JLL Support Financial and Asset Management through a Bespoke ESG Valuation Model

RICS (2023) | Asset Management, Risk Mitigation, Valuation

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The article details the work of a team of chartered surveyors and RICS registered valuers who were engaged by a multinational investor to assess how a decarbonization strategy would impact the value of their diverse real estate portfolio, spanning five European countries and comprising office, industrial, and residential assets. The investor's strategic objective was to align their asset management approach with net zero goals, while ensuring robust financial performance.

The project faced three key challenges: limited historical market data to support ESG-related value adjustments, the need to secure buy-in from a wide range of internal stakeholders, and the complexity of integrating ESG risks into a scalable valuation model. To address these challenges, we have developed sector-specific research reports and a provisional value thesis, which we have refined in close collaboration with our clients. Our sustainability consultants …