The recent weakening of the CSRD may have some real estate developers cheering the compliance rollbacks, but the consequences could be complicated. A new research survey examines how EU real estate firms are navigating changes to the CSRD, and what that could mean for upcoming SFDR revisions.
Relieving real estate projects from measuring and disclosing climate impacts doesn’t mean that investors will stop assessing potential assets’ environmental performance; it will just make the task more difficult. Without CSRD data to demonstrate environmental performance to investors, developers may find it more difficult to secure new funding.
Banks and investment firms also rely on investees’ CSRD reporting to identify high-performing assets and meet SFDR mandates. There’s little indication that policy-makers will weaken SFDR reporting rules, but how can financiers evaluate assets for a “sustainable” real estate fund? How will environmentally-focused investors evaluate a building’s long-term climate performance? These are just a few of the questions the survey hopes to clarify.
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