The Royal Institution of Chartered Surveyors (RICS) has released a new edition of its Global Red Book, which features several crucial updates on AI use in valuation and the mandatory implementation of ESG principles.
First published in 1976, the Red Book is used by valuation professionals across the globe, both within and outside the institution's membership.
The latest version aligns with other relevant global standards, such as the latest International Valuation Standards (IVS), published by the International Valuation Standards Council (IVSC), of which RICS is a member. In addition, it incorporates new content on modelling, methods and risk assessment as well as practice and process changes regarding rapidly developing technologies such as AI, and, for the first time, a mandatory ESG element.
“The introduction of mandatory ESG principles in the latest RICS Global Red Book represents a critical leap forward for the valuation profession as it reflects the broader movement of embedding sustainability into core industry practices. For organizations and professionals within the RICS framework, this is an opportunity to lead in reshaping valuation processes that directly impact global economic stability and environmental stewardship,” said Anna Orcsik, Head of CEE at RICS.
The new edition was published on December 2, 2024, and becomes effective for RICS-accredited professionals on January 31, 2025.
RICS President, Tina Paillet FRICS, added: "Technology is developing rapidly, and the new update reflects the swift pace of change in the industry, particularly in regard to the increasing use of AI. (…) The Red Book is an essential document for all professionals and stakeholders with any sort of connection to valuation and I implore everyone to read it, action it, and engage with RICS."
RICS is running a free explanatory webinar for the new Global Red Book at 10 am (GMT), December 11, on its Online Academy for both members and non-members.
