The real estate industry has made ambitious ESG commitments. Net-zero targets, sustainability-linked initiatives, and green building certifications all signal environmental conviction.
Yet ask investment professionals to quantify how environmental factors affect asset value, and challenges quickly surface. Despite growing regulatory disclosure requirements and rising investor expectations, the link between environmental capital expenditure and asset value remains stubbornly hard to pin down. That gap between commitment and quantification is one the industry can no longer afford to leave unaddressed.
In 2025, INREV assembled the Environmental Underwriting Focus Group, bringing together senior investors, managers, valuers and advisers, to examine the issue more closely. The aim was to develop a more consistent, evidence-based approach to evaluating environmental capex and its impact on value, one that could be applied and compared across individual assets and portfolio
