Real Estate, Hospitality & Construction
Communicating to investors: efficiency of real estate assets
Did you know:
Buildings account for 43% of the UK’s carbon emissions? Property companies are therefore a major source of carbon emissions – but they are also a major part of the solution.
Building regulations now require buildings to be much more energy efficient. Indeed, by April 2018 it will be illegal for a commercial property company to rent out a building which has an energy efficiency rating lower than E.
Studies suggest that more energy-efficient buildings generate higher rent, lower occupancy levels and return a higher capital value when sold.
There is therefore a commercial, regulatory and moral imperative for property companies to improve the energy efficiency of their assets and communicate this to investors.
Integrated reporting is a significant evolution in corporate reporting and an ideal mechanism to communicate this because it focuses on explaining how an organisation creates sustainable value.
It provides a broader perspective on ‘value’ than statutory financial statements alone, connecting the different ‘capital’ sources an organisation draws on to create a sustainable commercial return.
An Integrated Report for a property company would draw a meaningful connection between its sustainability strategy and business performance, providing investors and other stakeholders with material and concise information about how it creates sustainable value.
Our global network of sustainability practitioners bring deep experience in sustainability and corporate reporting, and experience helping clients embed sustainability into their core business strategies.
+44 (0)20 7951 4630
Head of Real Estate,
Hospitality and Construction
(RHC), and RHC Tax Leader,
+44 (0)20 7951 5947
Head of RHC Assurance,
+44 (0)20 7951 1894
Head of RHC Transaction
+44 (0)20 7951 7151
Head of RHC Advisory,
+44 (0)20 7951 3279