Decarbonisation and the transition of the built environment to net zero are seldom far from the minds of real estate market participants. Encouragingly, the real estate industry in Europe is fully committed to playing its part in achieving this critical transition.

Greater clarity from central regulators and policymakers, however, particularly around the fine details of the EU’s Sustainable Finance Disclosure Regulation (SFDR), will add substantially to the industry’s ongoing efforts.

One of the principal objectives of SFDR is to direct capital to more sustainable investment through greater transparency. But, with its focus on short-term static investment, SFDR overlooked the requirements of our industry from the outset. Left as it was originally drafted, the regulation presents unfortunate consequences that might even destabilise the clear ambitions of the real estate industry to deliver against its commitment to meet the net-zero targets set by the Paris Agreemen