The NCREIF PREA Reporting Standards has released “ESG Principles of Reporting for Private Real Estate” — a collection of best practices for reporting the incorporation of environmental, social and governance (ESG) factors, as well as diversity, equity and inclusion (DEI), for private real estate investment managers.

The Reporting Standards stressed that the Principles should be considered best practices, not prescriptive requirements. The Principles are divided into firm-level topics for due diligence questionnaires and vehicle-level topics for formation documents and ongoing reporting to investors. These new principles are expected to complement existing reporting structures and provide a framework for approaching the issues — the goal is to fill a void, not repeat what other organizations are doing.

“This is just the beginning,” noted Marybeth Kronenwetter, director, Reporting Standards at NCREIF.

In the coming months, a key performance indicator (