Library

A global survey based research paper that shows the importance of qualitative information such as environmental, social and governance (ESG) reporting to investors and other key stakeholders in their decision- making process. 

The last few years, corporations have started to report more non-financial information, including data on their environmental, social and governance (ESG) performance. The growing trend driven by regulation, market advantage or meeting the needs and concerns of key stakeholders is changing global business behavior. The survey was conducted amongst investors, analysts and portfolio managers. 

A number of these investors were interviewed to gain a deeper understanding of their answers. Key trends and drivers for the uptake of ESG information are identified in the paper. 

Most investors use this information when assessing investments. They mostly use the information provided directly by the company themselves, rather than relying on third parties, such as ratings agencies. However, they are having difficulties in meaningfully comparing data and drawing quantifiable links between non financial and financial performance. 

Two-thirds of the investors used different methods in evaluating their non-financial disclosures and only half of this group uses guidelines to make their assessments. Amongst those that never consider ESG information in their decision making process, the main reason for not utilizing it was that in their opinion it was not material. Investors also said that they mostly used non-financial performance as a good risk benchmark. Risks such as poor governance history or the lack of long term strategy, were considered to be more important as the others. 

Investors said that they interpreted the disclosure of non-financial  performance as a means by companies to improve their corporate reputation. 

As the ESG information is considered more and more important, there is also a request from the investors to get a level of accountability of the information, preferably through independent audit verification but also through approval by the board and shareholders.

This could enable for investors to weigh their portfolios according to all sustainability risks. Almost half of the investors mentioned that an unclear strategy could make them completely rule out a company from their investment decision. Also a history of poor governance was emphasized as especially important as a deal breaker.

For reporters, this survey not only shows that their investors care about their non-financial performance. It also indicates why, how and when they use this information.

The key recommendations that reporters can draw from the results of the survey include:

• Invest in reporting
• Report on and highlight what’s truly material to your business performance
• Keep abreast of international developments
• Act now, or be penalized
• Get your governance right

Prepared by EY

Since the financial crisis industry demand for information and reporting has only increased. Having more practical, relevant industry guidelines can only help to improve transparency and encourage standardised reporting in our sector.

This webinar, led by Henri Vuong, INREV Director of Research and Market Information provides insights into what’s on the industry’s minds for the coming 12 months.

In line with the revised INREV Guidelines, this one hour webinar will introduce the key building blocks to support best practice in the area of adjusted NAV calculation.

It will include a high level examination of using INREV Net Asset Value (NAV), including short explanation of the calculation examples.

The webinar will include the following topics:

• Understanding  INREV NAV
• Walking through a calculation example
• How to report on INREV NAV and the level of disclosure according to INREV Guidelins
• Q&A

The webinar will be led by Jef Holland partner at Deloitte.

The real estate sector is expected to see an influx of capital in 2015 with a total of €42.5 billion earmarked for investment in global real estate, with 45.1% of this heading towards Europe.

As the financial downturn has put an increased focus on transparent and consistent reporting to investors, this one hour practical online training introduces the key building blocks to support best practice in the area of adjusted NAV calculation.

The webinar includes the following topics:

• Understanding INREV NAV
• Walking each potential INREV adjustment
• How to report on INREV NAV and the level of disclosure
• Questions

The webinar was recorded by Vincenze Dede, Manager PWC Australia.

This study examines management fees and costs. There are two parts to the study: the European part and the global comparison.

Europe

INREV's Management Fees and Terms study provides an overview of the fees, costs and total expense ratios (TERs) of European non-listed real estate funds. This part has been conducted on a regular basis (but not annually) since 2007.

Global Comparison

The Management Fees and Terms Global Comparison Study compares the fees and costs and, where applicable, total expense ratios (TERs) of non-listed real estate funds in Europe, Asia Pacific and the US. This part has been conducted on a regular basis (but not annually) since 2007. The global comparison has been conducted since 2010.