Sustainability and ESG in commercial property valuation and strategic advice, 3rd Edition

Please note, this standard is currently being reviewed and updated. The Red Book Global Standards (effective 31 Jan 2025) is the overarching professional standard for valuation, which includes but is not limited to, mandatory ESG content at VPS1, VPS 4 and VPS6, and ESG guidance in relation to real property interests at VPGA8.

Please note, this was reissued in May 2023 as a professional standard. It was previously published as a guidance note. The regulatory requirements remain the same.

This global professional standard provides a practical framework for delivering on sustainability and ESG investigation, and reporting requirements in professional valuation advice.

Practical and globally relevant principles for the delivery of the sustainability and ESG requirements in the Red Book Global Standards.

• Good practice advice supporting everyday commercial valuation practice and its interface with ESG and sustainability.
• Alignment of ESG and sustainability considerations with the core mechanics of valuation (purpose, basis, approach).
• A glossary of globally relevant sustainability and ESG terms and an appendix referencing world-leading rating, benchmarking and performance frameworks and tools.
   

The updated guidance is part of a suite of professional standards for sustainable practices across the built and natural environment. For example, ICMS 3, for the comparison of cost and carbon in construction. And the Responsible Business Framework, which enables clients to build and communicate a responsible business strategy mitigating negative environmental and social impact.

It is an update to the guidance issued in 2013 and is intended for valuing commercial property. It is effective from 31 January 2022. It will be reviewed and updated periodically – reflecting pending developments in International Valuation Standards and the wider investment and regulatory framework globally.

Read more about how RICS is pioneering sustainable practices across the built and natural environment.