INREV has launched a new research paper, examining the implications of SFDR for the non-listed real estate investment industry. The paper sheds light on the challenges of complying with SFDR and how it may distort investment needed for real carbon reduction.
Below are the key takeaways and themes from the paper:
SFDR's ambitions to direct capital towards more sustainable investment through increasing transparency are welcomed by real estate FMPs and FMAs and viewed as a push in the right direction to accelerate decarbonization;
Many real estate FMPs and FMAs with a long track record and commitment to a sustainability agendas for real estate, report that complying with SFDR is cumbersome because it is designed for static, shorter-term investments rather than dynamic, longer-term investments such as real estate;
SFDR does not easily accommodate strategies that transition existing assets from inefficient to efficient, which may have significant uni