Real estate accounts for 3 percent of total financial capital; however, as it stands, the industry accounts for a substantial 39 percent of total carbon emissions. As a result, regulation supporting a net-zero built environ­ment has the capacity to greatly accelerate decar­bonisation, not merely of real estate investment, but of the economy and society as a whole.

The EU Action Plan on Sustainable Finance, encapsulated within the Sustainable Finance Dis­ closure Regulation (SFDR), aims to redirect capital towards sustainable investment through the introduc­tion of common reporting and disclosure standards.

Promoting transparency on sustainability issues across the financial markets, it cannot be disputed that SFDR represents a major oppor­tunity to effect meaningful change. However, The European Securities and Markets Authority (ESMA) has noted that the framework is designed to capture a snapshot of static investments, which can easily be traded. The nature of rea