From sustainability strategy to reporting
The real estate industry has made significant progress in defining sustainability strategies over the past decade. Today, few portfolios are managed without consideration of climate risk, energy performance or broader sustainability factors. Yet as the market matures, a new challenge is coming into sharper focus: how to translate those ambitions into transparent, consistent and decision-useful reporting.
For Steve Goossens, Chair of the INREV Sustainability Committee and Senior Portfolio Manager at APG, this gap between strategy and reporting will define the industry’s next phase. Holding a dual role as both an investor and committee chair offers a clear vantage point on how sustainability data is evolving.
‘The two roles are highly complementary,’ he explains. ‘From an investor perspective, we increasingly need sustainability data and reporting frameworks to make better investment decisions, rather than purely focusing on disclosure. Through the committee, we actively shape industry initiatives to ensure they are anchored in practical, decision-relevant investor needs.’
At APG, that philosophy is embedded in the organisation’s structure. With a dedicated team of Real Estate Responsible Investment specialists, Steve is clear that sustainability is a core investment discipline and cannot be siloed. ‘We believe that all portfolio managers, including myself, should develop a strong understanding of ESG topics and sustainability risks. Effective integration requires that both perspectives come together.’
Historically, ESG reporting centred on backward-looking disclosures and benchmarking. Today, investors are placing greater emphasis on forward-looking insights that can directly inform portfolio construction, risk management and capital allocation .
In practice, this shift is already reshaping how sustainability data is used. Rather than relying on annual reporting cycles, investors are moving towards more frequent and structured data collection aligned with SDDS principles.
At APG, they’ve already made the important move towards quarterly sustainability data collection. More frequent data reporting cycles enables earlier identification of financially material portfolio risks, and more proactive engagement with managers on value preservation and asset level capital expenditure planning.
‘Effectively, we are further transitioning from reporting to active portfolio steering and capital allocation,’ he says. ‘ESG data is increasingly becoming part of the investment decision-making process itself.’
This is where standardisation begins to play a central role. Frameworks such as the INREV ESG SDDS address fragmentation by creating a common structure for collecting and sharing sustainability data.
‘The ESG SDDS has been particularly valuable in establishing a common market language,’ Steve notes. ‘At the same time, it allows for flexibility. Different investors can prioritise the data points most relevant to their own objectives.’
That balance between consistency and flexibility is essential. From an investor perspective, frameworks only deliver value if they can be implemented at scale across different markets, managers and underlying data systems.
Steve envisions further progress in how ESG data flows across platforms. ‘The industry should evolve towards a library of clearly defined metric methodologies,’ he says. ‘Data platforms should then be able to export data according to industry-agreed definitions, based on investors request. That would be more scalable and future-proof.’
Despite this progress, challenges across the industry remain. Adoption is uneven, and questions of data comparability and methodological consistency persist. At the same time, the market is still transitioning from a culture of disclosure to one of active risk management.
‘There has been strong progress in awareness and data availability,’ Steve observes. ‘But the shift towards forward-looking risk assessment is still evolving. Tools like CRREM are helping accelerate that, but there is more work to do in translating insights into investment decisions.’
This is where collaboration becomes essential. Industry bodies play a key role not only in developing frameworks, but also in facilitating alignment and supporting implementation through guidance and training.
Looking ahead, ESG data is expected to move well beyond its current role as a reporting requirement.
‘By 2028, ESG data should be a strategic tool for value creation, not just a reporting exercise,’ Steve says. ‘Investors should be able to dynamically assess transition risk, physical risk and portfolio alignment using frequently updated data.’
Achieving that vision will require continued progress in standardisation, interoperability and adoption. Frameworks such as the ESG SDDS are helping to build that foundation, but a shared commitment across investors, managers and service providers will be critical to translating sustainability strategies into meaningful transparency and enable better-informed investment decisions.
Learn more about the ESG SDDS and its capabilities, or contact professional.standards@inrev.org for any questions.
