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ESG factors bring ‘a fundamental change’ to the valuation process

Paul McNeive


Most of our building stock is not to the highest new standards and there will be ‘stranded assets’

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Sustainability has been a fast-growing factor in the property market for a decade and the issue has now been expanded and formalised with the addition of the term “Environmental, Social and Governance” (ESG) as criteria which valuers must take into account . The Red Book, which is the bible of standards for surveyors worldwide, has been revised, and from this week forward, valuers must take account of sustainability and ESG factors when inspecting buildings, gathering information, and reporting to clients.

This change potentially has a big impact on values, according to Johanna Gill, Deputy Head of Valuation and Advisory at Cushman & Wakefield and a member of the Valuation Professional Group at the Society of Chartered Surveyors Ireland. “It’s a fundamental change,” Ms Gill told me. “It’s not a surprise in that the green agenda has been becoming more prominent, and is now formally part of the valuation process.


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