As sustainability becomes more deeply embedded in real estate investment, the industry's focus is evolving from disclosure towards decision-making. In our latest IQ blog, Steve Goossens, Chair of the INREV Sustainability Committee and Senior Portfolio Manager at APG, discusses how ESG data is increasingly being used to inform portfolio construction, risk management and capital allocation, rather than simply meet reporting requirements.
The article explores several important developments:
- The shift from backward-looking ESG reporting towards forward-looking insights that support investment decisions.
- The growing use of more frequent sustainability data collection to identify risks and support proactive portfolio management.
- The role of frameworks such as the INREV ESG SDDS in creating a common language for sustainability data while maintaining flexibility for investors' needs.
Looking ahead, Steve argues that ESG data should become a strategic tool for value creation, enabling investors to assess transition risk, physical risk and portfolio alignment using regularly updated information. Achieving this vision will require continued progress in standardisation, interoperability and industry-wide adoption.
Read the full IQ blog to explore how sustainability data is evolving from a reporting requirement into a core investment management tool.