It is with genuine pride that I share today our involvement in the development of the ESG criteria for real estate valuations by RICS. This collaboration has not only given me personally the opportunity to make my voice heard in Europe, but also highlights our collective commitment to sustainability and professionalism within Savills.

Our contribution>/h2>

As head of the Valuation department at Savills in the Netherlands, I had the honour of participating in the RICS Leader Forum, which was responsible for compiling the ESG Data List. Bringing together the key valuation drivers was a challenging task. Together with other stakeholders, we managed to identify a set of 12 core indicators, making it possible to embed ESG requirements in valuations. With the introduction of the ESG Data List, there is now a recognised European tool for valuing real estate. This development marks an important step forward in integrating sustainability factors into property valuation.

International differences

Interestingly, there are big differences between countries when it comes to the adoption of ESG criteria. In the Netherlands, we are already further along with the very recent creation of the Sustainability Paragraph 2.0, which brings together as many as 80 indicators. We are even already developing the 3.0 version, where Paris Proof will become the norm. In other countries, they have a different pace. This diversity highlights the importance of international cooperation and knowledge sharing.

The practical approach

It is important to realise that sustainability is not only about labels and certifications, but also about practical aspects such as energy consumption and CO₂ emissions. Only actual energy consumption is directly linked to CO₂ emissions, allowing us to make concrete estimates towards a Net Zero future in 2050.

Impact on value

As appraisers, we are often asked how sustainability investments affect the value of a property. Necessary investments do not always increase value, but are essential to bring the property in line with regulations and future requirements. The realisation that sustainability is not only a moral responsibility, but also a long-term economic necessity, is crucial.

Future prospects

It is encouraging to see that junior valuers are already being trained with an awareness of sustainability. At Savills, we have a multidisciplinary team with leaders in this field. Integrating ESG into valuations requires forward-looking valuers who dare to look not only in the rear-view mirror, but also ahead. A 10-year consideration period is the norm in valuations, but why not look at least to 2050?

Climate label

With all the attention on the Sustainability Paragraph, the discussion for a climate label for real estate is now also gaining momentum. We will now explore how these labels can be implemented without compromising the complexity of sustainability factors. I advocate joining existing frameworks, such as the DGBC Framework for Climate Adaptive Buildings, to ensure a uniform approach.

This is just the beginning

The introduction of the ESG Data List is an important step forward, but this is only the beginning of our journey towards a more sustainable European real estate sector. We remain committed to further collaboration and innovation to continue making a positive impact.