KPMG & EPRA study on the non-financial performance of LRE companies in Europe

By Yamini Dadwal, ESG Associate EPRA

In a recent study by KPMG & EPRA, the non-financial performance of listed real estate companies across Europe was analyzed, shedding light on their environmental, social, and governance (ESG) practices. The study, based on EPRA members' indicators, delved into the challenges and European regulations related to ESG reporting and sustainability in the real estate sector.

STUDY AVAILABLE HERE

The analysis focused on key indicators such as energy intensity, water intensity, and greenhouse gas (GHG) intensity, providing insights into the best-performing companies in these areas. Notably, the study refined performance measures by property sector, allowing for a more precise analysis of non-financial performance within each sector.

Trends in energy and water intensity, as well as GHG emissions, were examined across various property sectors including office, retail, residential, industrial, healthcare, self-storage, and lodging/resorts. The statistics demonstrated changes in energy consumption and environmental impact evolved over 3 years, emphasizing the effects of COVID-19 and initiatives taken to improve sustainability in the Real estate industry.

The report also delved into the environmental measures implemented to improve energy, water, and GHG intensity in the real estate sector. It covered a range of topics including strategy and governance, reduction and optimization, involvement of key stakeholders, circular economy, energy efficiency restoration, and the impact of energy renovation on performance and energy intensity.

Furthermore, the study discussed European standards and regulations related to the construction, renovation, and ownership of buildings, emphasizing the importance of compliance with current and anticipated regulations, stakeholder engagement, transparent reporting, and continual improvement in corporate social responsibility (CSR) practices.

Overall, the study offers a comprehensive understanding of the ESG transition within the listed real estate sector, reflecting the efforts undertaken and a clear positive trend towards improved non-financial performance.

As the real estate sector continues to navigate the evolving landscape of ESG reporting and sustainability, this study serves as a valuable resource for investors, industry professionals, and policymakers seeking to understand and enhance non-financial performance in the real estate market.