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John Ravoisin, Chair of the Reporting Committee and Partner at PwC explains the importance of reporting in today’s market, and talks about how the committee aims to create guidelines that will shape best practice for the industry in the future.

The INREV Annual Conference was held in Berlin on 4 and 5 April 2017 under the theme 'Navigating uncertainty: Managing political risk and technological upheaval'. View the highlights from the Annual Conference Berlin 2017

The Capital Raising Survey is a backward-looking analysis of recent capital raising activities by region, investment strategy, style, structure and other factors. This survey has been conducted annually since 2006. Since 2015, the survey has been global in scope, thanks to the involvement of ANREV and NCREIF.

One of the essential functions of financial markets is to price risk to support informed, efficient capital-allocation decisions and it is increasingly important to also understand the governance and risk management context in which financial results are achieved. One of the most significant, and perhaps most misunderstood, risks that organisations face today relates to climate change. While it is widely recognised that continued emission of greenhouse gases will cause further warming of the planet which could lead to damaging economic and social consequences, the exact timing and severity of physical effects are difficult to estimate. The large-scale and long-term nature of the problem makes it uniquely challenging, especially in the context of economic decision making.

To help identify the information needed by investors to appropriately assess and price climate related risks and opportunities, the Financial Stability Board recommends for consistent, comparable, reliable, clear and efficient climate related disclosures. The framework considers the impact of climate change on the following four elements: (1) governance, (2) strategy, (3) risk management and (4) metrics and targets. 

The Task Force on Climate-related Financial Disclosures (TCFD) was established to consider the financial stability risks associated with climate change. One of the most effective ways for addressing the financial stability risks that might emerge from climate change are effective disclosures to ensure that climate-related risks are effectively understood by financial markets. Effective disclosure of climate-related financial risks will help to avoid an abrupt repricing of risk and therefore will reduce risks to financial stability. The Task Force developed four widely adoptable recommendations on climate- related financial disclosures that are applicable to organisations across sectors and jurisdictions. Importantly, the Task Force’s recommendations apply to the financial sector, including banks, insurance companies, asset managers, and asset owners. Large asset owners and asset managers sit at the top of the investment chain and, therefore, have an important role to play in influencing the organisations in which they invest to provide better climate- related financial disclosures.

Prepared by the Task Force on Climate related Financial Disclosures

On 16 March 2017, INREV filed a response to the European Commission’s mid-term review consultation on the implementation of the CMU Action Plan. INREV welcomed efforts to increase long-term investment in the European economy and increase regulatory coherence, but noted that significant obstacles, such as the Solvency II real estate solvency capital requirements and barriers to cross-border marketing under AIFMD, limit investment in real estate.

Neil Harris, Co-Chair of the INREV Global Standards Steering Committee explains the importance of setting common industry standards and language across the globe. He discusses the achievements made to date in identifying gaps and explains how they plan to move forward to close the gaps with key representatives from each region.

The result of the 2016 referendum raises many questions regarding the future relationships between the EU and UK and creates a number of challenges for INREV’s members.

In Cannes on the 15 March INREV presented the highlights of the recent INREV Secondary Trading & Liquidity Study and provided with the insights and benefits of secondary trading in European non-listed real estate funds.