More and more real estate funds are reporting on environmental, social and governance (ESG) factors in their annual reports, because investors consider the non-financial performance of these funds to be important. To map this development, BDO has analysed the ESG reporting by listed real estate companies in their FY2022 annual reports.

The analysis shows that the funds that stand out positively are transparent about the ESG standards they apply, open about their data collection processes, obtain limited assurance from an auditor about their reporting and make their funding sustainable through green bonds.

Focus still on the climate theme

In today’s rapidly changing world, ESG reporting has become an essential part of corporate transparency and responsible business practice. Sustainability reporting will become even more significant due to the approaching Corporate Sustainability Reporting Directive (CSRD). Our analysis provides valuable insights on the most prominent themes mentioned in ESG reports, on which reporting under the CSRD will be mandatory. Climate change, an urgent global concern, is generally the central theme in these reports. Companies emphasise their commitment to climate change adaptation, mitigation strategies and energy saving. At the same time, real estate companies also prioritise their own staff, recognising that their employees’ well-being is crucial for sustainable success. They cover important aspects such as working conditions, ensuring safe and supportive workplaces, and promoting equal treatment and opportunities for all employees.