Our latest White Paper on Aligning Real Estate Sustainability Indicators (ARESI) aims to address existing ambiguities in real estate Key Performance Indicators (KPIs) within the European legislative framework, in order to unlock investment and drive decarbonisation of real estate.
The global transition to net zero requires an estimated $6 trillion in climate finance annually through 2030 – yet only $1 trillion is currently available. To bridge this gap, private finance must scale rapidly, supported by clear, consistent sustainability disclosures that enable efficient capital allocation and informed decision-making.
However, the real estate sector faces challenges due to fragmented reporting standards and ambiguous regulatory requirements, which create barriers to investment and slow progress toward climate goals.
The ARESI Industry White Paper addresses these challenges by proposing interim solutions to harmonise sustainability indicators across the real estate market. Historically, performance reporting has been voluntary and market-driven, with frameworks like GRESB and INREV’s ESG Standard Data Delivery Sheet (SDDS) providing guidance.
Recent mandatory regulations such as the EU Taxonomy and UK Sustainability Disclosure Requirements (SDR) have introduced additional complexity, increasing reporting burdens and creating uncertainty for investors.
In response, the ARESI Working Group brings together leading industry organisations, including IIGCC, AREF, INREV, EPRA, RICS, and others, to align assumptions and methodologies without creating new standards or further fragmenting the market. The group’s objectives include:
- Providing a neutral forum for industry alignment on sustainability investment indicators.
- Developing temporary solutions to address ambiguities while advocating for long-term legislative integration.
- Promoting consistent calculation and disclosure to reduce reporting burdens and enhance investor confidence.
The initial focus is on climate change transition indicators, with future work potentially expanding to other impact reporting categories. By leveraging existing resources and legislation, the ARESI White Paper offers actionable insights to unlock sustainable finance and accelerate real estate’s role in achieving net zero ambitions.