maintenance of resource-efficient, high-performing, healthy, cost-effective buildings'.

MSCI ESG Rating

A rating system designed to measure a company's resilience to long-term, industry material environmental, social and governance (ESG) risks. It is based on company responses and external data. Note this is not specifically in respect of real estate assets.

Standard and Poor (S&P) Global - ESG Scores

A scoring system designed to analyse performance against ESG criteria. It is based on company responses and external data. Note this is not specifically in respect of real estate assets.

Taskforce for climate related financial disclosures (TCFD)

A series of disclosure recommendations (including in respect of financial reporting) to support companies in providing better information around climate-related issues.

The disclosure recommendations are structured around four interlinking areas: governance, strategy, risk management, and metrics and targets.