Non-financial reporting has evolved rapidly in the last few years. But how will the recent changes affect the real estate sector? This report looks at major developments in non-financial and sustainability reporting and their implications for the property sector.
As reporting is becoming more specialised and the move towards mandatory disclosure is gaining pace, the rise of multiple non-financial reporting frameworks presents challenges to the property sector. In this publication, we look at four frameworks in depth outlining the relevance and role of each one – the Global Reporting Initiative, the International Framework, the European Directive on the Disclosure of Non-financial and Diversity Information by Large Companies and Groups, and the first set of provisional standards published by the Sustainability Accounting Standards Board in the US.
As in most sectors, real estate companies tend to focus on environmental impacts, with less disclosure on social implications. Strong reporting standards will provide firms with a reputational boost, and a better basis for future mandatory reporting requirements.
The report concludes by providing a short ‘instruction manual’ to guide firms through the reporting landscape. Several fundamental ingredients are required for successful reporting: the selection of a relevant reporting standard; a focus on materiality; knowledge of the audience; a strong link between sustainability and business strategy; a clear direction; and a focus on context, completeness and credibility.
Report is from December 2014